Document:

Corporate HRM/Management Conditions & Remuneration

         

        	
                    Global Philips Restricted Share Rights Program 2009

                

         

         

         

         

        GLOBAL PHILIPS RESTRICTED SHARE RIGHTS PROGRAM 2009

         

         

         

         

        

        Corporate HRM/Management Conditions & Remuneration

         

        

        TERMS AND CONDITIONS

        OF

        GLOBAL PHILIPS RESTRICTED SHARE RIGHTS PROGRAM 2009

        Article 1

        Definitions

        In this Global Philips Restricted Share Program 2009 the following definitions shall apply:

        	
                    1.

                	
                    Custody Account

                	
                    :

                	
                    a custody account maintained in the name of a Participant other than a Nominee Account.

                
	 	
                	
                	
                
	
                    2.

                	
                    Date of Grant

                	
                    :

                	
                    the date at which a Restricted Share Right is granted pursuant to this Program. The Dates of Grant of any Restricted Share Rights shall be the same dates as the dates of publication of the Philips’ annual and/or quarterly results over the financial year 2009. The relevant Date of Grant and
                    categorization of any Restricted Share Right with respect to any grant hereunder shall be determined by Philips.

                
	 	
                	
                	
                
	
                    3.

                	
                    Delivery Date

                	
                    :

                	
                    depending on whether a Restricted Share Right is categorized as a “1 Year Term Restricted Share Right”, “2 Year Term Restricted Share Right” or “3 Year Term Restricted Share Right”, the Delivery Date shall be the first, second or third anniversary of the Date of Grant of
                    such Restricted Share Right.

                
	 	
                	
                	
                
	
                    4.

                	
                    Employing Company

                	
                    :

                	
                    any company within the Philips group of companies and such other company as Philips may from time to time designate or approve.

                
	 	
                	
                	
                
	
                    5.

                	
                    Nominee Account

                	
                    :

                	
                    a custody account maintained in the name of a Participant established by an administrator designated by Philips.

                
	 	
                	
                	
                
	
                    6.

                	
                    Premium Date

                	
                    :

                	
                    the date which is three years after the applicable Delivery Date.

                
	 	
                	
                	
                
	
                    7.

                	
                    Premium Shares

                	
                    :

                	
                    any Shares (to be) delivered to a Participant pursuant to Article 7 hereof.

                
	
                	
                	
                	
                
	
                    8.

                	
                    Retainment Period

                	
                    :

                	
                    the period commencing on the Delivery Date applicable to a particular Restricted Share Right

                

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        Corporate HRM/Management Conditions & Remuneration

         

        	
                     

                	
                     

                	
                    :

                	
                    and ending on the Premium Date applicable to such Restricted Share Right.

                
	 	
                	
                	
                
	
                    9.

                	
                    Participant

                	
                    :

                	
                    an individual who has accepted any Restricted Share Rights under this Program.

                
	
                	
                	
                	
                
	
                    10.

                	
                    Philips

                	
                    :

                	
                    Koninklijke Philips Electronics N.V.

                
	 	
                	
                	
                
	
                    11.

                	
                    Program

                	
                    :

                	
                    this Global Philips Restricted Share Rights Program 2009.

                
	 	
                	
                	
                
	
                    12.

                	
                    Restricted Share Right

                	
                    :

                	
                    the conditional right granted to a Participant to receive one Share, subject to the terms and conditions of this Program. Restricted Share Rights will be categorized as “1 Year Term Restricted Share Rights”, “2 Year Term Restricted Share Rights” or “3 Year Term Restricted Share
                    Rights”, as applicable.

                
	 	
                	
                	
                
	
                    13.

                	
                    Share

                	
                    :

                	
                    a common share of Philips (to be) delivered under this Program.

                

        

        Article 2

        Grant of Restricted Share Rights

        Any Restricted Share Rights may be granted to an eligible individual, subject to the (acceptance by such individual of the) terms and conditions of this Program and any other Philips’ policies or guidelines that may apply to such individual. Any Restricted Share Rights offered to any such individual and the terms and conditions governing
        such rights shall be deemed accepted by such individual with effect from the applicable Date of Grant in case Philips has not received, in accordance with a procedure established by Philips, a notice of rejection of such rights within fourteen (14) days of the notice of grant of such rights or such later date as may be determined by Philips.

        Article 3

        Termination of Employment

        1.     Except as otherwise provided in Article 3.2 and 3.3 hereof, in case a Participant is no longer employed by any Employing Company as a result of the termination of such Participant’s employment with an Employing Company for any reason whatsoever prior to the applicable Delivery
        Date, such Participant’s Restricted Share Rights shall be forfeited effective as of the date of termination of such Participant's employment with the Employing Company without the Participant being entitled to any compensation or any obligation on the part of Philips or any Employing Company unless Philips determines, in its sole discretion, otherwise in writing. Any such determination shall be final, conclusive and binding and may be subject to such conditions as Philips
        may determine appropriate.

