Document:

REGISTRATION
RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this
‘‘Agreement’’), is entered
as of November  13,  2006, by and between HandHeld
Entertainment, Inc., a Delaware corporation (the
‘‘Company’’), and Zeus
Promotions, LLC, a Delaware limited liability company (the
‘‘Seller’’).

WHEREAS,
pursuant to the terms of a Membership Interest Purchase Agreement,
dated as of November  13,  2006 (the
‘‘Purchase Agreement’’), by
and among the Company, the Seller and John Kowal
(‘‘Kowal’’), the Company has
agreed, as partial consideration for the acquisition by the Company
from the Seller of 100% of the outstanding membership interest
of Dorks, LLC to issue to the Seller a five (5)-year Secured
Convertible Promissory Note in the principal amount of One Million
Dollars ($1,000,000) (the
‘‘Note’’);

WHEREAS,
the Note provides that prior to the Maturity Date (as defined in the
Note) the Seller my elect to convert the principal on the Note together
with accrued and unpaid interest thereon into that number of shares of
the Company’s Common Stock, no par value per share
(‘‘Common Stock’’) as
determined pursuant to Section 2.2 of the Note (as converted, the
‘‘Conversion
Shares’’);

WHEREAS, pursuant to the terms
of an Employment Agreement, dated as of November  13,  2006
(‘‘Employment Agreement’’),
by and between the Company and Kowal, the Company has agreed, as
partial consideration for Kowal’s agreement to render services
to the Company, to issue to Kowal that number of Bonus Shares (as that
term is defined in the Employment Agreement) as determined pursuant to
Schedule A of the Employment Agreement; and

WHEREAS, to
induce the Seller to execute and deliver the Purchase Agreement and the
Employment Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and
the rules and regulations thereunder, or any similar successor statute
(collectively, the ‘‘1933
Act’’), and applicable state securities
laws:

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Seller hereby agree as
follows:

1.    DEFINITIONS.

As used in
this Agreement, the following terms shall have the following
meanings:

(a)    ‘‘Register,’’
‘‘registered,’’ and
‘‘registration’’ refer to a
registration effected by preparing and filing one or more Registration
Statements in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing
for offering securities on a continuous basis (‘‘Rule
415’’), and the declaration or ordering of effectiveness
of such Registration Statement(s) by the United States Securities and
Exchange Commission (the
‘‘SEC’’).

(b)    ‘‘Registrable
Securities’’ means (i) the Conversion Shares
issued or issuable upon conversion of the Note; (ii) the Bonus Shares
issued or issuable pursuant to Schedule A of the Employment
Agreement; and (iii) any shares of capital stock issued or issuable
with respect to the Conversion Shares or the Bonus Shares, as a result
of any stock split, stock dividend, recapitalization, exchange or
similar
event.

(c)    ‘‘Registration
Expenses’’ shall mean all expenses incurred by
the Company in compliance its obligations hereunder, whether or not any
registration statement is filed or becomes effective and whether or not
any Registrable Securities are sold pursuant to such registration
statement, including, without limitation, all registration and filing
fees, printing expenses, fees and disbursements of counsel for the
Company, the expense of any special audits incident to or required by
such registration (but excluding the compensation of regular employees
of the Company, which shall be paid in any event by the
Company);

(d)    ‘‘Registration
Statement’’ means a registration statement of the
Company filed under the 1933 Act.

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(e)    ‘‘Selling
Expenses’’ shall mean all underwriting discounts
and selling commissions applicable to the sale of Registrable
Securities and all fees and disbursements of counsel for the Seller, if
any, relating to the sale or disposition of the Registrable Securities
pursuant to any registration statement filed pursuant to this
Agreement.

Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the
Purchase
Agreement.

2.    REGISTRATION.

2.1    Mandatory
Registration.    On or prior to thirty (30) days after the date
on which Seller requests that the Company Register the Registrable
Securities, or the earliest date thereafter that will not require a new
stub-period financial statement audit (such demand by Seller hereafter
defined as the ‘‘Notice’’
and such date hereafter defined as the ‘‘Demand
Date’’), the Company shall prepare and file with
the SEC a Registration Statement covering for resale all of the
Registrable Securities on Form SB-2, or such other Form as may be
available to the Company for such Registration, and shall indicate on
the cover of such form that such securities are being offered on a
delayed or continuous basis pursuant to Rule 415 under the 1933 Act. In
the event that such Registration does require such audit, the Company
agrees to use its best efforts to complete such audit. Company shall
also use its best efforts to have the Registration Statement become
effective within one hundred and twenty (120) days after the
Demand Date.

