Document:

Letter agreement dated September 17, 2001

  Exhibit 10.32
 September 17, 2001
 Mr. Peter Adams
[address]
 Dear Peter:
 I am pleased to offer you a fulltime, regular position with LookSmart, Ltd. (the “Company). You have an outstanding skill set which I believe will enable you to play an important role in the success of the Company. This letter confirms
our offer and sets out the specified details of employment. Other terms required to be observed by law also apply.
 As discussed, your position will be Chief Technology Officer.
In this position you will be reporting to Jason Kellerman, LookSmart’s Chief Operating Officer. You will also work with Evan Thornley, Chairman and CEO from time to time on strategic and external matters.
 The duties and responsibilities of your position are outlined in the job description that is attached hereto as EXHIBIT A. Changes to your job description and responsibilities may be made from time to
time pursuant to the Company’s performance management policies or by the Board of Directors as they deem necessary or appropriate; provided however, that your title as set forth above will not be changed without your prior consent. You agree to
devote your best efforts to perform these duties on a regular, professional basis.
 Your start date will be the date you execute this letter. Between your date of execution of
this letter and October 6, 2001, you will be employed with the Company on a part-time (50%) basis. You will commence full-time employment with the Company on October 15, 2001.
 Compensation
 Your compensation on joining is US$200,000 per annum payable in accordance with the Company’s standard payroll practices.
 You will be eligible to participate in any incentive compensation plans, including but not limited to any cash or stock bonuses, stock purchase, or pension plans that are currently or in the future
maintained by LookSmart for its executive employees.
 Upon employment, you will also be eligible to enroll in the Company’s benefits package. If you enroll, the effective
date of your coverage will be October 15, 2001. In addition, upon employment you will be eligible to participate in the Company’s 401(k) Plan. In the current Plan, the Company will match your contribution dollar for dollar up to 5%. You are
also eligible to enroll in the Company’s Employee Stock Purchase Plan, which allows employees to purchase Company stock at a discount. You should note that the Company may modify salaries and benefits from time to time, as it deems
necessary.
 As an employee of the US Company, you are entitled to vacation, holiday, sick and funeral leave. Current policy consists of ten (10) days per annum vacation leave,
twelve (12) holidays, two (2) floating holidays, eight (8) days per annum sick leave (additional leave at discretion of manager) and two (2) days funeral leave.
 Stock
Options
  
 

  At the first LookSmart Board of Directors’ meeting following your date of hire, we will recommend that you be granted 750,000 Stock Options (the
“Stock Options”). The exercise price for your Stock Options will be the closing price of LookSmart, Ltd. stock as quoted on the NASDAQ exchange on the day prior to the Board of Directors’ approval of your grant. Your Stock Options
will vest over a period of three years, with 250,000 options vesting upon the one-year anniversary of your employment and 20,833 options vesting each month thereafter until all remaining Stock Options are vested. Such Stock Options will be subject
to terms and conditions of the Company’s Stock Plan (the “Stock Plan”) and your Stock Option Agreement, the form of which is attached hereto as EXHIBIT B. 
 Termination; At-Will Employment
 You should be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result
you are free to resign at any time for any reason or no reason, similarly the Company is free to terminate its employment relationship with you at any time, with or without cause, and with or without notice.
 Severance
 If you are terminated without “cause” or voluntarily resign for “good reason” (as defined below), the Company
will provide you with a severance package consisting of: (a) 3/12ths of your then current annual base salary, payable in one lump sum within five business days of the termination, (b) the
full amount of any cash or stock payments owed to you under any incentive compensation plans other than the Stock Plan and any successor thereto that are in effect at the time of the termination, and (c) up to ninety days of continued benefits
coverage from the date of the termination, and (d) reimbursement for all reasonable expenses related to your relocation to New York, provided that such expenses are incurred with six months of the date of termination.
 Solely for the purpose of this severance provision, the following shall constitute “cause”: That is, if you
 •
are convicted of, or plead nolo contendere to, any felony or other offense involving moral turpitude or any crime
related to your employment, or commit any act of personal dishonesty resulting in personal enrichment in respect of your relationship with the Company or any subsidiary or affiliate or otherwise detrimental to the Company in any material respect;

