Document:

Exhibit 10.11

 

DEMAND MEDIA, INC.

 

Re:          AT-WILL
EMPLOYMENT TERMS

 

Dear
Larry:

 

In
consideration of the compensation, benefits and promises contained herein and
for other good and valuable consideration, the adequacy of which you and Demand
Media, Inc., a Delaware corporation (the “Company”) hereby acknowledge, you and the Company hereby enter
into this letter agreement (the “Agreement”) as
of April 21, 2006 (the “Execution Date”),
subject to the terms and conditions contained herein, and further subject to and
conditioned upon the consummation of the initial capitalization of and the
acquisitions currently contemplated by the Company (the “Transactions”).  This Agreement shall become effective only
upon the closing of the Transaction last to occur (the “Closing,”
and the date on which such Closing occurs, the “Effective Date”), it being understood that this Agreement
shall be null and void and of no force or effect if any of the Transactions are
not consummated for any reason.

 

1.              POSITION,
DUTIES AND RESPONSIBILITIES.  The Company will employ you, and you agree to
be employed by the Company, as the Senior Vice President, Monetization of the
Company and you shall perform such employment duties as are usual and customary
for such position, as the Company may assign to you from time to time.  While employed by the Company, you agree to
devote your full business time and attention to serving the Company in such
position.  Your duties may be changed
from time to time by the Company.  You
will report to the Chief Executive Officer of the Company (the “CEO”) (currently Richard Rosenblatt) or, at the CEO’s
discretion, the Company’s Executive Vice President, and will work full-time at
our principal offices, currently located in Santa Monica, California, except
for travel to other locations as may be necessary to fulfill your
responsibilities.  If the Company so
requests, you will serve the Company, its subsidiaries and/or affiliates in
other capacities in addition to the foregoing.  In the event that you
serve in any one or more of such additional capacities, the Company may, in its
sole discretion, increase your compensation on account of such additional
service beyond that specified in this Agreement.

 

2.              BASE
COMPENSATION.  During your
employment with the Company, the Company will pay you a base salary (the “Base Salary”) of one hundred seventy-five thousand dollars
($175,000) per year, less payroll deductions and all required withholdings,
payable in accordance with the Company’s normal payroll practices and pro-rated
for any partial period of service.  Your
Base Salary may be subject to upward adjustment, in the sole discretion of the
Company, pursuant to the Company’s policies as in effect from time to time.

 

3.              ANNUAL
BONUS.  In addition to the Base Salary
set forth above, you will be eligible to receive an annual bonus (the “Bonus”) under the Company’s incentive bonus plan applicable
to similarly situated employees of the Company, as in effect from time to time,

 

 

in accordance with the terms and conditions of such bonus plan.  The amount of your Bonus will be targeted at
25% of your Base Salary, based on the attainment of performance criteria
established and evaluated by the Company in its sole discretion in accordance
with the terms of such bonus plan, provided, that
your actual Bonus for any year may equal more or less than 25% of your Base
Salary (and may equal zero), depending upon whether and to what extent such
criteria are attained.  Payment of your
Bonus(es), to the extent any Bonus(es) become payable to you, will be
contingent upon your continued employment through the date on which bonuses are
paid generally under the applicable bonus plan.

 