        

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        2.     In case a Participant is no longer employed by any Employing Company as a result of the termination of such Participant’s employment with an Employing Company for reasons of (i) death, (ii) disablement, (iii) legal incapacity, (iv) retirement or (v) the expiration of a
        temporary contract of employment, provided such temporary contract of employment has not been extended one or more times, such Participant or, in case of death or legal incapacity of the Participant, the estate of the Participant or his or her legal representative(s), as the case may be, shall remain entitled to any Restricted Share Rights granted to such Participant prior to the date of such termination subject to the terms and conditions of this Program. For the purpose of this
        Program, a Participant’s employment shall be deemed terminated as a result of “retirement” if such Participant’s employment is terminated and such Participant satisfies at the date of such termination the eligibility requirements to receive an immediate (early) retirement benefit under an (early) retirement plan of an Employing Company under which such Participant was covered, provided (i) payment of such (early) retirement benefit commences immediately following
        such termination, and provided further (ii) that if such Participant is covered by an US retirement plan, such Participant must have at least five years of service with an US Employing Company and have attained the age of fifty-five (55) years.

        

        3.     In case the employment of a Participant with any Employing Company is terminated as a result of the sale or other divestment of a business, subsidiary, division or other business unit of Philips or any part thereof (“Divested Business”) and the Participant
        remains employed by the Divested Business upon such transfer, such Participant shall remain entitled to any Restricted Share Rights granted to such Participant prior to the date of the termination of such employment subject to the terms and conditions of this Program.

        

        

             In case of termination of employment of a Participant with any Employing Company as a result of such sale or other divestment, the Participant shall no longer be eligible to receive any Premium Shares.

        

        

        Upon termination of the employment of the Participant with the Divested Business, the terms of Article 3.1 and 3.2 shall apply mutatis mutandis, it being expressly understood that in case such Participant becomes re-employed by any Employing Company immediately upon such termination, such Participant shall remain entitled to
        any Restricted Share Rights held by such Participant at such time subject to the terms and conditions of this Program.

        

        Article 4

        Non-transferability

        

        The Restricted Share Rights are strictly personal and may not be assigned, transferred (except that, in case of death of the Participant any Restricted Share Rights granted to such Participant at the date of his death shall pass to his heirs or legatees), pledged, hypothecated, or otherwise encumbered or disposed of in any manner. The Participant
        may not engage in any transactions on any exchange on the basis of any Restricted Shares Rights. Any violation of the terms of this Article 4 will cause the Restricted Share

        

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        Rights to become immediately null and void without further notice and without the Participant being entitled to any compensation.

        

        Article 5

        Delivery and Holding of Shares

        

        	
                	
                    1.     

                	
                    Philips may require a Participant to maintain a Nominee Account in connection with this Program. Nothing contained in this Program shall obligate Philips to establish or maintain or cause to establish or maintain a Nominee Account for any Participant.

                

        

        

        	
                	
                    2.     

                	
                    Subject to the terms and conditions of this Program, and further to the Participants election via the website, Philips will deliver a Share pursuant to a Restricted Share Right to a Participant on or as soon as reasonably practicable after the relevant Delivery Date. In no event shall Philips have
                    any obligation to deliver any Shares to a Participant prior to the relevant Delivery Date.

                

        

        

        	
                	
                    3.     

                	
                    Any Shares to be delivered pursuant to Article 5.2 will be credited to the Nominee Account.

                

        

        

        4.     Except as may be otherwise approved in writing by Philips in its sole discretion, in case a Participant is no longer employed by any Employing Company for any reason whatsoever, the Participant (or his or her estate or legal representatives, as the case may be) shall
        withdraw all Shares credited to the Participant’s Nominee Account within two (2) months of the date of such termination. In case the Participant (or his or her estate or legal representatives, as the case may be) fails to comply with the foregoing obligation, then the Participant (or his or her estate or legal representatives, as the case may be) shall be deemed to have requested Philips to sell or cause to sell such Shares.

        

        5.     Each Participant shall comply with any applicable “insider trading” laws and regulations and the Philips’ Rules of Conduct with respect to Inside Information.

        

        Article 6

        Capital Dilution

        

        Philips may make equitable adjustment or substitution of the number or kind of Shares subject to the Restricted Shares Rights, as it, in its sole discretion, deems equitable to reflect any significant corporate event of or by Philips, for example a change in the outstanding Shares by reason of any stock dividend or split, recapitalization, merger,
        consolidation, spin-off, combination or exchange of shares or other corporate change, or any distribution to holders of Shares other than regular cash dividends.

        

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        Article 7

        Premium Shares

        

        At a Premium Date, Philips will deliver a number of Premium Shares, which is equal to 20% (twenty percent) of the number of Shares acquired by a Participant pursuant to the Restricted Share Rights, which are held by the Participant at, and are subject to, such Premium Date. The foregoing obligation shall be
        subject further to the requirements that: (i) the Participant is still employed by an Employing Company at the relevant Premium Date and (ii) such Shares have been deposited on the Participant’s Nominee Account during the entire Retainment Period in order to enable Philips to monitor whether Participant has retained the Shares during such period. Philips will not be required pursuant to the foregoing to deliver a fraction for a Premium Share but instead the number of Premium
        Shares shall be rounded upward to the next whole Share.

