| 1. | Employment.  Company      hereby hires Executive to continue serving as its Chief Financial Officer      and to become a member of the Company’s Board of Directors as of the date      of this Agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Duties.  Policies.  Executive      agrees to serve as the Chief Financial Officer as defined in Exhibit “A,”      attached and incorporated herein by reference, subject to the terms set      forth in this Agreement.  Executive hereby accepts such      employment on the terms and conditions described      herein.  Executive shall obtain the prior written approval of      the Company’s Board of Directors (which approval shall not be unreasonably      withheld), before Executive shall be entitled to serve as director on the      governing boards of other for-profit or not-for-profit entities and to      retain any compensation and benefits resulting from such service, so long      as such service does not unduly interfere with his duties and obligations      under this Agreement. Company acknowledges that Executive currently serves      as Treasurer on the board of Lollipop Theater Network, a 501(c)(3)      non-profit organization. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Standard of      Performance.  Executive shall at all times faithfully and      industriously and to the best of Executive’s ability, experience, and      talents perform all of the duties that may be required of Executive and as      may be assigned to Executive from time to time by the Board of Directors      of the Company consistent with the terms of this      Agreement.  Executive shall work on a full-time basis for      Company. Executive at no time shall provide services to competing      businesses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Term.  The      term of Executive’s employment pursuant to this Agreement is deemed to      have commenced as of the Commencement Date, as described in the recitals      of this Agreement, and shall and continue until the 31st      day of December, 2010 (the “End Date”), or upon termination of this      Agreement described in Section 7 below, whichever shall occur first (the      “Term”).     All previous employment agreements      shall be null and void and this agreement shall serve as the final      employment agreement. If this Agreement has not been previously terminated      pursuant to Section 7 below, then, without further action by either party,      this Agreement shall be renewed for a successive period of 1 year from the      End Date, and in each succeeding year thereafter for an additional 1 year      renewal Term or, in each case until termination as described herein,      unless Executive is otherwise notified in writing at least 90 days      before the end of the initial Term or any of the successive one year      terms. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Compensation.  In      consideration of all services rendered during the term of this Agreement,      Company shall pay Executive the amounts described in Exhibit “A”, which is      attached and incorporated fully by reference herein.  Executive      will receive no additional compensation for serving the Company in any      other capacity, unless by prior written approval of the Board of      Directors.  Executive’s base salary shall not be decreased      during the Term. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Benefits and      Expenses.  Subject to Section 6 and upon satisfaction of      applicable eligibility requirements, Executive shall be entitled to      participate in all fringe benefits which Company may from time to time      make generally available to other Executives of the Company with      comparable responsibilities, subject to the provisions of those programs,      including but not limited to incentives, bonuses, family health, family      dental, at home and mobile Internet access, cell phone, 401K matching,      disability, and other plans and programs (collectively “Benefits”) as may      be offered by Company from time totime. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Stock Option      Entitlement.  Executive shall be entitled to stock      options in Company as described in Exhibit “A.”  Said      entitlement is based upon Executive’s continued employment, subject to the      provisions of Sections 7 and 8 below, during the initial term of this      Agreement.  All stock options granted to Executive pursuant to      this Agreement shall be governed by the terms and conditions of the      Company’s stock option plan and stock option agreement as approved by the      Company’s Board of Directors. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Incentive Bonus      Compensation.  Executive shall be entitled to bonus      compensation as described in Exhibit “A” based upon achievement of      milestones as noted as well as any other Company incentive bonus      compensation plans as Company may adopt from time to  time. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | Vacation.  Executive      shall be entitled to vacation time, as defined in Exhibit “A” attached      hereto and incorporated by reference herein, during each year of the term      of the Agreement.  Executive shall take vacations in accordance      with the Company’s policies as they may change from time to      time. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Deductions.  Company      shall deduct and withhold from all compensation payable to Executive all      amounts required to be deducted or withheld pursuant to any present or      future federal, state, or local law, ordinance, regulation, order, writ,      judgment, or decree requiring such deduction or    withholding. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Termination.  This      Agreement and Executive’s employment by Company may be terminated prior to      the end of the initial term (or any renewal period) upon thirty (30) days’      prior written notice from Executive to the Company, with the termination      date effective upon the lapse of thirty days from the receipt of notice of      intent to terminate (the “Effective Termination      Date”).  