Document:

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                                                                   Exhibit 10.01

                                     RELEASE

Dana Siebert
4384 North Shasta Loop                                             April 6, 2001
Eugene, OR 97405

Dear Dana:

Your employment with Symantec Corporation will terminate effective as of June
30, 2001. You will receive your base salary and benefits made generally
available to all employees until that time. You will also receive an appropriate
payment under the FY2001 SVP Annual Incentive Plan, but will not be entitled to
any other bonuses. The intent of this Severance and Release Agreement is to
mutually, amicably and finally resolve all issues and claims surrounding your
resignation from Symantec. This Severance Agreement and Release Statement is in
no way an admission of any liability on the part of Symantec. In exchange for
this Release, you will receive the following:

Payment. You will receive a lump sum payment equivalent to eighteen months base
salary. This lump sum payment shall represent general damages for mental and
emotional distress resulting from this situation. You agree to hold Symantec
harmless for any tax liability resulting from characterization of the payment in
this manner.

Company Property. You may retain the IBM ThinkPad computer now in your
possession, including accessories and peripherals, as well as your Nokia cell
phone as part of this agreement.

Benefits. You have the option to extend the health insurance coverage currently
provided by the Company for a period of 18 months from the Termination Date
pursuant to the terms and conditions of COBRA. You have 60 days from the
Termination Date to notify the Company in writing of your election to so
continue your continuation coverage. If you elect to extend your health benefits
coverage through COBRA, Symantec will pay for up to six months of such coverage.

Stock. You shall have the right to exercise any vested stock options for 90 days
after termination of your employment in accordance with the terms of the stock
agreement.

Release Statement. In consideration for the payments and other benefits
described above, you and your heirs, successors and assigns, hereby release
Symantec and its affiliated entities, as well as, its officers, directors,
agents, employees, shareholders, successors and assigns from any claims and
actions whatsoever arising out of your employment, including but not limited to
the following:

      -     All wrongful discharge claims; any claims for attorney's fees and
            costs.

      -     All claims relating to any contract of employment, expressed or
            implied.

      -     Any covenant of good faith & fair dealing, expressed or implied.

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      -     Any tort of any nature.

      -     Any federal, state or municipal statute or ordinance.

      -     Any claims under the California Fair Employment and Housing Act;
            Title VII, Civil Rights Act of 1964; Age Discrimination in
            Employment Act of 1967.

      -     Any other laws or regulations relating to employment discrimination.

This release does not apply to that certain Indemnity Agreement, dated June 30,
1992, between you and Symantec, which will remain in effect.

Symantec hereby releases you and your heirs, successors and assigns for any
liabilities associated with and arising out of your employment with Symantec.

In signing this Agreement, you have read the statement below, Section 1542 of
the Civil Code of the State of California, which provides as follows:

        " A general release does not extend to claims which the creditor does
        not know or suspect to exist in his favor at the time of executing the
        release, which if known by him must have materially affected his
        settlement with the debtor."

By reading this statement, you understand that Section 1542 gives you the right
not to release existing claims of which you may currently know, unless you
voluntarily choose to waive this right. Having been apprised of this, you
nevertheless voluntarily elect to waive the rights outlined in Section 1542 and
assume all risks for claims which may now exist in your favor, known or unknown,
from the subject of this Agreement.

For a period of twelve months after your employment with Symantec ends, you
shall not, directly or indirectly, individually or as an employee, partner,
officer or shareholder or in any other capacity whatsoever (other than as a
director) of or for any person, firm, partnership, company or corporation other
than Symantec or its subsidiaries,

        (i) own, manage, operate, control or participate in the ownership,
        management, operation, or control of any business engaged in the design,
        research, development, marketing, sales, or licensing of virus
        protection, intrusion detection, Firewall/VPN, Vulnerability management,
        content filtering, web access management computer software that is
        competitive with any computer software products or services created,
        distributed or known by you to be under development by Symantec or any
        of its subsidiaries prior to the termination of your employment with
        Symantec; or

        (ii) recruit, attempt to hire, solicit, assist others in recruiting or
        hiring, or refer to others concerning employment, any person who is or
        was as of March 31, 2001, an employee of Symantec or any of its
        subsidiaries or induce or attempt to induce any such employee to
        terminate his employment with Symantec or any of its subsidiaries.

