Document:

Prioritized Listings Syndication Agreement

 Exhibit 10.44 
  
 PRIORITIZED LISTING SYNDICATION AGREEMENT 
  
 THIS PRIORITIZED LISTINGS SYNDICATION AGREEMENT (the “Agreement”), made as of October 19, 2001 (the
“Effective Date”), is made by and between LookSmart, Ltd., a Delaware corporation (“LookSmart”), and ELiberation, Inc., a California corporation (“ELiberation”) (each, a “Party,” or
collectively referred to as the “Parties”). 
  
 WHEREAS, ELiberation is the owner and provider of the cost-per-click search engine ePilot (the “ePilot Service”); 
  
 WHEREAS, LookSmart is the owner of an Internet search and directory service which includes the ability to search the Internet for relevant content by
typing a word or set of words into a search box (the “LookSmart Service”); 
  
 WHEREAS, the Parties desire to offer LookSmart Service as an integrated component of the ePilot Service; 
  
 NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Integration of LookSmart Service into EPilot Service. 
  
 1.1. Definitions. 
  
 “LookSmart Search Results” means a set of Prioritized
Listings provided by LookSmart from it proprietary database in response to an Internet user’s keyword search query on the EPilot Service. The LookSmart Search Results, when integrated into the EPilot Service, will appear on the EPilot Service
search results. 
  
 “ELiberation Affiliate” shall
mean the web site operators who distribute the EPilot Service or refer Internet users to the EPilot Service. 
  
 “ELiberation Affiliate Site” shall mean the default Internet home page or primary search functionality of ELiberation Affiliates.

  
 “ePilot Site” shall mean the default Internet
home page that is accessed by ELiberation subscribers or other Internet users and is located at www.ePilot.com. 
  
 “Destination Page” means the LookSmart customer’s web page accessed by clicking on a Prioritized Listing. 
  
 “Prioritized Listing” means a text-based site title,
description (maximum 255 characters, including spaces) and URL hyperlink (with tracking code) which is drawn from the LookSmart database of Prioritized Listings in response to a keyword search query. 
  

					
	 	 	1	 	CONFIDENTIAL

 “Referral” occurs when a bona fide Internet user (which excludes a robot, spider,
software, scraper or other mechanical, artificial or fraudulent means, or a person who is not seeking to use the Distribution Provider Service for a legitimate web search, e.g., has been paid or otherwise motivated to click) clicks through on a
Listings and accesses a Destination Page. The Listings Provider will identify Referrals by means of a “come from tag” in the Redirect URL hyperlink from Listings. For the avoidance of doubt, no Referral will occur unless the Destination
Page is fully served to the end-user’s browser. 
  
 2. Integration.
LookSmart will provide the LookSmart Search Results in response to a user’s keyword search query via a text-based data feed from the LookSmart database. The web pages containing LookSmart Search Results will be served and hosted by ELiberation,
provided that Eliberation shall serve the LookSmart Search Results in the order presented to Eliberation by LookSmart. The database and search algorithm (and any modifications thereto during the Term) used to generate the LookSmart Search Results
are proprietary to LookSmart and shall remain entirely within LookSmart’s control. All Prioritized Listings returned by LookSmart in response to a search query shall in all cases be included by Eliberation (a) in the order provided by LookSmart
and (b) in order of prominence relative to other Eliberation results based on the price that LookSmart is paying Eliberation for such queries. If a user’s search query does not result in any matches with search results from the LookSmart
database, then no LookSmart Search Results will be displayed on the search results page. LookSmart retains the right to modify the appearance and content of the LookSmart Search Results, as well as the underlying database and search algorithm, so
long as the modifications do not substantially change the location and layout described in this paragraph. Eliberation will complete integration and launch the Prioritized Listings no later than 14 days from the Effective Date of this Agreement,
provided that Eliberation is given all necessary resources and assistance by LookSmart within 5 days of such date. 
  
 3. Fees and Payment. LookSmart shall pay to Eliberation a percentage of the Gross Revenues generated by the Prioritized Listings Referrals from the EPilot Service.
The percentage of Gross Revenues from such ePilot Referrals shall be as follows: 
  

	 	•	0-100,000 Referrals/mo: 40% of Gross Revenue 

  

	 	•	100,000 + Referrals/mo: 45% of Gross Revenue 

  
 LookSmart will make such payments to ELiberation within 30 days after the end of calendar month. 
  
 4. Responsibility for LookSmart Search Results. LookSmart will be solely responsible for the generation and collection of revenue
from advertising or sponsorships on the LookSmart Search Results, and shall have sole responsibility for building the Prioritized Listings database and delivery of the LookSmart Search Results to Eliberation. LookSmart shall retain sole discretion
as to the location, type and content of advertising served on the LookSmart Search Results. 
  
 5. Reporting and User Data. 
  
 5.1. Monthly Traffic Reports. LookSmart shall provide to Eliberation monthly Referral summaries within 30 days following the end of each month detailing the number of 

  

					
	 	 	2	 	CONFIDENTIAL

 
Referrals and the revenue generated in the corresponding month (“Traffic Reports”). LookSmart’s determination of the number of
Referrals during any period shall be dispositive, unless there is a ten (10%) or greater discrepancy between the numbers reported by the parties, in which case the parties will promptly meet and work together in good faith to determine the cause of
the discrepancy. Once a discrepancy is identified, the Parties will make any necessary adjustments at the time of the next payment. 
  
