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Exhibit 4.12  

 
 

LOCAL MATTERS, INC.
  
  REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is entered
into as of the 14th day of October, 2005, by and among LOCAL MATTERS, INC., a Delaware corporation (the
"Company") and the SHAREHOLDERS LISTED ON EXHIBIT A hereto, referred to hereinafter as the
"Shareholders" and each individually as a "Shareholder." Capitalized terms used herein but not otherwise
defined shall have the meanings ascribed to such terms in that certain Stock Purchase Agreement, dated October 14, 2005 (the "Stock Purchase
Agreement"), among the Company and the Shareholders. 

RECITALS

        WHEREAS, the Shareholders may receive shares of the Company's Common Stock or Series 3 Preferred Stock (the
"Series 3 Stock") as consideration for the shares of capital stock of the Target Companies pursuant to Purchase Agreement; 

        WHEREAS, the obligations in the Purchase Agreement are conditioned upon the execution and delivery of this Agreement; and 

        WHEREAS, as partial inducement to the Shareholders to transfer the Target Shares to the Company, the parties desire to enter into this
Agreement in order to grant registration rights to the Shareholders as set forth below. 

        NOW, THEREFORE, in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows: 

SECTION 1.  GENERAL.  

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

        (a)   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

         (b)   "Form S-3" means such form under the Securities Act as in effect on the date
hereof or any successor or similar registration form under the Securities Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the SEC. 

        (c)   "Holder" means any person owning of record Registrable Securities that have not been
sold to the
public or any assignee of record of such Registrable Securities in accordance with Section 2.6 hereof. 

         (d)   "Initial Offering" means the Company's first firm commitment underwritten public
offering of its
Common Stock registered under the Securities Act. 

        (e)   "Register," "registered," and
"registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement or document. 

         (f)    "Registrable Securities" means (a) Common Stock of the Company issuable
or issued upon
conversion of the Notes or payment of the Contingent Consideration, (b) Common Stock of the Company issuable or issued upon conversion of shares of Series 3 Stock issued or issuable upon
conversion of the Notes or payment of the Contingent Consideration, and (c) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, such above-described securities. Notwithstanding the foregoing, Registrable
Securities shall not include any securities (i) sold by a person to the public either 

 

pursuant
to a registration statement or Rule 144, (ii) sold in a private transaction in which the transferor's rights under Section 2 of this Agreement are not assigned or
(iii) held by a Holder (together with its affiliates) if the Company has completed its Initial Offering and all Registrable Securities held by such Holder (together with the Registrable
Securities held by such Holder's affiliates with which its sales of Registrable Securities would be required to be aggregated under Rule 144) may be sold pursuant to Rule 144 during any
ninety (90) day period. 

        (g)   "SEC" or "Commission" means
the Securities and
Exchange Commission. 

         (h)   "Securities Act" shall mean the Securities Act of 1933, as amended. 

SECTION 2.  REGISTRATION; RESTRICTIONS ON TRANSFER.  

        2.1   Restrictions on Transfer.  

         (a)   Each Shareholder agrees not to make any disposition of all or any portion of Registrable Securities unless and until:

         (i)    there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition
is made in
accordance with such registration statement; or 

        (ii)   (A) the transferee has agreed in writing to be bound by the terms of this Agreement, (B) such Holder shall have notified the Company
of
the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and (C) if reasonably requested by the
Company, such Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such shares under the
Securities Act. It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144, except in unusual circumstances. After its Initial Offering, the
Company will not require any transferee pursuant to Rule 144 to be bound by the terms of this Agreement if the shares so transferred do not remain Registrable Securities hereunder following
such transfer. 

         (b)   Notwithstanding the provisions of subsection (a) above, no such restriction shall apply to a transfer by a Holder that is an
individual
transferring to the Holder's family member or trust for the benefit of an individual Holder; provided that in each case the transferee will agree in
writing to be subject to the terms of this Agreement to the same extent as if he were an original Holder hereunder. 

        (c)   Each certificate representing Shares or Registrable Securities shall be stamped or otherwise imprinted with legends substantially similar
to the
following (in addition to any legend required under applicable state securities laws): 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL
THAT SUCH REGISTRATION IS NOT REQUIRED. 

THE
SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN REGISTRATION RIGHTS AGREEMENT BY AND BETWEEN THE
STOCKHOLDER AND THE 

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COMPANY.
COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY. 

        (d)   The Company shall be obligated to reissue promptly unlegended certificates at the request of any Holder thereof if the Company has
completed its
Initial Offering and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) reasonably acceptable to the Company to the effect that the securities proposed
to be disposed of may lawfully be so disposed of without registration, qualification and legend, provided that the second legend listed above shall be
removed only at such time as the Holder of such certificate is no longer subject to any restrictions hereunder. 

        (e)   Any legend endorsed on an instrument pursuant to applicable state securities laws and the stop-transfer instructions with respect to
such securities shall be removed upon receipt by the Company of either (i) an order of the appropriate blue sky authority authorizing such removal or (ii) an opinion of counsel (which
counsel may be counsel to the Company) reasonably acceptable to the Company to the effect such legend and stop-transfer instructions may be removed in accordance with applicable law. 