 •
fail to perform your duties to the Company
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 Company’s business after notice to you and 10 days’ opportunity to cure such conduct; 
 •
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;
 •
commit any material violation of any state or federal law relating to the workplace environment; or
 •
terminate or lose, through no fault or derogation of duty
on the part of the Company, of your employment authorization from the U.S. Immigration and Naturalization Service or the U.S. Department of State reflecting a right to work in the United States.
 Solely for the purposes of this paragraph regarding severance and the paragraphs regarding relocation and accelerated vesting below, the following shall constitute “good reason”: That is, if you voluntarily
cease employment with the Company due to (i) a significant change or reduction in your job duties or a significant reduction in your cash compensation, (ii) the level of
  
 

  management to which you report is materially lessened, or (iii) a change in your job location of more than 50 miles from its previous location in connection
with a Change in Control.
 Relocation
 The Company will pay your relocation expenses consistent with
our policies on relocation benefits if completed within six months from your date of hire. In order to assist you, LookSmart will reimburse you for all reasonable direct costs related to your move including (i) all aspects of the physical move, (ii)
the unpaid balance due under your current apartment lease as calculated by the difference between your start date and the last day of your apartment lease, less any reduction in the amount due that you are able to negotiate, and (iii) expenses up to
a maximum amount of $10,000 for brokers’ fees related to your securing rental housing in the Bay Area. In addition, the relocation package will include the reasonable expenses of two house-hunting trips for you and your spouse to San Francisco,
a corporate apartment in San Francisco for up to 90 days, and up to twelve round trips between San Francisco and New York, on a two-week advance fare basis (subject to use of the Company’s Netcentives miles program), that you may use to visit
home or to bring your spouse to San Francisco until your family is relocated to the Bay Area. Any relocation expenses that are included in your taxable income for the calendar years 2001 and 2002 will be grossed up to cover your tax liability. If
you voluntarily resign your employment within two years of your start date, other than for “good reason” (as defined above), you agree to reimburse the Company in an amount equal to 1/24th of your total relocation benefits for each full or partial month remaining between the date you resign and the twenty-four month anniversary of your start date.
 Accelerated Vesting 
 Solely for the purpose of this paragraph regarding accelerated vesting, “Change of Control” shall mean the
sale of all or substantially all of the assets of the Company, or the acquisition of the Company by another entity by means of consolidation or merger pursuant to which the then current stockholders of the Company shall hold less than Fifty Percent
(50%) of the voting power of the surviving corporation; provided, however, that a reincorporation of the Company in another jurisdiction shall not constitute a “Change of Control.”
 If within your first 12 months of employment (1) there is a “Change of Control” event and (2) you are terminated “without cause” by the surviving corporation, or (3) you voluntarily resign for
“good reason” (as defined above), then the product of 20,833 Stock Options multiplied by the number of complete months you have been employed by the Company plus 250,000 of the Stock Options shall vest and become immediately
exercisable.
 If after your first 12 months of employment (1) there is a “Change of Control” event and (2) you are terminated “without cause” by the surviving
corporation, or (3) you voluntarily resign for “good reason” (as defined above), then 250,000 Stock Options shall vest and become immediately exercisable, except that if there are fewer than 250,000 of the Stock Options unvested, then all
remaining unvested Stock Options shall vest and become immediately exercisable. 
 Confidential Information
 Given the high value of information in this market, it is essential that during your employment and at any time thereafter, you do not disclose any confidential information relating to the Company’s operations except as may be necessary
for the proper performance of your duties. By
  
 

  signing this letter, you agree to the terms of the Company’s confidentiality agreement attached hereto as EXHIBIT C.
 Other
 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.
 This offer of employment is contingent
upon presenting, in accordance with the immigration Reform and Control Act of 1986, verification of your identity and your legal right to work in the United States. In the event you do not possess, or are unable to obtain authorization to accept
employment in the U.S., our offer of employment is withdrawn.
 It is important that you bring the appropriate documentation for verification with you on your first day of
employment, as you cannot be put on the LookSmart payroll until it is received. The required documentation is described in the enclosed package.
 You are required to observe at
all times all LookSmart policies and procedures (including, but not limited to, those provided to you before your starting date). 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.
 In the event of any dispute or claim relating to or arising out of our employment relationship, you and
the Company agree that all such disputes, including but not limited to, claims of harassment, discrimination and wrongful termination, shall be settled by arbitration held in San Francisco, California, under the Arbitration Rules set forth in
California Code of Civil Procedure Section 1280, et seq., including section 1283.05, (the “Rules”) and pursuant to California law. A copy of the
Rules is available for your review prior to signing this Agreement.
 We look forward to you joining us, not just for your outstanding qualifications for this particular position,
but because we hope that you may become part of a core team driving LookSmart’s development.
 In order to make this a valid agreement, we ask that you complete the following
acknowledgment, initial each page of this letter and fax to me at (415) 348-7034 by September 19th, 2001. Please send the original signed letter to me at your convenience or bring it on your first day of employment. If you require
clarification of any matter, please feel free to contact me.
  