 5.2. Books & Records; Auditing. During the Term of this Agreement and for a period of six months thereafter, the Parties will each maintain
accurate and complete books and records, including copies of all customer and other correspondence, relating to such Party’s performance of its obligations under this Agreement. Each Party will have the right, no more than twice in any twelve
(12) month period during the Term, to audit the other Party’s books and records which are relevant to the performance of its obligation under this Agreement upon ten (10) days prior written notice. Such audits will be performed by the auditing
Party’s representatives and will be conducted during normal business hours. Cost for such audits will be paid for by the auditing Party, unless the results of the audit show a shortfall in any payment owed or paid to Eliberation during the
period covered by the audit exceeding ten percent (10%), in which case the reasonable costs for the audit will be paid for by LookSmart. 
  
 5.3. Traffic Increases; Affiliate Distribution and Click Through Rate. Eliberation will provide LookSmart with 30 days prior written notice (or as
soon as possible if implementation is completed in less than 30 days) before launching the EPilot Service with new affiliates or traffic sources that will, in Eliberation’s reasonable opinion, increase the number of monthly Referrals by the
greater of (i) 30% or more over the then-current levels or (ii) increase the total monthly Referrals to over two million Referrals per month. Notice shall include the proposed time frame for launching the LookSmart Search Results and
Eliberation’s reasonable estimate of the likely increase in traffic on a monthly basis during the remainder of the Term. LookSmart will have no obligation to pay for Referrals for which a timely notice is not provided under this section.
LookSmart reserves the right, upon written notice to Eliberation, to refuse to allow distribution, sublicensing and syndication of the LookSmart Search Results on the particular affiliate or traffic source, in its sole discretion. If at any time
during the term of this Agreement, the average Click Through Rate (total Referrals to LookSmart divided by total queries) from the EPilot Service falls below 0.5% over a 14 day period, LookSmart will have the option to stop processing queries, and
the parties will promptly meet and work together in good faith to determine the cause of the low Click Through Rate. Upon LookSmart’s request, Eliberation will make commercially reasonable effort to offer reporting of affiliate traffic to allow
LookSmart to determine the performance of Prioritized Listings on the ePilot Service and ePilot Affiliate Sites. 
  
 6. Licenses. 
  
 6.1. Trademark License. During the term of this Agreement, each Party hereby grants to the other a non-exclusive, non-sub-licensable,
non-transferable, royalty-free right and license (the “Trademark License”) to use, display and reproduce such Party’s name, logo, trademarks and service marks (the “Trademarks”), solely for the purpose of
displaying and 

  

					
	 	 	3	 	CONFIDENTIAL

 
maintaining the LookSmart Service and EPilot Service as set forth in this Agreement. Each party acknowledges that the other party’s Trademark is and
will remain the exclusive property of such party and all use by each party of any Trademark will inure solely to the benefit of the owning party. Neither this Agreement nor any rights granted hereunder will operate as a transfer of any rights in or
to any Trademark, except for the limited rights expressly granted under this Agreement. No party will take any action that would undermine, conflict with, or be contrary to the intellectual property rights and interest of the other party, including,
without limitation, any use of, or attempt to register, any trademark, service mark or trade name substantially similar to any other party’s Trademark. 
  
 6.2. Database License. During the Term of this Agreement and subject to the terms hereof, LookSmart hereby grants to Eliberation a royalty free,
non-transferable, non-exclusive license, to (i) use, transmit, integrate, display and distribute the LookSmart Search Results (the “Content”) via the EPilot Service, to Internet end-users on the Eliberation Site, and (ii) subject to
Section 5.3 above, sublicense the Content to Eliberation Affiliate Sites, provided that such Eliberation Affiliates shall enter into a written contract with Eliberation by which the same license and trademark limitations and restrictions are placed
on Eliberation Affiliates as are placed hereby on Eliberation. Eliberation shall not allow any of the Content to be used, disclosed to or shared with any Eliberation related entities, except in accordance with the terms hereof. The rights granted by
LookSmart hereunder, including without limitation the license regarding the Content, are limited to the display and distribution as part of the EPilot Service directed primarily at Internet end-users in North America. LookSmart grants no license for
any such services directed primarily at Internet end-users outside North America. 
  
 6.3. Content and Data Ownership. LookSmart shall retain all right, title and interest in and to the LookSmart directory, database, algorithm and related technology, and all traffic data collected under this
Agreement. LookSmart will retain all right, title and interest in and to the intellectual property included in the Content (including, but not limited to, ownership of all copyrights and other intellectual property rights therein). Other than as
expressly set forth herein, Eliberation and its agents, officers, directors, employees, related parties, affiliates and representatives will not (i) sell, resell, rent, license, sublicense, transfer, assign or redistribute in any way the Content
except as may be expressly permitted herein; or (ii) attempt to reverse engineer, decompile, disassemble or otherwise attempt to derive any of LookSmart’s Content, algorithms, databases, computer programs, ontology, directory structure, patent,
copyrights, or other proprietary rights or LookSmart’s methodology related to the creation and compilation of LookSmart’s URLs from the Content or any other information furnished to Eliberation by LookSmart, or permit any third party to
attempt any of the foregoing. 
  