4.              RESTRICTED
STOCK AWARD.  Subject to
adoption by the Board of Directors of the Company and approval by the Company’s
stockholders of the Company’s 2006 Equity Incentive Plan (the “Equity Plan”),
the Company agrees to grant to you four hundred thousand (400,000) restricted
shares of the Company’s common stock (the “Restricted
Stock”) under the Equity Plan. 
The Restricted Stock shall be subject to such restrictions as the
Company, in its sole discretion, shall determine in accordance with the terms
of the Equity Plan, which may include, without limitation, any reacquisition
and transferability restrictions (the “Restrictions”).  The terms and conditions of the Restricted Stock, including any Restrictions,
shall be set forth in a Restricted Stock agreement to be entered into by the
Company and you which shall evidence the grant of the Restricted Stock (the “Restricted
Stock Agreement”).  The
Restricted Stock shall vest and all Restrictions thereon shall expire (i) as
to one hundred thousand (100,000) shares on the first anniversary of the date
of grant of the Restricted Stock (the “Grant Date”),
and (ii) as to an additional eight thousand, three hundred thirty-three
and one-third (8,333 1/3) shares on each monthly
anniversary of the Grant Date thereafter, subject to your continued employment
with the Company through each such vesting date, such that all shares of
Restricted Stock shall be vested and no longer subject to the Restrictions
(subject to your continued employment) on the fourth anniversary of the Grant
Date, provided, that if a Change of Control
(as defined in the Equity Plan) shall occur and either (x) you remain employed
by the Company through the six-month anniversary of such Change of Control, or (y) the
Company terminates your employment other than for Cause (as defined in the
Equity Plan) prior to such six-month anniversary (in either case, an “Acceleration
Event”), then, in either case, the greater of (A) one hundred thousand
(100,000) shares of Restricted Stock or (B) fifty percent (50%) of the
shares of Restricted Stock that remain unvested and subject to Restrictions
upon the Acceleration Event shall vest immediately prior to such Acceleration
Event and all Restrictions thereon expire upon the Acceleration Event and, provided further, that if the Company terminates your
employment other than for Cause after an Acceleration Event described in clause
(x) above, an additional fifty thousand (50,000) shares (or such lesser
number of shares as remains unvested and subject to Restrictions) shall vest
immediately prior to such termination and all Restrictions thereon expire.  The Restricted Stock shall, subject to the
provisions of this Section 4, be governed in all respects by the terms of
the Equity Plan and the applicable Restricted Stock Agreement.

 

5.              BENEFITS
AND VACATION.  While
employed by the Company, you will be eligible to participate in all incentive,
savings and retirement plans and programs maintained or 

 

 

sponsored by the Company from time to time which are applicable to
other similarly situated employees of the Company, subject to the terms and
conditions thereof.  While employed by
the Company, you will also be eligible for standard benefits, such as medical
insurance, sick leave, vacations and holidays to the extent applicable
generally to other similarly situated employees of the Company, subject to the
terms and conditions of the applicable Company plans or programs.  Nothing in this Agreement shall, or shall be
construed so as to, obligate the Company to adopt or maintain any benefit plan
or program at any time.

 

6.              AT-WILL
EMPLOYMENT.  You will be
employed by the Company hereunder as an employee at will.  Your employment with the Company will not
continue for any fixed or guaranteed period of time.  Accordingly, you may terminate your
employment at any time, for any reason or no reason, with or without
notice.  Likewise, the Company may
terminate your employment at any time, for any reason or no reason, with or
without notice.

 

7.              TERMINATION
OF EMPLOYMENT.  In the
event that your employment with the Company terminates for any reason, you
shall be entitled to receive any compensation and benefits that you have
accrued, but not received payment for, through the date of such
termination.  In addition, if your
employment is terminated by the Company other than for Cause, subject to your
execution and non-revocation of a binding release and waiver of claims in a
form reasonably prescribed by the Company, you shall be entitled to
continuation payments of your Base Salary at the rate in effect immediately
prior to such termination for four months (the “Severance”),
payable in accordance with the Company’s normal payroll procedure, beginning
after the expiration of any applicable revocation period specified in the
release and subject to Section 13 below. 
The Company shall have no further obligations to you upon your
termination of employment.

 

8.              CONFIDENTIAL
INFORMATION AND EMPLOYEE DEVELOPMENT AGREEMENT. 
In connection with the Company’s entering into this Agreement and in
further consideration hereof, you hereby agree to execute, simultaneously with
this Agreement or as soon as practicable thereafter, a Confidential Information
and Employee Development Agreement in the form provided by the Company.

 

9.              COMPANY
RULES AND REGULATIONS.  As
an employee of the Company, you agree to abide by all Company policies,
procedures, rules and regulations as may be set forth in a Company
employee handbook or as otherwise promulgated by the Company.