         2.2   Form S-3 Registration.    In case the Company shall receive from any Holder or Holders of Registrable Securities
a
written request or requests (the "Request Notice") that the Company effect a registration on Form S-3 with respect to all or a part
of the Registrable Securities owned by such Holder or Holders, the Company will:

         (a)   no later than five (5) days following the date of the Request Notice, give written notice of the proposed registration, and any
related
qualification or compliance, to all other Holders of Registrable Securities; and 

         (b)   no later than thirty (30) days following the date of the Request Notice, effect such registration and all such qualifications and
compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder's or Holders' Registrable Securities as are specified in the
Request Notice, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within fifteen
(15) days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance pursuant to this Section 2.2:

         (i)    if Form S-3 is not available for such offering by the Holders; or 

        (ii)   if the Company has previously effected three (3) such registrations; or 

         (iii) if the Company shall furnish to the Holders a certificate signed by the Chairman of the Board of Directors of the Company stating that in the
good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at
such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after
receipt of the request of the Holder or Holders under this Section 2.4; provided that such right to delay a request shall be exercised by the
Company not more than once in any twelve (12) month period; or 

         (iv)  in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of
process in effecting such registration, qualification or compliance. 

         (c)   Subject to the foregoing, the Company shall file as provided in this Agreement a Form S-3 registration statement covering the
Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the requests of the Holders. All 

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registration
expenses incurred in connection with registrations requested pursuant to this Section 2.2 shall be paid by the Company excluding brokerage fees and commissions, if any. 

         2.3   Obligations of the Company.    Whenever required to effect the registration pursuant to Section 2.2 above, the
Company shall, as
expeditiously as reasonably possible:

         (a)   prepare and file with the SEC no later than thirty (30) days following the date of the Request Notice a registration statement with
respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement effective for up to sixty (60) days or, if earlier, until the Holder or Holders have completed the distribution related
thereto; provided, however, that at any time, upon written notice to the participating Holders and for a period not to exceed thirty (30) days
thereafter (the "Suspension Period"), the Company may delay the filing or effectiveness of any registration statement or suspend the use or
effectiveness of any registration statement (and the Initiating Holders hereby agree not to offer or sell any Registrable Securities pursuant to such registration statement during the Suspension
Period) if the Company reasonably believes that there is or may be in existence material nonpublic information or events involving the Company, the failure of which to be disclosed in the prospectus
included in the registration statement could result in a Violation (as defined below). In the event that the Company shall exercise its right to delay or suspend the filing or effectiveness of a
registration hereunder, the applicable time period during which the registration statement is to remain effective shall be extended by a period of time equal to the duration of the Suspension Period.
The Company may extend the Suspension Period for an additional consecutive thirty (30) days with the consent of the holders of a majority of the Registrable Securities registered under the
applicable registration statement, which consent shall not be unreasonably withheld. If so directed by the Company, all Holders registering shares under such registration statement shall
(i) not offer to sell any Registrable Securities pursuant to the registration statement during the period in which the delay or suspension is in effect after receiving notice of such delay or
suspension; and (ii) use their best efforts to deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in such Holders' possession, of the prospectus
relating to such Registrable Securities current at the time of receipt of such notice. 

        (b)   Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with
such
registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for the period
set forth in subsection (a) above. 

         (c)   Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of
the
Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them. 

         (d)   Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue
Sky laws
of such jurisdictions as shall be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions. 

        (e)   In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and
customary
form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement. 

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        (f)    Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto
is required to
be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. The Company
will use its best efforts to amend or supplement such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 

         2.4   Furnishing Information.    It shall be a condition precedent to the obligations of the Company to take any action
pursuant to
Section 2.3 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such
securities as shall be reasonably required to effect the registration of their Registrable Securities. 

        2.5   Indemnification.    In the event any Registrable Securities are included in a registration statement under Sections
2.3:

         (a)   To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, members, officers and directors
of each
Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange
Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a "Violation") by the Company:
(i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement or incorporated reference therein, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make
the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any state securities law in connection with the offering covered by such registration statement; and the Company will reimburse each such
Holder, partner, member, officer, director, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 2.5(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld or delayed,
nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon
and in conformity with written information furnished expressly for use in connection with such registration by such Holder, partner, member, officer, director, underwriter or controlling person of
such Holder. 

         (b)   To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to
which such
registration qualifications or compliance is being effected, indemnify and hold harmless the Company, each of its directors, its officers and each person, if any, who controls the Company within the
meaning of the Securities Act, any underwriter and any other Holder selling securities under such registration statement or any of such other Holder's partners, directors or officers or any person who
controls such Holder, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such 

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director,
officer, controlling person, underwriter of the Company or other such Holder or partner, director, officer or controlling person of such other Holder may become subject under the Securities
Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any of the following
statements: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement or incorporated reference therein, including any preliminary
prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act (collectively, a "Holder
Violation"), in each case to the extent (and only to the extent) that such Holder Violation occurs in reliance upon and in conformity with written information furnished by such
Holder under an instrument duly executed by such Holder and stated to be specifically for use in connection with such registration; and each such Holder will reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer, controlling person, underwriter of the Company or other Holder or partner, officer, director or controlling person of such other
Holder in connection with investigating or defending any such loss, claim, damage, liability or action if it is judicially determined that there was such a Holder Violation;  provided, however, that the
indemnity agreement contained in this Section 2.5(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld or delayed; provided
further, that in no event shall any indemnity under this Section 2.5 exceed the net proceeds from the offering received by such Holder. 