2.2    Underwriting.    If the
registration involves an underwriting, the right of the Seller to
registration pursuant to this Section shall be conditioned upon the
Seller’s participation in such underwriting. The Seller shall
(together with the Company and any other stockholders distributing
their securities through such underwriting) enter into an underwriting
agreement in customary form with the representative of the underwriter
or underwriters selected by the Company.

3.    EXPENSES OF
REGISTRATION 

3.1    All Registration
Expenses incurred in connection with any registration or compliance
pursuant to this Agreement shall be borne by the Company, and any and
all Selling Expenses shall be borne by the
Seller.

4.    REGISTRATION
PROCEDURES 

In the Notice provided by the
Seller to the Company, the Seller shall inform the Company of the
number of shares the Seller desires to have registered, acknowledging
that the Seller does, at the time of such request, intend to sell all
shares that will be included in the registration statement. After
receipt of such information from the Seller, the Company shall, at its
expense:

(a)    prepare and file with the
Commission, within the time frame specified in paragraph 2.1, above,
the Registration Statement (such date of filing, the
‘‘Filing Date’’) covering
the resale of the Registrable Securities in accordance with the method
or methods of distribution specified by the Seller, and cause the
Registration Statement to become effective and remain effective as
provided herein;

(b)    prepare and file
with the Commission such amendments, including post-effective
amendments, and supplements to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as
to the Registrable Securities for at least six (6) months
following the date it first becomes effective (the
‘‘Effectiveness Period’’);
provided, however, that the Effectiveness Period shall be
extended for a period of time equal to the period during which the
Seller refrains from selling any securities included in such
registration in accordance with the provisions set forth in Section 7
hereof;

(c)    cause the prospectus
forming a part of the Registration Statement to be amended or
supplemented by any required prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424 (or any
successor rule) under the Securities Act;

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(d)    respond
promptly to any comments received from the Commission with respect to
the Registration Statement or any amendment thereto and promptly
provide the Seller and the Sellers’ counsel true and correct
copies of all correspondence from and to the Commission relating to the
Registration Statement;

(e)    promptly to
take such action as may be reasonably necessary so that (i) each of the
Registration Statement and any amendment thereto and the prospectus
forming part thereof and any amendment or supplement thereto (and each
report or other document incorporated therein by reference in each
case), when it becomes effective, complies in all material respects
with the Securities Act and the Exchange Act and the respective rules
and regulations thereunder, (ii) each of the Registration
Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which
they were made, not misleading and (iii) each of the prospectus forming
part of the Registration Statement, and any amendment or supplement
thereto, does not at any time during the Effectiveness Period include
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not
misleading.

(f)    notify the Seller as
promptly as possible (and, in the case of (i)(A) below, not less than
five (5) Business Days prior to such filing) and (if requested by the
Seller) confirm such notice in writing no later than one (1) Business
Day following the day (i)(A) when a prospectus or any prospectus
supplement or post-effective amendment to the Registration Statement is
proposed to be filed; (B) when the Commission notifies the Company
whether there will be a ‘‘review’’ of such
Registration Statement and whenever the Commission comments in writing
on such Registration Statement and (C) with respect to the Registration
Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the Commission or any other Federal
or state governmental authority for amendments or supplements to the
Registration Statement or prospectus or for additional information;
(iii) of the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement covering any or all of
the Registrable Securities or the initiation of any Proceedings for
that purpose; (iv) if at any time any of the representations and
warranties of the Company contained in any agreement contemplated
hereby cease to be true and correct in all material respects; (v) of
the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any
of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; and (vi)
of the occurrence of any event that makes any statement made in the
Registration Statement or prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material
respect or that requires any revisions to the Registration Statement,
prospectus or other documents so that, in the case of the Registration
Statement or the prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading;

(g)    cooperate with the
Seller to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to
a Registration Statement, which certificates shall be free of all
restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as the Seller may
request at least two (2) Business Days prior to any sale of
Registrable Securities; and

(h)    furnish
such number of prospectuses and other documents incident thereto as the
Seller from time to time may reasonably request.