 

10.       WITHHOLDING.  The Company shall withhold from any amounts
payable under this Agreement such federal, state, local and/or foreign taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

11.       ARBITRATION.  Any controversy or claim arising out of or
relating to this Agreement or the breach thereof, or otherwise arising out of
your employment relationship with the Company or the termination thereof,
shall, to the fullest extent permitted by law, be settled by arbitration in any
forum and form agreed upon by you and the Company or, in 

 

 

the absence of such an agreement, under the auspices of the American
Arbitration Association (“AAA”) in Los Angeles, California in accordance
with the Employment Dispute Resolution Rules of AAA, including, but not
limited to, the rules and procedures applicable to the selection of
arbitrators.  Judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  This Section 11 shall be
specifically enforceable. Notwithstanding the foregoing, this Section 11
shall not preclude either party from pursuing a court action for the sole
purpose of obtaining a temporary restraining order or a preliminary injunction
in circumstances in which such relief is appropriate; provided that any other
relief shall be pursued through an arbitration proceeding pursuant to this Section 11.

 

12.       Representations

 

a.               No Violation of Other
Agreements.  You hereby
represent and warrant to the Company that (i) you are fully authorized and
empowered to enter into this Agreement and that the performance of your
obligations hereunder will not violate any agreement between you and any other
person, firm, organization or other entity, and (ii) you are not bound by
the terms of any agreement with any previous employer or other party to refrain
from competing, directly or indirectly, with the business of such previous
employer or other party that would be violated by your entering into this
Agreement and/or providing services to the Company pursuant to the terms of
this Agreement.

 

b.              No Disclosure of
Confidential Information.  You
hereby represent that your performance of your duties under this Agreement will
not require you to, and you shall not, rely on in the performance of your
duties or disclose to the Company or any other person or entity or induce the
Company in any way to use or rely on any trade secret or other confidential or
proprietary information or material belonging to any of your previous
employers.

 

13.       Code Section 409A

 

a.               Code Section 409A
Exempt.  The compensation and benefits
payable under this Agreement, including without limitation the Severance, are
not intended to constitute “nonqualified deferred compensation” within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). 
However, if the Company determines that any compensation or benefits
payable under this Agreement may be subject to Code Section 409A, this
agreement shall incorporate the terms and conditions required by Code Section 409A
and Department of Treasury regulations as determined by the Company.  To the extent applicable, this Agreement
shall be interpreted in accordance with Code Section 409A and Department
of Treasury regulations and other interpretive guidance issued thereunder.  If the Company reasonably determines that any
compensation or benefits payable under this Agreement may be subject to Code Section 409A
and related Department of Treasury guidance, the Company shall adopt such
amendments to this Agreement or adopt other policies or procedures (including
amendments, policies and procedures with retroactive effect), or take such
other actions as the Company deems necessary or 

 

 

appropriate to (i) exempt the compensation and benefits payable
under this Agreement from Code Section 409A and/or preserve the intended
tax treatment of the compensation and benefits provided with respect to this
Agreement, or (ii) comply with the requirements of Code Section 409A
and related Department of Treasury guidance.

 

b.              Specified Employees.  Notwithstanding anything to the contrary in
this Agreement, no compensation or benefits, including without limitation any
Severance payments, shall be paid to you during the 6-month period following
your “separation from service” (within the meaning of Code Section 409A(a)(2)(A)(i))
if the Company determines that paying such amounts at the time or times
indicated in this Agreement would cause you to incur additional tax under Code Section 409A.  If the payment of any such amounts is delayed
as a result of the previous sentence, then on the first day following the end
of such 6-month period, the Company will pay you a lump-sum amount equal to the
cumulative amount that would have otherwise been payable to you during such
6-month period.

 

14.       ENTIRE AGREEMENT.  As of the Effective Date, this Agreement,
together with the Restricted Stock Agreement and the Confidential Information
and Employee Development Agreement, constitutes the final, complete and
exclusive agreement between you and the Company with respect to the subject
matter hereof and replaces and supersedes any and all other agreements, offers
or promises, whether oral or written, made to you by the Company or any
representative or agent thereof.