        (c)   Promptly after receipt by an indemnified party under this Section 2.5 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.5, deliver to the indemnifying party a written
notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses thereof to be paid by the indemnifying party, if in the written opinion of legal counsel for such indemnified party representation
of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such
indemnifying party of any liability to the indemnified party under this Section 2.5 to the extent, and only to the extent, prejudicial to its ability to defend such action, but the omission so
to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.5. 

         (d)   If the indemnification provided for in this Section 2.5 is held by a court of competent jurisdiction to be unavailable to an
indemnified
party with respect to any losses, claims, damages or liabilities referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder, shall to the extent permitted by
applicable law contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the Violation(s) or Holder Violation(s) that resulted in such loss, claim, damage or
liability, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by a court of law by reference to,
among other things, whether the untrue or 

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alleged
untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided that in no event shall any
contribution by a Holder hereunder exceed the net proceeds from the offering received by such Holder. 

         (e)   The obligations of the Company and Holders under this Section 2.5 shall survive completion of any offering of Registrable Securities
in a
registration statement and, with respect to liability arising from an offering to which this Section 2.5 would apply that is covered by a registration filed before termination of this
Agreement, such termination. No indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim
or litigation. 

         2.6   Assignment of Registration Rights.    The rights to cause the Company to register Registrable Securities pursuant to
this
Section 2 may be assigned by a Holder to a transferee or assignee of Registrable Securities (for so long as such shares remain Registrable Securities) that (a) is a subsidiary, parent,
general partner, limited partner, retired partner, member or retired member, of a Holder that is a corporation, partnership or limited liability company, (b) is a Holder's family member or
trust for the benefit of or a corporation, partnership, limited partnership, limited liability company or other entity controlled by an individual Holder, or (c) acquires at least 30,000 shares
of Registrable Securities (as adjusted for stock splits and combinations); provided, however, (i) the transferor shall, within ten
(10) days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are
being assigned and (ii) such transferee shall agree to be subject to all restrictions set forth in this Agreement. 

         2.7   "Market Stand-Off" Agreement.    Each Holder hereby agrees that such
Holder
shall not sell, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock of
the Company held by such Holder (other than those included in the registration) for a period of time specified by the managing underwriter(s) (not to exceed 180 days) following the effective
date of the registration statement of the Company under the Securities Act filed in connection with the Initial Offering. Each Holder agrees to execute and deliver such other agreements as may be
reasonably requested by the Company or the managing underwriter(s) that are consistent with the Holder's obligations under this Section 2.7 or that are necessary to give further effect thereto.
The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said period. Each
Holder agrees that any transferee of any shares of Registrable Securities shall be bound by this Section 2.7. The underwriters of the Company's stock are intended third party beneficiaries of
this Section 2.7 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

SECTION 3. MISCELLANEOUS.  

         3.1   Governing Law.    This Agreement shall be governed by and construed under the laws of the State of Colorado in all
respects as such
laws are applied to agreements among Colorado residents entered into and to be performed entirely within Colorado, without reference to conflicts of laws or principles thereof. The parties agree that
any action brought by either party under or in relation to this Agreement, including without limitation to interpret or enforce any provision of this Agreement, shall be brought in, and each party
agrees to and does hereby submit to the jurisdiction and venue or, any state or federal court located in the County of Denver, Colorado. Each of the parties irrevocably waives the right to trial by
jury. 

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        3.2   Successors and Assigns.    Except as otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be
binding upon, the parties hereto and their respective successors, assigns, heirs, executors, and administrators and shall inure to the benefit of and be enforceable by each person who shall be a
Holder of Registrable Securities from time to time; provided, however, that prior to the receipt by the Company of adequate written notice of the
transfer of any Registrable Securities specifying the full name and address of the transferee, the Company may deem and treat the person listed as the holder of such shares in its records as the
absolute owner and holder of such shares for all purposes, including the payment of dividends or any redemption price. 

         3.3   Entire Agreement.    This Agreement and Schedule hereto, the Purchase Agreement and the other documents delivered
pursuant thereto
constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other in any manner by any oral or
written representations, warranties, covenants and agreements except as specifically set forth herein and therein. Each party expressly represents and warrants that it is not relying on any oral or
written representations, warranties, covenants or agreements outside of this Agreement. 

        3.4   Severability.    In the event one or more of the provisions of this Agreement should, for any reason, be held to be
invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein. 

         3.5   Amendment and Waiver.  

         (a)   Except as otherwise expressly provided, this Agreement may be amended or modified, and the obligations of the Company and the rights of
the
Holders under this Agreement may be waived, only upon the written consent of the Company and the holders of a majority of the then-outstanding Registrable Securities; provided, however,
that any such amendment that uniquely and adversely affects any Holder or Holders shall require thewritten consent of such Holder or Holders. 

         (b)   For the purposes of determining the identity of the Holders entitled to exercise any rights hereunder, the Company shall be entitled to
rely
solely on the list of record holders of its stock as maintained by or on behalf of the Company. 

        3.6   Delays or Omissions.    It is agreed that no delay or omission to exercise any right, power, or remedy accruing to any
party, upon any
breach, default or noncompliance by another party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach, default or
noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent, or approval of any kind or
character on any party's part of any breach, default or noncompliance under the Agreement or any waiver on such party's part of any provisions or conditions of this Agreement must be in writing and
shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not
alternative. 

         3.7   Notices.    All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:
(a) upon
personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business
day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the party to be notified at the address as set forth on the
signature pages hereof or the Schedule of Shareholders annexed hereto or at such other address or electronic mail address as such party may designate by ten (10) days advance written notice to
the other parties hereto. 