        

        Article 8

        Costs and Taxes

        

        1.     All costs of delivering any Shares, including, but not limited to, any Premium Shares, under this Program to a Participant’s Custody Account and any other costs connected with the Shares shall be borne by the Participant.

        

        2.     Any and all taxes, duties, levies, charges or social security contributions (“Taxes”) which arise under any applicable national, state, local or supra-national laws, rules or regulations, whether already effective on the Date of Grant of any Restricted Shares Rights or becoming
        effective thereafter, and any changes or modifications therein and termination thereof which may result for the Participant in connection with this Program (including, but not limited to, the grant of the Restricted Shares Rights, the ownership of the Restricted Shares Rights and/or the delivery of any Shares under this Program, the ownership and/or the sale of any Shares acquired under this Program) shall be for the sole risk and account of the Participant.

        

        3.     Philips and any other Employing Company shall have the right to deduct or withhold (or cause to be deducted or withheld) from any salary payment or other sums due by Philips or any other Employing Company to Participant, or requiring the Participant or beneficiary of the Participant,
        to pay to Philips an amount necessary to settle any Taxes and any costs determined by Philips necessary to be withheld in connection with this Program (including, but not limited to, the grant of the Restricted Shares Rights or the delivery of any Shares (including, but not limited to, Premium Shares) under this Program).

        

        4.     Philips shall not be required to deliver any Shares and Philips may delay (or cause to be delayed) the transfer of any Shares from a Nominee Account to a Custody Account until Philips has received an amount, or the Participant has made such arrangements required by Philips necessary to satisfy any withholding of
        any Taxes and any costs to be borne by the Participant in connection with this Program as determined by Philips.

        

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        5.     Philips is herewith authorised by the Participant to sell (part of) Participant’s Shares credited to a Nominee Account and to maintain such part of the proceeds of this sale as payment to Philips necessary to satisfy any withholding of any Taxes and any costs to be borne by the Participant in connection
        with this Program as determined by Philips.

        

        Article 9

        Dividend Payment on Shares

         

        Philips is entitled, in its sole discretion, to determine the manner in which dividend on any Shares acquired by a Participant pursuant to this Program and deposited on the Nominee Account at the applicable record date, is paid to such Participant including, but not limited to, the payment of dividend by means
        of a dividend reinvestment plan pursuant to which the dividend will be reinvested in the purchase of Shares.

        

        Article 10

        General Provisions

         

        

        	
                	
                    1.     

                	
                    Philips shall have the authority to interpret this Program, to establish, amend, and rescind any rules and regulations relating to this Program, to determine the terms and conditions of any agreements entered into hereunder, and to make all other determinations necessary or advisable for the administration of this Program. Philips shall further have the
                    authority to waive, in its sole discretion, the requirement pursuant to Article 7 that the Shares have been and are deposited on the Nominee Account during the entire Retainment Period. Such waiver may be subject to such conditions as Philips may establish in its sole discretion. Philips may delegate the authority to practice administrative and operational functions with respect to the Program to officers or employees of subsidiaries of Philips and to service
                    providers.

                

        

        

        	
                	
                    2.     

                	
                    No Participant shall have any rights or privileges of shareholders (including the right to receive dividends and to vote) with respect to Shares to be delivered pursuant to Restricted Share Rights until such Shares are actually delivered to such Participant in accordance with Article 5 of this Program. The Shares delivered shall carry the same rights as
                    common shares of Philips traded on Euronext Amsterdam, or the New York Stock Exchange, as applicable, on the day on which these Shares are delivered.

                

        

        

        	
                	
                    3.     

                	
                    The (value of) Restricted Share Rights granted to, or Shares acquired by, a Participant pursuant to such Restricted Share Right under this Program shall not be considered as compensation in determining a Participant’s benefits under any benefit plan of an Employing Company, including but not limited to, group life insurance, long-term disability,
                    family survivors, or any retirement, pension or savings plan.

                

        

        

        	
                	
                    4.     

                	
                    Nothing contained in this Program or in any grant made or Agreement entered into pursuant hereto shall confer upon any Participant any right to be retained in

                

        

        

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                    employment with any Employing Company, or to be entitled to any remuneration or benefits not set forth in this Program or interfere with or limit in any way with the right of any Employing Company to terminate such Participant’s employment or to discharge or retire a Participant at any time.

                

        

        

        	
                	
                    5.     

                	
                    If a provision of this Program is deemed illegal or invalid, the illegality or invalidity shall not affect the remaining parts of this Program, this Program shall be construed as if the illegal or invalid provisions had not been included in this Program.

                

        

        

        6.     Where the context requires, words in either gender shall include also the other gender.

        

        7.     This Program shall be governed by and construed in accordance with the laws of The Netherlands, without regard to its principles of conflict of laws.

        

        • • • • •

         

         

         

        page 8 of 8exv10w1

Exhibit 10.1

Portions of this exhibit indicated by “***” have been omitted pursuant to the Company’s request

for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended,

and the omitted material has been separately filed with the Securities and Exchange Commission.

