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Exhibit 10.4  

 
 

INFORMATION SERVICES EXTENDED, INC.
  
    2001 STOCK PLAN    
    

        1.     Introduction. 

        1.1.  Purposes of the Plan. The purposes of this Stock Plan are to attract and retain the best available personnel for
positions of substantial responsibility, to provide additional incentives to Employees, Directors and Consultants and to promote the success of the Company's business. Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights also may be granted under the Plan. 

        1.2.  Adoption and Term. The Plan was approved by the Board and shareholders on February 5, 2001 (the "Effective Date")
and shall remain in effect until terminated as provided in Section 14; provided, however, that no Option or Stock Purchase Right may be granted hereunder after the tenth anniversary of the
Effective Date. 

        2.     Definitions. As used herein, the following definitions shall apply: 

        2.1.  "Administrator" means the Board or a Committee appointed in accordance with Section 4 hereof. 

        2.2.  "Applicable Laws" means the requirements relating to the administration of stock option plans under U.S. state corporate
laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or
jurisdiction where Options or Stock Purchase Rights are granted under the Plan. 

        2.3.  "Board" means the Board of Directors of the Company. 

        2.4.  "Cause" means (i) failure of a Service Provider to comply with the terms of any employment, independent
contractor, confidentiality, non-competition or other agreement entered into by the Service Provider with the Company or any Parent or Subsidiary, (ii) failure or refusal of the
Service Provider to perform the lawful duties and responsibilities that the Company or any Parent or Subsidiary requires to be performed by him or failure to comply with any rules and regulations
promulgated by the Company from time to time, (iii) gross negligence or willful misconduct by the Service Provider in the performance of his duties, (iv) commission by the Service
Provider of an act of dishonesty affecting the Company or any Parent or Subsidiary, or the commission of an act constituting common law fraud or a felony, or (v) the Service Provider's
commission of an act which injures or could reasonably be expected to injure the reputation, business or business relationships of the Company or any Parent or Subsidiary. Notwithstanding the above,
if a Service Provider shall have entered into an employment, independent contractor, consulting, sales representative or other agreement with the Company or any Parent or Subsidiary which defines the
term Cause for purposes of such agreement, Cause for purposes of this Plan shall be defined pursuant to the definition in such agreement rather than the definition set forth above. The Administrator
shall determine whether Cause exists for purposes of this Plan and such determination shall be final, conclusive and binding. 

        2.5.  "Code" means the Internal Revenue Code of 1986, as amended. 

        2.6.  "Committee" means a committee of Directors appointed by the Board in accordance with Section 4 hereof. 

        2.7.  "Common Stock" means the Common Stock of the Company. 

 

        2.8.  "Company" means Information Services eXtended, Inc., a Delaware corporation. 

        2.9.  "Consultant" means any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory
services to such entity. 

        2.10.  "Covered Employee" means a "covered employee," as defined under Section162(m)(3) of the Code. 

        2.11.  "Director" means a member of the Board of Directors of the Company. 

        2.12.  "Disability" means a "permanent and total disability," as defined in Section 22(e)(3) of the Code. The
Administrator shall determine whether an individual has suffered a Disability and such determination shall be final, conclusive and binding. 

        2.13.  "Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of
the Company. 

        2.14.  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        2.15.  "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

        (a)   If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

        (b)   If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high
bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination; or 

        (c)   In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined by the Administrator whose determination shall be final,
conclusive and binding. 

        2.16.  "Incentive Stock Option" or "ISO" means an Option intended to qualify
as an incentive stock option under Section 422 of the Code. 

        2.17.  "Initial Public Offering" shall mean the closing of an underwritten public offering by the Company pursuant to a
registration statement filed and declared effective under the Securities Act covering the offer and sale of the Company's capital stock for the account of the Company. 

        2.18.  "Nonstatutory Stock Option" or "NSO" means an Option not intended to
qualify as an Incentive Stock Option. 

        2.19.  "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act
and the rules and regulations promulgated thereunder. 

        2.20.  "Option" means a stock option granted pursuant to the Plan. 

        2.21.  "Option Agreement" means a written or electronic agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 

        2.22.  "Optioned Stock" means the Common Stock subject to an Option or a Stock Purchase Right. 

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        2.23.  "Optionee" means the holder of an outstanding Option or Stock Purchase Right granted under the Plan. 

        2.24.  "Outside Director Committee" means the committee appointed by the Board pursuant to Section 20 of the Plan which
shall consist of not less than three (3) members of the Board, none of whom shall be an officer or other salaried employee of the Company, and each of whom shall qualify in all respects as a
"non-employee director" and an "outside director" as defined in Section 16(b) of the Exchange Act, and an "outside director" for purposes of Section 162(m) of the Code. 

        2.25.  "Parent" means a business organization whether now or hereafter existing, including any corporation, limited liability
company or partnership, determined to be a parent of the Company by the Administrator, in its sole and absolute discretion. 

        2.26.  "Plan" means this Information Services eXtended, Inc. 2001 Stock Plan, as it may be amended from time to time. 

        2.27.  "Public Company" means a "publicly held corporation", as defined in Section 162(m)(2) of the Code. 

        2.28.  "Restricted Stock" means shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under
Section 11 below. 

        2.29.  "Section 16(b)" means Section 16(b) of the Exchange Act. 

        2.30.  "Section 424 Parent" means a "parent corporation," whether now or hereafter existing, as defined under
Section 424(e) of the Code. 

        2.31.  "Section 424 Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined under
Section 424(f) of the Code. 

        2.32.  "Securities Act" means the Securities Act of 1933, as amended. 

        2.33.  "Service Provider" means an Employee, Director or Consultant. 

        2.34.  "Share" means a share of the Common Stock, as adjusted in accordance with Section 12 below. 

        2.35.  "Stock Purchase Right" means a right to purchase Common Stock pursuant to Section 11 below. 

        2.36.  "Subsidiary" means a business organization, whether now or hereafter existing, including any corporation, limited
liability company or partnership, determined to be a subsidiary of the Company by the Administrator, in its sole and absolute discretion. 

        2.37.  "Voluntary Resignation" means the voluntary termination of employment or service by a Service Provider. 

        3.     Stock Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of
Shares which may be subject to option and sold under the Plan shall be 14,000,000 Shares. The Shares may be authorized but unissued, or reacquired Common Stock. If an Option or Stock Purchase Right
expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan. However,
Shares that have actually been issued under the Plan, upon exercise of either an Option or Stock Purchase Right, shall not be returned to the Plan and shall not become available for future
distribution under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the
Plan. 

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        4.     Administration of the Plan. 

        4.1.  Administrator. The Plan shall be administered by the Board or a Committee appointed by the Board. 

        4.2.  Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee, the specific duties
delegated by the Board to such Committee, the Administrator shall have the authority in its discretion: 

        (a)   to
determine the Fair Market Value; 

        (b)   to
select the Service Providers to whom Options and Stock Purchase Rights may from time to time be granted hereunder; 

        (c)   to
determine the number of Shares to be covered by each such award granted hereunder; 

        (d)   to
approve forms of agreement for use under the Plan; 

        (e)   to
determine the terms and conditions, of any Option or Stock Purchase Right granted hereunder, including, but not limited to, the exercise price, the time or times when
Options or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Option or Stock Purchase Right or the Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

        (f)    to
determine the consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment pursuant to Section 8.2; 

        (g)   to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose
of qualifying for preferred tax treatment under foreign tax laws; and 

        (h)   to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan and to make factual determinations. 