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5.    INDEMNIFICATION 

5.1    The
Company will indemnify the Seller to the fullest extent permitted by
applicable law with respect to each registration which has been
effected pursuant to this Agreement, and each underwriter, if any, and
each person who controls any underwriter, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of
or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus, offering
circular or other document (including any related registration
statement, notification or the like) incident to such registration,
qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, or
any violation by the Company of the Securities Act, the Exchange Act or
the respective rules or regulations thereunder applicable to the
Company and relating to action or inaction required of the Company in
connection with such registration, qualification or compliance, and
will reimburse the Seller for any legal or other expenses reasonably
incurred in connection with investigating or defending any such claim,
loss, damage, liability or action; provided that the Company
will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any
untrue statement or omission based upon written information furnished
to the Company by the Seller or underwriter. Such indemnity shall
remain in full force and effect regardless of any investigation made by
or on behalf of an Indemnified Party (as defined in Section 5.3 hereof)
and shall survive the transfer of the Registrable Securities by the
Seller.

5.2    The Seller will, if Registrable Securities
held by him are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify
the Company, each of its directors and officers and each underwriter,
if any, of the Company’s securities covered by such registration
statement, each person who controls the Company or such underwriter,
each other stockholder of the Company participating in such
registration, and each of their respective officers, directors, and
partners, and each person controlling such other stockholder, in each
case, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in such
registration statement, prospectus, offering circular or other document
made by the Seller, or any omission (or alleged omission) to
state therein a material fact required to be stated therein or
necessary to make the statements by the Seller therein not misleading,
and will reimburse the Company and such other stockholders, directors,
officers, members, partners, persons, underwriters or control persons
for any legal or other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or
action, in each case to the extent, but only to the extent, that such
untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with
written information furnished to the Company by the Seller;
provided, that the liability of such Seller pursuant to Section
5.2 and Section 5.4 hereof shall in no event exceed the net proceeds
received by such Seller from the sale of the Registrable Securities
sold by the Seller pursuant to the Registration
Statement.

5.3    Each party entitled to indemnification
under this Section 5 (the ‘‘Indemnified
Party’’) shall give notice to the party required
to provide indemnification (the ‘‘Indemnifying
Party’’) promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought,
and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom; provided that
counsel for the Indemnifying Party, who shall conduct the defense of
such claim or any litigation resulting therefrom, shall be approved by
the Indemnified Party (whose approval shall not unreasonably be
withheld) and the Indemnified Party may participate in such defense at
such party’s expense (unless the Indemnified Party shall have
reasonably concluded that there may be a conflict of interest between
the Indemnifying Party and the Indemnified Party in such action, in
which case the fees and expenses of counsel shall be at the expense of
the Indemnifying Party), and provided further that the failure
of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Agreement
unless the Indemnifying Party is materially prejudiced thereby. No
Indemnifying Party, in the defense of any such claim or litigation
shall, except with the consent of each Indemnified Party, consent to
entry of any 

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judgment or enter into any settlement which
does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. Each Indemnified
Party shall furnish such information regarding itself or the claim in
question as an Indemnifying Party may reasonably request in writing and
as shall be reasonably required in connection with the defense of such
claim and litigation resulting therefrom.

5.4    If the
indemnification provided for in this Section 5 is held by a court of
competent jurisdiction to be unavailable to an Indemnified Party with
respect to any loss, liability, claim, damage or expense referred to
herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such loss, liability,
claim, damage or expense in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand
and of the Indemnified Party on the other in connection with the
statements or omissions which resulted in such loss, liability, claim,
damage or expense, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other
things, whether the untrue (or alleged untrue) statement of a material
fact or the omission (or alleged omission) to state a material fact
relates to information supplied by the Indemnifying Party or by the
Indemnified Party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such
statement or omission.

5.5    Notwithstanding the foregoing,
to the extent that the provisions on indemnification and contribution
contained in the underwriting agreement entered into in connection with
any underwritten public offering contemplated by this Agreement are in
conflict with the foregoing provisions, the provisions in such
underwriting agreement shall be controlling.

5.6    The
foregoing indemnity agreement of the Company and the Seller is subject
to the condition that, insofar as they relate to any loss, claim,
liability or damage made in a preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the SEC at the time the
registration statement in question becomes effective or the amended
prospectus filed with the SEC pursuant to SEC Rule 424(b) (the
‘‘Final Prospectus’’), such
indemnity agreement shall not inure to the benefit of any underwriter
if a copy of the Final Prospectus was furnished to the underwriter and
was not furnished to the person asserting the loss, liability, claim or
damage at or prior to the time such action is required by the
Securities Act.