ASSET PURCHASE AND FULFILLMENT AGREEMENT

     This Asset Purchase and Fulfillment Agreement (the “Agreement”), is made and entered into
effective the date of signatures hereto (the “Effective Date”) by and between Local.com Corporation
(the “Local”) and LaRoss Partners, Inc (the “LaRoss”), cumulatively “Parties” or “Contracting
Parties”.

RECITALS

WHEREAS, LaRoss owns certain proprietary software programs designated “Web Builder” and “Customer
Care System” (“Programs”).

WHEREAS, LaRoss is the true legal owner of certain client accounts (“Client Accounts”) (see Exhibit
“A”) which include 11,754 active and website hosting accounts, which provide over $350,000 in gross
monthly billings; and represents to Local it has the rights to sell these clients to the Local. It
is agreed and understood that all active accounts are billed ***.

WHEREAS, Local will acquire the 11,754 Client Accounts from the LaRoss in exchange for a one-time
payment of $100.00 for every active website account the LaRoss maintains at the time of closing.

WHEREAS, No Person other than LaRoss has any interest in the Client Accounts or the Programs
discussed below and the LaRoss has the sole right and exclusive authority to execute this Agreement
and receive benefits from it; and

WHEREAS, Local is in the business of or will be in the business of providing digital content, web
access, directory listing, web hosting and/or the services of an Internet Services Provider
(“Telecommunications Products”) to persons and businesses; and

WHEREAS, Local desires to outsource the provisioning of certain services provided to its Clients as
defined herein including, but not limited to the on-going website hosting, customer billing and
collections, customer service, regulatory oversight, quality control and the sales and marketing of
new clients.

NOW, THEREFORE, in consideration of the promises and the conditions and mutual covenants contained
herein, the Parties agree:

 

			
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AGREEMENT

	1)	 	RECITALS AS PART OF AGREEMENT: 

	 	a)	 	The Recitals appearing above contains warranties and representations of fact
and present intent and agreement, and are, by this reference, incorporated herein.

	2)	 	DEFINITIONS: For purposes of this Agreement, the following terms shall have the
meanings set forth herein:

	 	a)	 	“Affiliate(s)” shall mean any individual, corporation, partnership or other
entity that, directly or indirectly (e.g., through any number of successive tiers)
controls (e.g., a parent organization), is controlled by (e.g., a subsidiary
organization) or is under common control with (e.g., a brother/sister organization) of
a Party. It also means directors, officers, managers, agents, or independent
consultants of a Party or its Affiliate.
	 
	 	b)	 	“Billing Aggregator” shall mean a person or company who aggregates billings for
Third Party Billing to purchasers’ credit cards, phone bills, utility bills and/or
direct of indirect debit to purchaser’s bank account.
	 
	 	c)	 	“Client” or “Clients” shall mean the person or entity corresponding to
individual Client Account. This includes the person or entity which has agreed to test
the product for the initial period of 30 days (the “Trial Period”) as well as those who
have completed the Trial period and have been billed for the service.
	 
	 	d)	 	“Client Accounts” shall mean the accounts listed in the LaRoss’s CCS system to
which LaRoss will provide Local access.
	 
	 	e)	 	“Client Fee(s)” shall mean the fee(s) paid by a Client.
	 
	 	f)	 	“Collected Billing Revenue” shall mean all payments made by the clearinghouses
to LaRoss that represent the billing revenues received by the clearinghouses from the
LECs, based on the customer billing the clearinghouses have submitted on LaRoss’s
behalf. It is understood that the “Collected Billing Revenue” is received by LaRoss on
a monthly basis and is paid to the Local on a monthly basis.
	 
	 	g)	 	“Confidential Information” shall mean, with respect to a Party, any and all
information concerning, related to, or referencing any business relationship currently
existing or contemplated by either Party; any client or customer relationship including
the identity of such client or customer; any customer or client list; and any customer
or client information; the identity of any Person with knowledge of Confidential

 

			
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	 	 	 	Information; the existence and description of any technology or equipment, whether such description is
in the form of written or oral descriptions; plans; drawings; demonstrations; or any other Media;
 any research; any banking arrangement or
relationship; any financial or other past, present or future transaction summary or
description; any financial information; any marketing strategy or information; any
agreement or contract; any other information concerning the business of a Party or
Affiliate or any current or future business relationship between the Parties; any trade
secrets; any marketing strategies; any methods or practices; any document or information
of any type or description identified in writing by a Party or Affiliate, to the other as
confidential; or any report, memorandum, or other document or communication prepared by
either Party or Affiliate which is based upon, refers to, summarizes or contains an
evaluation of other Confidential Information.
	 
	 	h)	 	“Costs” shall mean out-of-pocket costs paid to third parties incurred by the
LaRoss in the collection of Client Fees.
	 
	 	i)	 	“Disclose” shall mean disseminate, transmit, publish, post, distribute, make
available, convey or otherwise make known.
	 
	 	j)	 	“ISP” shall mean Internet Service Provider.
	 