        4.3.  Effect of Administrator's Decision. The Administrator's actions with respect to the Plan need not be uniform and may be
made selectively among Service Providers or Optionees, whether or not similarly situated. All decisions, determinations and interpretations of the Administrator shall be final, conclusive and binding
on all Service Providers and Optionees. No person serving as the Administrator shall be liable for any such action taken or decision made provided such action or decision was made in good faith. 

        4.4   Indemnification. In addition to such other rights of indemnification as they may have as directors or as members of the
Committee, the members of the Board (or the Committee, if applicable) shall be indemnified by the Company against the reasonable expenses, including attorneys' fees, actually and necessarily incurred
in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act
under or in connection with the Plan or any award granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the
Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding except in relation to matters as of which it shall be adjudged in such action, suit or proceeding that
such Board (or Committee, if applicable) member is liable for gross negligence or gross misconduct in the performance of his duties; provided that within thirty days after institution of any such
action, suit or proceeding such 

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Board
(or committee, if applicable) member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same. 

        5.     Eligibility. 

        5.1.  Nonstatutory
Stock Options and Stock Purchase Rights may be granted to Service Providers and Incentive Stock Options may be granted only to Employees all as the
Administrator may determine from time to time in its sole discretion. 

        5.2.  Each
Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. In the absence of a designation, Options
granted under the Plan shall be deemed to be Nonstatutory Stock Options. However, notwithstanding such designation, to the extent that Options intended to qualify as Incentive Stock Options fail to
qualify as such for any reason (including without limitation as a result of the acceleration of vesting of any Options), such Options shall be treated as Nonstatutory Stock Options automatically, on
the date on which such Options fail to qualify as Incentive Stock Options without further action by the Administrator. For purposes of this Section 5.2, Incentive Stock Options shall be taken
into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

        5.3.  Neither
the Plan nor any Option or Stock Purchase Right shall confer upon any Optionee any right with respect to continuing the Optionee's relationship as a Service
Provider with the Company, nor shall it interfere in any way with his or her right or the Company's right to terminate such relationship at any time, with or without cause. 

        6.     Incentive Stock Option Limitation. No Employee may be granted Incentive Stock Options under the Plan (or any other plan of
the Company) which would result in Shares with an aggregate Fair Market Value (measured on the date of grant) of more than $100,000 first becoming exercisable in any one calendar year. 

        7.     Term of Option. The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall be
no more than ten (10) years from the date of grant. In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company ("Ten Percent Shareholder"), the term of the Option shall be no more than five (5) years from the date of grant.
Notwithstanding the foregoing, the Administrator may in its sole discretion (but shall not be obligated to), at any time prior to the expiration or termination of any Option, extend the term of any
such Option for such additional period as the Administrator in its sole discretion may determine; provided,  however, that in no event shall the aggregate
option period with respect to any Option, including the initial term of such Option and any extensions
thereof, exceed ten (10) years (or five (5) years in the case of a Ten Percent Shareholder). 

        8.     Option Exercise Price and Consideration. 

        8.1.  The
per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator, provided, however, that
in the case of an Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant; provided further, however, that the exercise
price of an Incentive Stock Option granted to a Ten Percent Shareholder shall be no less than 110% of Fair Market Value on the date of grant. 

        8.2.  The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator. Such
consideration may consist of (1) cash, (2) check, (3) full recourse promissory note, (4) other Shares which (x) in the case of Shares acquired upon exercise of an
Option, have been owned by the Optionee for 

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more
than six months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be
exercised, (5) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or (6) any combination of the foregoing
methods of payment. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit
the Company. 

        9.     Exercise and Vesting of Options. 

        9.1.  Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable according to the
terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vesting of Options granted
hereunder shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, (ii) full payment for the Shares with respect to
which the Option is exercised, and (iii) execution of such other agreements, including any stockholders or restricted stock agreement as the Administrator may determine. Full payment may
consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the
name of the Optionee. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Shares are issued, except as provided in Section 12 of the Plan. 

        9.2.  Termination of Relationship as a Service Provider. Unless otherwise provided in an Option Agreement or determined by the
Administrator in its sole discretion, if a Service Provider's employment with or service as a director of or independent contractor, consultant or sales representative to the Company or any Parent or
Subsidiary terminates for any reason other than Cause, Voluntary Resignation, death or
Disability of such Service Provider, any Options granted to the Service Provider which have vested as of the date upon which such termination occurs shall be exercisable for a period not to exceed
ninety (90) days after such termination, or, if earlier, the termination of the Option pursuant to Section 7 above. Upon such termination, the Service Provider's unvested Options shall
expire and the Service Provider shall have no further right to purchase shares of Common Stock pursuant to such unvested Option. Notwithstanding the foregoing provisions of this Section 9.2,
the Administrator may provide, in its discretion, that following such date of termination, a Service Provider may exercise an Option, in whole or in part, at any time subsequent to such termination of
employment or service and prior to termination of the Option pursuant to Section 7 above, either subject to or without regard to any vesting or other limitation on exercise imposed pursuant to
the Plan. The determination of when and whether an Optionee has ceased to be a Service Provider shall be made by the Administrator in its sole discretion and such determination shall be final,
conclusive and binding. 

        9.3.  Termination for Cause and Voluntary Resignation. Unless otherwise provided in an Option Agreement or determined by the
Administrator in its sole discretion and notwithstanding any provisions set forth in this Plan, if the Company or any Parent or Subsidiary terminates a Service Provider's employment with or service as
a director of or independent contractor, consultant or sales representative to the Company or any Parent or Subsidiary for Cause, or the Service Provider terminates his employment or service by
Voluntary Resignation, all Options granted to such Service Provider pursuant to the Plan shall terminate immediately and such Service Provider shall 

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have
no further right to purchase shares of Common Stock pursuant to such Options. Notwithstanding the foregoing provisions of this Section 9.3, the Administrator may provide, in its
discretion, that following such date of termination, a Service Provider may exercise an Option, in whole or in part, at any time subsequent to such termination of employment or service and prior to
termination of the Option pursuant to Section 7 above, either subject to or without regard to any vesting or other limitation on exercise imposed pursuant to the Plan. 

        9.4.  Disability of Service Provider. Unless otherwise provided in an Option Agreement or determined by the Administrator in
its sole discretion, if a Service Provider's employment with or service as a director of or independent contractor, consultant or sales representative to the Company or any Parent or Subsidiary is
terminated by reason of a Disability of such Service Provider, then all vested Options exercisable on the date of the termination of the Service Provider's employment or service shall remain
exercisable by the Service Provider at any time within one (1) year after such termination of employment or service, or if earlier, the date specified in the Option Agreement pursuant to
Section 7 above, to exercise such Options in whole or in part. Any unvested portion of the Option shall terminate upon the Service Provider's termination of employment or service with the
Company or any Parent or Subsidiary by reason of a Disability, unless the Administrator shall, in its discretion, provide on a case by case basis that any unvested portion of the Option shall not
terminate upon the Disability of the Service Provider. Notwithstanding the foregoing provisions of this Section 9.4, the Administrator may provide, in its discretion, that following such date
of termination, a Service Provider may exercise an Option, in whole or in part, at any time subsequent to such termination of employment or service and prior to termination of the Option pursuant to
Section 7 above, either subject to or without regard to any vesting or other limitation on exercise imposed pursuant to the Plan. 