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        3.8   Attorneys' Fees.    In the event that any suit or action is instituted under or in relation to this Agreement,
including without
limitation to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of
such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation,
all fees, costs and expenses of appeals. 

        3.9   Titles and Subtitles.    The titles of the sections and subsections of this Agreement are for convenience of reference
only and are not
to be considered in construing this Agreement. 

         3.10 Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of
which
together shall constitute one instrument. 

        3.11 Termination.    This Agreement shall terminate and be of no further force or effect upon the date three (3) years following
the
Closing of the Initial Offering. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, the parties hereto have executed this REGISTRATION RIGHTS AGREEMENT as
of the date set forth in the first paragraph hereof. 

	 	 	COMPANY:
	

 	
 	
LOCAL MATTERS, INC.
	

 	
 	

By:	
 	

/s/  PERRY EVANS      

	 	 	 	 	Name:	Perry Evans
	 	 	 	 	Title:	President and Chief Executive Officer
	 	 	 	 	Address:	1221 Auraria Parkway

Denver, CO 80204
	

 	
 	
SHAREHOLDERS:
	

 	
 	

/s/  TYLER HOUSTON      
 Tyler Houston
	

 	
 	

/s/  SHANE BRINKERHOFF      
 Shane Brinkerhoff
	

 	
 	

/s/  DUSTIN MOORE      
 Dustin Moore
	

 	
 	

/s/  AARON BROMAGEM      
 Aaron Bromagem

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Exhibit 4.13  

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered
into as of October 19, 2006 by and between LOCAL MATTERS, INC., a Delaware corporation (the
"Company"), and SANDLER CAPITAL PARTNERS V, L.P., SANDLER CAPITAL PARTNERS V FTE, L.P., SANDLER CAPITAL V GERMANY, L.P., AND
KINGS ROAD INVESTMENTS LTD. (collectively, "Purchasers"). 

WITNESSETH:  

        WHEREAS, concurrent with the execution of this Agreement, the Purchasers shall receive from the Company one or
more warrants to purchase up to an aggregate of up to 3,260,897 shares of Common Stock of the Company (the "Warrants"); and 

        WHEREAS, the Company and the Purchasers wish to provide the Purchasers with registration rights and other rights and obligations, as set
forth more fully herein. 

        NOW, THEREFORE, in consideration of the premises and the mutual promises set forth in this Agreement, the parties agree as follows: 

1.     GENERAL.  

        "Affiliate" shall mean, with respect to any Person, any Person that, directly or indirectly, controls or is
controlled by or is under common control with such Person. As used in this definition, "control" shall mean possession, directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of securities or partnership interests, by contract or otherwise). 

        "Common Stock" shall mean the Common Stock, par value $0.001 per share, of the Company. 

        "Equity Securities" shall mean shares of Common Stock and any other securities of the Company issued in exchange for, upon conversion or
in substitution of, or otherwise in respect of such shares. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute and rules and regulations of the
SEC promulgated thereunder, all as the same shall be in effect at the time. 

        "Public Sale" shall mean any sale of Equity Securities to the public pursuant to an offering registered under the Securities Act, Exchange
Act, or pursuant to the provisions of Rule 144 (or any similar rule or rules then in effect) under the Securities Act. 

        "SEC" shall mean the U.S. Securities and Exchange Commission. 

        "Securities Act" shall mean the Securities Act of 1933, as amended, or any similar federal statute and rules and regulations of the SEC
promulgated thereunder, all as the same shall be in effect at the time. 

        "Transfer" shall mean any voluntary or involuntary, direct or indirect, sale, transfer, conveyance, assignment, gift, donation,
assignment, pledge, hypothecation, delivery or other disposition by a Shareholder of Equity Securities, but shall not include any redemption or repurchase of Equity Securities by the Company. 

        "Transferred" shall mean any change in ownership by means of a Transfer. 

        "Transfer Notice" shall have the meaning set forth in Section 4(b) hereof. 

 

2.     REGISTRATION RIGHTS.  

        2.1    Definitions.    As used herein, the following terms shall have
the following respective meanings: 

        "Holder" or "Holders" shall mean any of the Purchasers or any of their qualifying
transferees under Section 2.9 hereof who hold Registrable Securities. 

        "Register," "registered," and
"registration" each shall refer to a registration effected by preparing and filing a registration statement or statements or similar documents in
compliance with the Securities Act and the declaration or ordering of effectiveness of such registration statement or document by the SEC. 

        "Registrable Securities" means the shares of Common Stock issuable upon exercise of the Warrants and any other shares of Common Stock
issued in respect of such shares (because of stock splits, stock dividends, reclassifications, recapitalizations or similar events); provided, however,
that shares of Common Stock which are Registrable Securities shall cease to be Registrable Securities (i) upon their sale pursuant to a registration statement or Rule 144 under the
Securities Act, (ii) upon any sale in any manner to a person or entity which is not entitled to the rights under this Agreement, or (iii) at such time, following an initial public
offering of the Company's Common Stock, as such Registrable Securities become eligible for sale pursuant to Rule 144(k) under the Securities Act or another similar exemption under the
Securities Act. 

        "Requisite Period" shall mean, with respect to a firm commitment underwritten public offering, the period commencing on the effective date
of the registration statement and ending on the date each underwriter has completed the distribution of all securities purchased by it and, with respect to any other registration, the period
commencing on the effective date of the registration statement and ending on the earlier of (i) the date on which the sale of all Registrable Securities covered thereby is completed and
(ii) 180 days after such effective date. 

