Document:

Amendment to the Prioritized Listings Syndication Agreement

 EXHIBIT 10.42 
  
 AMENDMENT TO THE PRIORITIZED LISTINGS SYNDICATION AGREEMENT 
 BETWEEN LOOKSMART, LTD. AND INTERCHANGE CORPORATION 
  
 This Amendment (the “Amendment”) to the Prioritized Listings Syndication Agreement dated as of October 19, 2001 (as amended, the
“Agreement”) is entered into and effective as of June 30, 2004 (the “Effective Date”) by and between LookSmart, Ltd., a Delaware corporation, (“LookSmart”) and Interchange Corporation (formerly
eLiberation Inc.), a Delaware corporation (“Partner”). 
  
 NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree that during the term of this Amendment, the Agreement will be amended as follows: 
  
 1. Section 1. Section is hereby amended to include the following
definitions: 
  
 “Click” 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 Partner Network for a legitimate web search, e.g. has been paid or
otherwise motivated to click) clicks on a Paid Listing and accesses the destination site. 
  
 “Gross Revenue” means total invoices generated from Search Results on Partner Network during the applicable period, plus
or minus any net credits or returns from previous periods. 
  
 “Paid Listing” means a listing for which a third party has paid to include in Search Results. 
  
 “Partner Network” means all of Partner’s affiliates which are under contractual obligation to distribute
Partner’s search results across their websites. Partner’s affiliates include: 
  
 “Search Results” means Prioritized Listings provided by LookSmart to Partner hereunder during the Term hereof. The Search
Results will include Sponsored Search. 
  
 “Sponsored Search” means a LookSmart product that returns results containing only Paid Listings. The amount that an advertiser pays to LookSmart influences (among other factors) the position in which the advertiser’s
listing appears in Sponsored Search. 
  
 2. Section 3.
Section 3 is hereby deleted and replaced with the following: 
  
 Cost Per Click (CPC). Subject to the terms and conditions hereof, for any given [***], LookSmart will pay Partner [***]% of Gross Revenue for all valid Clicks generated by Partner, as recorded by
LookSmart’s proprietary click tracking system. LookSmart will have sole discretion to adjust the CPC bid revenue share to more than [***]% of Gross Revenue for each search term. Partner may use the CPC bid included in the live feed for its
internal purposes, but the parties agree that all CPC bid amounts submitted by LookSmart are confidential information for internal use only, and shall not be posted on Partner’s or Partner’s Network web pages or disclosed to any third
parties. 
  
 3. Section 8. Section 8 is hereby deleted and
replaced with the following: 
  
 8.1 Term.
The term of this Agreement (the “Term”) will begin on the Effective Date of this Amendment and will end [***] later. The Agreement will then automatically renew for successive [***] periods, unless either party gives written notice
to the other party of its intention not to renew at least 60 days prior to the end of the then-current term or renewal term. 
  
 [***] indicates redacted text. 
  

 1 

 8.2 Termination. Either party may terminate this Agreement if the other party (i)
materially breaches its obligations hereunder and such breach remains uncured for thirty (30) days following delivery of written notice to the breaching party of the breach, or (ii) is subject to voluntary or involuntary bankruptcy proceedings,
insolvency, liquidation or otherwise substantially discontinues its business operations. 
  
 8.3 Effect of Termination. Termination of this Agreement by either party will not act as a waiver of any breach of this Agreement
and will not act as a release of either party hereto from any accrued liability (including payments as set forth in the following section) or liability for breach of such party’s obligations under this Agreement. Within thirty (30) days
following the expiration or termination of this Agreement, each party will pay to the other party all sums, if any, due and owing as of the date of expiration or termination, net of any amounts due from the other party as of such date. Upon the
expiration or termination of this Agreement for whatever reason, each party shall immediately cease to use the other party’s trademarks, proprietary information, Search Results, intellectual property (including derivative works or modifications
thereof) and Confidential Information in any manner whatsoever, and shall destroy or return (at the option of the other party), any such property, or materials representing the same to the other party, and provide the other party with an
officer’s certificate attesting to such return/destruction. For the avoidance of doubt, upon termination or expiration of this Agreement, the license granted hereunder shall terminate and Partner and its agents shall immediately cease all use
of the Search Results. 
  
 8.4
Survivability. Sections 7 through 12 hereof shall survive and continue beyond the term and termination of this Agreement for a period of one year. 
  
 4. Section 12.2. Section 12.2 is hereby deleted and replaced with the following: 
  
 Assignment/Change of Control. Neither party may assign this Agreement, in whole or in part, without
the other party’s written consent (which will not be unreasonably withheld). In the event of a change of control, merger, reorganization or sale of all, or substantially all, of one party’s assets to a third party, the other party may
terminate this Agreement upon 10 days prior written notice at any time after the closing of such transaction. For the purposes hereof, a ‘change of control’ shall mean a transaction in which the shareholders of a party prior to the closing
do not retain majority ownership of the party after the closing of such transaction. 
  
 IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date set forth above. In the event of any conflict between the terms hereof and the terms of the Agreement, the terms hereof shall govern. This Amendment may be
executed in counterparts, each of which may be an original or fax copy, and all of which together shall form one instrument. 
  