6.    INFORMATION BY THE
SELLER

The Seller shall furnish to the Company such
information regarding the Seller and the distribution proposed by the
Seller as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration, qualification
or compliance referred to in this
Agreement.

7.    ‘‘MARKET
STAND-OFF’’ AGREEMENT

The Seller
agrees, if requested by the Company and an underwriter of common stock
(or other securities) of the Company, not to sell or otherwise transfer
or dispose of any common stock (or other securities) of the Company
held by the Seller during the 90-day period following the effective
date of a registration statement of the Company filed under the
Securities Act which relates solely to securities offered by or on
behalf of the Company. If requested by the underwriters, the Seller
shall execute a separate agreement to the foregoing effect. The Company
may impose stop-transfer instructions with respect to the shares (or
securities) subject to the foregoing restriction until the end of said
period. The provisions of this Section 7 shall be binding upon any
transferee who acquires Registrable Securities, whether or not such
transferee is entitled to the registration rights provided
hereunder.

8.    NO INCONSISTENT
AGREEMENTS. 

Neither the Company nor any of
its subsidiaries has, as of the date hereof entered into and currently
in effect, nor shall the Company or any of its subsidiaries, on or
after the date of this Agreement, 

5

enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Seller
in this Agreement or otherwise conflicts with the provisions hereof.
Without limiting the generality of the foregoing, at no time during the
Effectiveness Period shall the Company, grant to any person or entity
the right to request the Company to register any securities of the
Company under the Securities Act unless the rights so granted are
subject in all respects to the prior rights in full of the Seller set
forth herein, and are not otherwise in conflict with the provisions of
this
Agreement.

9.    MISCELLANEOUS

9.1    Governing
Law.    This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to
contracts made and to be performed entirely within such State without
regard to principles of conflicts of law.

9.2    Paragraph
and Section Headings.    The descriptive headings of the several
sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the
provisions hereof.

9.3    Notices.    All notices,
demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and
shall be deemed to have been given (a) when delivered personally to the
recipient, (b) when sent to the recipient by telecopy (receipt
electronically confirmed by sender’s telecopy machine) if during
normal business hours of the recipient, otherwise on the next Business
Day, (c) one Business Day after the date when sent to the recipient by
reputable express courier service (charges prepaid), or (d) seven
Business Days after the date when mailed to the recipient by certified
or registered mail, return receipt requested and postage prepaid. Such
notices, demands and other communications shall be sent to the Seller
and to the Company at the addresses indicated
below:

			
	If to the
Seller:		Zeus Promotions,
LLC
4714-54th Avenue South
Seattle, WA
98154
Attn: John Kowal
Fax:
			

			
	With a copy to: (which
shall not constitute notice)		Helsell Fetterman,
LLP
1001 Fourth Avenue, Suite 4200
Seattle, WA 98154
 ATTN:
Mark Rising, Esq.
Fax: (206) 340-0902
			

			
	If to the
Company:		HandHeld Entertainment, Inc.
ATTN: Jeffrey
Oscodar
539 Bryant Street, Suite 403
San Francisco, CA
94107
Fax:
			

			
	With a copy to: (which shall not constitute
notice)		Niesar Curls Bartling & Whyte, LLP
90 New
Montgomery Street, 9th Floor
San Francisco, CA
94105
Attn: Gerald V. Niesar, Esq.
Fax: (415)
882-5400
			

or to such other address as
either party hereto may, from time to time, designate in writing
delivered pursuant to the terms of this
Section.

9.4    Amendments.    The terms, provisions
and conditions of this Agreement may not be changed, modified or
amended in any manner except by an instrument in writing duly executed
by both of the parties hereto.

6

9.5    Assignment.    Neither
this Agreement nor any of the rights, duties, or obligations of any
party hereunder may be assigned or delegated (by operation of law or
otherwise), other than to John Kowal, by either party hereto
except with the prior written consent of the other party hereto;
provided that all of the terms and provisions of
this Agreement shall inure to the benefit of and shall be enforceable
by the respective legal successors and permitted assigns of the parties
hereto and to any holder of Registrable
Securities.

9.6    Counterparts.    For the
convenience of the parties, any number of counterparts of this
Agreement may be executed by any one or more parties hereto, and each
such executed counterpart shall be, and shall be deemed to be, an
original, but all of which shall constitute, and shall be deemed to
constitute, in the aggregate but one and the same
instrument.

[SIGNATURE PAGE
FOLLOWS]

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IN WITNESS WHEREOF, each of the parties
hereto has caused this Registration Rights Agreement to be executed on
its behalf by its officers thereunto duly authorized, all as of the day
and year first above
written.