        2.2    Piggyback Registration.    If, at any time, the Company
proposes to register any of its securities under the Securities Act or the Exchange Act (other than in connection with an initial public offering of equity securities pursuant to an effective
registration statement on Form S-1 (or any similar or successor form) (an "Initial Offering") or on Forms S-8,
S-4 or comparable forms of registration statements) whether for its own account or in connection with a demand registration pursuant to the Investor Rights Agreement (as defined in below
in this Section 2.2), the Company will give written notice by registered mail, at least thirty (30) business days
prior to the filing of each such registration statement, to the Holders of the Registrable Securities of its intention to do so. If any Holder notifies the Company within twenty (20) days after
receipt of any such notice of its desire to include any Registrable Securities in such proposed registration statement, the Company shall afford such Holder of the Registrable Securities the
opportunity to have any such Registrable Securities registered under such registration statement. 

        Notwithstanding
the provisions of this Section 2.2, (i) the Company shall have the right any time after it shall have given written notice pursuant to this
Section 2.2 (irrespective of whether a written request for inclusion of any such securities shall have been made) to elect to postpone or not to file any such proposed registration statement,
or to withdraw the same after filing but prior to the effective date thereof and (ii) if the underwriter or underwriters, if any, of any such proposed public offering shall be of the reasonable
opinion that the total amount or kind of securities held by the Holders and any other persons or entities entitled to be included in such public offering would adversely affect the success of such
public offering, then the amount of securities to be offered for the accounts of Holders shall be reduced pro rata to the extent necessary to reduce the total amount of securities to be included in
such public offering to the amount reasonably recommended by the underwriter or underwriters thereof, whereupon the Company shall only be obligated to register such limited portion (which may be none)
of the Registrable Securities with respect to which such Holder has provided 

2

 

notice
pursuant to this Section 2.2. Any reduction made pursuant to this Section 2.2 shall be of the same proportion of Registrable Securities proposed to be included in the registration
as any reduction made pursuant to Section 2.3B of that certain Third Amended and Restated Investor Rights Agreement, dated October 14, 2005, as amended November 23, 2005, among
the Company and the Shareholders named therein (the "Investor Rights Agreement"). In no event shall the Company be required pursuant to this
Section 2.2 to reduce the amount of securities to be registered by it unless such registration is effected pursuant to Section 2.2 of the Investor Rights Agreement. Notwithstanding the
foregoing, the Company may withdraw any registration statement referred to in this Section 2.2 without thereby incurring any liability to the Holders. 

        2.3    S-3 Registration.    In the event that the Company
receives written requests from a Holder or Holders of Registrable Securities, calling upon the Company to effect a registration on Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by such holder or holders, the Company will: 

        (a)   give written notice of the proposed registration within ten (10) days of notice thereof, and any related
qualification or compliance, to all other Holders; 

        (b)   as soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and
as would permit or facilitate the sale and distribution of all or such portion of such Holder's or Holders' Registrable Securities as are specified in such request, together with all or such portion
of the Registrable Securities of any other holder or holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice
from the Company; provided, however, that the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to this Section 2.3: (i) if the Company is not a registrant entitled to use Form S-3 for such an offering by such Holders;
(ii) if the Holders, together with the Holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public (net of any underwriters' discounts or commissions) of less than $1,000,000; (iii) if the Company shall furnish to the Holders a
certificate signed by the President of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be detrimental to the Company and its stockholders for
such Form S-3 registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement
for a period of not more than 120 days after receipt of the request of the Holder or Holders under this Section 2.3 (provided, however,
that the Company shall not utilize this right more than once in any twelve (12) month period); (iv) if the Company has already effected two (2) registrations on
Form S-3 for the Holders pursuant to this Section 2.3; or (v) if the Company would be required to qualify to do business or to execute a general consent to service of
process in effecting such registration, qualification or compliance; and 

        (c)   subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and
other securities so requested to be registered as soon as practicable after receipt of the request or requests of the holders. 

        2.4    "Market Stand-Off" Agreement.    

        (a)   Each Holder hereby agrees that such Holder shall not sell, transfer, make any short sale of, grant any option for the
purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock (or other securities) of the Company held by such Holder (other than those
included in the registration) during the 180-day period following the effective date of the Initial Offering (or such longer period, not to exceed 18 days after the expiration of
the 180-day period, as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711); provided, that all officers and directors of the Company
and holders of at least one percent (1%) of the Company's voting securities are bound 

3

 

by
and have entered into similar agreements. The obligations described in this Section 2.4 shall not apply to a registration relating solely to employee benefit plans on
Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or
similar forms that may be promulgated in the future. 

        (b)   Each Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the
managing underwriter(s) which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the shares of such Common Stock (or other securities) until the end of such period. The underwriters of the Company's stock are
intended third party beneficiaries of this Section 2.4 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

        2.5    Expenses of Registration.    All expenses incurred in
connection with any registration, qualification or compliance pursuant to Section 2, including without limitation, all registration, filing and qualification fees, printing expenses, fees and
disbursements of counsel for the Company and expenses of any special audits incidental to or required by such registration, shall be borne by the Company except as follows: 

        (a)   the Company shall not be required to pay fees or disbursements of legal counsel of the Holders other than (i) one
special counsel to represent all Holders to be selected by a majority of the Holders participating in the registration as set forth in Section 2.6(h) hereof and (ii) one special counsel
to Kings Road Investments Ltd (not to exceed $7,500); and (b) the Company shall not be required to pay any underwriter's fees, discounts or commissions relating to Registrable
Securities. 