 7. Publicity. LookSmart and Eliberation
shall consult and confer with each other prior to making any public announcements concerning any of the transactions contemplated in this Agreement, and shall cooperate with each other to issue appropriate joint press releases in connection with the
execution of this Agreement. Neither LookSmart nor Eliberation shall issue a press release or make any other public statement concerning the existence or terms of this Agreement or any of the transactions contemplated in this Agreement without the
prior written approval of the other Party; provided that nothing in this Section shall prevent a Party from making a public disclosure which is, in the opinion of such Party’s counsel, required by 

  

					
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applicable law or the rules and regulations of the securities exchange on which such Party is listed; provided further that in such event, the
disclosing party provides the other party with written notice of the intended disclosure and uses reasonable efforts to obtain confidential treatment of the relevant portions of the Agreement. 
  
 8. Term. The term of this Agreement will commence on the Effective Date and, unless
earlier terminated, will continue for twelve (12) months from the Effective Date (the “Initial Term”). This Agreement will automatically be renewed for successive twelve-month periods (each, a “Renewal Term”) on the
same terms and conditions at the end of the Initial Term and at the end of each Renewal Term, unless either party provides at least 60 days prior notice of non-renewal of the then-current Term. The Initial Term and any Renewal Terms shall be known
collectively as the “Term”. During the Term, either Party may terminate the Agreement if (i) the other Party materially breaches the Agreement and the breach remains uncured for 30 days after receipt of written notice of the breach,
or (ii) the other Party becomes the subject of a voluntary petition in bankruptcy or any voluntary proceeding relating to insolvency, receivership, liquidation or composition for the benefit of creditors; (iii) the other party becomes the subject of
an involuntary petition in bankruptcy or any involuntary proceedings relating to insolvency, receivership, liquidation or composition for the benefit of creditors, if such petition or proceeding is not dismissed within 60 days of filing. After the
Initial Term, either party may terminate the Agreement on 60 days prior written notice at any time for any reason. 
  
 8.1. Events upon Termination. Upon termination of this Agreement, each Party shall cease to use the Content, intellectual property, trademarks,
services marks and/or trade names of the other Party, except as the Parties may agree in writing. 
  
 8.2. Survivability. Sections 7 through 12 hereof shall survive and continue beyond the term and termination of this Agreement for a period of one
year. 
  
 9. Confidentiality. 
  
 9.1. The Parties agree and shall cause their directly or indirectly
related parties, parent, sister or brother companies, affiliates, employees, contractors, agents and representatives, if any, to agree to hold all Confidential Information, as defined herein, in trust and confidence for a period of five (5) years
after the expiration of the Term. Except as may be authorized by the Party disclosing Confidential Information (the “Disclosing Party”) in writing, the Party receiving any Confidential Information (the “Receiving
Party”) shall not use such information for any purpose or disclose it to any person or entity, other than in the performance of the Receiving Party’s obligations and duties under this Agreement. 
  
 9.2. “Confidential Information” Shall mean any
information relating to or disclosed by either party in the course of the performance of this Agreement, which is or should be reasonably understood to be confidential or proprietary, including but not limited to, the LookSmart database, search
technology, algorithms, directory organization and structure, technology, material terms of the Agreement, technical processes, source code, product designs, sales, cost and other unpublished financial information, product and business plans,
projections, and marketing data. Confidential Information shall not include, and the Receiving Party will not be 

  

					
	 	 	5	 	CONFIDENTIAL

 
liable for disclosure of, any information received by the Receiving Party under this Agreement if the information: (a) is generally available to or known to
the public through no wrongful act of the Receiving Party; (b) was previously known by the Receiving Party through no wrongful act of the Receiving Party; (c) was disclosed to the Receiving Party by a third party under no obligation of
confidentiality to the Disclosing Party; or (d) is lawfully required to be disclosed to any governmental agency or is otherwise required to be disclosed by law, provided that the Receiving Party will first have provided the Disclosing Party
with prompt written notice of such required disclosure and will take reasonable steps to allow the Disclosing Party to seek a protective order with respect to the confidentiality of the information required to be disclosed. 
  
 10. Representations and Warranties. 
  
 10.1. By LookSmart. LookSmart hereby represents and warrants as
follows: 
  
 (a) The content of the
LookSmart Search Results served by LookSmart, which includes all text, graphics, logos, trademarks, content or copyrighted material of LookSmart or any third party, but does not include any content, copyrighted material, photos, graphics, text or
other information accessed by clicking through the LookSmart Service onto a third party’s website (the “Service Content”), and the LookSmart Trademarks licensed to ELiberation for use hereunder, are owned or licensed by
LookSmart. 
  