        9.5.  Death of Service Provider. Unless otherwise provided in an Option Agreement or determined by the Administrator in its
sole discretion, if a Service Provider dies while serving as an employee or director of or independent contractor, consultant or sales representative to the Company or any Parent or Subsidiary, all
vested Options exercisable on the date of the Service Provider's death shall remain exercisable by the executors or administrators or legatees or distributees of such Service Provider's estate at any
time within one (1) year after the date of such Service Provider's death, or if earlier, the date specified in the Option Agreement pursuant to Section 7 above, to exercise such Options
in whole or in part. Any unvested portion of the Option shall terminate upon the Service Provider's death, unless the Administrator shall, in its discretion, provide on a case by case basis that any
unvested portion of the Option shall not terminate upon the Service Provider's death. Notwithstanding the foregoing provisions of this Section 9.5, the Administrator may provide, in its
discretion, that following such date of termination, a Service Provider may exercise an Option, in whole or in part, at any time subsequent to such termination of employment or service and prior to
termination of the Option pursuant to Section 7 above, either subject to or without regard to any vesting or other limitation on exercise imposed pursuant to the Plan. 

        9.6.  Vesting. Subject to the provisions of this Plan, each Option Agreement shall specify the vesting schedule applicable to
Options. The Administrator may in its discretion (but shall not be obligated to) provide that any vesting requirement or other such limitation on the exercise of an Option may be rescinded, modified
or waived by the Administrator, in its sole discretion, at any time and from time to time after the date of grant of such Option, so as to accelerate the time at which the Option may be exercised. 

        9.7.  Change in Control. In the event of a Change in Control (as defined below), the Administrator may, in its sole discretion
(but shall not be obligated to), take any of the following actions on a case by case basis with respect to some or all of the Options issued pursuant to an Option Agreement (i) immediately
prior to the effective date of the transactions giving rise to a 

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Change
in Control, the vesting of some or all of the outstanding Options issued pursuant to an Option Agreement may be accelerated so that each such Option shall become exercisable without regard to
any limitation on exercise imposed pursuant to the Option Agreement or this Plan, (ii) in connection with the transactions giving rise to the Change in Control, cancel some or all of the
outstanding Options issued pursuant to an Option Agreement, to the extent not previously exercised or assumed by the successor corporation or its parent company, and such Options shall thereafter
terminate and cease to be outstanding, provided, however, that each Optionee shall have the right for a reasonable period of time (which shall not be
less than ten (10) days) as the Administrator in its sole discretion shall determine and designate, to exercise any vested Option in whole or in part, and/or (iii) in connection with the
transactions giving rise to the Change in Control, cancel some or all of the outstanding Options issued pursuant to an Option Agreement in exchange for consideration in cash or in kind, which
consideration shall be equal in value to the value of those shares of stock or other securities the Optionee would have received had the Option been exercised (to the extent then exercisable) and no
disposition of the shares acquired upon such exercise been made prior to the Change in Control, less the exercise price therefor, and such Options shall thereafter terminate and cease to be
outstanding. If the Administrator shall elect to cancel the Options under Section 9.7(iii) above, the value of the stock or other securities the Optionee would have received if the
Options had been exercised shall be determined by the Administrator in its sole discretion. For purposes of the Plan, a "Change in Control" shall mean (i) a reorganization, merger,
consolidation or other form of corporate transaction or series of transactions, in each case, with respect to which persons who were the shareholders of the Company immediately prior to such
reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than fifty percent (50%) of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company's then outstanding voting securities, (ii) the sale, lease, exchange or other disposition of all or substantially all of the
assets of the Company, or (iii) any tender offer for or acquisition by any person, or any two or more persons acting as a group, and all affiliates of such person or persons, who prior to such
time owned less than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors, of additional voting power in one or more transactions, or series of
transactions, such that following such transaction or transactions, such person or group and affiliates beneficially own fifty percent (50%) or more of the combined voting power entitled to vote
generally in the election of directors. For purposes of the Plan, a "person" shall mean any person, corporation, partnership, joint venture or other entity or any group (as such term is defined for
purposes of Section 13(d) of the Exchange Act) and "beneficial ownership" shall be determined in accordance with Rule 13d-3 under the Exchange Act. 

        10.   Non-Transferability of Options and Stock Purchase Rights. Unless otherwise provided by the Administrator in
its sole and absolute discretion, the Options and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. To the extent that the Administrator permits the transfer of an Incentive Stock Option, such
Option will be deemed a Non-Statutory Stock Option. 

        11.   Stock Purchase Rights. 

        11.1.  Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with Options granted
under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or
electronically of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within
which such person must accept such offer. The offer shall be accepted by execution of a Restricted Stock purchase agreement in the form determined by the 

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Administrator.
The Restricted Stock purchase agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole
discretion. 

        11.2.  Rights as a Stockholder. Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to
those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment shall be made for a dividend
or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 12 of the Plan. 

        12.   Adjustments Upon Changes in Capitalization; Merger or Asset Sale. 

        12.1.  Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of
Common Stock covered by each outstanding Option or Stock Purchase Right, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options or
Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, as well as the price per share of Common Stock
covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of the Common Stock. Such adjustment shall be made by the Administrator, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Stock Purchase Right. 

        12.2.  Options to Purchase Shares of Stock of Acquired Companies. After any merger, consolidation or reorganization in which
the Company shall be a surviving corporation, the Administrator may grant substituted options under the provisions of the Plan, pursuant to Section 424 of the Code, replacing old options
granted under a plan of another party to the transaction whose shares or stock subject to the old options may no longer be issued following the transaction. The foregoing adjustments and manner
of application of the foregoing provisions shall be determined by the Administrator in its sole discretion. Any such adjustments may provide for the elimination of any fractional shares which might
otherwise become subject to any Options. 

        12.3.  Initial Public Offering. As a condition of participation under this Plan, each Optionee shall be obligated to cooperate
with the Company and the underwriters in connection with any public offering of the Company's securities and any transactions relating thereto and shall execute and deliver such agreements and
documents, including without limitation, a lock-up agreement, as may be requested by the Company or the underwriters. The Optionee's obligations under this Section 12.3 shall apply
to any shares of Common Stock issued under the Plan as well as to any and all other securities of the Company or its successor for which such Common Stock may be exchanged or into which such Common
Stock may be converted. 

        12.4.  Applicability of Stockholders' Agreement. In the event that the Optionee shall desire to exercise all or any portion of
an Option or Stock Purchase Right prior to the date on which the Company shall have completed an Initial Public Offering, the Optionee shall, as a condition precedent to such Optionee's right to
exercise an Option, execute and deliver a copy of an option/stock purchase right exercise agreement containing such terms and conditions as may be specified by the Administrator from time to time in
its sole and absolute discretion, which may provide, among other things, for restrictions on transfer and voting the shares of Common Stock or other securities issuable upon exercise of an Option and
provisions governing the management and control of the Company. No certificates evidencing such Common Stock shall be delivered until 

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the
owner thereof shall have signed such option/stock purchase right agreement. Certificates representing such shares shall be endorsed with appropriate notice of applicability of such option/stock
purchase right agreement. 

        12.5.  Change in Status of Subsidiary. Unless otherwise provided in an Option Agreement, in the event that a Subsidiary ceases
to be a Parent or Subsidiary, the Administrator may, in its sole and absolute discretion, (i) provide on a case by case basis that all or some Options or Stock Purchase Rights held by an
Optionee employed by or performing services for such Subsidiary may become immediately exercisable or vested, without regard to any limitation imposed pursuant to this Plan and/or (ii) treat
the employment or service of the Optionee employed by, or providing service to, such Parent or Subsidiary as terminated if such Optionee is not employed by the Company or any Subsidiary immediately
after such event. 

        13.   Time of Granting Options and Stock Purchase Rights. The date of grant of an Option or Stock Purchase Right shall, for all
purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator. Notice of the
determination shall be given to each Service Provider to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant. 