        All
expenses of any registered offering not otherwise borne by the Company shall be borne pro rata among the Holders participating in such
offering (and the Company, if it is selling securities in such offering) on the basis of the number of shares registered. 

        2.6    Registration Procedures.    If and whenever the Company is
required by the provisions hereof to use its best efforts to effect the registration of any Registrable Securities under the Securities Act, the Company will, as expeditiously as possible: 

        (a)   prepare and file with the SEC a registration statement with respect to such securities and use its best efforts to cause
such registration statement to become effective not later than 120 days from the date of its filing and to remain effective for the Requisite Period; provided,
however, that at any time, upon written notice to the participating Holders and for a period not to exceed sixty (60) days thereafter (the
"Suspension Period"), the Company may delay the filing or effectiveness of any registration statement or suspend the use or effectiveness of any
registration statement (and the Holders hereby agree not to offer or sell any Registrable Securities pursuant to such registration statement during the Suspension Period) if the Company reasonably
believes that the Company may, in the absence of such delay or suspension hereunder, be required under state or federal securities laws to disclose any corporate development the disclosure of which
could reasonably be expected to have a material adverse effect upon the Company, its stockholders, a potentially significant transaction or event involving the Company, or any negotiations,
discussions, or proposals directly relating thereto. In the event that the Company shall exercise its right to delay or suspend the filing or effectiveness of a registration hereunder, the Requisite
Period during which the registration statement is to remain effective shall be extended by a period of time equal to the duration of the Suspension Period. The Company may extend the Suspension Period
for an additional consecutive sixty (60) days with the consent of the Holders of a majority of the Registrable Securities registered under the applicable registration statement, which consent
shall not be unreasonably withheld. If so directed by the Company, all Holders registering shares under such registration statement shall use their best efforts to deliver to the Company (at the 

4

 

Company's
expense) all copies, other than permanent file copies then in such Holder's possession, of the prospectus relating to such Registrable Securities current at the time of receipt of such
notice. 

        (b)   prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement effective for the Requisite Period and comply with the provisions of the Securities Act with respect to the disposition of
all Registrable Securities covered by such registration statement in accordance with the intended method of disposition set forth in such registration statement for such period; 

        (c)   furnish to each seller of Registrable Securities and to each underwriter such number of copies of the registration
statement and the prospectus included therein (including each preliminary prospectus) as such persons reasonably may request in order to facilitate the intended disposition of the Registrable
Securities covered by such registration statement; 

        (d)   use its best efforts (i) to register or qualify the Registrable Securities covered by such registration statement
under the securities or "blue sky" laws of such jurisdictions as the sellers of Registrable Securities or, in the case of an underwritten public offering, as the managing underwriter, reasonably shall
request, (ii) to prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements, and take such other actions, as may be necessary to
maintain such registration and qualification in effect at all times for the period of distribution contemplated thereby and (iii) to take such further action as may be necessary or advisable to
enable the disposition of the Registrable Securities in such jurisdictions; provided that the Company shall not for any such purpose be required to
qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction; 

        (e)   use its best efforts to list the Registrable Securities covered by such registration statement with any securities
exchange or automated quotation system on which the Common Stock of the Company is then listed or traded, or, if the Common Stock is not then listed on a national securities exchange, use its best
efforts to facilitate the reporting of the Common Stock on any securities exchange or automated quotation system; 

        (f)    immediately notify each seller of Registrable Securities and each underwriter under such registration statement, at any
time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event of which the Company has knowledge as a result of which the prospectus
contained in such registration statement, as then in effect, includes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing and promptly amend or supplement such registration statement to correct any such untrue statement or omission; 

        (g)   notify each seller of Registrable Securities of the issuance by the SEC of any stop order suspending the effectiveness of
the registration statement or the initiation of any proceedings for that purpose and make every reasonable effort to prevent the issuance of any stop order and, if any stop order is issued, to obtain
the lifting thereof at the earliest possible time; 

        (h)   permit a single firm or counsel designated as selling stockholders' counsel by the Holders of a majority in interest of
the Registrable Securities being registered to review the registration statement and all amendments and supplements thereto for a reasonable period of time prior to their filing and the Company shall
not file any document in a form to which such counsel reasonably objects; 

5

 

        (i)    if the offering is an underwritten offering, enter into a written agreement with the managing underwriter selected in the
manner herein provided in such form and containing such provisions as are usual and customary in the securities business for such an arrangement between such underwriter and companies of the Company's
size and investment stature, including, without limitation, customary indemnification and contribution provisions; 