 (b) LookSmart has the
authority and full corporate power to enter into this Agreement, and the execution, delivery and performance of this Agreement by LookSmart does not constitute or cause a breach of its charter, by-laws, any license or permit, or any other agreement
to which LookSmart is a party, 
  
 10.2. By ELiberation.
ELiberation hereby represents and warrants as follows: 
  
 (a) The content on the EPilot Service and the advertising and promotional material served by ELiberation on the EPilot Service, which includes all text, graphics, logos, trademarks, content or copyrighted
material of ELiberation or any third party displayed the EPilot Service, but does not include any content, copyrighted material, photos, graphics, text or other information accessed by clicking through the EPilot Service onto a third party’s
website (the “EPilot Service Content”), and the ELiberation Trademarks licensed to LookSmart for use hereunder, are owned by ELiberation or licensed to ELiberation. 
  
 (b) ELiberation has the authority and full corporate power to enter into this Agreement, and the
execution, delivery and performance of this Agreement by ELiberation does not constitute or cause a breach of its charter, by-laws, any license or permit, or any other agreement to which ELiberation is a party. 
  
 11. Indemnification. 
  
 11.1. Except as otherwise provided in this Agreement, subject to the conditions and limitations set forth below in
this Section 11, each Party to this Agreement (an “Indemnifying Party”) will defend, indemnify and hold the other Party, its parent, subsidiaries and affiliates, and 

  

					
	 	 	6	 	CONFIDENTIAL

 
its current and former officers, directors, employees, contractors, agents and representatives (collectively, the “Indemnified Party”)
harmless from and against any and all liabilities, losses, damages and costs, including reasonable attorneys’ fees (collectively, “Losses”), resulting from a third party claim connected with (a) any breach by an Indemnifying
Party of any covenant, representation or warranty contained herein, (b) the failure by an Indemnifying Party or any of its dealers, agents, employees or subcontractors to perform its duties or obligations hereunder, (c) the negligent, intentionally
wrongful or illegal acts or omissions of an Indemnifying Party or any of its dealers, agents, employees or subcontractors, or (d) any statement by an Indemnifying Party containing misleading or inaccurate references to the other Party, including the
other Party’s products or services, in any press release or other public statement for which prior written approval was not obtained. 
  
 11.2. Notice; Procedure. It will be an ongoing condition of the foregoing indemnity that the Indemnified Party give the Indemnifying Party prompt
written notice of any actual or threatened claim, and provide the Indemnifying Party with all reasonably accessible information regarding such claims in the Indemnified Party’s possession. The Indemnified Party will promptly notify the
Indemnifying Party of any claim, demand, suit or proceeding for which the Indemnifying Party has agreed to indemnify and hold the Indemnified Party harmless, and the Indemnifying Party, upon written request by the Indemnified Party, will promptly
defend and continue the defense of such claim, demand, suit or proceeding at the Indemnifying Party’s expense. If the Indemnifying Party fails to undertake and continue such defense, the Indemnified Party will have the right (but not the
obligation) to make and continue such defense as it considers appropriate, and the expenses and costs thereof, including but not limited to attorneys’ fees, out-of-pocket expenses and the costs of an appeal and bond thereof, together with the
amounts of any judgment rendered against the Indemnified Party, will be paid by the Indemnifying Party. The Indemnifying Party shall not enter into any settlement of an indemnified claim for which the Indemnified Party does not receive a general
release without the prior written approval of the Indemnified Party. Nothing herein will prevent the Indemnified Party from defending, if it so desires in its own discretion, any such claim, demand, suit or proceeding at its own expense through its
own counsel, notwithstanding that the defense thereof may have been undertaken by the Indemnifying Party. 
  
 11.3. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, EACH PARTY SPECIFICALLY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS,
INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OR ANY IMPLIED WARRANTY ARISING OUT OF COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE. 
  
 11.4. THE INDEMNIFICATION OBLIGATIONS SET FORTH HEREIN SHALL BE THE
SOLE AND EXCLUSIVE MEANS OF OBTAINING A REMEDY FROM A PARTY HERETO IN CONNECTION WITH THIS AGREEMENT, EXCEPT IN THE EVENT OF FRAUD, GROSS NEGLIGENCE OR CRIMINAL CONDUCT. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY TO THIS AGREEMENT BE LIABLE TO THE
OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS, REVENUE, DATA, OR 

  

					
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USE, INCURRED BY EITHER PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT OR TORT OR BASED ON A WARRANTY, EVEN IF THE OTHER PARTY OR ANY OTHER
PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE AMOUNT OF EITHER PARTY’S LIABILITY TO THE OTHER PARTY UNDER THIS AGREEMENT SHALL BE LIMITED TO THE AMOUNTS PAID UNDER THIS AGREEMENT BY LOOKSMART DURING THE 12 MONTHS PRECEDING THE
DATE OF THE INDEMNIFYING PARTY’S RECEIPT OF NOTICE OF CLAIM FOR LOSSES. 
  
 12. General Provisions. 
  
 12.1. Entire
Agreement. This Agreement sets forth the entire agreement between the parties and supersedes any and all prior written or oral proposals, agreements, and representations between them. This Agreement may be changed only by mutual agreement of the
parties in writing. No waiver by either Party of any breach of any term or condition of this Agreement will constitute a waiver of, or consent to, any subsequent breach of the same or any other term or condition of this Agreement. 
  