	 	k)	 	“Media” shall mean any drawing, writing, diskette, hard drive, CD, or means
whereby electronic data or writing of any kind and description is stored or from which
such data or writing is reproducible.
	 
	 	l)	 	“Person” shall mean a natural person, corporation, general partnership, limited
partnership, trust, estate, Limited Liability Company, association, organization or
other entity of whatsoever nature or character.
	 
	 	m)	 	“Successful Billing” shall mean that number of records accepted by the Billing
Aggregator after deduction of those accounts that are rejected by the Billing
Aggregator upon submission.
	 
	 	n)	 	“Third Party Billing” means a billing against a credit card, phone bill,
utility bill and/or direct or indirect debit against a bank account of a purchaser who
purchased goods or services from a provider of goods or services purchasers, where such
billing is accomplished through a third party.
	 
	 	o)	 	 “Reserves” — All Collected Billing Revenue retained by the clearinghouse and
or LEC which would otherwise have been paid to LaRoss and Local. Reserves accrue to
both parties as of the date of this Agreement for distribution at a future time, based
upon the revenue share arrangement in Section 5. The reserves currently have
approximately a $*** balance that will not inure to the benefit of Local.

 

			
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	3)	 	FULFILLMENT OF SERVICES FOR CLIENT ACCOUNTS:

	 	a)	 	LaRoss Uninterrupted Servicing Of Client Accounts: In fulfillment of
LaRoss’s obligations to Clients, LaRoss shall provide uninterrupted web hosting
services to all currently active Client Accounts.
	 
	 	b)	 	LaRoss Product Provisioning: LaRoss will provide the Local’s Client
Accounts provisioning of the LaRoss’s product(s) by providing either some, part or all
of the products, detailed and described on Exhibit B attached hereto and made part of
this Agreement by reference herein, on behalf of LaRoss. These products, by agreement
between the Parties and as described on Exhibit B, may include but not be limited to;
digital content, web access, telephony based services including Local or Long Distance,
web hosting and/or the services of an ISP (“Telecommunications Products”).
	 
	 	c)	 	Local Provisioning: Local shall provide value to the Client Accounts by
providing a listing on its and related internet “Local” network and internet search
sites in order to provide traffic of potential customers to the Client Accounts hosted
website. LaRoss shall continue to host the Client Accounts in the same manner as
currently hosted.

	4)	 	CONSIDERATION:

	 	a)	 	Responsibility and Consideration for Billing: LaRoss will provide
ongoing billing services, hosting of the sites and customer service operations for the
benefit of Local, and Local will pay the LaRoss, according to the terms in Section 5,
*** of all Collected Billing Revenue received from the Clients that the LaRoss bills on
behalf of Local.

	5)	 	PAYMENT FOR ACQUISITION AND BILLING SERVICES:

	 	a)	 	Payment for Existing Customer Purchase: Local will pay LaRoss for
11,754 Client Accounts active in the LaRoss CCS system at the time of close. This
includes all Clients whether in the trial period and Clients who have been successfully
billed. The total Client Accounts in CCS will be multiplied by $100 per account and
equals $1,175,000, the amount Local is obligated to pay LaRoss at the close of this
transaction. Within one (1) day of execution of this Agreement, Local will wire the
acquisition payment to LaRoss and take ownership of all Client Accounts.
	 
	 	b)	 	Sole Source of Payment for Billing Services to LaRoss: It is
specifically understood that LaRoss shall be paid its *** share for its billing, web
hosting and customer services provided hereunder solely from the proceeds of Clients as
collected and paid by the Billing Aggregator(s).

 

			
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	 	c)	 	Distribution of Collected Billing Revenue: LaRoss will distribute ***
of the Collected Billing Revenue from the proceeds of Clients as collected and paid by
the
Billing Aggregator(s). It is understood that Reserves accumulated on the Clients
beginning March 1, 2009 are included in the Collected Billing Revenue.
	 
	 	d)	 	Audit: LaRoss and Local shall have the right on two (2) business days
notice to audit the other’s books, records, and servers to determine that each has
performed the services contracted for. By way of example, Local shall have the right to
examine the servers of LaRoss to determine that no discrepancy exists between the
Client Accounts billed by LaRoss and the Client Accounts from the list on Exhibit B
that are actually hosted and billed elsewhere.

	6)	 	TERM, BREACH AND TERMINATION, EFFECTS OF TERMINATION, AND SURVIVAL:

	 	a)	 	Term: This Agreement shall commence on the Effective Date and shall
continue for a minimum period of two (2) years as to the ongoing web hosting, billing
and collections of all Clients serviced by LaRoss on behalf of Local. The contract will
automatically renew for one (1) year increments unless notification of cancellation is
provided within 60 days of expiration.
	 
	 	b)	 	Termination for Convenience: After the initial two (2) year term, Local
may terminate this Agreement for convenience provided that, (i) it provides LaRoss with
90 days prior notice, and (ii) pays LaRoss, in a single payment, an amount equal to
$400,000 (the “Termination Fee”).
	 