				
	COMPANY			HANDHELD
ENTERTAINMENT,
INC.
	 			By:   /s/
Jeff
Oscodar                                        
	 			Name:
Jeffrey Oscodar
Title:
   President
	SELLER			ZEUS
PROMOTIONS,
INC.
	 			By:   /s/
John
Kowal                                            
Name:
John Kowal
Title:    VP Business
Development
	

8EMPLOYMENT
AGREEMENT

The Employment Agreement (the
‘‘Agreement’’) is made as of
the 13th day of November  2006 (the
‘‘Effective Date’’), by and
between HandHeld Entertainment, Inc., a Delaware corporation (the
‘‘Company’’) and John Kowal
(‘‘Employee’’), an
individual residing in Washington State.

WHEREAS, the Company has
acquired the Business of Dorks, LLC, which business was previously
managed by Employee; and

WHEREAS,
‘‘Business’’ shall have the
meaning set forth in the Membership Purchase Agreement executed by,
among others, the Company and Employee on even date herewith (the
‘‘Membership Purchase
Agreement’’); and

WHEREAS, the Company
needs an experienced employee to run the Business; and

WHEREAS,
the Company wishes to engage Employee to serve as the manager of its
subsidiary, Dorks, LLC;

NOW THEREFORE, in consideration of the
premises and the covenants contained herein, the parties hereby agree
as follows:

1.    DUTIES AND
POSITION.    During the term of the Agreement, Employee agrees to
be employed by and to serve the Company as the manager of Dorks, LLC
with the title ‘‘King Dork,’’ or such other
comparable position as the Board may, from time-to-time designate. The
Company agrees to employ and retain Employee in such capacity and
Employee accepts and agrees to such employment, subject to the general
supervision, advice and direction of the Company’s Chief
Executive Officer. Employee shall perform such duties as are
customarily performed by an employee in a similar position, including
the management of the Business and the identification and facilitation
of the acquisitions of businesses similar to the Business. Employee
shall devote a minimum of thirty five (35) hours per week as the
manager of Dorks, LLC. As part of Employee’s employment with the
Company, Employee shall, without limitation, assist the Company with
identifying and closing acquisitions of other websites, work with the
Company’s web development team to optimize the Company’s
existing website (as well as any additional websites that the Company
may acquire in the future), and assist the Company with determining and
implementing a strategy for the syndication of all of the other
websites and content that that the Company may acquire in the
future.

2.    TERMS OF
EMPLOYMENT.

2.1.    Term of Employment.    The
Agreement shall be effective as of the date first set forth above and
shall continue until June  30,  2009, unless sooner
terminated pursuant to the provisions set forth herein (the
‘‘Term’’).

2.2.    Place
of Performance.    Employee shall be based at the principal
office of Dorks, LLC which currently is 4714-54th Avenue
South, Seattle, Washington 98118. Under no circumstances shall Employee
be assigned to duties and responsibilities that would require Employee
to move his principal place of residence to a location more than
twenty-five miles from the center of Seattle,
Washington.

3.    SALARY, BENEFITS AND BONUS
COMPENSATION.

3.1.    Salary.    As payment
for the services to be rendered by Employee as provided in Section 1
and subject to the terms and conditions of Section 4, the Company
agrees to pay to Employee a salary equal to $20,000.00 per year,
payable in twenty-four equal installments on the 15th and
the last day of each month (as may be adjusted from time-to-time, the
‘‘Base Salary’’).
Employee’s salary shall be reviewed by the Company’s
Board of Directors in accordance with Company policies, and Employee
shall be eligible for increases in salary and benefits as determined by
the Company’s Board of Directors in its sole discretion. In no
event shall Employee’s salary be reduced below the Base Salary
except with Employee’s consent which may be withheld in
Employee’s sole discretion.

1

3.2.    Bonuses.    Employee
shall be eligible for bonuses in the form of stock as set forth on the
attached Schedule A. The Company and Employee understand and
agree that the principal goal of Employee's services shall be to
expand the business of Dorks, LLC via acquisitions of similar
businesses, and that both the Company and Employee agree that the
compensation of Employee is therefore primarily based upon how
successful he will be in fulfilling that
goal.

3.3.    Employee Benefits.    Employee shall
be eligible to participate in all benefit plans generally available to
Employees of the Company including health, dental, life insurance,
stock and bonus compensation
programs.