 12.2. Assignment. This Agreement will be binding on and will
inure to the benefit of the parties hereto and their respective successors and assigns. Neither this Agreement nor any right or obligation hereunder may be assigned or delegated by either Party without the express prior written consent of the other
Party or its successors, which consent shall not be unreasonably withheld, and any purported assignment in derogation of the foregoing shall be without any effect; provided that either party may freely assign this Agreement, with notice to
the other party, to a successor in interest or other entity acquiring said party through the sale of all or substantially all of said party’s assets, acquisition, merger or similar transaction, provided that the successor entity has agreed in
writing to assume all rights and obligations of said party hereunder. 
  
 12.3. Severability. Any term or provision of this Agreement held to be illegal or unenforceable shall, if possible, be interpreted so as to be construed as valid, but in any event the validity or enforceability of the
remainder hereof shall not be affected. 
  
 12.4. Notices.
Any notice or other communication required or permitted to be given under this Agreement shall be in writing and may be personally served, sent by a recognized overnight courier or by registered or certified United States, or Canadian mail, return
receipt requested, and shall be deemed to have been received when; (a) delivered in person; (b) one (1) business day after delivery to the office of such overnight courier service; or (c) three (3) business days after depositing the notice in the
United States or Canadian mail with postage prepaid and properly addressed to the other Party via certified or registered mail. Any such notices will be addressed as follows, or to such other address as may be specified hereafter in writing in
accordance with this sentence: 
  
 For LookSmart:

  
 LookSmart, Ltd. 
 625 Second Street 
 San Francisco, CA 94107

 Attn: Business Development 
  

					
	 	 	8	 	CONFIDENTIAL

 For ELiberation: 
  
 ELIBERATION.com Inc. 
  
 eLiberation Corporation 
 24422 Avenida de la
Carlota Suite 120 
 Laguna Hills, CA 92653 
  
 12.5. Choice of Law. This Agreement will be governed by and construed in accordance with the substantive laws of the State of California,
without regard to or application of choice-of-laws provisions, and the Parties agree to submit to the exclusive jurisdiction of and bring any actions in the state or federal courts located in the State of California, San Francisco County.

  
 12.6. Independent Contractors. The parties agree that
their relationship is that of independent contractors acting for their own account. Neither Party is authorized to make any commitment or representation, express or implied, on the other’s behalf unless authorized in writing. This Agreement
will not be interpreted or construed to create an association, joint venture or partnership or to impose any partnership obligation or liability upon either Party. 
  
 12.7. Headings. The section headings herein are provided for convenience only and have no substantive effect
on the construction of this Agreement, 
  
 12.8. Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which will be considered an original, but all of which together will constitute one and the same instrument. A facsimile of a signed copy of this Agreement
received from either Party may be relied upon as an original. 
  
 *    *    * 
  

					
	 	 	9	 	CONFIDENTIAL

 IN WITNESS WHEREOF, duly authorized representatives of the parties have executed this Agreement as of the date set forth
on the first page hereof. 
  

									
	LOOKSMART, LTD.	 	 	 	ELIBERATION INC.
					
	By:	 	/s/    JAMES H KAUFMAN        	 	 	 	By:	 	/s/    DAVID LOWE        
	 Name:
	 	James H Kaufman	 	 	 	 Name:
	 	DAVID LOWE
	 Title:
	 	SVP Business Development	 	 	 	 Title:
	 	BUSINESS DEVELOPMENT MANAGER

  

					
	 	 	10	 	CONFIDENTIALLease Addendum No. 1

 Exhibit 10.13 
  
 LEASE ADDENDUM NO. 1 
  
 THIS LEASE ADDENDUM NO. 1 (“Addendum No. 1”) is made and executed as of this 9th day of April, 2004, by and between 2795 E. COTTONWOOD
PARKWAY, L.C., a Utah limited liability company (“Landlord”), and SONIC INNOVATIONS, INC., a Delaware corporation (“Tenant”), as an addendum to that certain Lease Agreement between Landlord and Tenant dated the 28th day of April, 1999, (the “Lease”). Landlord and Tenant are sometimes collectively referred to below as the
“parties.” 
  
 RECITALS: 
  
 A. Pursuant to the Lease, Tenant leased from Landlord certain commercial
office space in a building (the “Building”) constructed on real property owned by Landlord located at 2795 East Cottonwood Parkway in Salt Lake County, Utah, as more particularly described in the Lease. 
  
 B. The parties desire to extend the Term of the Lease for an additional term
of five (5) years, reduce the Premises, and to otherwise modify and amend the Lease, subject to the terms and conditions of this Addendum No. 1. 
  
 NOW, THEREFORE, for and in consideration of the parties’ covenants and agreements contained herein and in the Lease, Landlord and Tenant covenant and
agree as follows: 
  
 AGREEMENT: 
  
 1. Recitals. The recitals to this Addendum No. 1 are an
integral part of the agreement and understanding of the parties, and are incorporated by reference in this Addendum No. 1. 
  
 2. Definitions. The definitions of certain of the capitalized terms used in this Addendum No. 1 not expressly defined in this
Addendum No. 1 will have the respective meanings set forth in the Glossary of Defined Terms attached as Exhibit A to the Lease or elsewhere in the Lease. 
  