 

15.       SEVERABILITY.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability will not
affect any other provision of this Agreement, but such invalid, illegal or
unenforceable provision will be reformed, construed and enforced so as to
render it valid, legal, and enforceable consistent with the intent of the
parties insofar as possible.

 

16.       ACKNOWLEDGEMENT.  You hereby acknowledge
(a) that you have consulted with or have had the opportunity to consult
with independent counsel of your own choice concerning this Agreement, and have
been advised to do so by the Company, and (b) that you have read and
understand this Agreement, are fully aware of its legal effect, and have
entered into it freely based on your own judgment.

 

[SIGNATURE PAGE FOLLOWS]

 

 

Please
confirm your agreement to the foregoing by signing and dating the enclosed
duplicate original of this Agreement in the space provided below for your
signature and returning it to Richard Rosenblatt at 15957 Asilomar
Blvd., Pacific Palisades, California 90272.  Please retain one fully-executed original for
your files.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Demand Media, Inc., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard Rosenblatt

  
	
   

  	
  Name:

  	
  Richard
  Rosenblatt

  
	
   

  	
  Title:

  	
  Chairman
  and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted
  and Agreed,

  	
   

  
	
  this
  21st day of April, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Larry Fitzgibbon

  	
   

  	
   

  
	
   

  	
  Larry
  FitzgibbonExhibit 10.12

 

DEMAND MEDIA, INC.

 

Re:          AT-WILL
EMPLOYMENT TERMS

 

Dear
Mr. Blend:

 

In
consideration of the compensation, benefits and promises contained herein and
for other good and valuable consideration, the adequacy of which you and Demand
Media, Inc., a Delaware corporation (the “Company”) hereby acknowledge, you and the Company hereby enter
into this letter agreement (the “Agreement”) as
of August 1, 2006, provided, that
the effectiveness of this Agreement is contingent upon the consummation of the
transactions contemplated by the Asset Purchase Agreement (the “Purchase Agreement”), dated as of July 31, 2006, by and
among Demand Domains, Inc., Hotkeys Internet Group LLC, Boxer Internet
Group LLC, BTCom Internet Marketing LLC, you and Thomas Zundel (the “Closing”) and this Agreement will become effective only if
the Closing occurs and shall be null and void and of no force or effect if the
Closing does not occur for any reason (the date on which the Closing occurs, if
any, the “Effective Date”).

 

1.              POSITION,
DUTIES AND RESPONSIBILITIES.  The Company will employ you, and you agree to
be employed by the Company, as Senior Vice President, Hotkeys, of the Company
and you shall perform such employment duties as are usual and customary for
such position, as the Company may assign to you from time to time.  While employed by the Company, you agree to
devote your full business time and attention to serving the Company in such
position.  Your duties may be changed
from time to time by the Company.  You
will report to the Chief Executive Officer of the Company (currently Richard
Rosenblatt), and will work full-time at our offices located in San Francisco,
California, except for travel to other locations as may be necessary to fulfill
your responsibilities.  If the Company so
requests, in its reasonable discretion, you will serve the Company, its
subsidiaries and/or affiliates in other capacities in addition to the
foregoing.  In the event that you serve in any one or more of such
additional capacities, the Company may, in its sole discretion, increase your
compensation on account of such additional service beyond that specified in
this Agreement.

 

2.              BASE
COMPENSATION.  During your
employment with the Company, the Company will pay you a base salary (the “Base Salary”) of $100,000 per year, less payroll deductions
and all required withholdings, payable in accordance with the Company’s normal
payroll practices and pro-rated for any partial period of service.  Your Base Salary may be subject to upward
adjustment, in the sole discretion of the Company, pursuant to the Company’s
policies as in effect from time to time.