Executive’s employment may be terminated by Company      prior to the End Date of the initial Term or any renewal Term, i) upon any      change of control as described in Subsection (a) below; ii) upon      Executive’s Constructive Termination as described in Subsection (b) below;      (iii) in the event of Executive’s death or disability as described in      Subsection (c) below; or iv) for cause, as defined in Subsection (d)      below. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Change of      Control.  All stock option grants and contingent stock      option grants, as described in Exhibit “A” Bonuses, shall automatically      vest upon a Change of Control. The term "Change of Control" shall mean the      sale or disposition by the Company to an unrelated third party of 50% or      more of its business or assets, or the sale of the capital stock of the      Company in connection with the sale or transfer of a controlling interest      in the Company to an unrelated third party, or the merger or consolidation      of the Company with another corporation as part of a sale or transfer of a      controlling interest in the Company to an unrelated third party      however Change of Control shall not include the Company’s ongoing      fundraising efforts and potential changes in the capitalization      structure.  Equity grants shall completely vest upon the      completion of Change of Control described in this section.  In      the event of a termination upon a Change of Control, Executive will      receive Post Termination Benefits, as defined in Exhibit    “A”. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b. | Constructive      Termination. The term "Constructive Termination" shall mean (i) a      change in the position, authority, duties, responsibilities (including      reporting responsibilities) or status with the Company of the Executive      that is inconsistent in any material and adverse respect with the      Executive's position, authority, duties, responsibilities or status with      the Company as provided in this Agreement, (ii) an adverse change in the      Executive's title, (iii) any reduction in salary not agreed to by the      Executive, unless such reduction is concurrent with and part of a      Company-wide reduction in salary for all employees, (iv) any breach by the      Company of any other material obligation of the Company under this      Agreement, (v) any requirement by the Company to relocate Executive to an      office outside of Los Angeles County, California or outside a thirty (30)      miles radius from Executive's residence as of the Effective Date, (vi) any      purported termination by the Company of the Executive's employment other      than as permitted by this Agreement, or (vii) the failure of Executive to      be elected or reelected to the Board of Directors during the      Term. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Disability.  Company      may terminate Executive's employment if Executive suffers a disability      that renders Executive unable, as determined in good faith by the Board,      to perform the essential functions of the position, even with reasonable      accommodation, for six months in any 12-month period.  If      Executive's employment is terminated under this section 7(c), Executive      shall receive payment for all accrued salary, earned and pro rata bonus      compensation, vacation time, and benefits under Company benefit plans      through the Termination Date, which for purposes of this section shall be      a date specified by the Board.  After the Termination Date,      Company shall not pay to Executive any other compensation or payment of      any kind, or severance, or payment in lieu of notice. However, all health      and dental benefits provided shall be extended, at Executive’s election      and cost, to the extent permitted by Company’s policies and benefit plans,      for six months after Executive’s Termination Date, except as required by      law (e.g. COBRA health insurance continuation election).  Except      as set forth in the preceding sentence, all benefits provided by Company      to Executive under this Agreement or otherwise shall cease on the      Termination Date. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Cause.  The      term “cause” in the event of termination of the Executive employment      means: i) the commission of any act of fraud, embezzlement or dishonesty      by the Executive that is materially and demonstrably injurious to the      Company; ii) any act or omission by Executive which constitutes a material      default or breach of the terms in this Agreement, including, but not      limited to Sections 9 and 11; or iii) any other intentional misconduct by      the Executive that has a material adverse affect on the business or      affairs of the Company or its affiliates.  In the event the      Company desires to terminate Executive for “cause” as defined herein,      Company shall give Executive written notice of the circumstances      constituting the termination for “cause” per Section 13,      below.  After receipt of such notice, Executive shall have      fifteen (15) days to cure the circumstances constituting “cause” to the      satisfaction of the Company’s Board of Directors.  The      determination as to whether or not such circumstances have been      sufficiently cured by Executive shall be determined by a majority of the      Board of Directors, in their sole and absolute  discretion. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | Consequences of      Termination.  In the event of termination as described in      Section 7, Company shall be obligated to make payments and provide      benefits accrued to the Executive within three (3) business days of the      Effective Termination Date. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Termination by      Company. |
|--------|----|------------------------------|