        14.   Amendment and Termination of the Plan. 

        14.1.  Amendment and Termination. The Administrator may at any time and for any reason amend, alter, suspend or terminate the
Plan. 

        14.2.  Stockholder Approval. The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws. 

        14.3.  Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the
Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Options and Stock Purchase Rights granted under the Plan prior to the date of such
termination. 

        15.   Conditions Upon Issuance of Shares. 

        15.1.  Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option
and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        15.2.  Investment Representations. As a condition to the exercise of an Option, the Administrator may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required. 

        15.3.  Withholding. The Administrator may make such provisions and take such steps as it may deem necessary or appropriate for
the withholding of any taxes that the Company is required by any law or regulation of any governmental authority, whether federal, state or local, domestic or foreign, to withhold in connection with
the exercise of any Option or Stock Purchase Right, including, but not limited to: (i) the withholding of delivery of shares of Common Stock until the holder reimburses the Company for the
amount the Company is required to withhold with respect to such taxes, (ii) the canceling of any number of shares of Common Stock issuable in an amount sufficient to reimburse the Company for
the amount it is required to so withhold, (iii) withholding the amount due from any such person's wages or compensation due to such person, or (iv) 

10

 

requiring
the Optionee to pay the Company cash in the amount the Company is required to withhold with respect to such taxes. 

        15.4.  Registration. At the time of any exercise of any Option, the Company may, if it shall determine it necessary or
desirable for any reason, require the Optionee (or his or her heirs, legatees or legal representative, as the case may be), as a condition to the exercise thereof, to deliver to the Company a written
representation of present intention to purchase the shares for his or her own account as an investment and not with a view to, or for sale in connection with, the distribution of such shares, except
in compliance with applicable federal and state securities laws with respect thereto. In the event such representation is required to be delivered, an appropriate legend may be placed upon each
certificate delivered to the Optionee (or his or her heirs, legatees or legal representative, as the case may be) upon his or her exercise of all or any portion of the Option and a stop transfer order
may be placed with the transfer agent. Each Option shall also be subject to the requirement that, if at any time the Company determines, in the discretion of the Board, that the listing, registration
or qualification of the shares subject to the Option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of or in connection with, the issuance or purchase of the shares thereunder, the Option may not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company in its sole discretion. The Company shall not be obligated to take any
affirmative action in order to cause the exercisability or vesting of an Option or to cause the exercise of an Option or the issuance of shares pursuant thereto to comply with any law or regulation of
any governmental authority. 

        16.   Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        17.   Reservation of Shares. The Company, during the term of this Plan, shall at all times reserve and keep available such
number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

        18.   Option Agreement. No person shall have any rights under any Option or Stock Purchase Right granted under the Plan unless
and until the Company and the Optionee to whom such Option or Stock Purchase Right shall have been granted shall have executed and delivered an Option Agreement or Restricted Stock purchase agreement
authorized by the Committee expressly granting the Option or Stock Purchase Right to such person and containing provisions setting forth the terms of the Option or Stock Purchase Right. 

        19.   Options Not Includable for Benefit Purposes. Common Stock received by an Optionee pursuant to the provisions of the Plan
shall not be included in the determination of benefits under any pension, group insurance or other benefit plan applicable to the Optionee which is maintained by the Company, except as may be provided
under the terms of such plans or determined by the Board. 

        20.   Effect of Becoming a Public Company. 

        20.1.  Outside Director Committee. In the event that the Company becomes a Public Company, the Board shall appoint the Outside
Director Committee. 

        20.2.  Covered Employees. In the event that the Company becomes a Public Company, (i) only the Outside Director
Committee may grant Options or Stock Purchase Rights to any Covered Employee, (ii) the maximum number of shares subject to any Options granted to a Covered Employee during a calendar year shall
not exceed 1,000,000 and (iii) no Option shall be granted to a Covered Employee after the first meeting of shareholders at which directors are elected that 

11

 

occurs
after the close of the third calendar year following the calendar year in which an Initial Public Offering occurs, or if the Company becomes a Public Company without an initial public offering,
the first calendar year in which the Company becomes a Public Company, unless the Company satisfies the shareholder approval requirement as set forth in Regulation
Section 1.162-27(e)(4)(i) of the Code prior to such grant. 

        21.   Governing Law. All determinations made and actions taken pursuant to the Plan shall be governed by the laws of the State
of Delaware and construed in accordance therewith. 

        22.   No Strict Construction. No rule of strict construction shall be implied against the Company, the Administrator, Board,
the Committee, or any other person in the interpretation of any of the terms of the Plan, any Option granted under the Plan or any rule or procedure established by the Administrator. 

        23.   Captions. The captions (i.e., all Section headings) used in the Plan are for convenience only, do not constitute a part
of the Plan, and shall not be deemed to limit, characterize or affect in any way any provisions of the Plan, and all provisions of the Plan shall be construed as if no captions have been used in the
Plan. 

        24.   Severability. Whenever possible, each provision in the Plan and every Option at any time granted under the Plan shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan or any Option and Stock Purchase Right at any time granted under the Plan shall be held
to be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended to accomplish the objectives of the provision as originally written to the fullest extent
permitted by law and (b) all other provisions of the Plan and every other Option at any time granted under the Plan shall remain in full force and effect. 

        25.   Disclaimer of Rights. No provision in the Plan or in any Option granted or Option Agreement or other agreement relating
to any Stock Purchase Right entered into pursuant to the Plan shall be construed to confer upon any individual the right to remain an employee or director of or an independent contractor, consultant
or sales representative to the Company or any Parent or Subsidiary or to interfere in any way with the right and authority of the Company or any Parent or Subsidiary either to increase or decrease the
compensation of any individual, including any holder of the Option or Stock Purchase Right, at any time, or to terminate his employment with or service as a director of or independent contractor,
consultant or sales representative to the Company or any Parent or Subsidiary or to terminate any other relationship between any individual and the Company or any Parent or Subsidiary. 

        26.   Non-Exclusivity of Plan. If any provision of the Plan or any Option Agreement shall be determined to be
illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions
shall remain enforceable in any other jurisdiction. 

        27.   Notices. Any communication or notice required or permitted to be given under the Plan shall be in writing, and mailed by
registered or certified mail or delivered by hand, if to the Company, to its principal place of business and addressed to the attention of the person designated by the Company from time to time as the
Stock Option Administrator, and if to the holder of an Option, to the address as appearing on the records of the Company. 

12

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Exhibit 10.5  

 
 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement"),
is made as of this 30th day of June, 2005, by and between LOCAL MATTERS, INC. ("Employer"), and  PERRY
EVANS ("Executive"). 

        WHEREAS, Executive is presently employed by Employer in the capacity of Chief Executive Officer, and presently serves as a member of the
Board of Directors of Employer (the "Board"); and 

        WHEREAS, Executive and Employer are parties to that certain Employment Agreement dated October 30, 2003 (the
"Prior Agreement"); 

        WHEREAS, the Parties desire to amend and restate the Prior Agreement to reflect certain additional and revised terms of Executive's
employment; and 

        WHEREAS, the Parties intend that this Agreement shall supersede and replace the Prior Agreement and any similar agreements that presently
exist or may have previously existed between the Parties regarding the terms of Executive's employment with Employer. 

        NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereto hereby agree as follows: 

        1.     EMPLOYMENT.  

         1.1   General. Employer hereby continue to employ Executive in the capacity of Chief Executive Officer of Employer at the compensation rate and
benefits set forth in Section 2 hereof. Executive hereby accepts such employment subject to the terms and conditions contained herein. In such capacity, Executive shall faithfully perform and
carry out such duties and responsibilities as may be assigned to him from time to time by the Board and are reasonably consistent with Executive's title and this Agreement and shall report only to the
Board. 

