Document:

Unassociated Document

     

    DIGITAL
      MUSIC AND VIDEO DISTRIBUTION AGREEMENT

     

    This
      Digital Music and Video Distribution Agreement (the
“Agreement”), together with the Standard Terms and Conditions
      attached hereto and incorporated by reference, is entered into as of the ___
      day
      of August, 2007 (the “Effective Date”) by and between Mohen,
      Inc. d/b/a SpiralFrog, a Delaware corporation with its principal place of
      business at 95 Morton Street, New York, New York 10014, (referred to in this
      Agreement as “SpiralFrog”) and the distributing party listed on
      the attached signature page, (referred to in this Agreement as
“IODA”).  Unless otherwise indicated, all capitalized
      terms used in this Agreement have the meaning set forth in the Standard Terms
      and Conditions.

     

    RECITALS

     

    WHEREAS,
      SpiralFrog desires to offer advertising-supported digital music, digital video
      and lyric content to Users (as defined herein) via the Service (as described
      in
      Exhibit “A”) in the formats including, but not limited to: (i) Limited Music
      Downloads, (ii) Limited Music Video Downloads, (iii) Limited Non-Music Video
      Downloads, (iv) Lyric Displays, (v) Music Streams, (vi) Music Video Streams
      and
      (vii) Non-Music Video Streams (as such terms are defined herein);

     

    WHEREAS,
      IODA owns and controls certain rights in and to digital music, digital video
      and
      Related Content (as defined herein) subject to this Agreement; and

     

    WHEREAS,
      IODA has full power and authority to grant to SpiralFrog the right and privilege
      to use the Distributed Content (as defined herein) in connection with the
      Service;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, the
      parties hereto agree as follows:

     

    1.  Grant
      of Rights.

     

    (a)  Subject
      to the terms and conditions of this Agreement, IODA hereby grants the following
      limited non-exclusive rights in and to the Distributed Content to SpiralFrog,
      during the Term and within the Territory, without the right to transfer or
      sub-license any rights granted herein, except as specifically provided
      herein:

     

    (i)  the
      right
      to reproduce and distribute copies of, to publicly perform and otherwise exploit
      the Distributed Content solely in connection with the Service;

     

    (ii)  the
      right
      to reproduce the Distributed Content in connection with DRM
      encoding;

     

    (iii)  the
      right
      to reproduce and display album artwork in connection with promotion of the
      Service;

     

    (iv)  the
      right
      to collect any and all income derived from the use of the Distributed Content
      in
      connection with the Service;

     

    (v)  the
      right
      to store, host and prepare backup copies of the Distributed Content solely
      for
      the purposes of exercising the specific rights granted hereunder.

     

    (b)  IODA
      has
      no objection to SpiralFrog's use of reputable third-party metadata (i.e., data
      from All Music Guide, Gracenote, Muze and Pollstar) in conjunction with the
      Distributed Content, but makes no grant or warranty in such regard.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1A.           Delivery
      of Content.

     

    IODA
      shall deliver the Distributed Content to SpiralFrog in accordance with the
      terms
      and conditions of this Agreement, and as may be provided in the encoding and
      delivery terms contained in Exhibit D (“Encoding & Delivery
      Agreement”).  SpiralFrog acknowledges that IODA is comprised
      of Represented Labels, each of which shall have the individual ability to
      decline to participate in the Service after being notified of the material
      terms
      hereof.  If a particular Represented Label so declines to participate
      by notifying IODA within IODA’s standard fourteen (14) day opt-out period
      (“Opt-Out Period”), the terms of this Agreement shall not be
      applicable to said Represented Label and its recordings shall not be considered
      part of the Distributed Content subject to this Agreement and shall not be
      offered by IODA for distribution hereunder, unless otherwise mutually agreed
      to
      by IODA and SpiralFrog. Upon expiration of the Opt-Out Period, all Distributed
      Content and Related Content delivered to SpiralFrog by IODA for use in the
      connection with the Service shall remain subject to the non-exclusive rights
      granted to SpiralFrog under this Agreement until the end of the Term. IODA
      agrees to make good faith efforts to notify Represented Labels of this Agreement
      within five (5) business days of the Effective Date. Notwithstanding anything
      to
      the contrary in this Agreement and/or the Encoding & Delivery Agreement,
      prior to the delivery by IODA of any A/V Master Music Video Recordings or A/V
      Master Non-Music Video Recordings, IODA and SpiralFrog will negotiate in good
      faith mutually agreeable encoding and/or delivery terms for such A/V Master
      Music Video Recordings and/or A/V Master Non-Music Video
      Recordings.

     

    2.  Restrictions
      on Grant of Rights.

     

    (a)  Any
      and
      all rights in and to the Distributed Content not expressly granted hereunder
      are
      reserved by IODA, including, but not limited to:

     

    (i)  rights
      to
      karaoke or synchronization with video games;

     

    (ii)  merchandising
      rights;

     

    (iii)  rights
      to
      derivative works;

     

    (iv)  rights
      to
      use, exploit, or permit the use of exploitation of the Distributed Content
      as a
      ringtone, ringback tone, or other so-called telecommunication personalization
      products, although IODA expressly acknowledges that a User may be able to
      transfer a Master Recording from a full-track folder to a ringtone folder on
      a
      cellular telephone if that cellular telephone’s operating system or software
      fails to restrict such a transfer;

     

    (v)  rights
      to
      distribute physical copies of Distributed Content (e.g., CDs or DVDs), apart
      from any physical copies of Distributed Content which are sold separately on
      the
      Service by third parties (i.e., those third parties who represent that IODA
      has
      authorized in writing the exercise of such rights), including a hyperlink
      through which Users may purchase physical copies of Distributed Content (if
      available).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  IODA
      hereby acknowledges that the User’s experience of Distributed Content occurs in
      connection with third-party advertising; however, SpiralFrog shall
      not:

     

    (i)  use
      any
      Distributed Content in a manner that suggests IODA, Represented Labels or
      artists featured in any specific Distributed Content is associated with or
      endorses any advertiser, product or service; notwithstanding the preceding,
      nothing contained herein shall prohibit SpiralFrog from displaying
      advertisements correlated with Distributed Content or artists featured on
      Distributed Content when the association is based on some form of data analysis,
      established research, and/or advertising information provided by a third-party
      service;

     

    (ii)  display
      advertisements from any entity whose primary business relates to, or which
      promotes and/or constitutes the unauthorized distribution of copyrighted
      material, or any advertisement that promotes tobacco, firearms, hate speech,
      illegal drugs, pornographically obscene materials, or alcohol, except that
      SpiralFrog may display advertisements relating to alcohol to Users above the
      applicable legal drinking age.

     

    (c)  For
      avoidance of doubt, ownership and control of any copyrights and/or trademarks
      in
      the Distributed Content is retained solely by IODA or Represented Labels, and
      neither SpiralFrog nor any User or other third party shall obtain any ownership
      rights in any work derived from or that makes use of the Distributed
      Content.

     

    (d)  SpiralFrog
      agrees to use commercially reasonable efforts to monitor new content ingested
      into its catalog to reasonably determine whether a third party
      (“Duplicate Distributor”) purports to distribute any
      Distributed Content to SpiralFrog (“Duplicate
      Distribution”).  If SpiralFrog or IODA discovers a Duplicate
      Distribution, SpiralFrog will (i) promptly notify the Duplicate Distributor
      that
      the Distributed Content concerned has already been licensed from IODA and that
      SpiralFrog intends to account to IODA, and not the Duplicate Distributor, with
      respect to the Distributed Content concerned, unless the Duplicate Distributor
      can provide evidence refuting IODA’s exclusive right to distribute the
      Distributed Content to SpiralFrog, and (ii) subject to any confidentiality
      requirements SpiralFrog may be subject to in a third-party agreement, notify
      IODA of the name and contact information of the Duplicate IODA so that IODA
      may
      take action as it deems appropriate.  SpiralFrog will make
      commercially reasonable efforts to cooperate with IODA to resolve matters
      relating to such Duplicate Distributor.

     

     

    3.  Compensation.

     

    In
      consideration of the rights granted herein, SpiralFrog shall pay IODA the
      following amounts, which will be calculated on a monthly basis:

     

    (a)  Music
      Royalty.  With respect solely to SpiralFrog’s exploitation of
      Limited Music Downloads and Music Streams, SpiralFrog shall pay to IODA a
      royalty equal to fifty percent (50%) of Gross Music Revenue multiplied by IODA’s
      Music Royalty Share.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    The
      “Music Royalty Share” shall equal a fraction, the numerator of
      which shall be the sum of the number of Music Plays and Music Streams, and
      the
      denominator of which shall be the sum of the number of Music Plays, Music
      Streams, Service-wide Music Plays and Service-wide Music Streams

     

    (b)  Music
      Video Royalty.  With respect solely to SpiralFrog’s exploitation
      of Limited Music Video Downloads and Music Video Streams, SpiralFrog shall
      pay
      to IODA a royalty equal to fifty percent (50%) of Gross Music Video Revenue
      multiplied by IODA’s Music Video Royalty Share.

     

    The
      “Music Video Royalty Share” shall equal a fraction, the
      numerator of which shall be the sum of the number of Music Video Plays and
      Music
      Video Streams, and the denominator of which shall be the sum of the number
      of
      Music Video Plays, Music Video Streams, Service-wide Music Video Plays and
      Service-wide Music Video Streams.

     

    (c)  Non-Music
      Video Royalty.  With respect solely to SpiralFrog’s exploitation
      of Limited Non-Music Video Downloads and Non-Music Video Streams, SpiralFrog
      shall pay to IODA a royalty equal to fifty percent (50%) of Gross Non-Music
      Video Revenue multiplied by IODA’s Non-Music Video Royalty Share.

     

    The
      “Non-Music Video Royalty Share” shall equal a fraction, the
      numerator of which shall be the sum of the number of Non-Music Video Plays
      and
      Non-Music Video Streams, and the denominator of which shall be the sum of the
      number of Non-Music Video Plays, Non-Music Video Streams, Service-wide Non-Music
      Video Plays and Service-wide Non-Music Video Streams.

     

    (d)  Lyric
      Royalty Exclusion.  All revenue derived from Music Lyrics shall be
      specifically excluded from IODA’s compensation, including, but not limited to,
      Music Royalty, Music Video Royalty, and Non-Music Video Royalty.

     

    (e)  Unsold
      Advertising Inventory.  SpiralFrog shall provide to IODA, and IODA
      shall be entitled to use, a pro-rata share of twenty-five percent (25%) of
      SpiralFrog’s unsold advertising inventory, which IODA may use to promote
      Distributed Content owned and/or controlled by IODA.  IODA’s pro-rata
      share of unsold advertising inventory shall be determined by using the fraction
      used in calculating IODA’s Music Royalty Share multiplied by twenty-five percent
      (25%) of the unsold advertising inventory available based upon the previous
      quarter’s royalty calculation (or in the case of the Service’s first quarter
      after launch, a commercially reasonable estimate of the same).  IODA’s
      share of unsold advertising inventory is exclusively provided to IODA for use
      by
      IODA and may not be sold, exchanged, transferred, bartered or donated to any
      other party (including IODA’s Represented Labels, artists, affiliates, partners
      or associated entities) and may not be utilized for any purpose other than
      to
      promote Distributed Content owned and/or controlled by IODA. SpiralFrog reserves
      the right to reject any advertising, which it, in good faith, considers (i)
      offensive to its audience or (ii) in violation of this Section
      3(e).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f)  Publishing
      Fees Not Included.  The rights granted by IODA to SpiralFrog under
      this Agreement do not include any rights to perform, reproduce or otherwise
      use
      the musical compositions embodied in the Distributed
      Content.  SpiralFrog is solely responsible for obtaining any rights in
      and to such musical compositions that may be required in connection with the
      operation of the Service, and for paying any and all related royalties and
      fees.  IODA will make reasonable commercial efforts on an ongoing
      basis during the term of this Agreement to supply SpiralFrog with all publishing
      information for the Distributed Content that IODA has in its possession, custody
      or control for the Distributed Content.