	 	c)	 	Termination for Breach and Material Breach by a Party. Upon a breach
by either Party of any term, condition or covenant contained in this Agreement, which
breach is not cured within ten (10) days of receipt of written notice of the breach,
the non-breaching party will have the right, without waiving any right or remedy
otherwise available hereunder or under applicable law, to cease performance and declare
the Agreement terminated. For Termination pursuant to this section, there will not be a
Termination Fee.
	 
	 	d)	 	Effects of Termination. Upon notification of termination, whether for
Breach or Convenience, LaRoss and Local will work in good faith to develop and execute
a transition, support and migration plan for the Clients. LaRoss will support the
transition and migration activity for up to 2 months (4 billing cycles) if necessary
and LaRoss will be entitled to its standard fees during this 2 month period. Any
additional fees above standard support and billing incurred by LaRoss to support the
migration of customers will be priced at market rate and subtracted from Local’s final
month Collected Billing

 

			
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	 	 	 	Revenue share. Provisions concerning the parties’ rights and
obligations which by the content of the provision operate after termination or which
are necessary to enforce any right hereunder will survive termination of this
Agreement. Without limiting the
foregoing, all obligations of confidentiality and indemnification will survive
termination of this Agreement.

	7)	 	CONFIDENTIALITY, NON-DISCLOSURE AND NON-CIRCUMVENTION:

	 	 	 	Each party will hold all Confidential Information of the other party in strict confidence
and will not disclose any Confidential Information to any third party. The parties will
disclose the Confidential Information of the other party only to its respective employees,
contractors, and agents who need to know such information for the purposes of performing
their respective obligations under this Agreement and who are bound in writing by
restrictions regarding disclosure and use of such information comparable to and no less
restrictive than those set forth herein. Neither party will use any Confidential
Information of the other party for the benefit of itself or any third party or for any
purpose other than performing its obligations under this Agreement. Each party will use the
same degree of care that it uses to protect its own confidential and proprietary information
of similar nature and importance (but in no event less than reasonable care) to protect the
confidentiality and avoid the unauthorized use, disclosure, publication or dissemination of
the Confidential Information of the other party. Each party will immediately notify the
other party if it has reason to believe that any person who has had access to Confidential
Information has violated or intends to violate the terms of this Agreement or otherwise use
or disclose any Confidential Information of the other party, and will cooperate with the
other party in seeking injunctive, other equitable relief or other relief against any such
person. Neither party will make any copies of the Confidential Information of the other
party except to the extent reasonably necessary to perform its obligations under this
Agreement, or unless otherwise approved in writing in advance by the other party. Any
copies made by a party will be identified as the property of the other party and marked
“confidential,” “proprietary” or with a similar legend. Notwithstanding the foregoing,
either party may disclose the Confidential Information of the other party to the extent such
party is legally compelled to do so, provided that the party required to make such
disclosure will (a) provide the other party with prompt written notice of such disclosure so
that the party whose Confidential Information may be disclosed has the opportunity if it so
desires to seek a protective order or other appropriate remedy; and (b) disclose only such
information as is legally required and will use reasonable efforts to obtain confidential
treatment for any Confidential Information that is so disclosed.

	8)	 	Proprietary Rights and Notices

 

			
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	 	 	 	Local acknowledges that, subject to Local’s rights herein, LaRoss retains all right, title
and interest, including, without limitation, all patent rights, copyrights, trademarks,
trade secrets and all other intellectual property rights, in and to the Programs. Local
will have only those rights in or to the Programs that are granted to Local pursuant to this
Agreement.

	9)	 	Warranties

	 	a)	 	Warranties by Local. Local represents, warrants and covenants that (a)
Local has full power to enter into this Agreement and to perform its obligations
hereunder, and (b) Local has the right to accept the Client Accounts contemplated by
this Agreement, without the need for any consents, approvals or immunities not yet
obtained.
	 
	 	b)	 	Warranties by LaRoss. LaRoss represents, warrants and covenants that
(a) LaRoss has the full power to enter into this Agreement and to perform its
obligations hereunder; (b) LaRoss has the sole and exclusive right to grant the rights
contemplated by this Agreement, without the need for any licenses, releases, consents,
approvals or immunities not yet obtained; (c) the Client Accounts do not and will not
infringe or misappropriate any privacy or other rights of any third person; (d) LaRoss
has not made and will not make any commitments inconsistent with Local’s rights under
this Agreement; (e) no lien or security interest has attached or will attach to the
Client Accounts; (f) any other services provided by LaRoss under this Agreement will be
performed in a timely, professional and workmanlike manner consistent with the highest
industry standards and in accordance with all applicable legal requirements.