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The foregoing restrictions will not apply to your personal investments in
publicly traded corporations regardless of the business they are engaged in,
provided that you do not at any time own in excess of three percent (3%) of the
issued and outstanding stock of any such corporation. The foregoing restrictions
also will not apply with respect to a business where such business is
incidentally engaged in the activities described in (i) above and where you do
not have any involvement with such activities on behalf of such business. For
purposes of the preceding sentence, "incidentally engaged in" shall mean that
the revenue from such activities does not, and is not planned to, constitute
more than 20% of the total revenues of such business. In addition, we have
agreed that the foregoing restrictions do not prevent you from recruiting or
hiring Jan Pelzel, currently working as your assistant.

You acknowledge that Symantec has advised you to consult with an attorney before
signing this Release; advised you that you have twenty-one (21) days in which to
consider whether you should sign the Release; and advised you that if you signed
the Release, you would be given seven (7) days after the date on which you
signed the Release to revoke it and that the Release would not be effective
until the seven-day period has lapsed document and that all consideration to be
paid to you for your agreement will be paid only at the end of that seven (7)
day revocation period.

This Agreement constitutes the entire understanding of the parties on the
subjects covered. Your signature below expressly warrants that you have read and
fully understand this Agreement, and that you had the opportunity to consult
legal counsel of your own choosing. You are not executing this Release in
reliance of any promises, representations or inducements other than those in the
document and you are doing so voluntarily, free of any coercion. This release
will be effective on the eighth (8th) day after you sign it. This agreement
shall be governed by Oregon Law.

Dana Siebert
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Employee:                     Date

Kerre Slayton
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Symantec:                     Date

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                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

        THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of November 12, 1999, between Digital LAVA, Inc., a Delaware corporation (with
its successors and assigns, referred to as the "Corporation"), and Joshua D.J.
Sharfman (referred to as "Mr. Sharfman").

                              PRELIMINARY STATEMENT

        Previously the Corporation and Mr. Sharfman entered into an Employment
Agreement effective September 1, 1998 (the "1998 Agreement"). On November 12,
1999, the Corporation and Mr. Sharfman entered into a loan agreement and Mr.
Sharfman executed a Promissory Note (the "Note"), in consideration for, among
other things, the termination of the 1998 Agreement and its replacement with
this Agreement effective as of November 12, 1999.

        The Corporation desires to continue to employ Mr. Sharfman, and Mr.
Sharfman wishes to continue to be employed by the Corporation, upon the terms
and subject to the conditions set forth in this Agreement. The Corporation and
Mr. Sharfman also wish to enter into the other agreements set forth in this
Agreement, all of which are related to Mr. Sharfman's employment under this
Agreement.

                                    AGREEMENT

        Mr. Sharfman and the Corporation therefore agree as follows:

        1. EMPLOYMENT FOR TERM. The Corporation hereby employs Mr. Sharfman and
Mr. Sharfman hereby accepts employment with the Corporation for the period
beginning on November 12, 1999 (the "Commencement Date"), and ending on the
December 31, 2001 (the "Initial Term"), unless otherwise sooner terminated as
herein provided. The Initial Term shall automatically be renewed for additional
one-year periods (the "Renewal Terms;" together with the Initial Term, referred
to as the "Term") unless either party notifies the other in writing of its
intention not to renew this Agreement no less than 180 days prior to the
expiration of the Initial Term or a Renewal Term. The termination of Mr.
Sharfman's employment under this Agreement shall end the Term but shall not
terminate Mr. Sharfman's or the Corporation's other agreements, except as
otherwise provided herein.

        2. POSITION AND DUTIES. During the Term, Mr. Sharfman shall serve as
President and Chief Technology Officer of the Corporation. During the Term the
Mr. Sharfman shall report directly to, and receive direction from, the Chief
Executive Officer of the Corporation. During the Term, Mr. Sharfman shall also
hold such additional positions and titles as the Chief Executive Officer of the
Corporation may determine from time to time. During the Term, Mr. Sharfman shall
devote his full business time and efforts to his duties as an employee of the
Corporation.