	 Sincerely,
 	  
 	  
 	  
 
	 
 
 /s/ EVAN THORNLEY
 	  
 	  
 	 
 
 
 
 
	 
 	  
 	  
 	  
 
	 Evan Thornley
 Chief Executive Officer
 	  
 	  
 	  
 

  

	 Accepted and agreed to by:
 	 /s/ PETER ADAMS
 	 Date:
 	 9/17/01
 
	  
 	 
 	  
 	  
 
	  
 	 Peter Adams
 	  
 	  
 

  
 

  EXHIBIT A
 Job
Description
 Chief Technology Officer, reporting to the Company’s Chief Operating Officer. He/she shall be responsible for the advancement of the Company’s overall
technology architecture as well as for the development of new and existing products, that are sold to Advertisers, through his/her subordinate organization.
 Specific duties
related to the aforementioned responsabilities include:
 •
Product Development/Management
 a.
The conception and specification of new and existing products.
 b.
The on-going development of products from conception to roll-out to support.
 •
Product Engineering
 a.
Software engineering and related technical
development
 b.
Product quality
 •
Product Thought Leadership
 a.
The active communication of product vision/strategies to
both the company’s internal an external constituencies.
 •
Technology Innovation
 a.
The advancement of the Company’s overall technological capability and level of innovation.Annual Incentive Plan

Exhibit 10.24 
 
2003 NEUBERGER BERMAN INC. 
 
ANNUAL INCENTIVE PLAN 
 
ARTICLE I. 
 
PURPOSES 
 
The purposes of the 2003 Neuberger Berman Inc. Annual Incentive Plan (the “Plan”) are to enable the Company and its
Subsidiaries to attract, retain, motivate and reward the best qualified executive officers and key employees by providing them with the opportunity to earn competitive compensation directly linked to the Company’s performance. 
 
ARTICLE II. 
 
DEFINITIONS 
 
2.1.    Definitions.    Unless the context requires otherwise, or otherwise defined in this Plan, capitalized terms used herein shall have the respective meanings set forth below:

 
“Board” shall
mean the Board of Directors of the Company. 
 
“Change in Control” means the occurrence of any of the following events: 
 

	 	(a)	 	the members of the Board at the beginning of any consecutive twenty-four calendar month period (the “Incumbent Directors”) cease for any reason
other than due to death to constitute at least a majority of the members of the Board, provided that any director whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the
members of the Board then still in office who were members of the Board at the beginning of such twenty four calendar month period other than as a result of a proxy contest, or any agreement arising out of an actual or threatened proxy contest,
shall be treated as an Incumbent Director; or 

 

	 	(b)	 	any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Act”), but excluding the Company, any Subsidiary or any employee benefit plan of the Company or any Subsidiary becomes the “beneficial owner” (as defined in Rule 13(d)-3 under the Act), directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities; or 

 

	 	(c)	 	the stockholders of the Company shall approve a definitive agreement (i) for the merger or other business combination of the Company with or into another
corporation, a majority of the directors of which were not directors of the Company immediately prior to the merger and in which the stockholders of the Company immediately prior to the effective date of such merger own a percentage of the voting
power in such corporation that is less than one-half of the percentage of the voting power they owned in the Company immediately prior to such transaction or (ii) for the sale or other disposition of all or substantially all of the assets of the
Company to any other entity; provided, in each case, that such transaction shall have been consummated; or 

 

	 	(d)	 	the purchase of Common Stock pursuant to any tender or exchange offer made by any “person,” including a “group” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Act), other than the Company, any Subsidiary, or an employee benefit plan of the Company or any Subsidiary, for 50% or more of the Common Stock of the Company. 

 
Notwithstanding the foregoing, a “Change in Control”
shall not be deemed to occur in the event the Company files for bankruptcy, liquidation or reorganization under the United States Bankruptcy Code. 

 
“Committee” means the Compensation Committee of the Board. 
 
“Company” shall mean Neuberger Berman Inc. 
 
“Covered Employee” shall have the meaning set forth in Section 162(m).