 

3.              ANNUAL
BONUS.  In addition to the Base Salary
set forth above, you will be eligible to receive an annual bonus (the “Bonus”) under the Company’s incentive bonus plan applicable
to similarly situated employees of the Company, as in effect from time to time,
in accordance with the terms and conditions of such bonus plan.  The amount of your 

 

 

Bonus will be targeted at 20% of your Base Salary, based on the attainment
of performance criteria established and evaluated by the Company in its sole
discretion in accordance with the terms of such bonus plan and communicated to
you, provided, that your actual Bonus for any
year may equal more or less than 20% of your Base Salary (and may equal zero),
depending upon whether and to what extent such criteria are attained.  Payment of your Bonus(es), to the extent any
Bonus(es) become payable to you, will be contingent upon your continued
employment through the date on which bonuses are paid generally under the
applicable bonus plan.

 

4.              RESTRICTED
STOCK AWARD. 
Substantially concurrent with the Closing, the Company shall grant to
you 1,976,275 restricted shares of the Company’s common stock (the “Restricted Stock”) under the Company’s 2006
Equity Incentive Plan (the “Equity Plan”) as soon as practicable
after the Effective Date.  The Restricted
Stock shall be subject to such restrictions as the Company, in its sole
discretion, shall determine in accordance with the terms of the Equity Plan,
which may include, without limitation, any reacquisition and transferability
restrictions (the “Restrictions”).  The terms and conditions of the Restricted Stock, including any Restrictions,
shall be set forth in a Restricted Stock agreement to be entered into by the
Company and you which shall evidence the grant of the Restricted Stock (the “Restricted
Stock Agreement”).  The
Restricted Stock shall vest and all Restrictions thereon shall expire with
respect to 40% shares of Restricted Stock on each of the first and second
anniversaries of the Grant Date and with respect to an additional 10% shares of
Restricted Stock on each of the third and fourth anniversaries of the Grant
Date, such that all shares of Restricted Stock shall vest and the Restrictions
thereon lapse on the fourth anniversary of the Grant Date, subject to your
continued employment with the Company through each such date, provided, that all shares of Restricted Stock shall vest and
the Restrictions thereon lapse immediately prior to any of (i) a Change of
Control (as defined in the Equity Plan), (ii) your death, (iii)  your
termination of employment by the Company without Cause (as defined below) or (iv) a
termination by the Company of your employment due to your refusal to comply
with the Company’s request that you relocate your principal work location
outside of the San Francisco, California greater metropolitan area, subject to
your continued employment with the Company through any such event, and, provided, further, that, immediately prior to the Public
Trading Date (as defined in the Equity Plan), subject to your continued
employment with the Company through the Public Trading Date, the 20% Shares
that would otherwise have vested and the Restrictions thereon lapsed on the third
and fourth anniversaries of the Grant Date (or such lesser number of Shares as
remain unvested and subject to the Restrictions at that time) shall vest and
the Restrictions thereon lapse.  The
Restricted Stock shall, subject to the provisions of this Section 4, be
governed in all respects by the terms of the Equity Plan and the applicable
Restricted Stock Agreement.

 

For
purposes of this Agreement, the term “Cause” shall mean (i) your
unauthorized use or disclosure of confidential information or trade secrets of
the Company or any other material breach of a written agreement between you and
the Company, including without limitation a material breach of any employment
or confidentiality agreement; (ii) the entry of a plea of guilty or nolo
contendere by you to, a felony under the laws of the

 

 

United
States or any state thereof or any crime involving dishonesty or moral
turpitude; (iii) your gross negligence or willful misconduct or your
willful or repeated failure or refusal to substantially perform assigned duties
after receiving notification thereof from the Company; provided that you shall
have been afforded a 15 day period to cure such conduct in the case of conduct
that does not constitute willful misconduct or willful failure or refusal to
substantially perform assigned duties; (iv) any act of fraud,
embezzlement, material misappropriation or dishonesty committed by you against
the Company; or (v) any acts, omissions or statements by you which the
Company reasonably determines to be materially detrimental or damaging to the
reputation, operations, prospects or business relations of the Company,
provided that you shall be given a 15 day period to cure such conduct (if
capable of being cured) so long as you shall not have intended to damage the
reputation, operations, prospects or business relations of the Company with
such conduct.