     

    (g)  SpiralFrog
      will use its best efforts to track Music Plays, Service-wide Music Plays, Video
      Streams and Service-wide Video Streams using the system of each Covered Device,
      which systems are subject to interruptions and other interference not within
      SpiralFrog’s control, and that such interruptions and other interference will
      affect the royalty calculations set forth above.

     

    (h)  Favored
      Terms.  SpiralFrog represents, warrants and covenants that as long
      as this Agreement is in effect,  IODA shall receive no less favorable
      royalty rates, including, without limitation, “penny rate” floors, Music
      Royalty, Video Royalty, and Non-Music Video Royalty, than provided to any other
      provider of sound recordings and/or audio visual recordings on the Service,
      including, without limitation, the corporation commonly referred to as
“Universal Music Group.” If SpiralFrog enters an agreement that includes more
      favorable royalty rates than granted to IODA herein, including, without
      limitation, a “penny rate” floor, SpiralFrog will notify IODA within thirty (30)
      days of entering into any such agreement and IODA thereafter will have thirty
      (30) days within which to accept or reject any such more favorable royalty
      rates.  SpiralFrog will not enter into multiple agreements with the
      same contracting party so as to avoid its obligations hereunder.

     

     

    4.  Term.

     

     

    The
      term
      of this Agreement shall commence on the Effective Date and remain in effect
      until the earlier of (i) one year from the date of SpiralFrog’s official launch
      in the USA or (ii) October 31, 2008 ( the “Initial Term”), and
      shall automatically renew on a quarterly basis following expiration of the
      Initial Term unless otherwise terminated by either party on thirty (30) days’
written notice to the other party to this effect (collectively, the Initial
      Term
      and any renewal terms, the “Term”).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    5.  Territory.

     

     

    The
      territory of rights granted herein shall be the universe, with the exception
      of
      any territory restrictions which are noted in the metadata accompanying the
      Distributed Content or of which IODA otherwise notifies SpiralFrog in writing
      according to the terms of Sections 4 and 13 of the Standard Terms and
      Conditions.

     

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the
      Effective Date:

     

    MOHEN,
      INC. d/b/a SPIRALFROG

     

    
      	
              By:

            	
              ________________________________

            	
              _______________________

            

    

    

    
      	
              Print
                name:

            	
              Date

            

    

    

    
      	
              
                Title:

              

            	
               

            

    

    

    

    

     

    INDEPENDENT
      ONLINE DISTRIBUTION ALLIANCE, INC.

     

    
      	
              By:

            	
              ________________________________

            	
              _______________________

            

    

    

    
      	
              Print
                name:

            	
              Date

            

    

     

    
      	
              Print
                name:

            	
              Date

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    DIGITAL
      MUSIC AND VIDEO LICENSE AGREEMENT/SOUND RECORDINGS

     

    STANDARD
      TERMS AND CONDITIONS

     

    1.  Definitions.

     

    “A/V
      Master Music Video Recording” shall mean an audio/visual work
      distributed hereunder that embodies a Master Recording in synchronization with
      visual images.

     

    “A/V
      Master Non-Music Video Recording” shall mean an audio/visual work,
      including without limitation, a television program, television clip, motion
      picture, trailer, video game, or other audiovisual content (whether or not
      including musical content) other than a music video licensed hereunder that
      embodies a Master Recording.

     

    “Confidential
      Information” shall mean (a) information relating to the business
      affairs, employees, providers, financial condition, marketing or development
      plans, strategies, inventions, discoveries, ideas, concepts, processes,
      techniques, methodologies, know-how, trade secrets, forecasts and forecast
      assumptions and volumes, performance, pricing or operations of the disclosing
      party that the disclosing party treats as confidential or proprietary, (b)
      the
      parties’ conduct, decisions, documents, and negotiations as part of, and the
      status of, any dispute resolution proceedings, (c) any other information,
      whether in a tangible medium or oral, and whether proprietary to the disclosing
      party or not, that is reasonably understood to be confidential or
      proprietary.

     

    “Covered
      Device” shall mean each of (a) a Personal Computer that supports DRM
      and is able to receive Distributed Content via a communications network or
      (b) a
      Portable Digital Music Device that supports DRM and is able to receive
      Distributed Content.

     

    “Distributed
      Content” shall mean each Master Recording, A/V Master Music Video
      Recording, A/V Master Non-Music Video Recording, and/or Related Content
      delivered by IODA to SpiralFrog under the terms of the Agreement.

     

    “DRM”
      shall mean digital rights management technology that imposes controls over
      the
      use of Distributed Content that is no less secure than that prevailing in the
      industry, including the Security Systems set forth in this Agreement and that
      is
      no less protective than the security features provided for any other sound
      recording, artwork or other content on its Service.

     

    “Gross
      Lyric Revenue” means all Gross Advertising Revenue generated in
      connection with the Music Lyrics on the Service. For the avoidance of doubt,
      Gross Lyric Revenue shall not include Gross Music Revenue, Gross Music Video
      Revenue, or Gross Non-Music Video Revenue.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Gross
      Music Revenue” means all Gross Advertising Revenue generated in
      connection with the Master Recordings on the Service and Gross Advertising
      Revenue not generated in connection with A/V Master Music Video Recordings,
      A/V
      Master Non-Music Video Recordings or Music Lyrics on the Service. For the
      avoidance of doubt, Gross Music Revenue shall not include Gross Lyric Revenue,
      Gross Music Video Revenue, or Gross Non-Music Video Revenue.

     

    “Gross
      Music Video Revenue” means all Gross Advertising Revenue generated in
      connection with the A/V Master Music Video Recordings on the Service. For the
      avoidance of doubt, Gross Music Video Revenue shall not include Gross Lyric
      Revenue, Gross Music Revenue, or Gross Non-Music Video Revenue.

     

    “Gross
      Non-Music Video Revenue” means all Gross Advertising Revenue generated
      in connection with the A/V Master Non-Music Video Recordings on the Service.
      For
      the avoidance of doubt, Gross Non-Music Video Revenue shall not include Gross
      Lyric Revenue, Gross Music Revenue, or Gross Music Video Revenue.

     

    “Gross
      Advertising Revenue” shall mean all non-returnable monies actually
      received or credited in connection with the Service during the Term, including:
      (i) fees paid directly or indirectly to the SpiralFrog in connection with the
      Service, including any access charges, per-stream charges, online or other
      connection charges, transaction charges, commissions subscription fees or other
      consideration paid to SpiralFrog directly or indirectly by Users, internet
      service providers, on-line franchises, companies or other entities (to the
      extent permitted by this Agreement) in connection with the Service; (ii)
      revenues from sales of advertising, sponsorships and promotions in connection
      with the Service, including, without limitation, streaming pre-roll ads,
      streaming post-roll ads, multi-video ad units, dynamic ad insertions and gateway
      advertisements; (iii) referral fees, “bounties,” affiliate fees and like fees
      generated through the Service and ecommerce revenue from sales of products
      and
      services offered as part of, or through, the Service; and (iv) access to, use
      of, or upgrades to any proprietary software used for access to or use of, the
      Service, or to download products, services or content (to the extent permitted
      by this Agreement and applicable law). Notwithstanding the foregoing, revenues
      earned from the sale of Distributed Content in a physical “finished goods”
configuration (e.g., CDs, DVDs, vinyl) within the Service shall be specifically
      excluded from the definition of Gross Advertising Revenue, Gross Non-Music
      Video
      Revenue, Gross Music Revenue, Gross Music Video Revenue and Gross Lyric Revenue.
      For purposes of determining any non-cash component of Gross Advertising Revenue,
      such non-cash consideration will be accounted for based on the fair market
      value
      of any goods, services or other real, personal, tangible or intangible property
      received (except as otherwise determined consistent with Generally Accepted
      Accounting Principals).

     

    “Limited
      Music Download” shall mean an encrypted digital transmission of a
      time-limited or other use-limited download of a Master Recording, which is
      delivered via the Service from a Secured Server(s) to the Covered Device of
      a
      User in accordance with the terms and conditions of such User’s agreement with
      SpiralFrog and is only available to such User through such Covered Device for
      a
      limited period of time.  Each Limited Music Download times out within
      two (2) months from the date on which the User first downloaded the Master
      Recording, or from the date on which the User last reconnected his/her Covered
      Device so that the Service can renew the license and collect play-count
      information (“Time-Out Period”). Notwithstanding the foregoing,
      in the event any Other Label is granted a Time Out Period that is shorter than
      the period described in the previous sentence, then SpiralFrog agrees to provide
      such shorter period to this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Limited
      Music Video Download” shall mean an encrypted digital transmission of a
      time-limited or other use-limited download of an A/V Master Music Video
      Recording, which is delivered via the Service from a Secured Server(s) to the
      Covered Device of a User in accordance with the terms and conditions of such
      User’s agreement with SpiralFrog and is only available to such User through such
      Covered Device for a limited period of time.  Each Limited Music Video
      Download times out within two (2) months from the date on which the User first
      downloaded the A/V Master Music Video Recording, or from the date on which
      the
      User last reconnected his/her Covered Device so that the Service can renew
      the
      license and collect play-count information (“Time-Out Period”).
      Notwithstanding the foregoing, in the event any Other Label is granted a
      Time-Out Period that is shorter than the period described in the previous
      sentence, then SpiralFrog agrees to provide such shorter period to this
      Agreement.

     

    “Limited
      Non-Music Video Download” shall mean an encrypted digital transmission
      of a time-limited or other use-limited download of an A/V Master Non-Music
      Video
      Recording, which is delivered via the Service from a Secured Server(s) to the
      Covered Device of a User in accordance with the terms and conditions of such
      User’s agreement with SpiralFrog and is only available to such User through such
      Covered Device for a limited period of time.  Each Limited Non-Music
      Video Download times out within two (2) months from the date on which the User
      first downloaded the A/V Master Non-Music Video Recording, or from the date
      on
      which the User last reconnected his/her Covered Device so that the Service
      can
      renew the license and collect play-count information (“Time-Out
      Period”). Notwithstanding the foregoing, in the event any Other Label
      is granted a Time-Out Period that is shorter than the period described in the
      previous sentence, then SpiralFrog agrees to provide such shorter period to
      this
      Agreement.

     

    “Lyric
      Displays” shall mean an encrypted digital transmission from Secured
      Servers via the Service that allows a User to receive and view Music Lyrics
      associated with a particular IODA-controlled Master Recording upon request
      at a
      time chosen by the User, with the print, copy, cut and paste functionality
      disabled.

     

    “Master
      Recording” shall mean an audio-only master sound
      recording.

     

    “Music
      Lyrics” shall mean the words of a particular song.