        1.2   Time Devoted to Position. Executive shall devote substantially all of his business time, attention and skills to the
business and affairs of Employer. 

        1.3   Location of Employment. Executive's principal place of employment during his employment with Employer shall be Denver,
Colorado. 

        1.4   Acknowledgement. As more specifically set forth on Exhibit A
hereto, Executive presently serves in the capacities of director, consultant, independent contractor, agent, or representative of or for several other companies or entities. Executive may continue to
serve in such capacities of or for such companies or entities; provided that, Executive shall continue to comply with all terms and provisions hereof,
including, without limitation, Sections 1.1, 1.2 and 4 hereof. After the date hereof, Executive shall not be permitted to serve in any capacity for any company or other entity, except as set forth on  Exhibit A hereto, unless Executive shall have obtained prior written approval thereto from the Board in its sole discretion (excluding and
without the involvement of Executive). 

        2.     COMPENSATION AND BENEFITS.  

         2.1   Salary. Employer shall pay to Executive, and Executive shall accept, as full compensation for services rendered and to be rendered by him
to
Employer, including, without limitation, all services that may be rendered by him to all subsidiaries, entities or organizations, existing or hereafter formed, organized or acquired by Employer,
directly or indirectly (all such existing subsidiaries and all such hereafter formed, organized or acquired corporations, entities or organizations being hereinafter individually referred to as a
"Subsidiary" and collectively referred to as the "Subsidiaries"), and all services that may be rendered
by him as a member of the Board or any committee thereof, a base salary at the annual rate of $290,000 (the "Base Salary"). The Base Salary shall be
effective as of January 1, 2005, and within ten (10) days of the date of this Agreement, Employer shall make a payment to Executive in an amount equal to the difference 

 

between
the amount paid to him through the date of this Agreement in 2005 and the amount that would have been paid in 2005 had the Base Salary been in effect since January 1, 2005. The Base
Salary shall be payable in accordance with the regular payroll practices of Employer applicable to senior executives, less such deductions as shall be required to be withheld by applicable law and
regulation. 

        2.2   Bonuses. Commencing with calendar year 2006, Executive will receive an annual bonus of up to 75% of Executive's Base
Salary, if Employer meets its annual plan, including Employer's approved operating budgets for sales bookings, revenue, gross margins and expenses
("Plan"). Executive also will be eligible for an extra annual bonus of up to an additional 25% of Executive's Base Salary if Employer exceeds Plan by a
significant margin, as determined in the discretion of the Board. For calendar year 2005 only, Executive will be eligible for a bonus of up to 50% of Executive's Base Salary if Employer meets Plan.
For calendar year 2005, Employer will pay Executive a minimum bonus payment of seventy two thousand dollars ($72,500) less all applicable taxes and withholdings. For avoidance of doubt, the maximum
annual bonus that Executive is eligible for in calendar year 2005 is 50% of Executive's Base Salary ($145,000). With the exception of the minimum bonus amount set forth above, the Board shall
determine in its reasonable discretion the extent to which Executive has achieved the performance targets upon which Executive's bonus is based, and the amount of bonus to be paid to Executive, if
any. With the exception of the minimum bonus set forth above (which will be paid within 15 calendar days of the execution of this Agreement), Executive's bonus, if any, will be paid in accordance with
Employer's business practices for the payment of bonuses which currently provides for annual payment of bonuses; provided, however, that any such bonus
will be paid no later than forty-five (45) days after the end of the year for which the bonus relates. 

        2.3   Stock Options. 

        2.3.1  Existing Options. Employer previously granted Executive options to purchase two hundred thirty
one thousand eight hundred five (231,805) shares of Employer's common stock in stock option grants dated December, 2004 and March, 2005 ("Existing
Options"). As of the date of this Agreement, the options subject to the Existing Options are fully vested. 

        2.3.2  New Options. Employer shall grant Executive an option under Employer's 2004 Equity Incentive
Plan, as amended (the "Equity Plan") to purchase five hundred seventy-five thousand (575,000) shares of Employer's common stock at an
exercise price equal to the fair market value of the stock as of the grant date of grant (collectively the "Option"). The shares subject to the Option
shall vest pursuant to a three-year vesting schedule, which shall provide one thirty-sixth (1/36th) of the shares subject to the Option shall vest for each month of
continuous full-time service following the grant date, provided, however, that in the event that Employer completes an initial public
offering of its stock (an "IPO"), Employer shall accelerate the vesting of 25% (143,750) of the shares subject to the Option, with 15,973 of the
remaining unvested option shares to vest for each month of continuous full-time service thereafter. All other terms, conditions and limitations of the Options will be set forth in the
Equity Plan and in the stock option grant notices and stock option agreements approved by the Board 

        2.4   Executive Benefits. 

        2.4.1  Expenses. Employer shall promptly reimburse Executive for expenses that he reasonably incurs in
connection with the performance of his duties (including business travel and entertainment expenses) hereunder, all in accordance with Employer's policy with respect thereto as in effect from time to
time. 

2

 

        2.4.2  Employer Plans. Executive may participate in such employee benefit and welfare plans and
programs as Employer may from time to time offer or provide generally to executive officers of Employer or its Subsidiaries, including, without limitation, participation in any life insurance, health
and accident, medical plans and programs and profit sharing and retirement plans, all in accordance with the terms and conditions of such plans and programs. The benefits provided to Executive
described in this Section 2 shall be at least as favorable, in all material respects and in the aggregate, as any benefits provided to other members of Employer's executive management team. 

        2.4.3  Vacation. Executive shall be entitled to four (4) weeks of paid vacation per calendar
year, pro rated for any partial year. Such paid vacation shall accrue quarterly, or one week of paid vacation for each three (3) months that Executive shall be employed hereunder. Executive may
accumulate or carry over up to two (2) weeks of unused, accrued vacation time ("Accumulated Vacation Time") from one calendar year to the
immediately subsequent calendar year such that Executive shall not, for any calendar year, have more than the vacation time accrued for such year, plus any Accumulated Vacation Time from the
immediately prior calendar year. Any such Accumulated Vacation Time that is not used in such immediately subsequent calendar year shall expire in such year and Executive shall no longer be entitled to
such vacation time or compensation in respect thereof. 

        3.     AT-WILL EMPLOYMENT; TERMINATION.  

         3.1   At-Will Employment. Subject to the rights, duties, obligations and terms of this Agreement, it is understood and agreed by Employer
and Executive that this Agreement does not contain any promise or representation concerning the duration of Executive's employment with Employer. Executive specifically acknowledges that his
employment with Employer is at will and may be altered or terminated by either the Employer or the Executive, at any time, with or without cause, with the Parties' obligations and rights being only
those provided by applicable law or defined in this Agreement, including specifically, but not by way of limitation, the rights, obligations, and duties set forth in Sections 2 and 3 herein. In
addition, that the rate of salary, any bonuses, paid time off, other compensation, or vesting schedules are stated in units of years or months or weeks does not alter the at-will nature of
the employment, and does not mean and should not be interpreted to mean that Executive is guaranteed employment to the end of any period of time or for any period of
time. This at-will status cannot be altered except in a writing signed by Executive and approved by the Board. 

        3.2   Events of Termination. Executive's employment shall terminate upon the occurrence of any one or more of the following
events: 

        3.2.1  Death. In the event of Executive's death, Executive's employment shall terminate on the date of
his death. 

        3.2.2  Voluntarily By Executive. Executive may terminate his employment with Employer at any time for
any or no reason whatsoever by giving a Notice of Termination to Employer. The Date of Termination for this Section 3.2.2 shall be thirty (30) days after the date that the Notice of
Termination is given. 