        3. COMPENSATION.

           (a) BASE SALARY. The Corporation shall pay Mr. Sharfman a base salary
at the rate currently in effect until December 31, 1999. Thereafter, beginning
on January 1, 2000 and ending on December 31, 2000, the Corporation shall pay
Mr. Sharfman a base salary at the rate

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of $253,000 per annum. Thereafter, beginning on January 1, 2001 and ending on
the last day of the Term, the Corporation shall pay Mr. Sharfman a base salary
at the rate of $263,000 per annum (the "Base Salary"), payable at least monthly
on the Corporation's regular pay cycle for professional employees.

           (b) STOCK OPTIONS. Pursuant to the terms of the Incentive Stock
Option Agreement, attached hereto as Exhibit A, the Corporation shall grant to
Mr. Sharfman on November 12, 1999 an option under the Corporation's 1996 Stock
Option Plan to purchase 50,000 shares of the Corporation's Common Stock.

           (c) OTHER AND ADDITIONAL COMPENSATION. The preceding sections
establish the minimum compensation during the Term and shall not preclude the
CEO from awarding Mr. Sharfman a higher salary, in light of performance of Mr.
Sharfman and the Corporation (and such other factors the CEO deems appropriate),
as are consistent with the Corporation's compensation practices for its senior
executives.

           (d) ANNUAL BONUS. During the Term and beginning on January 1, 2000,
the Corporation shall pay Mr. Sharfman an annual bonus if the Corporation's
stated revenue goals for the applicable fiscal year are achieved as evaluated
and determined in the sole discretion of the Chief Executive Officer, and if Mr.
Sharfman is employed by the Corporation for the entire fiscal year in question.
The amount of the bonus shall be determined in the following manner: (i) Mr.
Sharfman shall be entitled to a bonus of $75,000 (which represents the maximum
bonus achievable by Mr. Sharfman) if 100% of the Corporation's revenue goals are
achieved for the applicable fiscal year; (ii) Mr. Sharfman shall not be entitled
to a bonus if less than 75% of the Corporation's revenue goals are achieved for
the applicable fiscal year; and (iii) if 75% to 99% of the Corporation's revenue
goals are achieved for the applicable fiscal year, Mr. Sharfman shall be
entitled to a pro rata percentage of $75,000 as determined by the Chief
Executive Officer.

        4. MR. SHARFMAN BENEFITS. During the Term, Mr. Sharfman shall be
entitled to the employee benefits, including vacation, 401(k) plan, health plan
and other insurance and additional benefits made available by the Corporation to
any other employee of the Corporation. In addition, the Corporation will pay the
health insurance premium for Mr. Sharfman's immediate family for the initial
term of this contract.

        5. EXPENSES. Pursuant to the Corporation's policies for employees, the
Corporation shall reimburse Mr. Sharfman for actual out-of-pocket expenses
incurred by him in the performance of his services for the Corporation upon the
receipt of appropriate documentation of such expenses, subject, however, to the
Corporation's reasonable policies relating to business-related expenses as then
in effect from time to time.

        6. TERMINATION.

           (a) GENERAL. The Corporation has the right to terminate Mr.
Sharfman's employment and Term for any reason, at any time with or without Cause
or cause of any kind. Furthermore, the Term shall end immediately upon Mr.
Sharfman's death. The Term may also end for Disability, as defined in Section
7(b).

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           (b) NOTICE OF TERMINATION. If it elects to end the Term, the
Corporation shall promptly give Mr. Sharfman notice of the termination,
including a statement of whether the termination was for Cause, was without
cause or was on account of Disability (as such terms are defined in Section 7(a)
and 7(b) below). The Corporation's failure to give notice under this Section
6(b) shall not, however, affect the validity of the Corporation's termination of
the Term.