     

    “Music
      Play” shall mean each instance whereby a User causes a IODA-controlled
      Master Recording to be heard in its entirety on a Covered Device, when such
      content was originally delivered to the Covered Device as a Limited Music
      Download.

     

    “Music
      Royalty Share” shall equal a fraction, the numerator of which shall be
      the sum of the number of Music Plays and Music Streams, and the denominator
      of
      which shall be the sum of the number of Music Plays, Music Streams, Service-wide
      Music Plays and Service-wide Music Streams.

     

    “Music
      Stream” shall mean an encrypted digital transmission from Secured
      Servers via the Service that allows a User to receive and listen to a particular
      IODA-controlled Master Recording upon request at a time chosen by the User
      using
      streaming technology through the User’s Covered Device, which transmission will
      (a) not result in a substantially complete portable reproduction of such Master
      Recording (other than a temporary copy such as those used solely for caching
      or
      buffering) and (b) occur substantially contemporaneously with the play of the
      given Master Recording.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Music
      Video Play” shall mean each instance whereby a User causes an
      IODA-controlled A/V Master Music Video Recording to be heard and seen in its
      entirety on a Covered Device, when such content was originally delivered to
      the
      Covered Device as a Limited Music Video Download.

     

    “Music
      Video Royalty Share” shall equal a fraction, the numerator of which
      shall be the sum of the number of Music Video Plays and Music Video Streams,
      and
      the denominator of which shall be the sum of the number of Music Video Plays,
      Music Video Streams, Service-wide Music Video Plays and Service-wide Music
      Video
      Streams.

     

    “Music
      Video Stream” shall mean an encrypted digital transmission from Secured
      Servers via the Service that allows a User to receive, view, and listen to
      a
      particular IODA-controlled A/V Music Video Master Recording upon request at
      a
      time chosen by the User using streaming technology through the User’s Covered
      Device, which transmission will (a) not result in a substantially complete
      portable reproduction of such A/V Master Music Video Recording (other than
      a
      temporary copy such as those used solely for caching or buffering) and (b)
      occur
      substantially contemporaneously with the play of the given A/V Master Music
      Video Recording.

     

    “Non-Music
      Video Play” shall mean each instance whereby a User causes an
      IODA-controlled A/V Master Non-Music Video Recording to be heard and seen in
      its
      entirety on a Covered Device, when such content was originally delivered to
      the
      Covered Device as a Limited Non-Music Video Download.

     

    “Non-Music
      Video Stream” shall mean an encrypted digital transmission from Secured
      Servers via the Service that allows a User to receive, view, and listen to
      a
      particular IODA-controlled A/V Master Non-Music Video Recordings upon request
      at
      a time chosen by the User using streaming technology through the User’s Covered
      Device, which transmission will (a) not result in a substantially complete
      portable reproduction of such A/V Master Non-Music Video Recordings (other
      than
      a temporary copy such as those used solely for caching or buffering) and (b)
      occur substantially contemporaneously with the play of the given A/V Master
      Non-Music Video Recording.

     

    “Non-Music
      Video Royalty Share” shall equal a fraction, the numerator of which
      shall be the sum of the number of Non-Music Video Plays and Non-Music Video
      Streams, and the denominator of which shall be the sum of the number of
      Non-Music Video Plays, Non-Music Video Streams, Service-wide Non-Music Video
      Plays and Service-wide Non-Music Video Streams.

     

    “Person”
      shall mean a natural person, a corporation, a limited liability company, a
      partnership, a trust, a joint venture, a division, any governmental authority
      or
      any other entity or organization.

     

    “Personal
      Computer” shall mean an Internet Protocol (IP)-enabled desktop or
      notebook computer.

     

    “Portable
      Digital Music Device” shall mean a portable device (including, but not
      limited to, mobile-telephone and other mobile devices that may operate on a
      wireless communications network) that is used for the storage and play/playback
      of digital audio/video files (i.e., files encoded in MP3, AAC, WMA, WMV or
      similar format).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Related
      Content” shall mean IODA-provided identifying material with respect to
      the Master Recordings, A/V Master Music Video Recordings, and A/V Master
      Non-Music Video Recordings licensed hereunder, including, but not limited to,
      trademarks, album artwork, artists’ names, biographies, likenesses, metadata and
      ISRC codes.

     

    “Represented
      Labels” shall mean individual artists and/or record labels for whose
      catalog IODA may grant digital distribution rights, including, but not limited
      to, those granted under this Agreement, and further including those persons
      for
      whose catalogs IODA has at execution and/or acquires such rights during and
      throughout the term of this Agreement.

     

    “Secured
      Server” shall mean a server that is owned and operated by SpiralFrog or
      on SpiralFrog’s behalf and protected by means of (a) reasonable physical
      security that meets or exceeds the prevailing physical security practices in
      the
      industry and (b) reasonable firewall and/or other digital security technology
      that meets or exceeds the prevailing digital security technology practices
      in
      the industry.

     

    “Service”
      shall mean the online service described in Exhibit A, which offers Users Limited
      Music Downloads, Music Streams, Limited Music Video Downloads, Music Video
      Streams, Limited Non-Music Video Downloads, Non-Music Video Streams, and/or
      Lyric Displays transmitted from Secured Servers to the Covered Devices of Users
      in accordance with the terms and conditions of this Agreement and is supported
      by third-party advertising.

     

    “Service-wide
      Lyric Displays” shall mean the total number of encrypted digital
      transmissions from Secured Servers via the Service of Music Lyrics associated
      with Master Recordings of third parties contributing Music Lyrics to the Service
      that allow Users to receive and view those particular Music Lyrics upon request
      at a time chosen by the User, with the print, copy, cut and paste functionality
      disabled.

     

    “Service-wide
      Music Plays” are the total number of instances where Users cause Master
      Recordings of third parties contributing Master Recordings to the Service to
      be
      heard in their entirety on a Covered Device, when such content was originally
      delivered to the Covered Device as limited-use downloads.

     

    “Service-wide
      Music Streams” shall mean the total number of encrypted digital
      transmissions from Secured Servers via the Service of Master Recordings of
      third
      parties contributing Master Recordings to the Service that allow Users to
      receive and listen to those particular Master Recordings upon request at a
      time
      chosen by the User using streaming technology through the User’s Covered Device,
      which transmissions will (a) not result in a substantially complete portable
      reproduction of such Master Recording (other than a temporary copy such as
      those
      used solely for caching or buffering) and (b) occur substantially
      contemporaneously with the play of the given Master Recording.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Service-wide
      Music Video Plays” are the total number of instances where Users cause
      A/V Master Music Video Recordings of third parties contributing A/V Master
      Music
      Video Recordings to the Service to be heard in their entirety on a Covered
      Device, when such content was originally delivered to the Covered Device as
      limited-use downloads.

     

    “Service-wide
      Music Video Streams” shall mean the total number of encrypted digital
      transmissions from Secured Servers via the Service of A/V Master Music Video
      Recordings of third parties contributing A/V Master Music Video Recordings
      to
      the Service that allow Users to receive, view, and listen to those particular
      A/V Master Music Video Recordings upon request at a time chosen by the User
      using streaming technology through the User’s Covered Device, which
      transmissions will (a) not result in a substantially complete portable
      reproduction of such A/V Master Music Video Recording (other than a temporary
      copy such as those used solely for caching or buffering) and (b) occur
      substantially contemporaneously with the play of the given A/V Master Music
      Video Recording.

     

    “Service-wide
      Non-Music Video Plays” are the total number of instances where Users
      cause A/V Master Non-Music Video Recordings of third parties contributing A/V
      Master Non-Music Video Recordings to the Service to be heard in their entirety
      on a Covered Device, when such content was originally delivered to the Covered
      Device as limited-use downloads.

     

    “Service-wide
      Non-Music Video Streams” shall mean the total number of encrypted
      digital transmissions from Secured Servers via the Service of A/V Master
      Non-Music Video Recordings of third parties contributing A/V Master Non-Music
      Video Recordings to the Service that allow Users to receive, view, and listen
      to
      those particular A/V Master Non-Music Video Recordings upon request at a time
      chosen by the User using streaming technology through the User’s Covered Device,
      which transmissions will (a) not result in a substantially complete portable
      reproduction of such A/V Master Non-Music Video Recording (other than a
      temporary copy such as those used solely for caching or buffering) and (b)
      occur
      substantially contemporaneously with the play of the given A/V Master Non-Music
      Video Recording.

     

    “Territory”
      shall mean the universe, with the exception of any excluded territories in
      the
      metadata accompanying the Distributed Content or of which IODA has otherwise
      notified SpiralFrog in writing according to the terms of Sections 4 and 13
      of
      the Standard Terms and Conditions.

     

    “User”
      shall mean any individual who is a registered user of the Service, having agreed
      to SpiralFrog’s user agreement, and who is authorized by SpiralFrog to access
      Limited Music Downloads, Music Streams, Limited Music Video
      Downloads,  Music Video Streams, Limited Non-Music Video Downloads,
      Non-Music Video Streams, Lyric Displays and/or any individual who uses the
      Service solely to access 30-second Music Streams, 30-second Music Video Streams,
      or 30-second Non-Music Video Streams via the Service solely for personal,
      non-commercial use.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.  SpiralFrog
      Service Obligations.

     

    (a)  Service
      Operation.  SpiralFrog will be responsible for all DRM encoding,
      hosting, serving and providing clearinghouse and other functions necessary
      for
      the operation of the Service in accordance with the terms and conditions of
      this
      Agreement.

     

    (b)  User
      Agreement.  SpiralFrog shall require each User to enter into a
      user agreement which prohibits further distribution of the Licensed
      Content.

     

    (c)  Limitations
      on User Access.  SpiralFrog’s user agreement shall state that each
      User shall only be authorized to access Limited Music Downloads, Music Streams,
      Limited Music Video Downloads, Music Video Streams, Limited Non-Music Video
      Downloads, Non-Music Video Streams and Lyric Displays through the Service on,
      and for each User Covered Device shall only include, at any one time, up to
      one
      (1) Personal Computer and up to two (2) Portable Digital Music
      Devices.

     

    (d)  Buy
      Link.  Upon a User’s selection of Distributed Content, SpiralFrog
      will make commercially reasonable efforts to provide a hyperlink, through which
      the User can purchase permanent copies (in electronic and/or physical format)
      of
      the Distributed Content (with respect to which IODA is compensated under
      third-party financial arrangements) to the extent readily available through
      retail channels made available on the Service.

     

    (e)  Metadata.  IODA
      will provide SpiralFrog with all metadata associated with the Distributed
      Content.  SpiralFrog shall use commercially reasonable efforts to use
      metadata delivered by IODA to SpiralFrog hereunder.  IODA shall
      deliver such metadata to SpiralFrog via FTP in either XML or tab delineated
      format or as otherwise mutually agreed between the parties in
      writing.  Notwithstanding anything to the contrary contained in this
      Agreement, IODA shall retain all right, title and interest in and to any
      IODA-provided metadata delivered hereunder.

     

    (f)  Security
      Compliance.