 3. Revised Lease Expiration Date; Duration; Extended Term. Notwithstanding any provision in the Lease to the contrary, the parties
hereby stipulate and agree that the Term of the Lease will currently expire on August 31, 2004 (the “Lease Expiration Date”). As of the date of this Addendum No. 1, the Term of the Lease is hereby extended from September 1, 2004 (the
“Effective Date”) through August 31, 2009 (the “Revised Lease Expiration Date”) and, unless terminated earlier under the terms of the Lease or this Addendum No. 1, the Term of the Lease will expire on the Revised Lease Expiration
Date. The period of time beginning on the day following the Lease Expiration Date and continuing through the Revised Lease Expiration Date is referred to herein as the “Extended Term.” Upon the full execution and delivery of this Addendum
No. 1, the Lease Extension Addendum attached as Exhibit “F” to the Lease is deleted in its entirety and is of no further force or effect. 
  
 4. Reduced Premises. As of the Effective Date, the Premises (as described in Section A of Part I of the Lease) shall be reduced by
approximately 15,452 square feet of Rentable Area (13,437 usable square feet) (the “Relinquished Space”), so that the reduced Premises totals approximately 39,815 square feet of Rentable Area (35,965 usable square feet). The location of
the reduced Premises is shown on the Floor Plan attached as Exhibit “A” to this Addendum No. 1. and the description of the Premises contained in Section A of Part I of the Lease is amended accordingly. 
  
 5. Termination of the Lease With Respect to the Relinquished
Space. Subject to the satisfaction of the conditions set forth in this Section, as of the Effective Date, the Lease with respect to the Relinquished Space is cancelled and terminated and all right, title, and interest of Tenant in and
to the Relinquished Space is extinguished. Such termination shall not release or discharge Tenant from any obligations that have accrued under the Lease with respect to the Relinquished Space prior to the Effective Date. Following such termination,
Landlord and Tenant shall be relieved from any further liability under the Lease with respect to the Relinquished Space and the obligations of Landlord and Tenant to one another under the Lease with respect to the Relinquished Space shall

  

 1 

 be only those, which pursuant to the Lease or applicable law, expressly survive termination or expiration of the Lease.
Notwithstanding the above, the termination of the Lease with respect to the Relinquished Space shall only become effective upon satisfaction of the following conditions: 
  
 (i) Landlord’s receipt of all Base Rent and Additional Rent accrued under the Lease with respect to the
Relinquished Space through the Effective Date. 
  
 (ii) Tenant’s vacation of the Relinquished Space on or before the Effective Date, with the condition of the Relinquished Space on the Effective Date being that required by Sections 6.4 and 26 of the Lease, except for such maintenance
and repairs as may be necessary to address any matters shown on the Property Inspection Report & Check List, dated April 1, 2004, attached hereto as Exhibit “B”, which shall be Landlord’s obligation. 
  
 Provided Tenant satisfies its obligations under item (ii) above, Landlord
shall accept the Relinquished Space in its “AS-IS” condition, without any additional modification, improvement or refurbishing by Tenant. 
  
 6. Base Rent. As of the Effective Date, Section C of Part I of the Lease is hereby amended by the addition of the Extended Term and
the applicable Base Rent for the Extended Term, as follows: 
  
 C.
BASE RENT (Lease Provisions, Paragraph 5): 
  

					
	 Lease Period

	 	Monthly Base Rent

	 	 Annualized
 Base Rent

	 (9/1/04 – 8/31/05)
	 	$70,505.73	 	$846,068.75
	 (9/1/05 – 8/31/06)
	 	$72,496.48	 	$869,957.75
	 (9/1/06 – 8/31/07)
	 	$74,487.23	 	$893,846.75
	 (9/1/07 – 8/31/08)
	 	$76,477.98	 	$917,735.75
	 (9/1/08 – 8/31/09)
	 	$78,468.73	 	$941,624.75

  
 7. Extended
Term Base Year. As of the Effective Date, Section D.1 of Part I of the Lease is deleted and the following language substituted therefor: 
  
 D. ADDITIONAL RENT (Lease Provisions, Paragraph 5.3): 
  
 1. Base Year (Lease Provisions, Paragraph 5.3.1): The Base Year for the initial Term ending August 31, 2004 shall be the
Fiscal Year commencing January 1 through December 31, 1999. The Base Year for the Extended Term shall be the Fiscal Year commencing January 1 through December 31, 2004. 
  
 2. Tenant’s Share (Lease Provisions, Paragraph 5.3.1): Tenant’s Share for Tenant’s payment of Operating
Expenses during the initial Term means Forty-two and 26/100 percent (42.26%). Tenant’s Share for Tenant’s payment of Operating Expenses during the Extended Term means Thirty and 44/100 percent (30.44%). 
  
 8. Parking Charge. As of the Effective Date, Section F of Part
I of the Lease is deleted in its entirety and the following language substituted therefor: 
  
 F. PARKING CHARGE (Lease Provisions, Paragraph 5.5): 
  

 2 

 Tenant shall throughout the Lease Term, lease from Landlord up to a total of One Hundred Eighty (180)
automobile parking spaces, of which Tenant may elect to lease up to twenty (20) assigned and covered automobile parking spaces at a cost of Zero Dollars ($0.00) per month per space for the Lease Term. The remainder of the automobile parking spaces
leased by Tenant which Tenant does not elect to have assigned and covered shall be unassigned, uncovered parking spaces at a cost of Zero Dollars ($0.00) per month per space for the Lease Term. The above notwithstanding, Landlord shall, with 3-day
advance notice from Tenant, make arrangements to accommodate Tenant’s requirement for 30 additional stalls (in the covered parking area, if possible) once every 45-60 days for Tenant’s board meetings.  
  