           (c) EFFECTIVE TERMINATION BY CORPORATION. If, during the Term, the
Corporation (i) removes Mr. Sharfman as President and Chief Technology Officer,
(ii) breaches a material provision of this Agreement or (iii) requires Mr.
Sharfman to perform a material portion of his services at a location more than
25 miles from the current corporate headquarters in Marina del Rey, CA, other
than for customary travel consistent with Mr. Sharfman's travel requirements
prior to the effective date of this Agreement, then, at his option, Mr. Sharfman
may elect to resign, and will be entitled to rights under this Agreement as if
he were terminated without Cause as set forth in Section 7(c)(ii) below. In the
case of clause (i) above, Mr. Sharfman shall give four (4) months' prior written
notice to the Corporation of Mr. Sharfman's intention to resign, and in the case
of clauses (ii) or (iii) above, Mr. Sharfman shall only be required to give
thirty (30) days prior written notice to the Corporation. Upon receipt of such
notice from Mr. Sharfman hereunder, the Corporation shall have the right and a
reasonable opportunity to correct or cure the condition which would otherwise
entitle Mr. Sharfman to resign at the end of the applicable notice period. In
the case of clauses (i, ii, iii), Mr. Sharfman will be entitled to receive the
pro-rata portion of any earned bonus effective as of the date of Mr. Sharfman's
written resignation.

        7. DEFINITIONS; SEVERANCE BENEFITS.

           (a) "CAUSE" DEFINED. "Cause" means (i) willful malfeasance or willful
misconduct by Mr. Sharfman in connection with his employment; (ii) Mr.
Sharfman's gross negligence in performing any of his duties under this
Agreement; (iii) Mr. Sharfman's conviction of, or entry of a plea of guilty to,
or entry of a plea of nolo contendere with respect to, any crime other than a
traffic violation or infraction which is a misdemeanor; (iv) Mr. Sharfman's
material breach of any written policy applicable to all employees adopted by the
Corporation which is not cured to the reasonable satisfaction of the Corporation
within fifteen (15) business days after notice thereof; or (v) material breach
by Mr. Sharfman of any of his agreements in this Agreement which is not cured to
the reasonable satisfaction of the Corporation within fifteen (15) business days
after notice thereof. Any determination by the Corporation of whether "Cause"
exists to terminate Mr. Sharfman shall be made by the Board, which shall give
Mr. Sharfman 5 days' prior written notice of a meeting to be held for such
purpose, which Mr. Sharfman and his counsel shall be offered an opportunity to
attend.

           (b) DISABILITY DEFINED. "Disability" shall mean Mr. Sharfman's
incapacity due to physical or mental condition that results in his being unable
to substantially perform his duties hereunder for six consecutive months (or for
six months out of any nine month period). During a period of Disability, Mr.
Sharfman shall continue to receive his base salary hereunder, provided

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that if the Corporation provides Mr. Sharfman with disability insurance
coverage, payments of Mr. Sharfman's base salary shall be reduced by the amount
of any disability insurance payments received by Mr. Sharfman due to such
coverage. The Corporation shall give Mr. Sharfman written notice of termination
at the end of such 6 month period, which shall take effect sixty (60) days after
the date it is sent to Mr. Sharfman unless Mr. Sharfman shall have returned to
the performance of his duties hereunder during such sixty (60) day period
(whereupon such notice shall become void).

        If there should be any dispute between the parties as to the Mr.
Sharfman's physical or mental disability at any time, such question shall be
settled by the opinion of an impartial reputable physician agreed upon for such
purpose by the parties or their representatives. The certificate of such
physician as to the matter in dispute shall be final and binding on the parties.
The costs and fees related to such impartial physician's certificate shall be
borne by the Corporation.

        (c) TERMINATION.

               (i) If the Corporation ends the Term for Cause or Disability, or
if Mr. Sharfman resigns as an employee of the Corporation for reasons other than
as provided in Section 6(c), or if Mr. Sharfman dies, then the Corporation shall
have no obligation to pay Mr. Sharfman any amount, whether for salary, benefits,
bonuses, or other compensation or expense reimbursements of any kind, accruing
after the end of the Term, and such rights shall, except as otherwise required
by law, be forfeited immediately upon the end of the Term.

               (ii) If the Corporation ends the Term without Cause or if Mr.
Sharfman elects to terminate during the Initial Term or a Renewal Term pursuant
to the provisions of Section 6(c), then the Corporation shall be obligated to
pay Mr. Sharfman a severance payment equal to one hundred percent (100%) of the
Mr. Sharfman's annual Base Salary as in effect immediately prior to the
termination date. Any such severance payment shall be paid to Mr. Sharfman in
the form of one lump sum within 30 days of the termination date.