4.    TERMINATION.

4.1.    Definitions.    For
purposes of the Agreement, the following terms shall have the following
meanings:

(a)    ‘‘Termination
For Cause’’ shall mean termination by the Company
of Employee’s employment by the Company for reasons of
Employee’s conviction of, or plea of
‘‘guilty’’ or ‘‘no
contest’’ to, a felony involving moral turpitude,
persistent dishonesty or fraud, persistent willful breaches of the
material terms of the Agreement, or habitual neglect of the duties
which he is required to perform
hereunder.

(b)    ‘‘Termination
Other Than For Cause’’ shall mean termination by
the Company of Employee’s employment by the Company other than a
Termination For
Cause.

(c)    ‘‘Voluntary
Termination’’ shall mean termination of
Employee’s employment with the Company by action of Employee
(other than termination by reason of Employee’s disability or
death as described in Sections 4.4 and
4.5).

4.2.    Termination For Cause.

(a)    Termination For Cause may be effected
by the Company at any time during the Term and shall be effected by
notice to Employee.

(b)    Upon
Termination For Cause, Employee immediately shall be paid any accrued
salary, any bonus compensation to the extent earned, any vested
deferred compensation (other than pension plan or profit sharing plan
benefits which will be paid in accordance with the applicable plan),
any benefits under any plan of the Company in which Employee is a
participant to the full extent of Employee’s rights under such
plans, any accrued vacation pay and any appropriate business expenses
incurred by Employee in connection with his duties hereunder, all to
the date of termination, but Employee shall not be paid any other
compensation or reimbursement of any kind, including without
limitation, severance compensation.

4.3.    Termination
by Reason of Disability.

(a)    If,
during the Term, Employee is determined by an examining physician to
have failed to perform his duties under the Agreement on account of
illness or physical or mental incapacity, and such illness or
incapacity continues for a consecutive period of more than four (4)
months, or an aggregate of more than six (6) months in a twelve (12)
month period, the Company shall have the right to terminate
Employee’s employment hereunder by notice to
Employee.

(b)    Upon a termination by
reason of disability, the Company shall pay to the Employee any accrued
salary, any bonus compensation to the extent earned, any vested
deferred compensation (other than pension plan or profit sharing plan
benefits which will be paid in accordance with the applicable plan),
any benefits under any plans of the Company in which Employee is a
participant to the full extent of Employee’s rights under such
plans, any accrued vacation pay and any appropriate business expenses
incurred by Employee in connection with his duties hereunder, all to
the date of termination, but no other compensation or reimbursement of
any kind.

2

4.4.    Death.

(a)    In the event of Employee’s death
during the Term, Employee’s employment shall be deemed to
terminate as of the last day of the month during which his death
occurs.

(b)    Upon termination by death,
the Company shall pay to Employee’s estate any accrued salary,
any bonus compensation to the extent earned, any vested deferred
compensation (other than pension plan or profit sharing plan benefits
which will be paid in accordance with the applicable plan), any accrued
vacation pay and any appropriate business expenses incurred by Employee
in connection with his duties hereunder, all to the date of
termination, but no other compensation or reimbursement of any
kind.

4.5.    Voluntary Termination.    Employee
may effect a Voluntary Termination of his employment at any time upon
written notice to the Company. The Company request the courtesy of a
thirty (30) day notice. In the event of a Voluntary
Termination, the Company immediately shall pay any accrued salary, any
bonus compensation to the extent earned, any vested deferred
compensation (other than pension plan or profit sharing plan benefits
which will be paid in accordance with the applicable plan), any
benefits under any plans of the Company in which Employee is a
participant to the full extent of Employee’s rights under such
plans, any accrued vacation pay and any appropriate business expenses
incurred by Employee in connection with their duties hereunder, all to
the date of termination, but no other compensation or reimbursement of
any kind.

5.    SEVERANCE COMPENSATION.    Upon
a Termination Other Than for Cause, Employee shall receive a severance
fee equal to twelve (12) months at his then-current Base Salary but not
to exceed the number of months remaining in the Term if such period is
shorter. Such fee shall be payable in equal monthly increments over a
period of twelve (12) months.