     

    (i)  In
      connection with any use of Distributed Content, SpiralFrog shall implement
      and
      maintain copy protection and DRM technology and systems, consistent with
      accepted industry practices (collectively, “Security Systems”)
      with respect to the Service under its supervision and/or control, including
      Secured Servers and operating systems, that:

     

    (A)  are
      designed to prevent unauthorized reproduction and distribution of Distributed
      Content;

     

    (B)  encrypt
      Distributed Content with a reasonably current version of DRM technology accepted
      within the industry;

     

    (C)  are
      sufficient to track and enforce the use and other license limitations
      contemplated by this Agreement; and

     

    (D)  generally
      meet or exceed accepted industry practices for the licensed delivery of music
      via digital transmission.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (ii)  SpiralFrog
      shall protect Distributed Content with DRM using then-current industry standards
      security technology and no less protective than the security features provided
      for any other similar content on its Service. If necessary, SpiralFrog shall
      upgrade its equipment and software, during the Term, at its own cost, to the
      extent required to comply with the terms of this Section 2(f)(ii). If either
      IODA or SpiralFrog discovers that any security measures enacted by SpiralFrog
      on
      the Service have been breached (a "Security Incident") and
      SpiralFrog either (i) has actual knowledge of such breach or (ii) receives
      notice of such breach from IODA that can be verified, then SpiralFrog will
      be
      required to temporarily remove the Distributed Content involved in the Security
      Incident promptly (but in no event later than three (3) business days) after
      acquiring such actual knowledge or notice.  Notwithstanding the
      foregoing, in the event SpiralFrog reasonably determines that the relevant
      security measure can be repaired, updated or improved such that similar Security
      Incidents are unlikely to occur in the future and such repair, update or
      improvement can be made, and is in fact made, then SpiralFrog will not be
      required to temporarily remove the Distributed Content involved in the Security
      Incident.

     

    3.  Accounting.

     

    (a)  Payment
      Process.  SpiralFrog shall pay royalties due to IODA hereunder
      within thirty (30) days after the end of each monthly accounting period (or
      partial period in the event of an early termination or expiration before the
      calendar close of such accounting period) by wire or ACH banking transfer,
      provided IODA provides such bank account and related information to SpiralFrog
      in writing within a reasonable period of time.

     

    (b)  Accounting
      Statements.  In connection with each royalty payment hereunder,
      SpiralFrog shall provide IODA with an electronic statement
      (“Statement”) in conformance with  the “IODA
      Reporting Specifications” attached as Exhibit G and hereby incorporated
      by reference showing the total number of  Music Plays, Music Streams,
      Music Video Plays, Music Video Streams, Non-Music Video Plays and Non-Music
      Video Streams identified by each individual Master Recording, A/V Master
      Recording, A/V Non-Music Video Recording including the ISRCs, UPCs, IODA
      provided track IDs, IODA provided release IDs for the relevant Master
      Recordings, A/V Master Music Video Recordings and A/V Master Non-Music Video
      Recordings distributed to Users via the Service as (i) Limited Music Downloads,
      (ii) Limited Music Video Downloads, (iii) Limited Non-Music Video Downloads,
      (iv) Music Streams, (v) Music Video Streams and/or (vi) Non-Music Video
      Streams.  Further, SpiralFrog will furnish monthly transactional data
      information showing the track codes and release codes assigned by IODA, the
      UPC
      codes, ISRC codes, the ID codes provided by SpiralFrog, date of transaction
      for
      the Distributed Content. SpiralFrog agrees to make reasonable efforts to offer
      Distributed Content no later than fifteen (15) days after such Distributed
      Content is delivered to SpiralFrog.

     

    (c)  Audit.  During
      the Term and for two (2) years thereafter, IODA shall be entitled, once during
      every calendar year, upon at least thirty (30) days’ prior written notice, to
      examine the books and records of SpiralFrog to determine the accuracy of
      SpiralFrog royalty statements (a “Royalty
      Examination”).  Such Royalty Examination shall be conducted
      solely at IODA’s expense by a certified public accountant in good
      standing.  Such Royalty Examination shall take place at SpiralFrog’s
      place of business during normal business hours, in a manner designed to be
      as
      non-disruptive to SpiralFrog’s business as possible.  IODA shall not
      conduct an audit more frequently than once every twelve (12)
      months.  Should such audit reveal an underpayment of ten percent (10%)
      or greater, then, in addition to immediate payment of such underpayment,
      SpiralFrog shall reimburse IODA the reasonable costs of conducting such
      audit.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (d)  All
      statements rendered by SpiralFrog shall be incontestable three (3) years after
      the date due, unless an objection in writing is made for each such
      statement.  Any objection must specify, with particularity, the reason
      for such objection, and if an audit is to be conducted with respect to such
      statement, it must be conducted within three (3) years of the issuance of such
      statement. Notwithstanding any applicable statutes of limitations, IODA waives
      any action brought in connection with an audit of any royalty statement unless
      such action is brought within one (1) year after the date of the commencement
      of
      any such audit.

     

    (e)  If
      SpiralFrog is required by law to withhold any taxes or other moneys
      ("withholdings") from any payment due to IODA, SpiralFrog will
      deliver to IODA an official receipt evidencing SpiralFrog's payment of the
      tax
      or other amount withheld and such other documentation as IODA may require to
      obtain credit against IODA's taxes for the withholding concerned.  If
      that documentation is not furnished or if that tax credit is not available
      to
      IODA, SpiralFrog will bear the obligation concerned at its own expense without
      recourse to IODA and will remit the full amount of the payment concerned to
      IODA
      without deduction; if the withholding concerned has already been deducted from
      payments to IODA, SpiralFrog will remit the amount of the withholding to IODA
      upon IODA's request.

     

    (f)  All
      payments to IODA shall be computed and remitted in United States
      dollars.  Each conversion from another currency for the purpose of
      computing such payments shall be calculated at the rate of exchange originally
      received by SpiralFrog, minus all related currency conversion and/or
      transactional fees paid by SpiralFrog.

     

    (g)  If
      SpiralFrog is actually prevented by law or government order from making any
      payment to IODA in United States dollars, SpiralFrog will promptly notify IODA
      and will not commingle the moneys concerned with SpiralFrog's other assets
      or
      with the property of any other person or entity, but will hold those moneys
      separately and in trust for IODA or deposit them as IODA instructs in
      writing.  SpiralFrog will continue to be obligated for each such
      amount, with interest at the local equivalent "prime" commercial rate, until
      IODA (or the depository so designated by IODA) has actually received
      it.

     

    (h)  Insurance.
      During the Term and for one (1) year thereafter, SpiralFrog at its sole cost
      and
      expense will procure and maintain from a reputable insurance company general
      liability insurance and errors and omissions insurance coverage sufficient
      to
      cover any losses or damages arising out of SpiralFrog’s activities
      hereunder.

     

    (i)  In
      addition to the foregoing, if SpiralFrog makes available to
      other  distributors of audio or audio visual recordings
      (“Other Label(s)”) reports that state when Distributed Content
      first becomes available to Users, then SpiralFrog will provide such a report
      to
      IODA.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4.  Distributed
      Content /Takedown Procedure.

     

    (a)  The
      rights granted hereunder shall apply solely to the Master Recordings, A/V Master
      Music Video Recordings, A/V Master Non-Music Video Recordings and Related
      Content delivered by IODA to SpiralFrog.  Subject to IODA’s standard
      opt-out provision in Section 1(A) of this Agreement, IODA will deliver or make
      readily available new Master Recordings, A/V Master Music Video Recordings,
      A/V
      Master Non-Music Video Recordings, and Related Content no less often than IODA
      updates its other digital-service and retail partners. In the event IODA
      provides other digital-service and retail partners with distributed content
      lists, then IODA shall provide SpiralFrog with the same and no less frequently
      than IODA updates its other digital-service and retail partners.

     

    (b)  If
      any
      Distributed Content ceases to be owned or controlled by IODA for any reason,
      or
      if a third party formally challenges IODA’s rights in a Master Recording, A/V
      Master Music Video Recording or A/V Master Non-Music Video Recording where
      such
      challenge may have a material affect on the rights granted under this Agreement,
      then upon IODA’s written notice and request, SpiralFrog shall remove access to
      such Master Recording, A/V Master Music Video Recording, A/V Master Non-Music
      Video Recording and/or Music Lyrics from the Service within three (3) business
      days of such request.  IODA, its Represented Labels and/or affiliated
      parties shall not exercise the takedown right described in this paragraph in
      a
      manner that would defeat or frustrate the rights granted to SpiralFrog under
      the
      Agreement.

     

    (c)  SpiralFrog
      shall not exploit the rights conveyed herein relating to any Distributed Content
      prior to the official USA release date of an album embodying such Distributed
      Content, provided IODA provides SpiralFrog with sufficient advance notice in
      the
      metadata.  Further and notwithstanding the foregoing, SpiralFrog may
      exploit those rights conveyed herein before such release date to the extent
      that
      SpiralFrog must reproduce Distributed Content to receive, store, and prepare
      its
      availability to Users (for example, as ephemeral copies) without distributing
      it
      to Users.

     

    5.  SpiralFrog’s
      Third-Party Obligations.

     

    Except
      as
      specifically set forth herein, SpiralFrog will be solely responsible for
      procuring any and all licenses, clearances and/or consents that may be required
      to operate, or from the operation of, the Service as contemplated
      hereby.  Without limiting the generality of the foregoing, SpiralFrog
      will be responsible for all payments required to be paid in connection with
      public performance licenses, digital phonorecord delivery mechanical licenses,
      and, if applicable, synchronization licenses, from owners and/or administrators
      of music composition copyrights (or their agents, including, without limitation,
      performance rights societies, mechanical collection societies and other bodies)
      in connection with the Service. Additionally, SpiralFrog will be responsible
      for
      securing public performance licenses and paying all associated fees for the
      public performance of Distributed Content including without limitation Master
      Recordings, A/V Master Non-Music Video Recordings and A/V Master Music Video
      Recordings.

     

    6.  IODA’s
      Third-Party Obligations.

     

    (a)  IODA
      shall be responsible for paying any and all royalties to Represented Labels,
      and/or other persons resulting from SpiralFrog’s reproduction, sale,
      transmission, distribution, promotion and/or use of Distributed Content and
      Related Content as authorized under this Agreement (excluding, for avoidance
      of
      doubt, any copyrighted musical compositions embodied therein and the public
      performances of any Distributed Content as set forth in Section 5 of the
      Standard Terms and Conditions above).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (b)           IODA
      shall make reasonable efforts to provide any necessary parental advisory
      warnings (if and to the extent artists and record labels furnish same to IODA)
      in connection with the Distributed Content.

     

    7.  Intellectual
      Property.

     

    (a)  Ownership
      of Distributed Content.  All right, title and interest in and to
      the Distributed Content, including all intellectual property rights inherent
      therein are owned or controlled by IODA. SpiralFrog will not hereunder contest,
      or assist others in contesting, IODA’s rights or interests in the IODA Content,
      or the validity of such ownership. Without limiting the generality of the
      foregoing, this Agreement does not grant to SpiralFrog:  (i) any
      copyright ownership interest in any IODA Content; (ii) any rights outside the
      Territory; or (iii) any rights to any endorsement by IODA.  SpiralFrog
      will not attempt, represent, or purport to transfer to any person any rights
      of
      ownership in or to any of the IODA Content.