 9. Early Termination Option. Section 3.1 of the Lease is hereby
deleted in its entirety and is of no further force or effect. 
  
 10. Security Deposit. As of the Effective Date, Section E of Part I of the Lease and Section 5.8 of the Lease are deleted. 
  
 11. Tenant Improvements. In connection with the Extended Term and following full execution and delivery of this Addendum No. 1, Landlord
shall provide Tenant with a one-time Extended Term tenant improvement allowance of Two Hundred Sixty-Nine Thousand Seven Hundred Thirty-Seven and 50/100 Dollars ($269,737.50) (the “Extended Term Improvement Allowance”). The Extended Term
Improvement Allowance shall be paid by Landlord as follows: (a) fifty percent (50%) of the Extended Term Improvement Allowance ($134,868.75) shall be paid to Tenant on the Effective Date; and (b) the remaining fifty percent (50%) of the Extended
Term Improvement Allowance (“Remaining Extended Term Improvement Allowance”) in the amount of $134,868.75 shall be made available throughout the Extended Term and shall be used to install certain office and other tenant improvements for
the Premises (the “Extended Term Improvements”). The Extended Term Improvements shall be of a quality and standard at least consistent with the improvements previously made by Landlord for the Premises and shall be constructed in
accordance with plans and specifications supplied by Tenant and approved in writing by Landlord (“Plans”). The cost of the design and construction of the Extended Term Improvements shall be applied against the Remaining Extended Term
Improvement Allowance. Tenant is not entitled to receive the unused portion of the Remaining Extended Term Improvement Allowance, if any. Other than the Tenant Improvements described above, Tenant hereby accepts the Premises for the Extension Term
in its current “AS-IS” condition, without any additional modification, improvement or refurbishing by Landlord. 
  
 12. Option to Extend. Tenant shall have the right, upon written notice to Landlord no more than three hundred (300) days nor less than one
hundred eighty (180) days prior to the end of the Extended Term (“Notice”), to extend the term of the Lease for up to two additional terms of five (5) years each (the “Additional Terms”); provided that Tenant is not in default of
any of the terms, covenants, and conditions of the Lease, and that no fact or circumstance exists that with the giving of notice or the passage of time, or both, would constitute such a default, either at the time of exercise of said extension right
or as of the effective date of extension. The Additional Term shall be under all of the same terms, covenants and conditions of the Lease, except that the Base Rent during the Additional Term shall be at the “Prevailing Rental Rate” which
shall mean the rental rate determined for the most comparable office space located in the Cottonwood Corporate Center Project as of the date of the Notice. Landlord and Tenant shall endeavor in good faith to determine the Prevailing Rental Rate
within thirty (30) calendar days after Landlord’s receipt of the Notice. If they cannot agree within thirty (30) calendar days, each shall appoint an appraiser who shall arrive at an estimate of the Prevailing Rental Rate within thirty (30)
calendar days. If such estimates are within five percent (5%) of each other, the average of the two shall be the new Base Rent for the Additional Term. If the estimates are more than five percent (5%) apart, each appraiser shall select a third
appraiser within five (5) calendar days or, if they fail to do so, Landlord shall select a third appraiser. The third appraiser shall prepare an estimate of the Prevailing Rental Rate as provided above within thirty (30) calendar days and the two
closest of the three estimates shall be averaged to determine the new Base Rent for the Additional Term. No later than one hundred twenty (120) calendar days prior to the expiration of the Extended Term, Landlord and Tenant shall execute an
amendment to the Lease stating the new Base Rent and expiration date of the Lease Term. If such an amendment is not fully executed for any reason as provided above, the Lease Term shall not be extended and the option granted hereunder shall
terminate. The extension rights of Tenant hereunder shall be personal to the originally named Tenant and may be exercised only by the originally named Tenant (and not any assignee, sublessee or other Transferee of Tenant’s interest in this
Lease) and only if the originally named Tenant occupies the majority 
  

 3 

 of the reduced Premises (as shown on Exhibit “A” to this Addendum) as of the date it exercises the option to
extend in accordance with the terms hereof. If Tenant fails to deliver a timely Notice, Tenant shall be considered to have elected not to exercise its option to extend. Any termination of the Lease during the initial Lease Term or Extended Term
shall terminate all extension rights granted hereunder. The extension rights of Tenant hereunder shall not be severable from the Lease, nor may such rights be assigned or otherwise conveyed in connection with any permitted assignment of the Lease.
During the Additional Term: (a) no abatement or other concession, if any, applicable to the initial Term or the Extended Term shall apply to the Additional Term; and (b) all leasehold improvements within the Premises shall be provided in their
then-existing condition (on an “as-is” basis) at the time the Additional Term commences. 
  