        3.2.3  Disability. In the event of Executive's Disability (as hereinafter defined), Employer may
terminate Executive's employment by providing a Notice of Termination to Executive. The Notice of Termination shall specify the Date of Termination, which date shall not be earlier than thirty
(30) days after the date that the Notice of Termination is given. For purposes of this Agreement, "Disability" means the inability of Executive
for any one hundred twenty (120) consecutive days or one hundred eighty (180) days in any twelve (12) month 

3

 

period
to perform substantially his duties hereunder as a result of a physical or mental illness or condition, all as determined in good faith by the Board. 

        3.2.4  Cause. Employer may terminate Executive's employment at any time for Cause (as hereinafter
defined) based on objective factors determined in good faith by a majority of the Board (excluding and without the involvement of Executive). In order to terminate Executive pursuant to this
Section 3.2.4, Employer shall provide Executive with written notice of its intent to terminate Executive, specifying the reasons for such termination (a "Notice of
Intent to Terminate"). After the expiration of a thirty (30) day cure period, Employer may deliver Executive a Notice of Termination upon the failure of the Executive to
cure such reasons described in the Notice of Intent to Terminate within the thirty (30) day period following the giving the Notice of Intent to Terminate; provided,
however, that, except with respect to an event described in subsection (iv) below (for which such event the thirty (30) day cure period shall in all cases apply),
in the event the Board in good faith determines that the underlying reasons giving rise to such termination cannot be cured, then the thirty-(30) day period shall not apply and Employer shall
be permitted to provide Executive with a Notice of Termination and Executive's employment shall terminate on the date of the Notice of Termination. For purposes of this Agreement,
"Cause" shall mean (i) Executive's conviction of, guilty or no contest plea to, or confession of guilt of, a felony or any other crime involving
moral turpitude; (ii) an act or omission by Executive in connection with his employment by the Employer that constitutes fraud, criminal misconduct, breach of the fiduciary duty of loyalty,
gross negligence, malfeasance or willful misconduct; (iii) a material breach by Executive of any provision(s) of this Agreement; (iv) a continued failure to perform such duties as are
reasonably
assigned to Executive by Employer in accordance with this Agreement, other than a failure resulting from a Disability; (v) Executive's knowingly taking any action of a material nature on behalf
of Employer or any of its affiliates without appropriate authority to take such action, where such action is or would reasonably be expected to be materially adverse to the Company;
(vi) Executive's knowingly taking any action in material conflict of interest with Employer or any of its affiliates given Executive's position with Employer; and/or (vii) the commission
of a material act of personal dishonesty in connection with Employer by Executive that involves personal profit. 

        3.2.5  Without Cause By Employer. Employer may terminate Executive's employment for any reason or no
reason whatsoever (other than for any of the reasons set forth elsewhere in this Section 3.2) by providing a Notice of Termination to Executive. The Notice of Termination shall specify the Date
of Termination, which date shall not be earlier than thirty (30) days after the date that the Notice of Termination is given. 

        3.2.6  Employer's Material Breach. Executive may terminate his employment upon Employer's material
breach of this Agreement and the continuation of such breach for more than thirty (30) days after written demand for cure of such breach is given to Employer by Executive (which demand shall be
made within thirty (30) days following the date on which Executive obtains actual knowledge of the material breach and shall identify the manner in which Employer has materially breached this
Agreement). Employer's material breach of this Agreement shall mean (i) the failure of Employer to make any payment that it is required to make hereunder to Executive when such payment is due;
(ii) the assignment to Executive, without Executive's written consent, of any duties materially inconsistent with his positions, duties, responsibilities and status with Employer, or a material
change in Executive's reporting responsibilities, or any change to Executive's title, or any plan, act, scheme or design to constructively terminate the Executive, except in connection with the
termination by Employer for Cause or Disability or as a result of Executive's death or voluntary resignation; (iii) a permanent reassignment of Executive's principal place of employment,
without the written 

4

 

consent
of Executive, to a location more than fifty (50) miles therefrom; (iv) a reduction by Employer in Executive's Base Salary, except if such reduction is part of an overall cost
reduction program of Employer to reduce the Base Salary of all other executives or employees; (v) the removal of Executive as a voting member of the Board; (vi) Employer's failure to
grant the Option; or (vii) the creation of a position of executive chairman of the Board without the consent of Executive. 

        3.3   Certain Obligations of Employer Following Termination. Following termination of the Executive's employment under the
circumstances described below, and upon Executive's execution of a release of all claims in the form attached hereto as Exhibit B, Employer shall
pay to Executive or his estate, as the case may be, the following compensation and provide the following benefits in full satisfaction and final settlement of any and all claims and demands that
Executive now has or hereafter may have hereunder against Employer. 

        3.3.1  For Cause. In the event that Executive's employment is terminated for Cause, then Employer
shall pay to Executive, upon the date of termination, in a single lump sum, an amount equal to any unpaid
but earned Base Salary through the Date of Termination, plus any unused, accrued vacation time in accordance with Section 2.4.3 hereof. 

        3.3.2  Without Cause By Employer; Material Breach By Employer. In the event that the Executive's
employment is terminated by Employer pursuant to Section 3.2.5 hereof or by Executive pursuant to Section 3.2.6 hereof, in addition to the amounts set forth in Section 3.3.1,
Employer shall pay to Executive, following the Date of Termination, twelve (12) months of the Base Salary, or of any higher annual compensation rate then in effect (the
"Severance Amount"). The Severance Amount shall be paid in twelve (12) monthly installments after the Date of Termination (the first of which
shall be paid in the next full payroll cycle after the Date of Termination), each in an amount of $24,166.67, or any higher monthly compensation rate then in effect (the
"Monthly Severance Amount"). In addition, an additional bonus shall be paid to Executive at end of the period during which the
Monthly Severance Amount is due and payable, in the amount of $72,500. 

        3.3.3  Voluntarily By Executive. In the event that Executive's employment is terminated by Executive
pursuant to Section 3.2.2 hereof, then Employer shall pay to Executive the amounts set forth in Section 3.3.1 upon the date of termination. 

        3.3.4  Death, Disability. In the event that Executive's employment is terminated by Employer by reason
of Executive's death pursuant to Section 3.2.1 hereof or by reason of Executive's Disability pursuant to Section 3.2.3 hereof, Employer shall pay to Executive the amounts set forth in
Section 3.3.1 upon the date of termination. 

        3.3.5 Stock Options. 

        (a)   In the event of a Change of Control (as defined in Section 3.4.1 hereof), then all stock options in Employer
theretofore granted to Executive shall vest immediately upon the occurrence of such event and Executive shall have twelve (12) months from the date of such event or until the applicable
expiration date of such options (in accordance with their terms), whichever period is shorter, to exercise such options; provided that, the relevant
stock option plan and such stock options shall not have otherwise terminated in accordance with the terms thereof. 

        (b)   In the event Executive's employment is terminated by (i) Employer pursuant to Section 3.2.5 hereof or
(ii) Executive pursuant to Section 3.2.6 hereof, then all stock options in Employer theretofore granted to Executive shall vest immediately upon the occurrence of such event and
Executive shall have twelve (12) months from the date of such termination or until the applicable expiration date of such options (in accordance 

5

 

with
their terms), whichever period is shorter, to exercise all such options; provided that, the relevant stock option plan and such stock options shall
not have otherwise terminated in accordance with the terms thereof. 