               (iii) If Employee elects to resign during the Initial Term or a
Renewal Term pursuant to Section 6(c)(i) or (ii), then Employee shall receive a
severance payment equal to eight months' salary (or the number of months
remaining in the Initial Term or Renewal Term then in effect, if less than eight
months), payable upon the effective date of resignation. The "Severance Period",
as used herein, shall in such circumstances equal a period of eight months (or
such shorter period, if the number of months remaining in the Initial Term of
the Renewal Term then in effect is less than eight months). Notwithstanding the
foregoing, if Employee is dismissed without Cause during the four month period
following Employee's notice of resignation pursuant to Section 6(c)(i) or (ii),
his severance payment will be increased by an amount equal to the salary amount
he would have received during the remainder of the four month period had he not
been terminated without Cause. In such instance, the Severance Period will be
increased by the amount of time beginning on the date of the termination without
Cause and ending at the end of the four month period.

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               (iv) In the event of any termination pursuant to the provisions
of Section 7(c)(ii) above, Mr. Sharfman shall also be entitled to receive health
benefits at the Company's expense for a twelve month period from the termination
date.

        8. CONFIDENTIALITY, OWNERSHIP, AND COVENANTS.

           (a) "CORPORATION INFORMATION" AND "INVENTIONS" DEFINED. "CORPORATION
INFORMATION" means all information, knowledge or data of or pertaining to (i)
the Corporation, its employees, and (ii) any other person, firm, corporation or
business organization with which the Corporation may do business during the
Term, that is not in the public domain (and whether relating to methods,
processes, techniques, discoveries, pricing, marketing or any other matters).
"INVENTIONS" collectively refers to any and all inventions, trade secrets,
source and object codes, data, programs, other works of authorship and
developments regarding any of the foregoing.

           (b) CONFIDENTIALITY. (i) Mr. Sharfman hereby recognizes that the
value of all trade secrets and other proprietary data and all other information
of the Corporation not in the public domain disclosed by the Corporation in the
course of his employment with the Corporation may be attributable substantially
to the fact that such confidential information is maintained by the Corporation
in strict confidentiality and secrecy and would be unavailable to others without
the expenditure of substantial time, effort or money. Mr. Sharfman, therefore,
except as provided in the next two sentences, covenants and agrees that all
Corporation Information shall be kept secret and confidential at all times
during the Term and for the three (3) year period after the end of the Term and
shall not be used or divulged by him outside the scope of his employment as
contemplated by this Agreement, except as the Corporation may otherwise
expressly authorize by action of the Board and except if such Corporation
Information is then in the public domain through no action (or non-action) on
the part of Mr. Sharfman. In the event that Mr. Sharfman is requested in a
judicial, administrative or governmental proceeding to disclose any of the
Corporation Information, Mr. Sharfman will promptly so notify the Corporation so
that the Corporation may seek a protective order or other appropriate remedy
and/or waive compliance with this Agreement. If disclosure of any of the
Corporation Information is required, Mr. Sharfman may furnish the material so
required to be furnished, but Mr. Sharfman will furnish only that portion of the
Corporation Information that legally is required.

           (ii) Mr. Sharfman also hereby agrees to keep the terms of this
Agreement confidential to the same extent that the Corporation maintains such
confidentiality (except with regard to any disclosure by the Corporation
required under applicable securities laws).

           (c) OWNERSHIP OF INVENTIONS, PATENTS AND TECHNOLOGY. Mr. Sharfman
hereby assigns to the Corporation all of Mr. Sharfman's right (including patent
rights, copyrights, trade secret rights, and all other rights throughout the
world), title and interest in and to Inventions, whether or not patentable or
registrable under copyright or similar statutes, made or conceived or reduced to
practice or learned by Mr. Sharfman, either alone or jointly with others, during
the

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course of the performance of services for the Corporation. Mr. Sharfman shall
also assign to, or as directed by, the Corporation, all of Mr. Sharfman's right,
title and interest in and to any and all Inventions, the full title to which is
required to be in the United States government by a contract between the
Corporation and the United States government or any of its agencies. The
Corporation shall have all right, title and interest in all research and work
product produced by Mr. Sharfman as an employee of the Corporation.