	10)	 	 INDEMNIFICATION:

	 	a)	 	Indemnity Obligations; Hold Harmless. Each party will defend the other
party from and against any third-party claim, suit or proceeding resulting, directly or
indirectly, from (a) any breach (or any claim that, if true, would constitute a breach)
of such party’s representations, warranties or covenants in this Agreement, (b) such
party’s acts and omissions in connection with the performance of its obligations under
this Agreement, and (c) such party’s gross negligence or willful misconduct, and will
indemnify and hold harmless such other party from any damages, costs, losses or
liabilities (including attorneys’ fees and related costs) related to or resulting from
such claim, suit or proceeding. Subject to any other remedies that may be available
Local under this Agreement or at law or in equity, Local will hold LaRoss harmless from
and

 

			
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	 	 	 	against any damages arising from the termination by any LEC of the right of Local
or any Sub-Cic to bill through such LEC.
	 
	 	b)	 	Duty to Correct. Notwithstanding anything in Section 10.1 to the
contrary, if there is a material, bona fide claim (or threat of a claim) of
infringement or misappropriation of any patent, copyright, trademark, trade secret,
publicity, privacy or other rights of any third person in connection with the Programs,
LaRoss will notify Local immediately and (i) procure for Local the right to continue
using the Programs, as licensed under this Agreement; or (ii) replace or modify the
Programs to make it non-infringing,
provided that the replacement or modified version meets the Specifications to Local’s
satisfaction.

	11.	 	MISCELLANEOUS:

	 	a)	 	Notices. Any notice desired or required to be served on a party hereunder will
be given to such party in writing by personal delivery (notice deemed effective upon
receipt), overnight messenger (notice deemed effective the business day after such
messenger’s acceptance (which acceptance must occur before such messenger’s required
deadline) for next business day service), by mail (notice deemed effective three days after
mailing) or facsimile transmission with follow-up copy by mail (notice deemed effective
upon electronic confirmation of facsimile receipt), addressed to such party at the address
for such party specified in the introductory paragraph of this Agreement, Attn: General
Counsel. A party may designate a substitute address by written notice to the other with
the effectiveness of such notice governed by the terms of this Section. If the final day
for giving notice is a Saturday, Sunday or nationally recognized holiday then the time for
giving such notice will be extended to the next business day.
	 
	 	b)	 	Assignment. This Agreement may not be assigned, in whole or in part, by LaRoss
without the prior written consent of Local. Local will have the right to assign or
otherwise transfer this Agreement or any of its rights or obligations hereunder. Any
purported assignment, sale, transfer, delegation or other disposition by LaRoss, except as
permitted herein, will be null and void. This Agreement will be binding upon and will
inure to the benefit of the parties and their respective successors and permitted assigns.
	 
	 	c)	 	Governing Law; Venue. This Agreement is to be construed in accordance with and
governed by the internal laws of the State of California (as permitted by Section 1646.5 of
the California Civil Code or any similar successor provision), without giving effect to any
choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of California to the rights and duties of the parties.
Any action or proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement may be brought against any of the parties only in the courts of the
State of California, Orange County, or, if it has or can acquire the necessary
jurisdiction, in a United States District Court located in Orange County, California. Each
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	 	 	 	consents to the exclusive jurisdiction of such courts (and the appropriate
appellate courts) in any such action or proceeding and waives any objection to venue laid
therein.

	 	d)	 	Waiver. The waiver by either party of a breach of or a default under any
provision of this Agreement will be in writing and will not be construed as a waiver of any
subsequent breach of or default under the same or any other provision of the Agreement, nor
will any delay or omission on the part of either party to exercise or avail itself of any
right or remedy that it has or may have hereunder operate as a waiver of any right or
remedy.
	 
	 	e)	 	Severability. If the application of any provision or provisions of this
Agreement to any particular facts or circumstances is held to be invalid or unenforceable
by any court of
competent jurisdiction, then (a) the validity and enforceability of such provision or
provisions as applied to any other particular facts or circumstances and the validity of
other provisions of this Agreement will not in any way be affected or impaired thereby, and
(b) such provision or provisions will be reformed without further action by the parties
hereto and only to the extent necessary to make such provision or provisions valid and
enforceable when applied to such particular facts and circumstances.
	 
	 	f)	 	Relationship of the Parties. The parties agree that no relationship of
employment, partnership, joint venture, or agency is created by this Agreement. LaRoss is
at all times acting and performing as an independent contractor of Local. Local will
neither have, nor exercise, control or direction over the methods by which LaRoss performs
the services hereunder. LaRoss is not authorized and will not have any authority to make
any representation, contract or commitment on behalf of Local, or otherwise bind Local in
any respect whatsoever. Neither party will make any deductions from any of the payments
due to the other party hereunder for state or federal tax purposes. LaRoss agrees that
LaRoss will be solely responsible for all tax returns and payments required to be filed
with or made to any federal, state or local tax authority with respect to the services
provided under this Agreement and receipt of compensation under this Agreement.
	 
	 	g)	 	Captions and Section Headings. The captions and section and paragraph headings
used in this Agreement are inserted for convenience only and will not affect the meaning or
interpretation of this Agreement.
	 
	 	h)	 	Counterparts. This Agreement may be executed in one or more counterparts, with
the same effect as if the parties had signed the same document. Each counterpart so
executed will be deemed to be an original, and all such counterparts will be construed
together and will constitute one Agreement.
	 