6.    PAID
TIME OFF.    Employee shall be eligible to accrue vacation and
sick leave according to the Company’s vacation and sick leave
policies in effect from time-to-time applicable to employees,
generally. Employee is ineligible to accrue vacation and sick leave
benefits while Employee is absent without pay including, but not
limited to, unpaid leaves of absence. The purpose of vacation leave is,
among other things, to provide time for recreation and relaxation. The
Company encourages all of its employees to take accrued vacation leave
each year. Accordingly, the maximum vacation and sick leave Employee
will be permitted to accrue is based on time of service and once the
maximum amount has been reached, no additional vacation or sick leave,
respectively, will accrue until Employee has reduced the balance of
unused leave to less than the maximum.

7.    HOLIDAYS.    Employee shall be
entitled to holidays with pay during each calendar year consistent with
the holiday schedule applicable to management employees of the Company,
generally.

8.    COMPLIANCE WITH
EMPLOYER’S RULES.

8.1    General.    The employment relationship
between the parties shall be governed by the general employment
policies, procedures and rules of the Company, including (but not
limited to) those relating to the protection of confidential
information and assignment of inventions; provided, however, that when
the terms of the Agreement differ from or are in conflict with the
Company’s general employment policies or procedures, the
Agreement shall control. Employee agrees to abide by all of the
Company’s policies, procedures and rules in effect from
time-to-time.

8.2    Employee's Separate
Business.    The Company understands and agrees that Employee
shall continue to own and operate one or more separate businesses
and/or related websites (as applicable), as listed on Schedule
B to this Agreement (‘‘Separate
Businesses’’) and shall continue to own all
inventions, creations, revenues, profits, or other benefits generated
by the Separate Businesses. In addition, and notwithstanding anything
to the contrary in this Agreement, or as would otherwise be provided by
applicable State of Federal law, the Company waives any right to claim
any incidence of franchise, sharing or other right to revenues,
profits, or other benefits, whether created or generated by Employee
individually, or by any Separate Business. Moreover, the Company waives
any right to claim any incidence of ownership to any Intellectual
Property created or generated by Employee individually, or by any
Separate Business, except such as is directly related to the
Intellectual Property 

3

acquired by the Company pursuant to the
Membership Purchase Agreement (e.g., Intellectual Property of the
Business, including the trademark
‘‘Dorks.com’’, the domain name dorks.com,
and any Intellectual Property residing on the server which the Employee
shall transfer to Company pursuant to the Membership Purchase
Agreement, etc.) Lastly, the Company waives any right to claim any
license rights, except such as are directly related to the Intellectual
Property licensed by the Company pursuant to the Technology License
Agreement by and between Zeus Productions, LLC and the Company, dated
as of November  13,
2006.

8.3    Competition with
Company.    The Company hereby acknowledges and agrees that the
Separate Businesses, as they currently exist, do not compete
with the Business. Employee shall be able to keep and commercially
exploit the Separate Businesses as they currently exist; provided,
however, that Employee shall not modify any existing Separate Business
or develop any new businesses or website such that such modified
Separate Business or new business or website(s) (as applicable) compete
with the Business in the user-generated, PG-13-like rated space
dedicated to slapstick humor. For avoidance of doubt, Employee agrees
(1) not to modify the existing market direction of the existing
Separate Businesses such that such Separate Businesses compete with the
Company in the user-generated, PG-13-like rated space dedicated to
slapstick humor, and (2) not to create any new business or
website(s) that compete with the Company in the user-generated,
PG-13-like rated space dedicated to slapstick humor.

9.    RETURN OF PROPERTY.    Upon
termination of Employee’s employment, Employee shall deliver all
property (including keys, records, notes, lists, data, memoranda,
models, and equipment) that is in the Employee’s possession or
under the Employee’s control which is the Company’s
property or related to the Company’s business.

10.    INDEMNIFICATION OF
EMPLOYEE.    The Company shall indemnify Employee against any
direct losses incurred by Employee in the course of his duties to the
fullest extent permissible under applicable law.

11.    MISCELLANEOUS.

11.1.    Notice.    Every
notice or other communication required or contemplated by this
Agreement by either party shall be in writing and shall be delivered to
the other party at the address set forth on the signature page below
by: (i) personal delivery; (ii) postage prepaid, return receipt
requested, registered or certified mail; (iii) internationally
recognized express courier, such as Federal Express, UPS or DHL; or
(iv) facsimile or email with a confirmation copy sent simultaneously by
postal mail. Either party may change its or his address for notice from
time-to-time by providing written notice in the manner set forth
above.