     

    (b)  Ownership
      of SpiralFrog Service and Related Systems.  As between SpiralFrog
      and IODA, SpiralFrog owns all right, title and interest in and to the Service
      (subject to ownership of Distributed Content as described in paragraph 7(a)),
      including all intellectual property rights in and to all elements and components
      related thereto, and all goodwill associated with the Service will inure solely
      to the benefit of SpiralFrog.  IODA understands and agrees that it
      shall not acquire any right, title or interest in or to the Service, or any
      part
      thereof, by reason of this Agreement or the performance hereof.  All
      rights not specifically granted herein with respect to the Service are reserved
      to SpiralFrog.  IODA will not contest, or assist other non-affiliated
      parties in contesting, SpiralFrog’s rights and interests in the Service or the
      validity of such ownership (including all intellectual property rights in and
      to
      all elements and components related thereto).

     

    (c)  Consumer
      Data.  SpiralFrog shall be the sole owner of any and all
      demographic and User data related to the Service, including, but not limited
      to,
      survey information, IP addresses, User activity, cookies and email addresses.
      To
      the extent practicable and at SpiralFrog’s discretion, SpiralFrog may provide
      IODA with anonymous, aggregate consumer data related to IODA’s Distributed
      Content.

     

    8.  Representations,
      Warranties and Covenants; Indemnity.

     

    (a)  Each
      party represents to the other party that:

     

    (i)  such
      party has the full right, power and authority to execute, deliver and perform
      this Agreement and to consummate the transactions contemplated
      hereby;

     

    (ii)  the
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby have been duly authorized by all necessary
      corporate action;

     

    (iii)  this
      Agreement has been duly executed and delivered by an authorized officer, and
      is
      a legal, valid and binding obligation enforceable against such party in
      accordance with its terms, except as enforcement may be limited by general
      principles of equity (regardless of whether such enforceability is considered
      in
      a proceeding at law or in equity) and the effect of applicable bankruptcy,
      insolvency, moratorium and other similar laws of general application relating
      to
      or affecting creditor’s rights generally, including the effect of statutory or
      other laws regarding fraudulent conveyances and preferential
      transfers;

     

    (iv)  the
      execution, delivery and performance of this Agreement will not constitute a
      breach or default under any contract or agreement to which such party is a
      party
      or by which such party is bound or otherwise violate the rights of any third
      person;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (v)  that
      party’s performance hereunder will not violate federal, state or local laws,
      regulations and ordinances; and,

     

    (vi)  no
      consent, approval or authorization of or from any governmental entity or any
      other person not a party to this Agreement, whether prescribed by law,
      regulation, contract or agreement, is required for its execution, delivery
      and
      performance of this Agreement or consummation of the transactions contemplated
      hereby.

     

    (b)  IODA
      hereby warrants and represents to SpiralFrog that:

     

    (i)  IODA
      owns
      or controls the Distributed Content and has the right to grant all rights
      granted herein to the Distributed Content;

     

    (ii)  IODA
      is a
      duly organized and existing company in good standing under the laws of its
      place
      and country of formation, and has the right, power and authority to enter into
      this Agreement, to grant the rights agreed to be granted by IODA
      hereunder.

     

    (iii)  IODA
      has
      not made and will not make any grant, assignment, commitment, license or do
      or
      permit any act which will or might materially interfere with or impair the
      full
      and complete performance of SpiralFrog’s full and complete exercise of the
      rights and privileges granted herein.

     

    (iv)  there
      are
      no liens, claims or encumbrances which might conflict with or otherwise affect
      any of the provisions of this Agreement or SpiralFrog’s promotion or
      exploitation of the Distributed Content and Related Content as set forth herein
      throughout the universe during the Term.

     

    (c)  SpiralFrog
      hereby represents and warrants to IODA that:

     

    (i)  SpiralFrog
      shall take all reasonable steps necessary to implement and shall comply with
      its
      security obligations set forth in this Agreement; and,

     

    (ii)  all
      of
      the Distributed Content and related artwork and metadata shall only reside
      on
      servers owned, authorized or controlled by SpiralFrog.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  SpiralFrog
      agrees to indemnify, defend and hold harmless IODA and its respective officers,
      employees and agents (“IODA Indemnitees”) from and against any
      losses, injuries, damages, claims, expenses and costs (including without
      limitation reasonable attorneys’ fees) (“Claims”) incurred or
      suffered by any IODA Indemnitee, arising from any third-party actions, claims,
      suits or legal proceedings of any kind, caused by, arising from or related
      to:  (i) SpiralFrog’s failure to perform any of its obligations under
      this Agreement and/or any breach or alleged breach of any representation or
      warranty hereunder; (ii) the operation of the Service or SpiralFrog’s business;
      and (iii) any acts or omissions of any SpiralFrog employee or
      agent.  IODA shall promptly notify SpiralFrog in writing of any Claim
      and allow SpiralFrog to control the defense thereof.

     

    (e)  IODA
      agrees to indemnify, defend and hold harmless SpiralFrog, its respective
      officers, employees and agents, (collectively, the “SpiralFrog
      Indemnitees”) from and against any losses, injuries, damages, claims,
      expenses and costs (including without limitation reasonable attorneys’ fees)
      (“Claims”) incurred or suffered by any SpiralFrog Indemnitee,
      arising from any third-party actions, claims, suits or legal proceedings of
      any
      kind, caused by, arising from or related to: (i) IODA’s failure to perform any
      of its obligations under this Agreement and/or any breach or alleged breach
      of
      any representation or warranty hereunder;  and (ii) any acts or
      omissions of any IODA employee or agent.  SpiralFrog shall promptly
      notify IODA in writing of any Claim and allow IODA to control the defense
      thereof.

     

    (f)  EXCLUSION
      OF WARRANTIES.  THE EXPRESS WARRANTIES IN THIS AGREEMENT WILL BE IN
      LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED
      WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     

    9.  Termination;
      Survival.

     

    (a)  IODA
      shall have the right to terminate this Agreement after providing thirty (30)
      days’ prior written notice to SpiralFrog in the event of a material breach of
      any provision of this Agreement, only if during such thirty (30) day period,
      SpiralFrog fails to cure such alleged breach.  The foregoing notice
      and cure period shall not apply in the event: (i) SpiralFrog breaches in a
      material respect Section 4 of the Standard Terms and Conditions above, or (ii)
      if SpiralFrog purports to assign any of its rights and/or obligations hereunder
      to a third party except as specifically permitted hereunder, without IODA’s
      prior, written consent.

     

    (b)  SpiralFrog
      shall have the right to terminate this Agreement at any time on thirty (30)
      days’ prior written notice to IODA, in the event of a material breach of any
      provision of this Agreement, only if during such thirty (30) day period, IODA
      fails to cure such alleged breach.

     

    (c)  All
      representations, warranties and indemnities shall survive expiration or
      termination of this Agreement.

     

    (d)  Within
      ninety (90) days after the Effective Date of any termination under this Section,
      each User’s rights to the Distributed Content shall lapse.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  This
      subparagraph 9(e), paragraphs 8, 11, 14, 15, 17, and 18 and those obligations
      of
      this Agreement that may reasonably be expected to survive the termination or
      expiration of this Agreement shall survive the termination or expiration of
      this
      Agreement.

     

    10.  Assignment.

     

    This
      Agreement shall not be assignable by either party without the prior written
      consent of the non-assigning party and any such assignment shall be invalid
      ab
      initio.  Notwithstanding the preceding sentence, IODA may assign this
      Agreement in conjunction with a transfer, merger and/or acquisition of a
      substantial portion of the assigning party’s business, stock, or assets, or to
      any entity controlled by, controlling or under common control with the assigning
      party.

     

    11.  Arbitration.

     

    All
      disputes of any kind, nature or description arising in connection with the
      terms
      and conditions of this Agreement shall be submitted to arbitration in the City
      of San Francisco, County of San Francisco, and State of California under the
      then prevailing rules of the American Arbitration Association by an arbitrator
      or arbitrators to be selected as follows: Each of the parties shall, by written
      notice to the other, have the right to appoint one arbitrator. If, within ten
      (10) days following the giving of such notice by one party the other shall
      not,
      by written notice, appoint another arbitrator, the first arbitrator shall be
      the
      sole arbitrator. If two arbitrators are so appointed, they shall appoint a
      third
      arbitrator. If ten (10) days elapse after the appointment of the second
      arbitrator and the two arbitrators are unable to agree upon the third
      arbitrator, then either party may, in writing, request the American Arbitration
      Association to appoint the third arbitrator.  The award made in the
      arbitration shall be binding and conclusive on the parties and judgment may
      be,
      but need not be, entered in any court having jurisdiction. Such award shall
      include the fixing of costs, expenses, and attorneys’ fees of arbitration, which
      shall be borne by the unsuccessful party.

     

    12.  No
      Partnership.

     

    Nothing
      contained herein shall be construed to place the parties in the relationship
      of
      partners or joint venturers, and SpiralFrog shall have no power to obligate
      or
      bind IODA in any manner whatsoever.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    13.  Notices.

     

    All
      notices required hereunder shall be in writing and shall be given either by
      personal delivery, facsimile or by registered or certified mail (postage
      prepaid), and shall be deemed given hereunder (unless actual receipt is
      hereinabove required) on the date delivered, or faxed or a date two business
      days after the date mailed.  Until further notice, the addresses of
      the parties shall be as follows:

    SPIRALFROG:

    

    Mohen,
      Inc.

    95
      Morton
      Street

    New
      York,
      NY 10014

    Attn:                      Chief
      Executive Officer

     

    With
      a
      courtesy copy to:

     

    Hughes
      Hubbard & Reed LLP

    One
      Battery Park Plaza

    New
      York,
      NY 10004

    Attn:                      Harry
      Packman, Esq.

     

    IODA:                                Copies
      to both:

     

    IODA
      Inc.

    539
      Bryant Street

    Suite
      303

    San
      Francisco, CA 94107

    Attn:                      Chief
      Executive Officer

     

    IODA
      Inc.

    539
      Bryant Street

    Suite
      303

    San
      Francisco, CA 94107

    Attn:                      Legal
      Department

     

    Each
      party will provide current contacts for each of technical, marketing, content,
      financial and publicity matters.  IODA will provide notices regarding
      territorial restrictions in the metadata accompanying the Distributed
      Content.  The initial list of such contacts for each party is attached
      as Exhibit E.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    14.  Confidential
      Information.

     

    (a)  The
      party
      receiving Confidential Information shall not disclose the Confidential
      Information of the disclosing party, except as permitted under this
      Agreement.  All Confidential Information will be held and protected by
      the receiving party in confidence and will be used and disclosed by the
      receiving party only as required to render performance or to exercise rights
      and
      remedies under this Agreement. The foregoing shall not apply to any information
      generally available to the public, independently developed, or lawfully and
      independently obtained. The receiving party may disclose the disclosing party’s
      Confidential Information to its officers, directors, employees, legal
      representatives, accountants, tax advisors, agents and contractors, on a
      need-to-know basis. Notwithstanding the foregoing, this Agreement and its
      contents may be disclosed by SpiralFrog to a third party under appropriate
      confidentiality requirements in connection with (i) a due diligence examination
      being conducted by such third party in connection with the corporate
      organization, reorganization, or capitalization of SpiralFrog; (ii) subject
      to a
      court order or subpoena; or, (iii) as required in a case brought by or against
      a
      party hereto.

     

    (b)  The
      disclosing party’s Confidential Information is and will remain the property of
      the disclosing party, and no disclosure under this Agreement grants or confers
      any ownership rights in or license to any of that information to the
      non-disclosing party (excluding express licenses and grants set forth in this
      Agreement).