|   | i. | For      Cause.  Upon effective termination for cause, Executive      is entitled to accrued salary, earned and pro rata bonus compensation,      vested stock options and vested benefits.  No severance or Post      Termination Benefits will be paid. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Without Cause. Where      Company terminates Executive at its sole discretion but without cause,      Executive is entitled to accrued salary, earned and pro rata bonus      compensation, full vesting of all stock options granted or conditionally      granted,  and the Post Termination Benefits as identified in      Exhibit “A” herein. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. |
|--------|------|

|   | b. | Constructive      Termination. In the event of Constructive Termination of Executive,      Executive is entitled to: |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | i. | occurring      later than six (6) months after the Effective Date, upon termination of      employment Executive is entitled to accrued salary, earned and pro rata      bonus compensation, vested benefits, full vesting of all stock option      grants and conditional grants, and Executive will receive Post Termination      Benefits, as defined in Exhibit“A”. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | occurring      earlier than six (6) months after the Effective Date, upon termination of      employment Executive is entitled to accrued salary, earned and pro rata      bonus compensation, vested benefits, and vested stock options and a      lump sum severance benefit equal to three (3) months salary (of      Executive’s base salary at the time of  termination). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Termination by      Executive. |
|--------|----|--------------------------------|

|   | i. | Voluntary.  Where      Executive voluntarily terminates Executive’s employment with Company, for      any reason other than retirement, death or disability (as defined in      Section 7(b)), Executive is entitled to accrued unpaid salary, earned and      pro rata bonus compensation, vested stock options and any benefits      required by law.  Any Post Termination Benefits are not      available and not payable to Executive should Executive terminate      employment by reason hereof. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Involuntary.  Where      Executive's employment is terminated due to retirement, death or      disability, then the Executive or the Executive's representative      (including anyone representing Executive's interests subsequent to the      above-mentioned events) is entitled to any accrued unpaid salary, earned      and pro rata bonus compensation, vested stock and stock      options,. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9. | Technology and Confidential      Information.  Executive is retained by the Company in a      capacity in which he may generate intellectual property of value to the      Company, and under conditions in which he shall have access to      Confidential Information which is unique and valuable to the Company and      not generally known.  Accordingly, Executive agrees      that: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Definitions. |
|--------|----|--------------|

|   | (1) | The      term “Intellectual Property” as used in this Agreement includes, for      example: concepts; discoveries; developments and technical contributions;      manufacturing, engineering and programming techniques; designs; computer      software and programs; data and technical information (irrespective of      whether in human or machine readable form), inventions (whether or not      patentable), works of authorship, mask works; and trademarks and      goodwill; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The      term “Affiliated Companies” used in this Agreement means any business      entity: (i) which is owned in whole or in part by the Company; (ii) which      is owned by a business entity which is owned in whole or in part by the      Company; (iii) which owns a controlling interest in the Company; or (iv)      in which a controlling interest is owned by a business entity which in      turn owns the Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      terms “Intellectual Property Relevant to the Company” and “Relevant      Intellectual Property” as used in this Agreement means all Intellectual      Property that Executive may, during the Term      and within Executive’s scope of employment, solely or jointly with      others author, conceive, develop or reduce to practice, or cause to be      authored, conceived, developed or reduced to    practice. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The      term “Confidential Information” as used in this Agreement means any and      all Intellectual Property and technical and business information disclosed to Executive by the Company      which: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | concerns      or relates to any aspect of the business of the Company or any Affiliated      Company, |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | is      owned or used by the Company or any Affiliated Company,  or |
|--------|-----|---------------------------------------------------------------------|