									
	 LOOKSMART LTD.
	 	 	 	 INTERCHANGE CORPORATION

					
	By:	 	/s/    ANTHONY MAMONE        	 	 	 	By:	 	/s/    DAVID LOWE        
	 	 	 Name: A. Mamone
 Title: SVP, Sales & Marketing
	 	 	 	 	 	 Name: David Lowe
 Title: Director, Business Development

  

 2Letter agreement between the Registrant and iterim CEO dated January 22, 2004

 Exhibit 10.43 
  
 January 20, 2004 
  

Mr. Damian Smith 
 c/o LookSmart, Ltd. 
 625 Second Street 
 San Francisco, CA 94107 
  
 Dear Damian: 
  
 This letter sets out the terms of your employment during the period you will serve as interim Chief Executive Officer. In this position you will be
reporting directly to the board of directors of the Company (the “Board”), and will have such duties as the Board may from time to time prescribe consistent with your position as interim Chief Executive Officer. 
  
 The term of your employment as interim Chief Executive Officer will begin on
January 20, 2004 and continue until the earlier of the Board’s appointment of a successor or the termination of your role as interim Chief Executive Officer of the Company (the “Term”). This letter is to be read in conjunction with
the terms set out in your letter of offer dated 3 July 2001 (the “Offer Letter”). To the extent that there is any inconsistency between this letter and the Offer Letter, the terms set out in this letter shall prevail during the Term.
During the Term: 
  

	 	•	You will continue to be employed by LookSmart International Pty Ltd, (“LookSmart International”) the Company’s Australian subsidiary. You will be paid by and in
accordance with the payroll practices of by LookSmart International. As an employee of LookSmart International Pty Ltd., you are entitled to the benefits of that entity. 

	 	•	You will continue to fulfill the role of Chief Executive Officer of LookSmart International. 

	 	•	You will be based in San Francisco. However, you will be required to travel (both domestically and internationally) as is necessary for you to fulfill your roles.

	 	•	Your base compensation will be AU$327,000 per annum, which will be subject to applicable tax and other withholdings. 

	 	•	In addition to your base compensation, your incentive compensation at 100% of “plan” will be AU$163,500. For partial performance against plan and for performance in excess
of plan, incentive compensation will be scaled pursuant to such formula as the Compensation Committee of the Board may establish from time to time. 

	 	•	Earned incentive compensation will be paid on an annual basis, based on your achievement of performance targets that are reviewed and approved by the Compensation Committee.

	 	•	You will be reimbursed for approved living expenses including periodic use of a rental car during the Term in accordance with Company policy. 

	 	•	You will be reimbursed for economy class travel expenses incurred by you or your partner for one trip per month during the Term between Sydney, Australia and San Francisco.

	 	•	You will also be reimbursed for reasonable tax advice necessary to prepare your Australian tax return(s) for taxable periods during the Term. 

	 	•	Your compensation will be “grossed-up” to the extent necessary to ensure that the tax you pay is equal to the amount you would have paid if you had performed all of your
duties as interim Chief Executive Officer during the Term in Australia. 

  
 Severance 
  
 If during the Term you are terminated without “cause” or voluntarily resign for “good reason” (each as defined below), you will
receive a severance package consisting of fifty percent (50%) of your then-current annual base salary and a prorated payment of your incentive compensation at 100% of “plan”. 

 This is payable in one lump sum within five (5) business days of the termination, subject to you completing any
documentation necessary under taxation legislation. 
  
 Solely for
the purpose of the severance provisions herein, “cause” shall mean that you: 
  

	 	•	are convicted of, or plead nolo contendere to, any felony or other offense involving moral turpitude or any crime related to your employment 

	 	•	commit any act of dishonesty in respect of your relationship with the Group (being the Company or any of its subsidiaries or affiliates); 

	 	•	engage in conduct which is detrimental to the Group in any material respect; 

	 	•	fail to perform your duties to the Company or LookSmart International in good faith and to the best of your ability; 

	 	•	willfully disregard, or fail to follow instructions from the Company’s senior management to do any legal act related to the Group’s business; 

	 	•	exhibit habitual drunkenness or engage in substance abuse which in any way materially affects your ability to perform your duties and obligations to the Company or LookSmart
International; 

	 	•	commit any material violation of any Australian or U.S law (whether state or federal law) relating to the workplace environment. 

  
 Solely for the purposes of the severance provisions herein, “good
reason” shall mean that you voluntarily cease employment with the Company during the Term due to (i) a significant reduction in your job duties or a reduction in your cash compensation of more than 10% (please note that a change in title,
responsibilities and/or compensation at the end of the Term would not constitute “good reason”), or (ii) a change in your job location of more than 80 kilometers from its previous location in connection with a Change in Control. Solely for
the purposes of the severance provisions herein, “Change of Control” has the same meaning given to it in the Offer Letter. 
  
 Other 
  
 Subject to Part 2.D2 Division 1 of the Corporations Act (Cth) and any applicable law of the United States of America, the Company, at its own expense,
agrees to defend you and hold you harmless against any action brought against you or the Company relating to your employment with the Company, to the same extent as the Company has agreed to indemnify its other officers. 
  
 You are required to observe at all times all LookSmart policies and
procedures. In accordance with LookSmart’s philosophy, these policies and procedures are formulated for the efficient and fair administration of employment matters and may be varied from time to time. 
  
 I look forward to working with you in your role as interim CEO. In order to
make this a valid agreement, we ask that you complete the following acknowledgment, initial each page of this letter and return it to me. If you require clarification of any matter, please feel free to contact me. 
  
 Sincerely, 
  
  

	
	
	/s/    Evan Thornley        
	 Evan Thornley
 Chairman of the Board

  

					
	 Accepted and agreed to by:
	 	/s/ Damian Smith	 	Date: 1/22/04
	 	 	 Damian Smith

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