     

    (c)  Promptly
      upon expiration or termination of this Agreement and upon the request of the
      disclosing party, the receiving party will either: (i) return to the disclosing
      party all of its Confidential Information; or (ii) destroy all of such
      disclosing party’s Confidential Information and certify to such destruction in
      writing.

     

    14A.                      Public
      Communications.

     

    Neither
      party hereto shall, without the prior written consent of the other party, issue
      any press release or make any other public announcement or statement relating
      to
      any terms and conditions of this agreement or any fact, matter, event or
      surrounding circumstance leading to or relating to the negotiation thereof
      to
      which such party was privy or of which it was otherwise made aware.

     

    14B.                      Copyright
      Notices.

     

    SpiralFrog
      shall cause all copyright notices relating to uses of  Distributed
      Content  to be conspicuously displayed upon the web page by means of
      which SpiralFrog’s customers commence use of the Distributed Content and related
      metadata.  Each copyright notice shall be displayed in the following
      format, as designated by IODA in each instance for the download
      concerned:  “(P) (C) [Year of first publication] [IODA-designated
      name].”  SpiralFrog shall not, through its acts or omissions, defeat,
      impair or alter in any way any copyright protection technology, metadata or
      mechanism embedded in or associated with the Distributed Content or any related
      artwork or materials delivered by IODA hereunder.  SpiralFrog shall
      not contest, or voluntarily assist others in contesting, IODA’s rights or
      interests in the Distributed Content or the validity of such ownership at any
      time, during or after the Term.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    15.  Entire
      Agreement/Amendment.

     

    This
      Agreement, including all exhibits, schedules and attachments hereto
      (incorporated herein by this reference), represents the entire understanding
      of
      the parties with respect to the subject matter hereof, supersedes all prior
      and
      contemporaneous agreements and understandings of the parties (whether written
      or
      oral) with respect to the subject matter hereof.  This Agreement may
      not be altered or amended except in a written instrument executed by authorized
      representatives of both parties.  This Agreement shall be deemed to
      exist and the parties intend to be bound only upon signature of a written
      agreement by both parties, and no negotiation, exchange of draft or partial
      performance shall be deemed to imply an agreement or other understanding between
      the parties.

     

    16.  Force
      Majeure.

     

    Neither
      party shall be liable to the other for any failure or delay caused by events
      beyond the parties’ control, including, without limitation, sabotage, failure or
      delays in transportation or communication, failures or substitutions of
      equipment, labor disputes, accidents, shortages of labor, fuel, raw materials
      or
      equipment, technical failures, fire, flood, war, blockage, acts of public enemy,
      civil disturbance, and/or any resultant interruption in public services,
      including mail delivery (except that no such event shall excuse performance
      hereunder for an excess of three (3) months).

     

     

    17.  Waiver;
      Severability; Headings; Counterparts.

     

    No
      right
      that either party has regarding this Agreement may be waived or modified except
      by the waiving party in writing.  If any provision of this Agreement
      is held to be invalid or unenforceable, the remainder shall remain in full
      force
      and effect.  The division of this Agreement into sections, clauses,
      paragraphs or subdivisions thereof, and the insertion of headings, are for
      convenience and reference only and shall not affect the construction or
      interpretation hereof.  This Agreement may be executed in one or more
      counterparts, each of which shall be deemed to be an original, but all of which
      shall be one and the same document.  A copy or facsimile of a
      signature shall be binding upon the signatory as if it were an original
      signature.

     

    18.  Limitation
      of Liability.

     

    IN
      NO
      EVENT SHALL EITHER PARTY BE RESPONSIBLE FOR ANY CONSEQUENTIAL, SPECIAL, PUNITIVE
      OR OTHER INDIRECT DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST REVENUE OR
      PROFITS, IN ANY WAY ARISING OUT OF OR RELATED TO THE AGREEMENT, EVEN IF THE
      AFFECTED PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, UNLESS
      DUE
      TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE NON-AFFECTED
      PARTY.

     

    End
      of
      Standard Terms and Conditions

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Exhibit
      “A”

     

    SpiralFrog
      Service Description

     

    Exhibit
      “B”

     

    IODA
      Export SpecificationsExhibit “C”

     

    Excluded
      Territories

    

    

    [See
      Metadata]Exhibit “D”

    

    Encoding
      And Delivery Agreement

    

    This
      Encoding and Delivery Agreement is made this ____ day of August, 2007, by and
      between Mohen Inc. d/b/a SpiralFrog (“SpiralFrog”), and
      Independent Online Distribution Alliance, Inc.
      (“IODA”).

    

    Reference
      is hereby made to that
      certain Digital Music and Video Distribution
      Agreement between IODA and SpiralFrog
      (“Agreement”) of equal date hereto.  All capitalized
      terms in this letter agreement shall have the meanings ascribed to them in
      the
      Agreement.

    

    (a)           (i)           Subject
      to the terms contained herein, SpiralFrog agrees to pay to IODA
      the  following encoding and delivery fees (“E&D
      Fees”) as follows: (A) Fifty Thousand Dollars ($50,000) payable upon
      full execution of the Agreement; and (B) Fifty Thousand Dollars ($50,000)
      (“2nd
      Payment”) payable within thirty (30) days of IODA delivering or making
      available to Spiral Frog the total number of Master Recordings IODA warrants
      and
      represents are considered Distributed Content as of the date the first Opt-Out
      Period ends (“Initial Delivery”); and (C) and ten cents ($.10)
      per each additional Master Recording delivered to SpiralFrog after the Initial
      Delivery.

    

    (ii)           In
      the event the Initial Delivery is less than 75% of the total number of
      full-length Master Recordings encoded and available for delivery throughout
      the
      Territory  (“Available Masters”) on the Effective
      Date, then the 2nd Payment payable will be Fifty Thousand Dollars ($50,000)
      multiplied by the Deliverable Share. The Deliverable Share shall equal a
      fraction, the numerator of which shall be the Initial Delivery, and the
      denominator of which shall be the Available Masters. For clarity and by way
      of
      example, if the Initial Delivery to SpiralFrog contained only 745,000 Master
      Recordings the 2nd Payment
      amount
      would equal $37,250 ($50,000 multiplied by the following fraction
      (745,000/1,000,000).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (b)           In
      exchange for the E&D Fees IODA agrees to deliver  the following:
      (i) one full-length stereo encoding in WMA format (192 kbps) of each Master
      Recording delivered to SpiralFrog throughout the Term, and (ii) one thirty
      second (0:30) stereo extract Preview Clip of such Master Recording in WMA format
      (64 kbps).

    

    Unless
      otherwise agreed, the foregoing initial media delivery shall be delivered from
      IODA to SpiralFrog at SpiralFrog’s expense on hard
      drive(s).  SpiralFrog shall supply its own compatible hard drive(s),
      or upon request IODA will supply a 300 GB (usb2 port) hard drive to SpiralFrog
      at IODA’s cost, currently $180 plus shipping but subject to
      change.  Subsequent deliveries may be made via hard drive or over
      FTP.

    

    Along
      with each encoding delivery, IODA will deliver Metadata for each encoding,
      formatted as specified in the IODA Export Specifications (v1.16)
      attached hereto as Exhibit B and hereby incorporated.  IODA reserves
      the right to make changes to the IODA Export Specifications from
      time-to-time throughout the Term upon reasonable notice to
      SpiralFrog.  Artwork image files will be delivered in JPG format at
      the size of 300 x 300, at 300 dpi.

    

     

    Exhibit
      “E”

     

    Contacts

     

    IODA
      contacts:

     

    SpiralFrog
      contacts:

     

    1.           Technical:

    Mr.
      Vesa
      Suomalainen, CTO, vesa@spiralfrog.com, 206-605-8201

    Jim
      Campbell, CIO, jim@spiralfrog.com, 516-319-3780

     

    2.           Marketing/Standards
      and Publicity:

    Matthew
      Stern, Marketing Officer

    matthew.stern@spiralfrog.com,
      718-578-3019

     

    3.           Content
      and Financial:

    Orville
      Hagler, VP, Entertainment Programming

    orville@spiralfrog.com,
      718-839-0941

     

    Exhibit
      “F”

     

    SpiralFrog
      Content Delivery Standards

     

    

     

    Exhibit
      “G”

     

    IODA
      Reporting Specifications

    

    See
      the
      Excel File entitled IODA Report Data Spec 2.0 which contains the Fields and
      Elements Outlined Below:

    

    [Missing
      Graphic Reference]Unassociated Document

     

    DIGITAL
      MUSIC AND VIDEO LICENSE AGREEMENT

     

    SOUND
      RECORDINGS

     

    This
      Digital Music and Video License Agreement (the "Agreement"),
together with the Standard Terms and Conditions attached
      hereto and
      incorporated by reference, is entered into as of the date of signature of this
      Agreement (the "Effective Date") by and between Mohen, Inc.
      d/b/a SpiralFrog, a Delaware corporation with its principal place of business
      at
      95 Morton Street, New York, New York 10014, including, but not limited to,
      such
      licensing party's Affiliates, as defined herein, (collectively referred to
      in
      this Agreement as "Licensee") and the licensing party listed on
      the attached signature page, (referred to in this Agreement as either
"Licensor" or "you"). Unless otherwise indicated, all
      capitalized terms used in this Agreement have the meaning set forth in the
      Standard Terms and Conditions.

     

    RECITALS

     

    WHEREAS,
      Licensee desires to offer advertising-supported digital music and digital music
      video content to Users via the Service in the formats including, but not limited
      to (i) Limited Music Downloads, (ii) Limited Video Downloads, (iii) Music
      Streams and (iv) Video Streams;

     

    WHEREAS,
      Licensor owns and controls certain rights in and to digital music and digital
      music video subject to this Agreement;

     

    WHEREAS,
      Licensor has full power and authority to grant to Licensee the right;. privilege
      and
      license to use the Licensed Content in connection with the Service;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, the
      parties hereto agree as follows:

     

    I.            Grant
      of Rights.

     

    (a)           Licensor
      hereby grants the following non-exClusive rights in and to the Licensed
      Content of Licensor and its Represented Labels (listed in Exhibit "B",, as amended
      from
      time to time, and incorporated by reference) to Licensee, during the Term and
      within the Territory:

     

    (i)  the
      right
      to make and distribute copies of, to publicly perform and otherwise exploit
      the
      Licensed Content solely in connection with the Service;

     

    (ii)  the
      right
      to reproduce the Licensed Content in connection with DRM encoding;

     

    (iii)  the
      right
      to publicly display the Licensed Content in connection with promotion of the
      Service;

     

    (iv)  the
      right
      to collect any and all income derived from the use of the Licensed Content
      in
      connection with the Service;

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (v)           the
      right to store, host and prepare backup copies of the Licensed
      Content solely for the purposes of exercising the specific rights granted
      hereunder.

     

    (b)   Once
      Licensee sources any Licensed Content, from Licensor, it shall not intentionally
      source that same Licensed Content from any third party during the
      Term.

     

    (c)   At
      all
      times during the Term that Licensor provides Licensed Content with complete
      publishing information and to the extent that Licensee has secured such
      publishing rights, Licensee shall make all of the Licensed Content available
      on
      the Service.

