Item 1.01 Entry into a Material Definitive Agreement.

On December 30, 2021 (the "Effective Date"), the Compensation Committee of Marchex, Inc. ("Marchex") approved target cash bonus compensation under the Marchex Amended & Restated Annual Incentive Plan for the 2022 fiscal year. The initial executive officer participants for the 2022 fiscal year are Michael Arends and Russell Horowitz. If all targets are met at 100%, the aggregate bonus pool amount is $568,438 (the "Target Amount"), with the maximum aggregate bonus pool amount being 195% of the Target Amount. The target bonus payout percentages shall be 50% to 195% based on the performance target category and shall be based on achieving specified revenue (new revenue and total revenue) and adjusted OIBA targets to include the 2022 fiscal year with each target category weighted 33 1/3%.

In addition, on the Effective Date, the Compensation Committee of Marchex approved target cash bonus compensation for John Roswech, the Chief Revenue Officer of Marchex, and Ryan Polley, the Chief Operating Officer of Marchex, for purposes of their employment agreements. Mr. Roswech's target bonus amount is $250,000 based on the achievement of new revenue and total revenue performance goals, and Mr. Polley's target bonus amount is $200,000 based on the achievement of new product revenue goals and technology expense initiatives, subject to the Annual Incentive Plan maximum bonus percentage.

On December 30, 2021 (the "Grant Date"), the Compensation Committee, pursuant to its review of equity award incentives for executive officers of the Corporation, approved stock option grants and grants of restricted stock under the Corporation's 2012 Stock Incentive Plan (the "Plan") effective on the Grant Date to the executive officers in the below table (subject to continued employment at such time) in the following amounts:






                             Option for       Number of
                             Number of        Restricted
                             Shares of        Shares of
                              Class B          Class B
                               Common           Common
Name of Executive Officer      Stock            Stock
Russell C. Horowitz               47,500           47,500
Michael Arends                   98,000            98,000

Each such option shall have an exercise price being the closing price of the Corporation's Class B common stock on the Grant Date, shall be an incentive stock option to the extent permitted by the Internal Revenue Code of 1986, as amended (the "Code"), and otherwise a nonqualified stock option. The restricted stock will be valued based upon the closing price of the Corporation's Class B common stock on the Grant Date.

Such options and shares of restricted stock shall vest on the fifth annual anniversary of the Grant Date with accelerated vesting upon certain events and subject to continued employment at all such times. With respect to acceleration, (a) 50% of such options and shares of restricted stock shall vest upon attainment of specified revenue, adjusted OIBA or share price targets at the later of eighteen (18) months or performance attainment (2022 revenue (or trailing 12 months revenue) exceeding 120% of 2021 level, 2022 adjusted OIBA (or trailing 12 months adjusted OIBA) exceeding specified multiples of 2021 level, or the Class B Common Stock share price for twenty (20) consecutive trading days exceeding 150% of the initial 2021 consecutive trading day average), and (b) such remaining unvested options and shares of restricted stock shall vest upon attainment of specified revenue, adjusted OIBA or share price targets at the later of thirty (30) months or performance attainment (trailing twelve (12) month revenue exceeding 127% of 2021 level, trailing twelve (12) month adjusted OIBA exceeding specified multiples of 2021 level higher than the initial performance target above, or the Class B Common Stock share price for twenty (20) consecutive trading days exceeding 160% of the initial 2021 consecutive trading day average). Such options and shares of restricted stock shall also be subject to the Corporation's standard form of executive officer "Double-Trigger Change in Control Acceleration" of vesting to the extent not otherwise vested upon such event.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements for Certain Officers.

The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

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