----

|   | (c) | is,      for any reason, otherwise treated as confidential by the Company or an      Affiliated Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | except such items      which Executive can show by clear and convincing evidence      were: |
|--------|---------------------------------------------------------------------------------------------|

|   | (d) | publicly      and openly known (i.e., in the public domain) prior to the date of this      Agreement, or |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (e) | subsequent      to the data this Agreement, became publicly and openly known through no      fault of Executive. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | b. | Development and Disclosure of      Intellectual Property to Company. During the Term, Executive will      assist the Company in all reasonably      possible ways within Executive’s duties and      expertise, in the discovery, perfection and development of Relevant Intellectual Property and will, at      all times, promptly and fully disclose all such Relevant Intellectual Property to the      Company, recognizing that any Intellectual Property Relevant to the      Company shall be the exclusive property of the Company or its nominee,      whether or not reduced to practice, published, or patented, copyrighted or      licensed to others. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Assignment. Except as provided in Section 9(h) below,      Executive hereby assigns (and will assign without further      consideration, except as may be provided by statute) to the Company or its      nominee all rights to all Relevant Intellectual Property (whether or not      patentable, copyrightable, or susceptible to any other form of protection)      in the United States and all foreign countries.  With respect to Relevant Intellectual Property,      this assignment includes, among other  things: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | The      full and exclusive right, title and interest to such Intellectual      Property, in the United States and all other  countries; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The      right of priority and all other rights under any and all international      agreements to which the United States of America  adheres; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      right to file and prosecute applications in any and all countries for      patents, copyright registrations, design registrations, mask work      protection and/or other protection;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | All      applications for patents, copyright registrations, design registrations,      mask work protection and/or other protection, and all patents,      registrations and the like which result in such    applications. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d. | Work for Hire. Any      copyrightable works comprising Relevant Intellectual Property will be      Works for Hire under the copyright laws of the United States with respect      to all of the rights comprised in such works, including any separate      contributions to collective works. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | No Inconsistent Acts;      Assistance to the Company. Executive shall not, at any time during      the Term or thereafter, knowingly      take, or knowingly cause, any action or omission which would be      inconsistent with or tend to impair the rights of the Company or any      Affiliated Company in Relevant Intellectual Property or in Confidential      Information, and Executive will,  subject      to reasonable hourly compensation, assist the Company in every      proper and legal way to obtain, maintain and protect its rights in      Relevant Intellectual Property, and its rights in Confidential Information      to which Executive had access during theTerm. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | No Unauthorized Disclosure or      Use of Confidential Information. Executive acknowledges that any      unauthorized disclosure or use of Confidential Information to which he      shall have access by virtue of his position in the Company may cause      the Company irreparable injury or loss.  Accordingly, Executive      shall not, at any time during the Employment Term or for a period of one      (1) year thereafter, use any Confidential Information in any manner not      expressly authorized by the Company and, unless Executive has prior      written authorization from the Company, shall not disclose to others any      Confidential Information or use any Confidential Information other than as      required in the performance of Executive’s duties under this      Agreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g. | Return of Confidential      Information And Company Materials. Upon termination of this      Agreement, Executive will return to the Company all Confidential      Information, and any other documents relating to the business of the      Company or any Affiliated Company, and all Company documents, equipment      and supplies that may be in Executive’s possession.  Executive      will return to Company all copies of Company documents, drawings, software      and programs, including all recordings on magnetic, optical or other      media, and all listings, and shall not take or retain any copies      thereof. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h. | Exception to      Assignments.  It is agreed      and acknowledged that the provisions of this Agreement requiring      assignment by Executive of Intellectual Property to the Company do not      apply to any invention that qualifies fully under the provisions of      California Labor Code Section 2870 (attached hereto as      Exhibit “B”). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | Injunctive      Relief.  The parties agree that damages would be an      inadequate remedy for Company in the event of a breach or threatened      breach of Section 9(f) of this Agreement by Executive, and in the event of      any such breach or threatened breach, Company may, either with or without      pursuing any potential damage remedies, seek to obtain and enforce an      injunction prohibiting Executive from violating Section 9(f) of this      Agreement and requiring Executive to comply with its  terms. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Representations.  Executive      hereby represents and warrants to Company that he: (a) is not now under      any contractual or quasi-contractual obligation that is inconsistent or in      conflict with this Agreement or that would prevent, limit or impair      Executive’s performance of his obligations under this Agreement; (b) that      he has been advised that he may seek the advice and representation of      independent counsel prior to entering into this Agreement; and (c) fully      understands its terms and provisions. Company hereby represents and      warrants that the execution and delivery of this Agreement has been duly      authorized by the Company and that the Company has taken all necessary      corporate action for such execution and  delivery. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Attorneys’      Fees.  If any legal proceeding is necessary to enforce or      interpret the terms of this Agreement, or to recover damages for breach of      this Agreement, the prevailing party shall be entitled to reasonable      attorney fees, as well as costs and disbursements, in addition to any      other relief to which the prevailing party may be  entitled. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Notices.  Any      notices provided hereunder must be in writing and shall be deemed      effective on the earlier of personal delivery (including personal delivery      by facsimile) or the third day after mailing first class mail to the      recipient at the address indicatedbelow: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| CYBERDEFENDER      CORPORATION        |   | EXECUTIVE                  |
|---------------------------------------|--------|----------------------------|
| 617      West 7th Street Suite 401    |   | P.O.      Box 492105       |
| Los      Angeles, CA  90017 |   | Los      Angeles, CA 90049 |