     

    (d)    Licensor
      has
      no objection to Licensee's use of reputable third-party meta-data
      (i.e., data from All Music Guide, Gracenote, Muze and Pollster) in conjunction
      with the Licensed Content, but makes no grant or warranty in such
      regard.

     

    1A.           Delivery
      of
      Content,                                                      

     

        Promptly
      after execution hereof, but in no event more than sixty (60) days after
      execution (unless Licensee extends such deadline in Litentee's sole discretion),
      to the extent the Licensed Content is then available Licensor shall furnish
      the
      Licensed Content to Licensee in the form of WMA files (encoded at
      192Kbps). for audio and a format to be determined by mutual agreement
      between the patties for video on hard drives, and Licensee shall pay to Licensor
      its- charges for same per the rate card annexed as Exhibit D; provided however,
      such delivery charges and the advance payment set forth under subparagraph
      3(g)(1) below will be due and payable only if the delivery of content Is fully
      inclusive of all Currently Available (1) sound recordings, (ii) music videos,
      and (iii) non-music videos in Licensors catalog AND where the quantity of
      1A (I) meets or exceeds 450,000 sound recordings ("Full Delivery").
      AS. well, Licensee will be responsible for encoding the Licensed
      Content and for creating and operating the Seryice. Further, Licensor
      will proVide Licensed COntent as Licensed Content becomes newly available
      according to the provisions of Section 4.of the Standard Terms and Conditions,
      and Licensor will use commercially reasonable efforts to perMits Licensee to
      receive and integrate such Licensed Content Into the ServiCe for distribution
      to
      Users by the public release date of the Master ReCording.

     

    2.           Restrictions
      on Grant of Rights.

     

    (a)   Any
      and all rights in and
      to the Licensed Content not expressly granted hereunder
      are reserved by Licensor, including, but not limited to:

     

    (i)  rights
      to
      karaoke or SynchrOnization with video games;

     

    (ii)  merchandising. rights;

     

    (iii)     
      rights to derivative works;

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (iv)  rights
      to
      use, exploit, or permit the use of exploitation of the Licensed Content as
      a
      ringtone, ringback tone, or other so-called telecommunication
      personalization products;

     

    (v)  any
      use
      of the Licensed Content for a television or radio marketing
      campaign, product tie-in, game or contest;

     

    (vi)  rights
      to distribute
      physical copies of Licensed Content (e.g. CDs
      or
      DVDs), apart from any physical copies of Licensed Content which are sold
      separately on the Service by third parties (i.e., those third parties who
      represent that Licensor has authorized in writing the exercise of such
      rights).

     

    (b)    Licensor
      hereby acknowledges that User's experience of Licensed Content occurs in
      connection with third-party advertising; however, Licensee shall
      not:

     

    (i)  create
      a direct
      association between any specific Licensed Content
      and any third-party advertising in a manner that suggests Licensor or artists
      featured in any specific Licensed Content is associated with or endorses any
      advertiser, product or service;

     

    (ii)  knowingly
      display advertisements
      from any entity whose primary
      business relates to the unauthorized distribution of copyrighted material,
      illegal drugs or pornographically obscene materials;

     

    (c)    For
      the.
      avoidance of doubt, ownership and control of any copyrights and/or tradeMarks
      In
      the LicenSed COntent is•retained solely by Licensor, and neither Licensee. nor
      any User or other third party shall obtain any ownership rights in any work
      derived from or that makes use of the Licensed Content.

     

    (d)            Licensee
      agrees to use commercially reasonable efforts to monitor new
      recordings ingested into its catalog to reasonably determine whether a third
      party (a 'Duplicate Licensor") purports to license any Licensed Content to
      Licensee (a "Duplicate License"). If Licensee or Licensor discovers a Duplicate
      License, Licensee will (i) promptly notify the DupliCate Licensor that the
      Licensed Content concerned has already been licented froM Licensor and that
      Licensee intends to account to Licensor, and not the Duplicate Licensor, with
      respect to the Licensed Content concerned unless the Duplicate Licensor can
      provide evidence refuting Licensor's exclusive right to license the Licensed
      COntent to Licensee, and (ii) subject to any confidentiality requirements
      Licensee may be subject to in a third-party agreement, notify LicensOr of the
      name and contact information of the Duplicate Licensor so that LicenSor may
      take
      action as it deeMs appropriate. Licensee will make commercially reasonable
      efforts to cooperate with Licensor to resolve matters relating to such Duplicate
      Licensors..

    
      
        
        

      

      
        
          3

        

        
          

        

      

      
        
        

      

    

    3.    Compensation,

     

    In
      consideration of the rights granted herein, Licensee shall pay Licensor the
      following amounts), which will be calculated on a quarterly basis:

     

    (a)    Music
      Royalty. With respect solely to Licensee's exploitation of Limited Music
      Downloads and Music Streams, Licensee shall pay to Licensor a royalty equal
      to
      fifty percent (50%) of Gross Music Revenue multiplied by Licensor's Music
      Royalty Share.

     

    (i)  The
"Music
      Royalty Share" shall equal a fraction, the numerator
      of which shall be the sum of the number of Music Plays and Music Streams, and
      the denominator of which shall be the sum of the number of Music Plays, Music
      Streams, Service-wide Music Plays and Service-wide Music Streams.

     

    (b)           Video
      Royalty. With respect solely to Licensee's exploitation of Limited
      Video Downloads and Video Streams, Licensee shall pay to Licensor a royalty
      equal to fifty percent (50%) of Gross Video Revenue multiplied by Licensor's
      Video. Royalty Share), which will be calculated on a quarterly
      basis.

     

    (i)  The
"Video
      Royalty
      Share" shall equal a fraction, the numerator
      of which shall be the sum of the number of Video Plays and Video Streams, and
      the denominator of which shall be the sum of the number of Video Plays, Video
      Streams, Service-wide Video Plays and Service-wide Video Streams,

     

    (c)          Unsold
      Advertising Inventory. LicenSee shall provide to Licensor, and
      Licensor shall be entitled to use, a pro-rata share of twenty-five percent
      (25%)
      of Licensee's unsold advertising inventory, Which Licensor may use to promote
      Licensed Content owned and/or controlled by Licensor. LicenSor'S pro-rata share
      of unsold advertising inventory shall be determined by using the fractitin
      used
      in calculating Licensor's Music Royalty Share multiplied by twenty-five percent
      (25%) of the unsold advertising inventory available based upon the
      previbus quarter's royalty calculation (or In the case of the Service's
      first quarter after laUnch, a commercially reasonable estimate of the
      same).

     

    (d)    Publishing
      Fees Not Included. The rights granted by Licensor to Licensee under this
      Agreement do not include any rights to perform, reproduce or otherwise use
      the
      musical compositions embodied
      In the Licensed Content. Licensee is solely responsible for obtaining
      any
      rights In and to such musical compositions that may be
      required
      in connection with the operation of the Service, and for paying any and
      all related royalties and fees. Licensor will supply Licensee
      with all information in Licensor's possession that is necessary for LicenSee
      to
      obtain such rights:

     

    (e)      Licensee
      will use its best
      efforts to track Music Plays; Service-wide Music
      Plays, Video Streams and Service-wide Video StreaMs using the system of each
      Covered Device, which systems are subject to interruptions and other
      interference not within Licensee's control, and that such interrUptions and
      other interference Will affect the royalty calculations set forth
      above.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (f)      Favored
      Nation. No other
      licensor of master recordings shall receive a greater royalty rate or more
      favorable royalty calculation than that provided to Licensor in paragraph 3
      above. Licensee shall notify Licensor promptly if it does so and shallimplement
      such higher royalty provisions retroactively to when such royalties were paide
      to such other party.

     

    (g)      Advances. Licensee
      shall pay to Licensor the following non-returnable
      advances which shall be recoupable from all royalties payable to licensee under
      this paragraph 3:

     

    (i)  USD
      $50,000, payable upon Full Delivery.

     

    (ii)  If
      as of
      the end of any quarterannual accounting period hereunder the foregoing advance
      Is recouped, Licensee shall pay to Licensor another $50,000 advance, subject
      to
      the same terms and conditions. Such "rolling" advances shall continue throughout
      the Term.

     

    (h)      Change
      in Business Model.
In the event that Licensee begins charging users
      fees
      to use the Service, e.g., if the Service is converted to a subscription-based
      model, the parties agree to engage in good faith negotiations to determine
      fair
      and reasonable business terms to amend the license and compensation terms of
      this Agreement.

     

    4.    Term.

     

    The
      term
      of this Agreement shall commence as of the Effective Date, and unless
earlier terminated in accordance with the Terms and Conditions,
      shall
      continue until the later of (a) December 31, 2008, or (b) the end of the
      quarterannual period hereunder during which all advances are recouped, except
      that such extension of the Term for non-recouprrient shall in no event extend
      beyond eighteen (18) months. No later than thirty (30) days after December
      31,
      2008, or thirty (30) days after the end of any subsequent quarterannual period,
      Licensee shall have the right, in its discretion, to pay back to Licensor the
      amount of any unrecouped advance balance and, if It does so, the Term shall
      end
      on that 30th day.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    5.     Territory

     

    The
      territory of rights granted herein shall be the universe, with the exception
      of
      any territories set forth on the 'Excluded Territories List', set forth on
      Exhibit "C" hereto and incorporated by reference, which are noted in the
      metadata accompanying the Licensed Content or of which Licensor otherwise
      notifies Licensee in writing according to the terms of Sections 4 and 13 of
      the
      Standard Terms and Conditions.

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the
      Effective Date:

     

    
      	 	Mohen
              Inc. d/b/a
              Spiralfrog	 
	 	 	 	 
	
              Date

            	
              By:
                

            	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

    

     

    
      	 	The
              Orchard Enterprises,
              Inc.	 
	 	 	 	 
	
              Date

            	
              By:
                

            	/s/ 	 
	 	 	Geg
              Scholl	 
	 	 	CEO	 
	 	 	 	 

    

    
       

       

      
        	 Licensor
                address: 100 Park Avenue, 2nd Floor, New York, NY
                10017	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    DIGITAL
      MUSIC AND VIDEO LICENSE AGREEMENT/SOUND RECORDINGS

     

    STANDARD
      TERMS AND CONDITIONS

    1.    Definitions.

     

    "Affiliate"
      means, with respect to any Person: (i) any other Person of which
      securities or other ownership interests representing fifty percent (SO%) or
      more
      of the voting interests are, at the time such determination Is being made,
      Beneficially OWned or Controlled by such Person; and (ii) any other Person
      which, at the time such determinatibn is being made, is Controlling, Controlled
      by, or under common Control with, such Person.

     

    "A/V
      Master Recording" shall mean a music video licensed hereunder that
      embodies a Master Recording.

     

    "Beneficial
      Ownership" means ownership of any security or interest by any Person
      who, directly or indirectly, through any contract, arrangement, understanding,
      relationship or otherwise, has or shares (i) voting power, which includes the
      power to vote, or direct the voting of, such security or interest, or (ii)
      investment power, which includes the power to dispose, or to direct the
      disposition, of such security or interest.