 13. Brokers. Landlord and Tenant each represent to the other that it has had no dealings with any real estate broker, agent or finder in
connection with the negotiation of this Addendum No. 1, except for NAI Utah, representing Tenant, and Gregory M. Gunn of Cottonwood Realty Services, representing Landlord, and that they know of no other real estate broker, agent or finder who is
entitled to a commission or finder’s fee in connection with this Addendum No. 1. Each party shall indemnify, protect, defend and hold harmless the other party against all claims, demands, losses, liabilities, lawsuits, judgments, and costs and
expenses (including reasonable attorney fees) for any leasing commission, finder’s fee, equivalent compensation alleged to be owing on account of the indemnifying parties’ dealings with any real estate broker, agent or finder other than
the Broker. The parties hereto acknowledge that Gregory M. Gunn, the project listing agent, has a financial interest in this and other buildings within the Cottonwood Corporate Center. The terms of this Section 13 will survive the expiration or
earlier termination of the Extended Term. Landlord shall pay the commission due the Broker pursuant to a separate agreement. 
  
 14. Other Provisions. 
  
 Tenant represents, warrants and agrees with Landlord as follows: 
  

(a) The Lease and this Addendum No. 1 embody the entire agreement now existing with Landlord related to the Premises; and 
  
 (b) The Lease, as modified hereby, is in full force and effect; and

  
 (c) The Lease, or any interest therein, has not been
previously transferred, subleased, assigned or pledged by Tenant; and 
  
 (d) Tenant is not aware of any default by Tenant or Landlord under either the Lease or this Addendum No. 1. 
  
 Landlord represents, warrants and agrees with Tenant as follows: 
  

(a) The Lease and this Addendum No. 1 embody the entire agreement now existing with Tenant related to the Premises; and 
  
 (b) The Lease, as modified hereby, is in full force and effect; and

  
 (c) Landlord is not aware of any default by Tenant or Landlord
under either the Lease or this Addendum No. 1. 
  
 General. Landlord
and Tenant acknowledge and confirm that, in connection with or by reason of the Lease extension contained in this Addendum No. 1 or otherwise, no tenant improvement or refurbishing allowance or other amount shall be payable by Landlord, except as
specifically provided in this Addendum No. 1. Landlord and Tenant also acknowledge and confirm that the Lease Commencement Date under the Lease was July 1, 1999, and the Revised Lease Expiration Date under the Lease, as amended hereby, is August 31,
2009, unless earlier terminated in accordance with the provisions of the Lease or this Addendum No. 1. Without limiting any provision respecting assignment or transfer as contained in the Lease, this Addendum No. 1 shall be binding upon and inure to
the benefit of the respective legal representatives, and any authorized successors and assigns of the parties. This Addendum 
  

 4 

 No. 1 shall be governed by, and construed in accordance with, the laws of the State of Utah. All notices and other
communications given pursuant to the Lease, as modified hereby, shall be made as provided in the Lease. Except as modified in this Addendum No. 1, the Lease is, and shall remain, in full force and effect. The Lease, as amended by this Addendum No.
1, shall not be further amended or modified except by a written instrument signed by the parties. In the event of any conflict between the terms of the Lease and this Addendum No. 1, this Addendum No. 1 shall control. The person executing this
Addendum No. 1 on behalf of Tenant warrants and represents that: (a) Tenant is a duly organized and existing legal entity, in good standing in the State of Utah, and qualified to do business in the State of Utah; (b) Tenant has full right and
authority to execute, deliver and perform this Addendum No. 1 and no approval or consent of any third party (other than the parties to this Addendum No. 1) is necessary to make such Addendum No. 1 effectual or otherwise valid and binding; and (c)
the person executing this Addendum No. 1 on behalf of Tenant was authorized to do so. The person executing this Addendum No. 1 on behalf of Landlord warrants and represents that: (a) Landlord is a duly organized and existing legal entity, in good
standing in the State of Utah; (b) Landlord has full right and authority to execute, deliver and perform this Addendum No. 1 and no approval or consent of any third party (other than the parties to this Addendum No. 1) is necessary to make this
Addendum No. 1 effectual or otherwise valid and binding; and (c) the person executing this Addendum No. 1 on behalf of Landlord was authorized to do so. This Addendum No. 1 shall not be effective or binding unless and until it is fully executed and
delivered by Landlord and Tenant. This Addendum No. 1 may be executed in multiple counterparts, each of which shall constitute an original and all of which taken together shall constitute one and the same instrument. 
  
 DATED and effective as of the date first written above. 
  

					
	 LANDLORD:

	
	2795 E. COTTONWOOD PARKWAY, L.C., a Utah limited liability company, by its following Manager
		
	 	 	COTTONWOOD PARTNERS MANAGEMENT, LTD., a Utah limited partnership, by its following general partner, COTNET MANAGEMENT, INC., a Utah corporation
			
	 	 	 By:
	 	  

	 	 	 	 	 JOHN L. WEST, President

		
	 	 	 TENANT:

		
	 	 	 SONIC INNOVATIONS, INC., a Delaware corporation

			
	 	 	 By:
	 	  

  
 EXHIBIT
“A” not filed 
 EXHIBIT “B” not filed 
  

 5

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