        (c)   In the event Executive's employment is terminated (i) as a result of Executive's death, (ii) as a result of
Executive's voluntary resignation, (iii) as a result of Executive's Disability or (iv) for Cause, then all stock options in Employer theretofore granted to Executive shall be exercisable
in accordance with the terms of the 2004 Equity Incentive Plan, as amended; provided that, the relevant stock option plan remains in effect and such
stock options shall not have otherwise expired in accordance with the terms thereof; and provided further, that termination of Executive's employment
for Cause shall, for purposes hereof, mean that a determination of Misconduct (as defined in the Plan) has been made. 

        3.4   Definitions. 

        3.4.1  "Change of Control" Defined. "Change in
Control" shall mean: 

        (a)   The consummation of a merger or consolidation of the Company with or into another entity or any other corporate
reorganization, if more than 50% of the combined voting power of the continuing or surviving entity's securities outstanding immediately after such merger, consolidation or other reorganization is
owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; or 

        (b)   The sale, transfer or other disposition of all or substantially all of the Company's assets. 

        (c)   A transaction or series of transactions in which any person, including any stockholder of Employer (other than Spencer
Trask & Co. (either individually or together with its affiliates)), shall become the beneficial owner of more than fifty percent (50%) of the total voting power represented by the voting
securities of Employer. 

        (d)   A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company's
incorporation or to create a holding company that will be owned in substantially the
same proportions by the persons who held the Company's securities immediately before such transaction. 

        3.4.2  "Notice of Termination" Defined. "Notice of
Termination" means a written notice that indicates the specific termination provision hereof relied upon by Employer or Executive and, except in the case of terminations
pursuant to Sections 3.2.1, 3.2.2 or 3.2.5 hereof, that sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the termination provision so
indicated. 

        3.4.3  "Date of Termination" Defined. "Date of
Termination" means such date as Executive's employment is effectively terminated, as applicable, in accordance with Sections 3.2 hereof. 

        4.     CONFIDENTIALITY AND NON-SOLICITATION.  

        4.1   "Confidential Information" Defined. "Confidential Information" means any and all
information
(oral or written) relating to Employer or any Subsidiary or any other person controlling, controlled by, or under common control with Employer or any Subsidiary or any of their respective activities,
including, without limitation, information relating to: technology, research, test procedures and results; machinery and equipment; business strategies and plans; manufacturing processes; financial
information; products; identity and description of materials and services used; purchasing; costs; pricing; customers and prospects; advertising, promotion and marketing; and selling, servicing and
information pertaining to any governmental investigation, 

6

 

except
such information generally in the public domain (such information not being deemed to be in the public domain merely because it is embraced by more general information that is in the public
domain), other than as a result of a breach of the provisions of Section 4.2 hereof. 

        4.2   Non-Disclosure of Confidential Information. Executive shall not at any time (other than as may be required or
appropriate in connection with the performance by him of his duties hereunder), directly or indirectly, use, exploit, communicate, disclose or disseminate any Confidential Information in any manner
whatsoever (except as may be required under legal process by subpoena or other court order). 

        4.3   Certain Activities. Executive shall not, while employed by Employer and for the period of one (1) year following
the Date of Termination, directly or indirectly, hire, offer to hire, entice away or in any other manner persuade or attempt to persuade any officer, employee, agent, lessor, lessee, licensor,
licensee, customer, prospective customer or supplier of Employer or any of its Subsidiaries to discontinue or alter his or its relationship with Employer or any of its Subsidiaries. 

        4.4   Non-Competition. Executive shall not, while employed by Employer and for a period of one (1) year
following the Date of Termination, engage or participate in, directly or indirectly (whether as an officer, director, employee, partner, consultant, equityholder, lender or otherwise), any business
that manufactures, markets or sells products that compete with any product of Employer that is then significant to Employer's business based on sales and/or profitability of any such product as of the
Date of Termination. Nothing herein shall prohibit Executive from being a passive owner of not more than two (2%) percent of any publicly-traded class of capital stock of any entity engaged in a
competing business. 

        4.5   Proprietary Rights; Assignment of Inventions. With respect to information, inventions and discoveries or any interest in
any copyright, patents and/or other property right developed, made or conceived of by Executive, either alone or with others, at any time during his employment by Employer and whether or not within
working hours or at the workplace, arising out of such employment or pertinent to any field of business or research in which, during such employment, Employer is engaged or is considering engaging, as
evidenced by the Company's competent written records (if such consideration by the Board of Directors is known to or ascertainable by Executive), Executive hereby irrevocably and unconditionally
agrees: 

        (a)   that all such information, inventions and discoveries or any interest in any copyright, patent and/or other property
right, whether or not patented or patentable, shall be and remain the exclusive property of Employer; 

        (b)   to disclose promptly to an authorized representative of Employer (other than Executive) all such information, inventions
and discoveries or any copyright and/or other property right and all information in Executive's possession as to possible applications and uses thereof; 

        (c)   not to file any patent application relating to any such invention or discovery except with the prior written consent of
an authorized officer of Employer (other than Executive); 

        (d)   to waive and release any and all rights Executive may have in and to such information, inventions and discoveries, and
assign to Executive and/or its nominees all of Executive's right, title and interest in them, and all Executive's right, title and interest in any patent, patent application, copyright or other
property right based thereon. Executive hereby irrevocably designates and appoints Employer and each of its duly authorized officers and agents (other than Executive) as his agent and
attorney-in-fact to act for him and on his behalf and in his stead to execute and file any document and to do all other lawfully permitted acts to further the prosecution,
issuance and enforcement of any such patent, patent 

7

 

application,
copyright or other property right with the same force and effect as if executed and delivered by Executive; and 

        (e)   at the request of Employer, and without expense to Executive, to execute such documents, and to perform such other acts
as Employer deems necessary or appropriate, for Employer to obtain patents on such inventions in a jurisdiction or jurisdictions designated by Employer, and to assign to Employer or its designee such
inventions and any and all patent applications and patents relating thereto. 

        4.6   Injunctive Relief. Each of the parties hereby acknowledges and agrees that (a) Employer will be irreparably
injured in the event of a breach by Executive of any of his obligations under this Section 4; (b) monetary damages will not be an adequate remedy for any such breach; (c) Employer
shall be entitled to injunctive relief, in addition to any other remedy that it may have, in the event of any such breach; and (d) the existence of any claims that Executive may have against
Employer or the Subsidiaries, whether under this Agreement or otherwise, shall not be a defense to the immediate enforcement by Employer of any of its rights under this Section 4. 

        4.7   Non-Exclusivity and Survival. The covenants of Executive contained in this Section 4 are in addition
to, and not in lieu of, any obligations that Executive may have with respect to the subject matter hereof, whether by contract, as a matter of law or otherwise, and such covenants and their
enforceability shall survive any expiration or termination of Executive's employment by either party and any investigation made with respect to the breach thereof by Employer at any time. 

        5.     MISCELLANEOUS PROVISIONS.  

        5.1   Severability. If, in any jurisdiction, any term or provision hereof is determined to be invalid or unenforceable, (a) the remaining
terms
and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such term or provision in any other
jurisdiction and (c) the invalid or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision that is valid and enforceable and that
comes closest to expressing the parties' intention as to the invalid or unenforceable term or provision. 

        5.2   Execution in Counterparts. This Agreement may be executed in one or more counterparts, and by the parties hereto in
separate counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement (and all signatures need not appear on any one
counterpart), and this Agreement shall become effective when one or more counterparts has been signed and delivered by each of the parties hereto. 