           (d) MR. SHARFMAN'S COVENANTS. (i) Mr. Sharfman acknowledges and
agrees that his services pursuant to this Agreement are unique and
extraordinary; that the Corporation will be dependent upon Mr. Sharfman for; and
that he will have access to and control of confidential information of the
Corporation which is vital to the success of the Corporation's business. Mr.
Sharfman further acknowledges that because of his knowledge of the Corporation's
confidential information it is unlikely that Mr. Sharfman could work for a
competitor of the Corporation without divulging such confidential information.
Mr. Sharfman further acknowledges that the business of the Corporation is
national in scope and cannot be confined to any particular geographic area of
the United States. For the foregoing reasons, and in consideration for the
benefits offered by the Corporation under this Agreement, Mr. Sharfman hereby
agrees that (a) for a twelve month period, commencing with the date of Mr.
Sharfman's employment termination with the Corporation (the "Covenant Period"),
Mr. Sharfman shall not accept employment nor engage as a consultant with a
competitor of the Corporation if such position would be comparable to the
position Mr. Sharfman held with the Corporation and where Mr. Sharfman can not
satisfy the Corporation, in its reasonable judgement, that the new employer is
prepared to and takes adequate steps to preclude and prevent inevitable
disclosure of the Corporation's confidential information and (b) that
eligibility for severance payments and other benefits under this Agreement are
contingent upon the Mr. Sharfman's agreement and compliance with the covenant as
stated above in Section 8(d). No further payments nor eligibility for benefits
continuation will be available to Mr. Sharfman as of the date Mr. Sharfman
commences employment/consulting in violation of these covenants. It is a
specific condition of the Agreement that if Mr. Sharfman commences employment or
engages as a consultant with a competitor of the Corporation if such position
would be comparable to the position Mr. Sharfman held with the Corporation, Mr.
Sharfman shall advise competitor in writing of his obligations pursuant to this
Agreement and specifically disclose all covenants contained in Section 8 of this
Agreement. It is also a specific condition of the Agreement that so long as Mr.
Sharfman is receiving any payments or benefits under this Agreement with respect
to any type of termination, Mr. Sharfman shall be obligated to immediately
notify the Corporation as to the specifics of the new position that Mr. Sharfman
is planning to commence as an employee or consultant for any company which is a
competitor of Corporation, and take affirmative steps to assure the Corporation,
that Mr. Sharfman will not divulge any of the Corporation's confidential
information in Mr. Sharfman's new employment. The foregoing covenants do not
apply if Mr. Sharfman was terminated for reason of Disability as described in
Section 7(b).

           (ii) Mr. Sharfman also covenants that for a twelve month period,
commencing with the date of Mr. Sharfman's termination (the "Covenant Period"),
he may not directly or

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indirectly hire, employ or retain any person who was an employee of the
Corporation within the prior 9 months or directly or indirectly solicit, entice,
induce or encourage any such person to become employed by any other person. If
Mr. Sharfman should wish to discuss possible employment with any then-current
Corporation employee during the Covenant Period, Mr. Sharfman may request
written permission to do so from the Chief Executive Officer of the Corporation
who may, in his/her discretion, grant a written exception to the no solicitation
covenant set forth above, provided, however, Mr. Sharfman agrees that he will
not discuss any such employment possibility with such employees prior to
securing the Corporation's permission. If the Corporation should decline to
grant such permission, Mr. Sharfman agrees that he will not at any time, advise
the employee concerned that he/she was the subject of a request under this
paragraph or that the Corporation refused to grant Mr. Sharfman the right to
discuss employment possibility with him/her.

           (iii). If Mr. Sharfman fails to adhere to the foregoing covenants Mr.
Sharfman acknowledges and agrees that the Corporation shall be entitled to
terminate all payments/benefits Mr. Sharfman is granted under the Agreement,
injunctive relief to prevent a threatened misappropriation of confidential
information, and any other remedies available to the Corporation in law or
equity.