| 14. | Severability.  If      any term, provision, or part of this Agreement is found by a court to be      invalid, illegal, or incapable of being enforced by any rule of law or      public policy, all other terms, provisions, and parts of this Agreement      shall nevertheless remain in full force and effect as long as the economic      or legal substance of the transactions contemplated hereby is not affected      in any manner materially adverse to any party.  On such      determination that any term, provision, or part of this Agreement is      invalid, illegal or incapable of being enforced, this Agreement shall be      deemed to be modified so as to effect the parties’ original intent as      closely as possible to the end that the transactions contemplated by this      Agreement and the terms and provisions of this Agreement are fulfilled to      the greatest extent possible. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | Entire      Agreement.  This document (and the agreements, plans and      exhibits referred to herein) constitutes the final, complete, and      exclusive embodiment of the entire agreement and understanding between the      parties related to the subject matter of the Agreement and supersedes and      preempts any prior or contemporaneous understandings, agreements, or      representations by or between the parties, written or      oral.  Without limiting the generality of the foregoing, except      as provided in this Agreement, all understandings and agreements, written      or oral, relating to Executive’s employment by Company, or the payment of      any compensation or the provision of any benefit in connection therewith      or otherwise, are hereby terminated and shall be of no future force and      effect. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16. | Counterparts.  This      Agreement may be executed on separate copies, any one of which need not      contain signatures of more than one party, but all of which taken together      will constitute one and the sameagreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | Successors and      Assigns.  This Agreement is intended to bind and inure to      the benefit of and be enforceable by Executive and Company, and their      respective successors and assigns, except that Executive may not assign      any of his rights or duties under this Agreement without Company’s prior      written consent. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | Amendments.  No      amendments or other modifications to this Agreement may be made except by      a writing signed by both parties.  Except for Executive’s estate      or legal representative and affiliates of Company, nothing in this      Agreement, express or implied, is intended to confer on any third person      any rights or remedies under or because of this  Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19. | Choice of      Law.  Executive and Company agree that this Agreement      shall be interpreted in accordance with and governed by the laws of the      State of California. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| EXECUTIVE                  |
|----------------------------|
|                       |
| /s/      Kevin      Harris |
| Kevin      Harris          |

| CYBERDEFENDER CORPORATION   |
|-----------------------------|
|                        |
| /s/      Gary Guseinov      |
| Gary Guseinov               |
| Chief      ExecutiveOfficer |