	 	i)	 	Equitable Relief. The parties acknowledge that (a) the covenants contained in
Section 8 are reasonable and necessary to protect the legitimate interests of the parties;
(b) the parties would not have entered into this Agreement in the absence of such
covenants; and (c) any

 

			
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	 	 	 	violation or threatened violation of such covenants would cause
irreparable harm for which monetary damages would not be adequate. Therefore, the parties
agree that, in the event of a breach of Section 8 by a party, the other party will be
entitled to equitable relief in addition to any remedies it may have hereunder or at law,
and the breaching party will reimburse the non-breaching party for the reasonable costs
associated with such enforcement (including any attorney’s fees).

	 	j)	 	Recovery of Fees by Prevailing Party. If any legal action, including, without
limitation, an action for arbitration or equitable relief, is brought by one party against
the other party relating to this Agreement or the breach or alleged breach hereof, the
prevailing party in any final judgment or arbitration award, or the non-dismissing party in
the event of a voluntary dismissal by the party instituting the action, will be entitled to
reimbursement
from the other party for the full amount of all reasonable expenses, including all court
costs, arbitration fees and actual attorneys’ fees paid or incurred in good faith.
	 
	 	k)	 	Entire Agreement. This Agreement, including the Exhibit(s) hereto, constitutes
the entire agreement between the parties concerning the subject matter hereof and
supersedes all prior or contemporaneous representations, discussions, proposals,
negotiations, conditions and agreements, whether oral or written, and all communications
between the parties relating to the subject matter of this Agreement and all past courses
of dealing or industry custom. No amendment or modification of any provision of this
Agreement will be effective unless in writing and signed by a duly authorized signatory of
LaRoss and Local.
	 
	 	l)	 	No Recruitment of Employees. To the maximum extent permitted by law, neither
party will solicit any employee of the other party for employment for a period of eighteen
(18) months after the termination of this Agreement, unless agreed to in writing between
the parties or in the event of a sale of substantially all or part of the assets or change
of control as defined by the United States Securities and Exchange Commission of either
party than this clause will terminate 18 months after that event.
	 
	 	m)	 	Force Majeure. If the performance of either party is delayed or prevented at
any time due to circumstances beyond its control, including, without limitation, those
resulting from labor disputes, fire, floods, riots, civil disturbances, weather conditions,
control exercised by a governmental entity, unavoidable casualties or acts of God or a
public enemy, performance will be excused until such condition no longer exists.
	 
	 	n)	 	Cooperation. The parties will reasonably cooperate with one another in
connection with each other’s performance. The parties acknowledge that such performance
depends in part on such cooperation and that the failure to cooperate may hinder or impede
the other’s performance hereunder.

 

			
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	 	o)	 	 Representations. Each Party represents and warrants to the other that the
execution, delivery and performance of this Agreement, when executed and delivered by the
Parties on the Effective Date, will be a legal, valid, and binding obligation of the
Parties enforceable against it in accordance with its terms. Each Party represents and
warrants that neither the execution nor the performance of this Agreement nor the
consummation of the transactions contemplated will violate any applicable law or statute
actually known to such Party. Each Party also represents and warrants that neither the
execution and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will (i) violate any provision of the Articles of Incorporation or
Bylaws of each warranting Party, or (ii) violate any judgment, order, injunction, decree or
award of any court, arbitrator, administrative agency, or governmental body against, or
binding upon, each warranting Party Parties or upon its properties, assets, or business;
(iii) violate any federal, state or local law.

IN WITNESS WHEREOF, each Contracting Party has caused this Agreement to be executed and effective
this 18th day of February, 2009.

	 	 	 	 	 	 	 
	LOCAL	 	 	 	LAROSS	 	 
	 
	 	 	 	 	 	 
	LOCAL.com	 	LaRoss Partners, LLC
	 
	 	 	 	 	 	 
	One Technology Drive 

Building G 

Irvine CA 92618	 	1 Expressway Plaza

Suite 114

Roslyn Heights, NY 11577
	 
	 	 	 	 	 	 
	Ph: 949-784-0800

Fax: 949-784-0880	 	Ph: 877-450-2237

Fax: 516-299-5578
	 
	 	 	 	 	 	 
	Signature

	 	/s/ Douglas S. Norman
	 	Signature
	 	/s/ Thomas Rossi

 

			
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Exhibit A

Client Accounts

The Client Accounts represented within the LaRoss CCS system at the time of closing of the
agreement (11,754), will be an accurate listing of Clients to be transferred to the ownership of
the Local and are summarized as follows:

	 	 	 	 	 
	***
	 	 	6,097	 
	***  
	 	 	510	 
	***
	 	 	4,764	 
	***
	 	 	383	 
	 
	 	 	 
	 
	 	 	 	 
	Total
	 	 	11,754	 

 

			
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Exhibit B

LaRoss Products and Services

Product
— LaRoss will create a website and provide hosting of that website for Clients.

Technical Support — LaRoss will provide Clients with unlimited technical support for
Client’s websites that are being hosted by LaRoss, at no cost to Local or Clients.

Customer Service — LaRoss will provide Clients with customer service including, but not
limited to, questions regarding billing and collections.

 

			
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