           (e) REMEDIES. Mr. Sharfman hereby acknowledges that the covenants and
agreements contained in Section 8 (the "Restrictive Covenants") are reasonable
and valid in all respects and that the Corporation is entering into this
Agreement, inter alia, on such acknowledgment. If Mr. Sharfman breaches, or
threatens to commit a breach, of any of the Restrictive Covenants, the
Corporation shall have the following rights and remedies, each of which rights
and remedies shall be independent of the other and severally enforceable, and
all of which rights and remedies shall be in addition to, and not in lieu of,
any other rights and remedies available to the Corporation under law or in
equity: (i) the right and remedy to have the Restrictive Covenants specifically
enforced by any court having equity jurisdiction, it being acknowledged and
agreed that any such breach or threatened breach will cause irreparable injury
to the Corporation and that money damages will not provide an adequate remedy to
the Corporation; (ii) the right and remedy to require Mr. Sharfman to account
for and pay over to the Corporation all compensation, profits, monies, accruals,
increments or other benefits (collectively, "Benefits") derived or received by
Mr. Sharfman as the result of any transactions constituting a breach of any of
the Restrictive Covenants, and Mr. Sharfman shall account for and pay over such
Benefits to the Corporation; (iii) if any court determines that any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the
remainder of the Restrictive Covenants shall not thereby be affected and shall
be given full effect, without regard to the invalid portions; and (iv) if any
court construes any of the Restrictive Covenants, or any part thereof, to be
unenforceable because of the duration of such provision or the area covered
thereby, such court shall have the power to reduce the duration or area of such
provision and, in its reduced form, such provision shall then be enforceable and
shall be enforced.

           (f) JURISDICTION. The parties intend to and hereby confer
jurisdiction to enforce the Restrictive Covenants upon the courts of any
jurisdiction within the geographical scope of

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such Covenants. If the courts of any one or more such jurisdictions hold the
Restrictive Covenants wholly unenforceable by reason of the breadth of such
scope or otherwise, it is the intention of the parties that such determination
not bar or in any way affect the Corporation's right to the relief provided
above in the courts of any other jurisdiction, within the geographical scope of
such Covenants, as to breaches of such Covenants in such other respective
jurisdictions such Covenants as they relate to each jurisdiction being, for this
purpose, severable into diverse and independent covenants.

        9. SUCCESSORS AND ASSIGNS.

           (a) MR. SHARFMAN. This Agreement is a personal contract, and the
rights and interests that the Agreement accords to Mr. Sharfman may not be sold,
transferred, assigned, pledged, encumbered, or hypothecated by him. All rights
and benefits of Mr. Sharfman shall be for the sole personal benefit of Mr.
Sharfman, and no other person shall acquire any right, title or interest under
this Agreement by reason of any sale, assignment, transfer, claim or judgment or
bankruptcy proceedings against Mr. Sharfman. Except as so provided, this
Agreement shall inure to the benefit of and be binding upon Mr. Sharfman and his
personal representatives, distributees and legatees.

           (b) THE CORPORATION. This Agreement shall be binding upon the
Corporation and inure to the benefit of the Corporation and of its successors
and assigns, including (but not limited to) any corporation that may acquire all
or substantially all of the Corporation's assets or business or into or with
which the Corporation may be consolidated or merged. The Corporation's
obligations under this Agreement shall cease, however, if the successor to, the
purchaser or acquirer either of the Corporation or of all or substantially all
of its assets, or the entity with which the Corporation has affiliated, shall
assume in writing the Corporation's obligations under this Agreement (and
deliver an executed copy of such assumption to Mr. Sharfman), in which case such
successor or purchaser, but not the Corporation, shall thereafter be the only
party obligated to perform the obligations that remain to be performed on the
part of the Corporation under this Agreement.

        10. ENTIRE AGREEMENT. This Agreement represents the entire agreement
between the parties concerning Mr. Sharfman's employment with the Corporation
and supersedes all prior negotiations, discussions, understandings and
agreements, whether written or oral, between Mr. Sharfman and the Corporation
relating to the subject matter of this Agreement, including but not limited to
the Employment Agreement dated as of April 1, 1996 between the Corporation and
Mr. Sharfman, and the Employment Agreement effective as of September 1, 1998
between the Corporation and Mr. Sharfman.