----

|   | · | Manage      all aspects of finance/accounting/administration and human      resources |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | Provide      financial guidance to all members of management and      departments |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Create      processes related to financialcontrol |
|--------|--------|---------------------------------------------------|

|   | · | Manage      all Investor Relations activities |
|--------|--------|-----------------------------------------------|

|   | · | Manage      Human Resources department |
|--------|--------|----------------------------------------|

|   | · | Manage      Senior Analyst |
|--------|--------|----------------------------|

|   | · | Manage      customer rebilling and chargebacks |
|--------|--------|------------------------------------------------|

|   | · | Manage      office / facilities / admin staff |
|--------|--------|-----------------------------------------------|

|   | · | Absorb      oversight of day to day financial activity from  CEO |
|--------|--------|------------------------------------------------------------------|

|   | · | Manage      Company’s implementation of SOX404 |
|--------|--------|------------------------------------------------------|

|   | · | Manage      Public reporting process with Company’s counsel and    auditors |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | Prepare      and maintain running financialforecast(s) |
|--------|--------|--------------------------------------------------------|

|   | · | Occasional      meetings with board and investors |
|--------|--------|---------------------------------------------------|

|   | · | Assist      CEO as needed in relation to Business Development and Growth      Management |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | Manage      Company’s expansion into largerfacilities |
|--------|--------|-------------------------------------------------------------|

|   | · | Absorb      many of the responsibilities currently handled by outside counsel and      assist the Company in reducing its dependence on this    service |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Active      member of Board of Directors |
|--------|--------|------------------------------------------|

| 2. | Compensation: |
|----|---------------|

|   | · | One      Hundred and Ninety Thousand US Dollars ($190,000) per year, payable      bi-monthly.  The Company and Executive agree to review      Executive’s base salary at least every six (6) months from the date of      this Agreement and may at its discretion increase the Executive’s base      salary. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Two      Hundred Thousand (200,000) CyberDefender options - $1.00 per share, ten      year term, 25,000 to vest immediately and 25,000 to vest on April 1, 2009      and rest (150,000) to vest in 24 equal monthly increments over the 2 year      term of this Agreement starting as of the Commencement    Date. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Directors and Officers Insurance  -      Executive shall be initially appointed to the Company’s Board of      Directors and Company agrees to secure directors and officers liability      insurance covering Executive in his capacity as an officer and director of      Company in the amount of no less than $1,000,000 or as otherwise      determined by the Board. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Bonuses - Ability to      earn up to 25% of base compensation in performance bonuses per year based      on achieving agreed upon goals. In addition, to be included in any      Executive bonus pool or deferred compensation arrangement.   |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Effectively      transition the role of CFO and join Board of  Directors |
|--------|--------|--------------------------------------------------------------------------|

|   | · | Successfully      manage the 12-31-08 10-K audit andfiling |
|--------|--------|------------------------------------------------------------|

|   | · | Manage      shareholder inquiries, investment banking relationships,    etc... |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | Develop      Sarbanes Oxley documentation – effectively saving the Company $30-50K in      Q1 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Provide      guidance on implementation of new E-Commerce  System |
|--------|--------|-------------------------------------------------------------------|

|   | · | Reduce      chargeback rates to below 1% |
|--------|--------|------------------------------------------|

|   | · | Help      raise growth capital for the company ($2M to $5M in  2009) |
|--------|--------|----------------------------------------------------------------------|

|   | · | Manage      overall growth – improve hiringprotocols |
|--------|--------|------------------------------------------------------------|

|   | · | Negotiate      new office space to accommodategrowth |
|--------|--------|------------------------------------------------------|

|   | · | Reduce      dependence on outside legal – reduce legal expense by 25% from prior      periods |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Alleviate      certain responsibilities from CEO to free up his time to focus on business      development – specific responsibilities to be identified by CEO (check      signing, invoice approvals, etc...) |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cash      bonuses will be paid out when the company is cash flow positive as per      board approval. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

| 4. | Benefits |
|----|----------|

----

| 5. | Vacation – 4      weeks paid vacation.  Must get approval from management team      before taking vacation. |
|----|---------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Post Termination Benefits –      Executive will receive his monthly base salary then in effect for      the lesser of: (a) six (6) months, or (b) the remaining term of this      Agreement.  Further, Executive will receive continuing coverage      under any existing health and dental insurance program for a period of six      (6) months following termination of this  Agreement. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----