11.2.    Attorney Fees.    In the event
that any action, suit or other proceeding at law or in equity is
brought to enforce the provisions of the Agreement, or to obtain money
damages for the breach thereof, and such action results in the award of
a judgment for money damages or in the granting of any injunction in
favor of the Company, then all reasonable expenses, including, but not
limited to, reasonable attorneys’ fees and disbursements
(including those incurred on appeal) of the Company in such action,
suit or other proceeding shall (on demand of the Company) forthwith be
paid by Employee. If such action results in a judgment in favor of
Employee, then all reasonable expenses, including but not limited to,
reasonable attorney’s fees and disbursements (including those
incurred on appeal) of Employee in such action, suit or other
proceeding shall (on demand of Employee) forthwith be paid by the
Company.

11.3.    Entire Agreement.    The
Agreement, including the policies and procedure referred to in Section
8 above and the attached Schedule A, supersedes all prior
agreements, and the terms set forth herein represent the entire
understanding and agreement between the Company and Employee regarding
compensation, employment, status and position. It is further understood
that the Company’s policies, procedures and rules may be amended
or changed at any time by the
Company.

11.4.    Amendment.    The Agreement may
be modified or amended only if the amendment is made in writing and is
signed by both parties. The Agreement cannot be altered in any way by
any oral statement(s) made by Employee or the Company.

4

11.5.    Severability.    If
any provision(s) of the Agreement shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue
to be valid and enforceable. If a court finds that any provision(s) of
the Agreement is invalid or unenforceable, but that by limiting such
provision it would become valid or enforceable, then such provision
shall be deemed to be written, construed, and enforced as so
limited.

11.6.    Waiver Of Contractual
Right.    The failure of either party to enforce any provision
of the Agreement shall not be construed as a waiver or limitation of
that party’s right subsequently to enforce and compel strict
compliance with every provision of the
Agreement.

11.7.    Applicable Law.    The
Agreement shall be governed by the laws of the State of
Washington.

5

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

				
	HANDHELD
ENTERTAINMENT, INC. 

    
By:    /s/ Jeff
Oscodar                    

           Jeff Oscodar, President
    

           539 Bryant Street, Suite 403

           San Francisco, CA 94107
            (415)
495-6470			JOHN KOWAL

    
By:    /s/ John
Kowal                    
            John
Kowal
    
           4714-54th Avenue
South
           Seattle, Washington
98118
           Address
    
           Fax:
	

6

Schedule A

Description of
Bonus Milestones and
Amounts

													
	A			B			C			D			E
	[Actual]			[Actual]			ALL
ILLUSTRATIONS
ONLY
	

																															
	 			#
of monthly hits
 by Uniques(1)			$
per
Unique(2)			Transaction
value(3)			Transaction

Bonus
Value(4)			Bonus Shares
to be
Issued(5)
	3.0%					500,000-999,999	

				$	2.00	

				$	1,000,000	

				$	30,000	

					15,000	

	4.0%					1,000,000-1,499,999	

				$	2.00	

				$	2,000,000	

				$	80,000	

					40,000	

	5.0%					1,500,000-1,999,999	

				$	2.00	

				$	3,000,000	

				$	150,000	

					75,000	

	5.0%			2,000,000+				$	2.00	

				$	4,000,000	

				$	200,000	

					100,000	

	

	
		
	

		
	(1)	A
‘Unique’ is a visit to the website by an individual per
twenty-four (24)-hour period, as opposed to a hit generated
automatically by another computer. For avoidance of doubt, the parties
to this Agreement intend to define the term
‘‘Unique’’ consistently with the current
industry standard and common usage.

		
	(2)	$ per
Unique will be the $ value paid by the Company in the specific
Transaction.

		
	(3)	Transaction value will be the
aggregate value of the specific
Transaction.

		
	(4)	This is the Column A percent
applied to the actual Transaction Value of the specific
Transaction.

		
	(5)	The Dollar value of the bonus
shall be paid in newly issued restricted shares of HHE common stock
(‘‘Bonus Shares’’). The
price per Bonus Share shall be the average of the closing trading price
of such stock for the five days most closely preceding the date of the
Transaction upon which the common stock traded. The number of shares
shown in the column is based upon a supposed $2 per share average
trading price, and is for illustration purposes only. The actual number
of Bonus Shares to be issued will be based upon the average trading
prices at the time of the Transaction(s).

7

Schedule B

Separate
Businesses

www.freewebcards.com

www.funnypic.net

www.skatetv.com

www.aaapostcards.com

www.web-greeting-cards.com

www.yourgreetingcard.com

www.myzips.com

www.aaascreensavers.com

www.yourgreetingcard.com

8

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