        (j)    if the offering is an underwritten offering, at the request of any seller of Registrable Securities, use its best efforts
to furnish to such seller on the date that Registrable Securities are delivered to the underwriters for sale pursuant to such registration: (i) a copy of an opinion dated such date of counsel
representing the Company for the purposes of such registration, addressed to the underwriters, stating that such registration statement has become effective under the Securities Act and that
(A) to the best knowledge of such counsel, no stop order suspending the effectiveness thereof has been issued and no proceedings for that purpose have been instituted or are pending or are
contemplated under the Securities Act, (B) the registration statement, the related prospectus and each amendment or supplement thereof comply as to form in all material respects with the
requirements of the Securities Act (except that such counsel need not express any opinion as to financial statements or other financial or statistical information contained therein), and (C) to
such other effects as reasonably may be requested by counsel for the underwriters; and (ii) a copy of a letter dated such date from the independent public accountants retained by the Company,
addressed to the underwriters, stating that they are independent public accountants within the meaning of the Securities Act and that, in the opinion of such accountants, the financial statements of
the Company included in the registration statement or the prospectus, or any amendment or supplement thereof, comply as to form in all material respects with the applicable accounting requirements of
the Securities Act, and such letter shall additionally cover such other financial matters (including information as to the period ending no more than five (5) business days prior to the date of
such letter) with respect to such registration as such underwriters reasonably may request; 

        (k)   take all actions reasonably necessary to facilitate the timely preparation and delivery of certificates (not bearing any
legend restricting the sale or transfer of such securities) representing the Registrable Securities to be sold pursuant to the registration statement and to enable such certificates to be in such
denominations and registered in such names as the Shareholders or any underwriters may reasonably request; and 

        (l)    take all other reasonable actions necessary to expedite and facilitate the registration of the Registrable Securities
pursuant to the registration statement. 

        In
connection with each registration hereunder, the sellers of Registrable Securities will furnish to the Company in writing such information with respect to themselves and the proposed
distribution by them as reasonably shall be necessary in order to assure compliance with federal and applicable state securities laws. 

        2.7    Indemnification.    

        (a)   The Company will indemnify each Holder of the Registrable Securities covered by a registration, each of its officers,
directors, members, managers and partners, and each person controlling such Holder, with respect to which such registration, qualification or compliance has been effected pursuant to Section 2,
and each underwriter, if any, and each person who controls any underwriter of the Registrable Securities held by or issuable to such Holder from and against all claims, losses, expenses, damages and
liabilities (or actions in respect thereto) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other
document (including any related registration statement, notification or the like) incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or 

6

 

necessary
to make the statements therein not misleading, or any violation by the Company of any rule or regulation promulgated under the Securities Act or any state securities law applicable to the
Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and will reimburse each such Holder, each of its officers,
directors and partners, and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any reasonable legal and any other expenses incurred in
connection with investigating, defending or settling any such claim, loss, damage, liability or action; provided, however, that the indemnity agreement
contained in this Section 2.7 shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), and provided, further, that the Company will not be liable in any such case if and to the
extent that any such loss, claim, damage or liability arises out of or is based upon the Company's reliance on an untrue statement or alleged untrue statement or omission or alleged omission so made
in conformity with information furnished by any such Holder, any such underwriter or any such controlling person in writing specifically for use in such registration statement or prospectus and the
Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability (or action in respect thereof) arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission in such registration statement, which untrue statement or alleged untrue statement or omission or alleged omission is completely corrected in an
amendment or supplement to the registration statement and the undersigned indemnitees thereafter fail to deliver or cause to be delivered such registration statement as so amended or supplemented
prior to or concurrently with the sale of the Registrable Securities to the person asserting such loss, claim, damage or liability (or actions in respect thereof) or expense after the Company has
furnished the undersigned with the same. 

        (b)   Each Holder of Registrable Securities covered by a registration statement shall, severally and not jointly, indemnify the
Company, each of its directors and officers, each underwriter, if any, of the Company's securities covered by such a registration statement, each person who controls the Company within the meaning of
the Securities Act, and each other such Holder, each of its officers, directors and partners and each person controlling such Holder, against all claims, losses, expenses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular
or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, partners, persons or underwriters for any reasonable legal or any other expenses incurred in connection with investigating, defending or settling
any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is
made in such registration statement, prospectus, offering circular or other document in reliance upon
and in conformity with written information furnished to the Company by an instrument duly executed by such Holder specifically for use therein; provided,
however, the total amount for which any Holder shall be liable under this Section 2.7 shall not in any event exceed the aggregate proceeds received by such Holder from
the sale of Registrable Securities held by such Holder in such registration. 

        (c)   Each party entitled to indemnification under this Section 2.7 (the "Indemnified
Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting
therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the
Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such 

7

 

defense
at such party's expense; and, provided, further, that the failure of any Indemnified Party to give notice as provided herein, shall not relieve
the Indemnifying Party of its obligations hereunder, unless such failure resulted in actual detriment to the Indemnifying Party. No Indemnifying Party, in the defense of any such claim or litigation,
shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. 

        2.8    Information by Holder.    The Holder or Holders of Registrable
Securities included in any registration shall promptly furnish to the Company such information regarding such Holder or Holders as the Company may request in writing and as shall be required in
connection with any registration, qualification or compliance referred to herein. 

        2.9    Rule 144 Reporting.    With a view to making available
to Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees at all times after
90 days after the effective date of the first registration filed by the Company for an offering of its securities to the general public to: 

        (a)   Make and keep public information available, as those terms are understood and defined in SEC Rule 144; 

        (b)   Use its best efforts to file with the SEC in a timely manner all reports and other documents required of the Company
under the Securities Act and the Exchange Act; 

        (c)   So long as a Holder owns any Registrable Securities, to furnish to such Holder forthwith upon request a written statement
by the Company as to its compliance with the reporting requirements of
said Rule 144 (at any time after 90 days after the effective date of the first registration statement filed by the Company for an offering of its securities to the general public), and
of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the most recent annual or quarterly report of the Company, and such other
reports and documents so filed by the Company as the Holder may reasonably request in complying with any rule or regulation of the SEC allowing the Holder to sell any such securities without
registration. 