        5.3   Notices. All notices required or permitted hereunder shall be in writing and shall be sufficiently given if:
(a) hand delivered (in which case the notice shall be effective upon delivery); (b) sent via facsimile, provided that, in such case a copy
of such notice shall be concurrently sent by registered or certified mail, return receipt requested, postage prepaid (in which case the notice shall be effective two (2) days following
dispatch); (c) delivered by Express Mail, Federal Express or other nationally
recognized overnight courier service (in which case the notice shall be effective one (1) business day following dispatch); or (d) delivered or mailed by registered or certified mail,
return receipt requested, postage prepaid (in which case the notice shall be effective five (5) days following dispatch), to the parties at the following addresses and/or facsimile numbers, or
to such other address or number as a party hereto shall specify by written notice to the others in accordance with this Section 5.3. 

8

 

If
to Employer, to: 

Local
Matters, Inc.

1517 Blake Street, Floor Two

Denver, CO 80202

Attention:

Fax No.: (303) 572-1123 

With
a copy (that shall not constitute notice) to: 

Cooley
Godward LLP

380 Interlocken Crescent, Suite 900

Broomfield, CO 80021

Attention: Michael Stack, Esq.

Fax No.: (720) 566-4099 

If
to Executive, to: 

Perry
Evans

Local Matters, Inc.

1517 Blake Street, Floor Two

Denver, CO 80202

Fax No.: (303) 572-1123 

With
a copy (that shall not constitute notice) to: 

Robert
Mintz, Esq.

Hogan & Hartson L.L.P.

One Tabor Center

1200 Seventeenth Street, Suite 1500

Denver, CO 80202-5840

Fax No.: (303) 899-7333 

        5.4   Amendment. No provision of this Agreement may be modified, amended, waived or discharged in any manner except by a
written instrument executed by both Employer and Executive. 

        5.5   Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject
matter hereof, and supersedes all prior agreements and understandings of the parties hereto, oral or written, with respect to the subject matter hereof. 

        5.6   Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado
applicable to contracts made and to be wholly performed therein. 

        5.7   Headings. The headings contained hereof are for the sole purpose of convenience of reference, and shall not in any way
limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement. 

        5.8   Binding Effect; Successors and Assigns. Executive may not delegate any of his duties or assign any of his rights
hereunder. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, legal representatives and beneficiaries, successors (including via a sale
of all or substantially all of the business and/or assets of Employer) and permitted assigns. Employer shall require any successor (whether direct or indirect and whether by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of Employer, by an agreement in form and substance reasonably satisfactory to Executive, to expressly assume and
agree to perform this Agreement in the same manner and to 

9

 

the
same extent that Employer would be required to perform if no such succession had taken place. 

        5.9   Waiver, etc. The failure of either of the parties hereto to at any time enforce any of the provisions of this Agreement
shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Agreement or any provision hereof or the right of either of the parties hereto
thereafter to enforce each and every provision of this Agreement. No waiver of any breach shall be construed or deemed to be a waiver of any other or subsequent breach. 

        5.10 Capacity, etc. Each of Executive and Employer hereby represents and warrants to the other that, as the case may be:
(a) he or it has full power, authority and capacity to execute and deliver this Agreement, and to perform his or its obligations hereunder; (b) such execution, delivery and performance
shall not (and with the giving of notice or lapse of time or both would not) result in the breach of any agreements or other obligations to which he or it is a party or he or it is otherwise bound or
violate any law; and (c) this Agreement is his or its valid and binding obligation, enforceable in accordance with its terms. 

        5.11 Enforcement. Subject to Section 5.12 hereof, if any party institutes legal action to enforce or interpret the
terms and conditions of this Agreement, the prevailing party shall be awarded reasonable attorneys' fees at all trial and appellate levels, and the expenses and costs incurred by such prevailing party
in connection therewith. Venue for any such action shall exclusively be Denver, Colorado. 

        5.12 Arbitration. 

        (a)   Any dispute under Section 3 of this Agreement shall be settled by arbitration in Denver, Colorado. The arbitration
shall be accomplished in the following manner. Either party may serve upon the other party written demand that the dispute, specifying the nature thereof, shall be submitted to arbitration. Within ten
(10) days after the service of such demand, the parties shall designate one arbitrator. 

        (b)   The decision of the arbitrator shall be final and binding upon the parties. The party against whom the award is rendered
(the "non-prevailing party") shall pay all fees and expenses incurred by the prevailing party in connection with the arbitration (including fees and disbursements of the prevailing party's
counsel), as well as the expenses of the arbitration proceeding. The arbitrator shall determine in their decision and award which of the parties is the prevailing party, which is the
non-prevailing party, the amount of the fees and expenses of the prevailing party and the amount of the arbitration expenses. The arbitration shall be conducted, to the extent consistent
with this Section 5.12, in accordance with the then prevailing rules of employment arbitration of the AAA or its successor. Depositions may be taken and full discovery may be obtained in any
arbitration commenced under this provision. The arbitrator shall have the right to retain and consult experts and competent authorities skilled in the matters under arbitration, but all consultations
shall be made in the presence of both parties, who shall have full right to cross-examine the experts and authorities. The arbitrator shall render his or her award not later than ninety
(90) days after the appointment of the arbitrator. The decision and award shall be in writing, and counterpart copies shall be delivered to each of the parties. In rendering an award, the
arbitrator shall have no power to modify any of the provisions of this Agreement, and the jurisdiction of the arbitrator is expressly limited accordingly. Judgment may be entered on the award of the
arbitrator and may be enforced in any competent court having jurisdiction. 

        5.13 Legal Counsel. Executive hereby acknowledges that he has been advised, prior to execution of this Agreement, to seek the
advice of legal counsel and has retained and sought the advice of legal counsel in connection with this Agreement and related documents, including the Plan. Subject to execution of this Agreement and
related documentation by the parties, Employer shall reimburse Executive for legal
fees paid by Executive, but only up to $5,000 for such legal counsel's review and advice in respect thereof, provided that, Executive shall provide
reasonable documentation in support thereof. Executive hereby further acknowledges that he has carefully reviewed this Agreement, that he knows and understands the contents of this Agreement, that he
has been given adequate time to consider whether to execute the Agreement, that Executive executes this Agreement knowingly and voluntarily as his own free act and deed, and that this Agreement was
freely entered into without fraud, duress or coercion. 

[SIGNATURE PAGE FOLLOWS]  

10

 

        IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first above written. 

	 
	 	 
	 	 

	 	 	LOCAL MATTERS, INC.
	

 	
 	

By:	
 	

/s/  CURTIS FLETCHER      

	 	 	Name:	 	Curtis Fletcher

	 	 	Title:	 	VP Finance

	

 	
 	

/s/  PERRY EVANS      
PERRY EVANS

11

Exhibit A

Other Companies And Entities  

	Name of Company or Entity
	 	Title and/or Position

	Meeting One, Inc.	 	Board advisor
	

Jabber, Inc.	
 	

Board advisor

   Exhibit B

Form of Release  

        In exchange for the consideration provided to me by this Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the
Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all
claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement, except for
created by this Agreement, and except for any vested rights under any pension, retirement, profit sharing, stock, stock option or similar plan. This general release includes, but is not limited to:
(1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (2) all claims for breach of contract, wrongful termination,
and breach of the implied covenant of good faith and fair dealing; (3) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy;
and (4) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys' fees, or other claims arising under the federal Civil Rights Act
of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) ("ADEA"), and the Colorado Civil Rights Act (as
amended). 

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

	 
	 	 
	 	 
	 	 

	By:	 	 	 	Date:	 	 
	 	 	
	 	 	 	

2

QuickLinks

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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