 
“Participant”
shall mean (i) each executive officer of the Company and (ii) each other key employee of the Company or a Subsidiary whom the Committee designates as a participant under the Plan. 
 
“Performance Period” shall mean each fiscal year or multi-year cycle as
determined by the Committee. 
 
“Plan” shall mean the 2003 Neuberger Berman Inc. Annual Incentive Plan, as set forth herein and as may be amended from time to time. 
 
“Section 162(m)” shall mean Section 162(m) of the Internal Revenue Code of
1986, as amended, and any regulations promulgated thereunder (including any proposed regulations). 
 
“Subsidiary” shall mean any corporation in which the Company owns, directly or indirectly, stock
representing 50% or more of the voting power of all classes of stock entitled to vote and any other business organization, regardless of form, in which the Company possesses directly or indirectly 50% or more of the total combined equity interests
in such organization. 
 
2.2.    Gender and Number.    Except when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine gender, the singular shall include
the plural, and the plural shall include the singular. 
 
ARTICLE III. 
 
ADMINISTRATION 
 
The
Committee shall administer and interpret the Plan, provided that, in no event, shall the Plan be interpreted in a manner which would cause any award intended to be qualified as performance-based compensation under Section 162(m) to fail to so
qualify. The Committee shall establish the performance objectives for any Performance Period in accordance with Section 4 and certify whether and to what extent such performance objectives have been obtained. Any determination made by the Committee
under the Plan shall be final and conclusive. The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it may deem desirable for the administration of the
Plan and may rely upon any opinion received from any such counsel or consultant or agent and any computation received from such consultant or agent. All expenses incurred in the administration of the Plan, including, without limitation, for the
engagement of any counsel, consultant or agent, shall be paid by the Company. No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with the
Plan other than as a result of such individual’s willful misconduct. The Committee may delegate its authority under this Plan; provided that the Committee shall in no event delegate its authority with respect to the compensation of the
Chief Executive Officer of the Company, the four most highly compensated executive officers (as determined under Section 162(m) and regulations thereunder) of the Company and any other individual whose compensation the Board or Committee reasonably
believes may become subject to Section 162(m). 
 
ARTICLE IV. 
 
BONUSES

 
4.1.    Performance
Criteria.    Within 90 days after each Performance Period begins (or such other date as may be required or permitted under Section 162(m)), the Committee shall establish the performance objective or 

 

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objectives that must be satisfied in order for a Participant to receive a bonus for such Performance Period. Any such performance objectives
will be based upon the relative or comparative achievement of one or more of the following criteria, as determined by the Committee: (i) earnings per share growth; (ii) growth in the Company’s revenue; (iii) growth in the
Company’s assets under management; and (iv) relative investment and/or financial performance versus a peer group of companies. 
 
4.2.    Target Incentive Bonuses.    Within 90 days after each Performance Period begins
(or such other date as may be required or permitted under Section 162(m)), the Committee shall establish target incentive bonuses for individual Participants. 
 
4.3.    Maximum Amount Payable.    As soon as practicable after the Performance Period
ends, the Committee shall determine (i) whether and to what extent any of the performance objectives established for the relevant Performance Period under Section 4.1 have been satisfied and (ii) for each Participant who is employed by
the Company or one of its Subsidiaries on the last day of the Performance Period for which the bonus is payable, the actual bonus to which such Participant shall be entitled, taking into consideration the extent to which the performance objectives
have been met and such other factors as the Committee may deem appropriate. Any provision of this Plan notwithstanding, in no event shall any Participant receive a bonus in respect of any fiscal year of the Company in excess of $5 million.

 
4.4.    Negative
Discretion.    Notwithstanding anything else contained in Section 4.3 to the contrary, the Committee shall have the right, in its absolute discretion, (i) to reduce or eliminate the amount otherwise payable to any
Participant under Section 4.3 based on individual performance or any other factors that the Committee, in its discretion, shall deem appropriate and (ii) to establish rules or procedures that have the effect of limiting the amount payable to
each Participant to an amount that is less than the maximum amount otherwise authorized under Section 4.3. 
 
4.5.    Death or Disability.    If a Participant dies or becomes disabled prior to the last
day of the Performance Period for which the bonus is payable, such Participant may receive an annual bonus equal to the maximum bonus payable to such Participant under the preceding sentence multiplied by a fraction, the numerator of which is the
number of days that have elapsed during the Performance Period in which the Participant’s death or disability occurs prior to and including the date of the Participant’s death or disability and the denominator of which is the total number
of days in the Performance Period or such other amount as the Committee may deem appropriate. 
 