 

5.              BENEFITS
AND VACATION.  While
employed by the Company, you will be eligible to participate in all incentive,
savings and retirement plans and programs maintained or sponsored by the
Company from time to time which are applicable to other similarly situated
employees of the Company, subject to the terms and conditions thereof.  While employed by the Company, you will also
be eligible for standard benefits, such as medical insurance, sick leave,
vacations and holidays to the extent applicable generally to other similarly
situated employees of the Company, subject to the terms and conditions of the
applicable Company plans or programs. 
Nothing in this Agreement shall, or shall be construed so as to,
obligate the Company to adopt or maintain any benefit plan or program at any
time.

 

6.              AT-WILL
EMPLOYMENT.  You will be
employed by the Company hereunder as an employee at will, subject to the terms
of this Agreement.  Your employment with
the Company will not continue for any fixed or guaranteed period of time.  Accordingly, you may terminate your
employment at any time, for any reason or no reason, with or without notice.  Likewise, the Company may terminate your
employment at any time, for any reason or no reason, with or without notice.

 

7.              TERMINATION
OF EMPLOYMENT.  In the
event that your employment with the Company terminates for any reason, you
shall be entitled to receive any compensation and benefits that you have accrued,
but not received payment for, through the date of such termination.  In addition, if your employment is terminated
by the Company other than for Cause, or if your employment is terminated by the
Company because, without your consent, 
the Company requires that you relocate your principal work location
outside of the San Francisco, California greater metropolitan area, subject to
your execution and non-revocation of a binding release and waiver of claims in
a form reasonably prescribed by the Company, which release and waiver shall not
cause you to relinquish the rights available to you under the Purchase
Agreement, the escrow agreement referenced therein and the Restricted Stock
Agreement, you shall be entitled to continuation payments of your Base Salary
at the rate in effect immediately prior to such termination for four months
(the “Severance”), payable in accordance with
the Company’s normal payroll procedure, beginning after the expiration of any
applicable revocation period specified in 

 

 

the release and subject to Section 13 below.  The Company shall have no further obligations
to you upon your termination of employment.

 

8.              DEVELOPMENT
AGREEMENT.  In connection
with the Company’s entering into this Agreement and in further consideration
hereof, you hereby agree to execute, simultaneously with this Agreement or as
soon as practicable thereafter, a Development Agreement in the form provided by
the Company.

 

9.              COMPANY
RULES AND REGULATIONS.  As
an employee of the Company, you agree to abide by all lawful Company policies,
procedures, rules and regulations as may be set forth in a Company
employee handbook or as otherwise promulgated by the Company.

 

10.       WITHHOLDING.  The Company shall withhold from any amounts
payable under this Agreement such federal, state, local and/or foreign taxes as
shall be required to be withheld pursuant to any applicable law or regulation.

 

11.       ARBITRATION.  Any controversy or claim arising out of or
relating to this Agreement or the breach thereof, or otherwise arising out of
your employment relationship with the Company or the termination thereof,
shall, to the fullest extent permitted by law, be settled by arbitration in any
forum and form agreed upon by you and the Company or, in the absence of such an
agreement, under the auspices of the American Arbitration Association (“AAA”)
in Los Angeles, California, in accordance with the Employment Dispute
Resolution Rules of AAA, including, but not limited to, the rules and
procedures applicable to the selection of arbitrators.  Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof.  This Section 11 shall be specifically
enforceable.  Notwithstanding the
foregoing, this Section 11 shall not preclude either party from pursuing a
court action for the sole purpose of obtaining a temporary restraining order or
a preliminary injunction in circumstances in which such relief is appropriate;
provided that any other relief shall be pursued through an arbitration
proceeding pursuant to this Section 11.

 

12.       Representations

 

a.               No Violation of Other
Agreements.  You hereby
represent and warrant to the Company that (i) you are fully authorized and
empowered to enter into this Agreement and that the performance of your
obligations hereunder will not violate any agreement between you and any other
person, firm, organization or other entity, and (ii) you are not bound by
the terms of any agreement with any previous employer or other party to refrain
from competing, directly or indirectly, with the business of such previous
employer or other party that would be violated by your entering into this
Agreement and/or providing services to the Company pursuant to the terms of
this Agreement.