        2.10    Assignment of Registration Rights.    The rights to have the
Company register Registrable Securities pursuant to this Agreement may be assigned by the Holders to transferees or assignees of such securities; provided
that the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned; and provided, further, that the transferee or assignee of such rights assumes in writing
the obligations of such Holder under this Agreement. Each of the terms "Shareholder(s)" and "Holder(s)"
as used in this Agreement shall include such permitted assigns. 

        2.11    Termination of Registration Rights.    The registration rights
contained in Sections 2.2 and 2.3 shall terminate at the earlier of (i) five years after the closing of an Initial Offering or (ii) as to each Holder, at such time as such Holder is
eligible to sell all their Registrable Securities then held in any six-month period under SEC Rule 144. 

3.     RESTRICTIVE LEGEND REQUIREMENTS.  

        Each certificate representing any shares of Equity Securities shall, except as otherwise provided in this Section 4 or in Section 5 hereof, bear, a
legends substantially in the following form: 

THE
TRANSFER OR SALE OF THIS SECURITY IS SUBJECT TO THE TERMS OF A REGISTRATION RIGHTS AGREEMENT, DATED AS OF 

8

 

OCTOBER 19,
2006 A COPY OF WHICH IS ON FILE AT THE OFFICE OF THE COMPANY. 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE SOLD UNLESS IT HAS BEEN REGISTERED
UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 

A
certificate shall not bear the legend set forth in the second paragraph above (or any portion thereof) if, in the opinion of counsel reasonably satisfactory to the Company, the securities
represented thereby may be publicly sold without registration under the Securities Act and any applicable state securities laws. 

4.     MISCELLANEOUS.  

        (a)    Remedies.    The Shareholders, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, shall be entitled to specific performance of their rights under this Agreement. The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law
would be adequate. 

        (b)    Notices.    Any notice required or permitted by any provision of this Agreement shall
be given in writing, and shall be delivered either personally or by registered or certified mail, postage prepaid, addressed (i) in the case of the Company, to its principal office,
(ii) in the case of any Shareholder which or who is an original party to this Agreement, at the address of such Shareholder as set forth in the records of the Company or such other address for
such Shareholder as shall be designated in writing from time to time by such Shareholder; and (iii) in the case of any permitted transferee of a party to this Agreement or its transferee, to
such transferee at its address as designated in writing by such transferee to the Company from time to time. 

        (c)    Binding Effect.    This Agreement and each and every term, covenant and condition
thereof, including all restrictions herein contained upon the sale, transfer, assignment or other disposition or encumbrance of stock, shall be binding upon and inure to the benefit of the
transferees, legatees, donees, heirs, executors, administrators, personal representatives, successors and assigns of each of the parties. 

        (d)    Waivers; Amendments.    This Agreement may be amended and the observance of any term of
this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holders of a majority of the
Registrable Securities then outstanding. Any amendment or waiver affected in accordance with this Section 5 shall be binding upon each Shareholder, their permitted assigns and the Company. 

        (e)    Entire Agreement.    This instrument contains the entire understanding of the parties
with respect to the subject matter hereof and supersedes any prior agreements with respect to such subject matter. 

        (f)    Governing Law.    This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York. The parties hereby: (i) in any legal proceeding brought in connection with this Agreement or the transactions contemplated 

9

 

hereby,
irrevocably submit to the exclusive in personam jurisdiction of (A) any state or federal court of competent jurisdiction sitting in the
State of New York or (B) in the event that any party is a defendant in any legal proceeding in which it seeks to join the other as a third party defendant, then, any state or federal court in
which such proceeding has properly been brought, and consents to suit therein; and (ii) waive any objection they may now or hereafter have to the venue of such proceeding in any such court or
that such proceeding was brought in an inconvenient court. 

        (g)    No Assignment.    The Company shall not assign its rights or obligations under this
Agreement or any of the Loan Documents without the written consent of each Purchaser. Each Purchaser may assign some of all of its rights hereunder without the consent of the Company. 

        (h)    Severability.    The invalidity or unenforceability of any provision hereof shall not
in any way affect the validity or enforceability of any other provision. 

        (i)    Successors.    Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefits of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 

[SIGNATURE PAGE FOLLOWS]

10

 

        IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement effective as of the day and year first above
written. 

	 	 	LOCAL MATTERS, INC.
	

 	
 	
By:	

/s/  PERRY EVANS      
 Perry Evans

Chief Executive Officer

Sandler Capital Partners V, L.P.

Sandler Capital Partners V FTE, L.P.

Sandler Capital V Germany, L.P.

	

 	

 	

 	

 	

 
	By:	Sandler Investment Partners, L.P., General Partner
	

 	

 	

 	

 	

 
	 	By:	Sandler Capital Management,

General Partner
	

 	

 	

 	

 	

 
	 	 	By:	MJDM Corp., a General Partner

	

 	

 	

 	

 
	By:	/s/  MOIRA MITCHELL      
	 
	 	Name:	Moira Mitchell	 
	 	Title:	President	 

Kings Road Investments Ltd.

	

 	

 	

 	

 
	By:	/s/  BRANDON L. JONES      
	 
	 	Name:	Brandon L. Jones	 
	 	Title:	Authorized Signatory	 

11

QuickLinks

REGISTRATION RIGHTS AGREEMENT

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