        11. AMENDMENT OR MODIFICATION, WAIVER. No provision of this Agreement
may be amended or waived unless such amendment or waiver is agreed to in writing
signed by Mr. Sharfman and by a duly authorized officer of the Corporation. No
waiver by any party to this Agreement of any breach by another party of any
condition or provision of this Agreement to be

                                      -8-
<PAGE>   9

performed by such other party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same time, any prior time or any
subsequent time.

        12. NOTICES. Any notice to be given under this Agreement shall be in
writing and delivered personally or sent by overnight courier or registered or
certified mail, postage prepaid, return receipt requested, addressed to the
party concerned at the address indicated below, or to such other address of
which such party subsequently may give notice in writing:

If to Mr. Sharfman:                 Joshua D.J. Sharfman
                                    9425 Duxbury Road
                                    Los Angeles, CA 90034

If to the Corporation:              Digital Lava, Inc.
                                    13160 Mindanao, Suite 350
                                    Marina Del Rey, CA 90292
                                    Fax: 310-306-3373
                                    Attention: Chief Executive Officer

with a copy to:                     Latham & Watkins
                                    633 West Fifth Street, Suite 4000
                                    Los Angeles, CA 90071-2007
                                    Fax: 213-891-8673
                                    Attention:  Jacklyn Park, Esq.

Any notice delivered personally or by overnight courier shall be deemed given on
the date delivered and any notice sent by registered or certified mail, postage
prepaid, return receipt requested, shall be deemed given on the date mailed.

        13. SEVERABILITY. If any provision of this Agreement or the application
of any such provision to any party or circumstances shall be determined by any
court of competent jurisdiction to be invalid and unenforceable to any extent,
the remainder of this Agreement or the application of such provision to such
person or circumstances other than those to which it is so determined to be
invalid and unenforceable shall not be affected, and each provision of this
Agreement shall be validated and shall be enforced to the fullest extent
permitted by law. If for any reason any provision of this Agreement containing
restrictions is held to cover an area or to be for a length of time that is
unreasonable or in any other way is construed to be too broad or to any extent
invalid, such provision shall not be determined to be entirely null, void and of
no effect; instead, it is the intention and desire of both the Corporation and
Mr. Sharfman that, to the extent that the provision is or would be valid or
enforceable under applicable law, any court of competent jurisdiction shall
construe and interpret or reform this Agreement to provide for a restriction
having the maximum enforceable area, time period and such other constraints or
conditions (although not greater than those contained currently contained in
this Agreement) as shall be valid and enforceable under the applicable law.

                                      -9-
<PAGE>   10

        14. SURVIVORSHIP. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations.

        15. HEADINGS. All descriptive headings of sections and paragraphs in
this Agreement are intended solely for convenience of reference, and no
provision of this Agreement is to be construed by reference to the heading of
any section or paragraph.

        16. WITHHOLDING TAXES. All salary, benefits, reimbursements and any
other payments to Mr. Sharfman under this Agreement shall be subject to all
applicable payroll and withholding taxes and deductions required by any law,
rule or regulation of and federal, state or local authority.

        17. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together constitute one and same instrument.

        18. APPLICABLE LAW; ARBITRATION. The validity, interpretation and
enforcement of this Agreement and any amendments or modifications hereto shall
be governed by the laws of the State of California, as applied to a contract
executed within and to be performed in such State. The parties agree that any
disputes shall be definitively resolved by binding arbitration before the
American Arbitration Association in Los Angeles, California and consent to the
jurisdiction to the federal court located in Los Angeles, California or, if
there shall be no jurisdiction, to the state courts located in Los Angeles,
California, to enforce any arbitration award rendered with respect thereto. Each
party shall choose one arbitrator and the two arbitrators shall choose a third
arbitrator. All costs and fees related to such arbitration (and judicial
enforcement proceedings, if any) shall be borne by the unsuccessful party.

                                      -10-
<PAGE>   11

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                    DIGITAL LAVA,  INC.

                                      By:            /s/ Robert Greene
                                          --------------------------------------
                                          Robert Greene, Chief Executive Officer

                                                 /s/ Joshua D. J. Sharfman
                                          --------------------------------------
                                          Joshua D.J. Sharfman

                                      -11-

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