4.6.    Change in Control.    In the event of a Change in Control, the Board (as constituted immediately prior to the Change in Control) shall, in its
sole discretion, determine whether and to what extent the Performance Criteria have been met for the year in which the Change in Control occurs. 
 
ARTICLE V. 
 
PAYMENT 
 
5.1.    In General.    Except as otherwise provided hereunder, payment of any bonus amount
determined under Article 4 shall be made to each Participant as soon as practicable after the Committee certifies that one or more of the applicable performance objectives have been attained or, in the case of any bonus payable under the provisions
of Section 4.4, after the Committee determines the amount of any such bonus. 
 
5.2.    Form of Payment.    The Committee shall determine whether any bonus payable under this Plan is payable in cash, or in restricted stock or options
(of equivalent value) awarded under the 1999 Neuberger Berman Inc. Long-Term Incentive Plan (as amended from time to time), or any combination thereof. 
 

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ARTICLE VI.

 
GENERAL PROVISIONS 
 
6.1.    Effectiveness of the
Plan.    The Plan shall be effective with respect to calendar years beginning on or after January 1, 2003 and ending on or before December 31, 2007, unless the term hereof is extended by action of the Board, provided,
however, that no such extension shall be effective without approval by the shareholders of the Company to the extent necessary to continue to qualify the amounts payable hereunder to Covered Employees as performance-based compensation under Section
162(m). 
 
6.2.    Amendment
and Termination.    Notwithstanding Section 6.1, the Board or the Committee may at any time amend, suspend, discontinue or terminate the Plan; provided, however, that no such amendment, suspension, discontinuance or
termination shall adversely affect the rights of any Participant in respect of any calendar year which has already commenced and no such action shall be effective without approval by the shareholders of the Company to the extent necessary to
continue to qualify the amounts payable hereunder to Covered Employees as under Section 162(m). 
 
6.3.    Designation of Beneficiary.    Each Participant may designate a beneficiary or beneficiaries (which beneficiary may be an entity other than a
natural person) to receive any payments which may be made following the Participant’s death. Such designation may be changed or canceled at any time without the consent of any such beneficiary. Any such designation, change or cancellation must
be made in a form approved by the Committee and shall not be effective until received by the Committee. If no beneficiary has been named, or the designated beneficiary or beneficiaries shall have predeceased the Participant, the beneficiary shall be
the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate. If a Participant designates more than one beneficiary, the rights of such beneficiaries shall be payable in equal shares, unless the Participant
has designated otherwise. 
 
6.4.    No Right of Continued Employment.    Nothing in this Plan shall be construed as conferring upon any Participant any right to continue in the employment of the Company or any of
its Subsidiaries. 
 
6.5.    No Limitation on Corporate Actions.    Nothing contained in the Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action which is deemed
by it to be appropriate or in its best interest, whether or not such action would have an adverse effect on any awards made under the Plan. No employee, beneficiary or other person shall have any claim against the Company or any Subsidiary as a
result of any such action. 
 
6.6.    Nonalienation of Benefits.    Except as expressly provided herein, no Participant or beneficiary shall have the power or right to transfer, anticipate, or otherwise encumber the
Participant’s interest under the Plan. The Company’s obligations under this Plan are not assignable or transferable except to (i) a corporation which acquires all or substantially all of the Company’s assets or (ii) any
corporation into which the Company may be merged or consolidated. The provisions of the Plan shall inure to the benefit of each Participant and the Participant’s beneficiaries, heirs, executors, administrators or successors in interest.

 
6.7.    Withholding.    Any amount payable to a Participant or a beneficiary under this Plan shall be subject to any applicable United States federal, state and local or non-United
States income and employment taxes and any other amounts that the Company or a Subsidiary is required at law to deduct and withhold from such payment. 
 
6.8.    Severability.    If any provision of this Plan is held unenforceable, the remainder
of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan. 
 

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6.9.    Governing Law.    The Plan shall be construed in accordance with and governed by the laws of the State of New York, without reference to principles of conflict of laws which
would require application of the law of another jurisdiction, except to the extent that the corporate law of the State of Delaware specifically and mandatorily applies. 
 
6.10.    Headings.    Headings are inserted in this Plan for
convenience of reference only and are to be ignored in a construction of the provisions of the Plan. 
 

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