 

b.              No Disclosure of
Confidential Information.  You
hereby represent that your performance of your duties under this Agreement will
not require you to, and you shall not, rely on in the performance of your
duties or disclose to the Company or any other person or entity or induce the
Company in any way to use or rely on any trade secret 

 

 

or other confidential or proprietary information or material belonging
to any of your previous employers.

 

13.       Code Section 409A

 

a.               Code Section 409A
Exempt.  The compensation and benefits
payable under this Agreement, including without limitation the Severance, are
not intended to constitute “nonqualified deferred compensation” within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”). 
However, if the Company determines that any compensation or benefits
payable under this Agreement may be subject to Code Section 409A, this
agreement shall incorporate the terms and conditions required by Code Section 409A
and Department of Treasury regulations as determined by the Company.  To the extent applicable, this Agreement
shall be interpreted in accordance with Code Section 409A and Department
of Treasury regulations and other interpretive guidance issued thereunder.  If the Company reasonably determines that any
compensation or benefits payable under this Agreement may be subject to Code Section 409A
and related Department of Treasury guidance, the Company shall adopt such
amendments to this Agreement or adopt other policies or procedures (including
amendments, policies and procedures with retroactive effect), or take such
other actions as the Company deems necessary or appropriate to (i) exempt
the compensation and benefits payable under this Agreement from Code Section 409A
and/or preserve the intended tax treatment of the compensation and benefits provided
with respect to this Agreement, or (ii) comply with the requirements of
Code Section 409A and related Department of Treasury guidance.

 

b.              Specified Employees.  Notwithstanding anything to the contrary in
this Agreement, no compensation or benefits, including without limitation any
Severance payments, shall be paid to you during the 6-month period following
your “separation from service” (within the meaning of Code Section 409A(a)(2)(A)(i))
if the Company determines that paying such amounts at the time or times
indicated in this Agreement would cause you to incur additional tax under Code Section 409A.  If the payment of any such amounts is delayed
as a result of the previous sentence, then on the first day following the end
of such 6-month period, the Company will pay you a lump-sum amount equal to the
cumulative amount that would have otherwise been payable to you during such
6-month period.

 

14.       ENTIRE AGREEMENT.  This Agreement, together with the Restricted
Stock Agreement, the Development Agreement and applicable provisions contained
in the Purchase Agreement, constitutes the final, complete and exclusive
agreement between you and the Company with respect to the subject matter hereof
and replaces and supersedes any and all other agreements, offers or promises,
whether oral or written, made to you by the Company or any representative or
agent thereof.

 

15.       SEVERABILITY.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of 

 

 

this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
of this Agreement, but such invalid, illegal or unenforceable provision will be
reformed, construed and enforced so as to render it valid, legal, and
enforceable consistent with the intent of the parties insofar as possible.

 

16.       ACKNOWLEDGEMENT.  You hereby acknowledge
(a) that you have consulted with or have had the opportunity to consult
with independent counsel of your own choice concerning this Agreement, and have
been advised to do so by the Company, and (b) that you have read and
understand this Agreement, are fully aware of its legal effect, and have
entered into it freely based on your own judgment.

 

[SIGNATURE PAGE FOLLOWS]

 

 

Please
confirm your agreement to the foregoing by signing and dating the enclosed
duplicate original of this Agreement in the space provided below for your
signature and returning it to the Company at 1454 Third Street, Santa Monica,
CA 90401.  Please retain one
fully-executed original for your files.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Demand Media, Inc., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard Rosenblatt

  
	
   

  	
   

  	
  Name:
  Richard Rosenblatt

  
	
   

  	
   

  	
  Title:
  Chairman and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  and Agreed,

  	
   

  
	
  this
  1st day of August, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Michael Blend

  	
   

  	
   

  
	
   

  	
  Michael
  Blend

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]