     

    "Confidential
      Information" shall mean (a) information relating to the business
      affairs, employees, providersi financial
      condition, marketing or development plans, strategies, inventions, discoveries,
      ideas, concepts, processes, techniques, methodolOgies, know-how; Trade Secrets,
      forecasts and forecast assumptions and volumes, performance, pricing or
      operations of the disclosing Party that the disclosing Party treats as
      confidential or prOprietary, (b) the Parties' conduct, decisions, documents,
      and
      negotiations as part of, and. the status of, any dispute resolution proceedings,
      (c) any other Information, whether in a tangible medium or oral, and whether
      proprietary to the disclosing Party or not, that is reasonably understood to
      beconfidential or proprietary.

     

    "Control"
      means Beneficial Ownership, direttly or indirectly, by a Person of
      more
      than fifty percent (50%) of the voting power of another Person, or by a Person
      who acquires the ability to control the tondUct of the business of the other
      Person.

     

    "Covered
      Device" shall mean each of (a) a Personal Computer
      that supports DRM and is able to receive Licensed Content via a communications
      network (b) a Portable Digital Music Device that supports DRM and is able to
      receive Licensed Content via a communications network.

     

    "Currently
      Available" shall mean all Licensor Content which: (a) is available for
      commercial distribution as of the date hereof, and (b) Licensor has made
      available to other digital retailers as of the date hereof.

     

    "DIM"
      shall mean digital rights management technology that Imposes controls over
      the
      use of Licensed Content consistent with accepted industry practices, including
      the Security Systems set forth in this Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Gross
      Advertising Revenue" shall mean all non-returnable monies
      actually received by Licensee during the Term in consideration of the placement
      and/or distributitin of advertisements, promotions, and/or sponsorships in
      connection with the Service and/or exploitation via the Service of Licensed
      Content. Notwithstanding the foregoing, Grost Advertising. Revenue
      shall
      expressly exclude. Gross eCommerce Revenue.

     

    "Grass
      eCommerce Revenue" shall mean all non-returnable monies actually
      received by Licensee (or any entity acting on its behalf after such entity
      has
      deducted any commissions and/or service fees) during the Term, from any other
      entity (including, without limitation, advertisers), who sells goods or services
      on the Service or via a separate webSite that is accessed via a direct link
      or
      advertisement on the Service and fcir which sales both (a) Licensee receives
      fees, bounties and/or other consideration as a result of referrals of Users
      to a
      third party that result in the sale of or license of content, product's or
      services from such third party, AND (b) Licensor is compensated via separate
      financial arrangements between Licensor and such users and/or entities and/or
      third parties distributing content to such users and entitles, sometimes
      referred to herein as "Third-Party Financial Arrangements." As part of
      LicenSee's accounting Statement, as defined herein, LiCensee will provide notice
      to Licensor which Third-Party Financial Arrangements may be included in this
      calculation.

     

    "Gross
      Music Revenue" shall mean Gross Advertising Revenue which is
      directly attributable to Limited Music Downloads and Music Streams.

     

    "Gross
      Video Revenue" shall mean Gross Advertising Revenue which is
      directly attributable to Limited Video. Downloads and Video
      Streams.

     

    "Licensed
      Content" shall mean each and all Master Recordings, A/V Master
      Recordings and/or Related Content subject to the terms AgteeMent and listed
      in
      Exhibit "B"
herein
      Which are owned, controlled by, or licensed to Licensor, in whole
      or in part, and which are available for the purposes described therein, subject
      to any restrictions or limitations as set forth In Exhibit "C".

     

    "Limited
      Music Download" shall mean a digital transmission of a
      time-limited or other use-limited download of a Master Recording, which is
      deliVered via the Service from a Secured Server(s) to the Covered. Device of
      a
      User in accordance with the terms and conditions of such User's agreement with
      Licensee and is only available to such User through such Covered Device for
      a
      limited period of time. Each Limited Music Download times out within the earlier
      of (a) six (6) months from the date on which the User first downloaded the
      Master Recording, or (b) three (3) months from the date on which the User last
      reconnected his/her CoVered DeVice so that the service can renew the license
      and
      collect play-count information.

     

    "Limited
      Video Download" shall mean an encrypted digital transmission of
      a time-limited or other use-limited download of an A/V Master Recording, which
      is delivered via the Service from a Secured Server(s) to the Covered Device
      of a
      User in accordance with the terms and conditions of such User's agreement with
      Licensee and is only available to such User through such Covered Device for
      a
      limited period of
      time.
      Each Limited Video Download times out within the earlier of (a) six (6) months
      from the date on which the User first downloaded the A/V Master Recording,
      or
      (b) three (3) months from the date on which the User last reconnected his/her
      Covered Device so that the service can renew the license and collect play-count
      information.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Master
      Recording" shall mean an audio-only master sound
      recording.

     

    "Music
      Play" shall mean each instance whereby a User causes a Licensor-owned
      Master Recording to be heard in its entirety on a Covered Device, when such
      content was originally delivered to the Covered Device as a Limited Music
      Download.

     

    "Music
      Stream" shall mean an encrypted digital transmission from Secured
      Servers via the Service that allows a User to receive and listen to a particular
      Licensor-owned Master Recording upon request at a time chosen by the User using
      streaming technology (including, without limitation, via Real Networks'
      RealAudio or Microsoft's Windows Media Audio formats) through the User's Covered
      Device, which transmission will (a) not result in a substantially complete
      portable reproduction of such Master Recording (other than a temporary copy
      such
      as those used solely for caching or buffering) and (b) occur substantially
      contemporaneously with the play of the given Master Recording.

     

    "Person"
      means a natural person, a corporation, a limited liability company,
      a
      partnership, a trust, a joint venture, a division, any governmental authority
      or
      any other entity or organization.

     

    "Personal
      Computer" shall
      mean an Internet Prototol (IP)-enabled 'desktop or notebook
      computer.

     

    "Portable
      Digital Music Device" shall mean a portable digital music device
      (including, but not limited to, mobile-telephone and other mobile devices that
      may also operate on a wireless communications network) that is used for the
      storage and play/playback of digital music files (i.e., music files encoded
      in
      MP3, AAC, WMA or similar audio format).

     

    "Related
      Content" shall mean Licensor-provided identifying material with respect
      to the Master Recordings and A/V
      Master Recordings licensed hereunder, including, but not limited
      to,
      trademarks, album artwork, artists' names, biographies, likenesses, metadata
      and
      ISRC codes.

     

    "Represented
      Labels" shall mean any Person (including individual artists and record
      labels) for whose catalbg Licensor may grant digital distribution rights,
      including, but not limited to, those granted under-this Agreement, and further
      including
      those Persons fOr whose catalogs Licensor has at execution
      and/or acquires such rights during and throughout the Term of this
      Agreement.

     

    "Secured
      Server" shall mean a server that Is owned and operated by Licensee or
      Licensee's vendor and protected by means of (a) reasonably physical security
      that meets or exceeds the prevailing physical security practices in the industry
      and (b) reasonable
      firewall and/or other digital security technology that meets or exceeds
      the prevailing digital security technology practices in the
      industry.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Service"
      shall mean the online service owned and operated by Licensee,
      in
      substantially the form described in Exhibit "A" hereto, which offers Users
      Limited Music Downloads, Music Streams, Limited Video Downloads and/or Video
      Streams transmitted from Secured Servers to the Covered Devices of Users In
      accordance with the terms and conditions of this Agreement and is supported
      by
      third-party advertising.

     

    "Service-wide
      Music Plays" are the total number of instances where Users cause
      Master Recordings of third parties contributing Master Recordings to the Service
      to be heard in their entirety on a Covered Device, when such content was
      originally delivered to the Covered Device as limited-use
      downloads.

     

    "Service-wide
      Music Streams" shall mean the total number of encrypted digital
      transmissions from Secured Servers via the Service of Master Recordings of
      third
      parties contributing Master Recordings to the Service that allow Users to
      receive and listen to those particular Master Recordings upon request at a
      time
      chosen by the User using streaming, technology (including, without limitation,
      via Real Networks' RealAudio or Microsoft's Windows Media Audio formats) through
      the User's Covered Device, which transmissions will (a) not result in a
      substantially complete portable reproduction of such Master Recording (other
      than a temporary copy such as those used solely for caching or buffering) and
      (b)
occur
      substantially contemporaneously with the play of the given
      Master Recording.

     

    "Service-wide
      Video Plays" are the total number of instances where Users cause
      A/V Master Recordings of third parties contributing A/V Master Recordings to
      the
      Service to be heard in their entirety on a Covered Device, when such content
      was
      originally delivered to the Covered Device as limited-use
      downloads.

     

    "Service-wide
      Video Streams" shall mean the total number of encrypted digital
      transmissions from Secured Servert via the Service of A/V Master Recordings
      of
      third parties contributing A/V Master Rectirdings to the Service that allow
      Users to receive, view, and listen to thOse particular A/V Master Recordings.
      upon request at a time chosen
by
      the U.Ser using streaming technology (including, without limitation, via Real.
      Networks' RealAudio
      or MicrOsoft'S Windows Media Audio forMats) through the User's COvered
      Device, whiCh transmissions will (a) not result in a substantially complete
      portable reproduction of such A/V Master Recording (other than a temporary
      copy
      such as those used solely for caching or buffering) and (b) occur Substantially
      contemporaneously with the play of the given A/V Master Recording.

     

    "Territorrshall"
      mean the universe, with the exception of any.excluded
      territories set forth in Exhibit "C," in the metadata .accompanying the LicenSed
      Content or of Which Licensor has otherwise notified Licensee. In writing
      according to the terms of Sections.4 and 13 of the Standard Terms and
      Conditions.

     

    "User"
      shall mean any individual who is a registered user of the
      Service, having agreed to Licensee's user agreement, and who Is authorized
      by
      Licensee to access Limited Music Downloads, Music Streams, Limited Video
      Downloads and Video Streams
      and/or any individual who uses the. Service solely to access 30-second
Music
      Streams or 30-second Video
      Streams, via the Service solely for personal, non­commercial use.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

    "Video
      Play" shall mean each instance whereby a User causes an A/V
      Master Recording to be heard and seen in its entirety on a Covered
      Device, when such content was originally delivered to the Covered Device as
      a
      Limited Video Download.

     

    'Video
      Stream" shall mean an encrypted digital transmission from
      Secured Servers via the Service that allows a User to receive, view, and listen
      to a particular LicenS0r­owned A/V Master Recording upon request at a time
      chosen by the User using streaming technology (including, without limitation,
      via Real Networks' RealAudio or Microsoft's Windows Media Audio formats)
      through the User's Covered Device, which transmission will (a) not result in
      a
      substantially complete portable reproduction of such A/V Master Recording (other
      than a temporary copy such as those used solely for caching or buffering) and
      (b) occur substantially contemporaneously with the play of the given A/V Master
      Recording.

     

    2.    Licensee
      Service Obligations.

     

    (a)             Service
      Operation. Licensee will be responsible for all DRM encoding,
      hosting, serving and providing clearinghouse and other functions necessary
      for
      the operation of the Service in accordance with the terms and conditions of
      this
      Agreement.

     

    (b)             User
      Agreement. Licensee shall require each User to enter into a user
      agreement which prohibits further distribution of the Licensed
      Content.

     

    (c)             Limitations
      on User Access. Licensee's user agreement shall
      state that each
      User shall only be authorized to access Limited Music Downloads, Music
      Streams, Limited Video Downloads, Video Streams and Lyric Displays through
      the
      Service on, and for each User Covered Devices shall only include up to one
      (1)
      Personal Computer and up to two (2) Portable Digital Music Devices.

     

    (d)             Buy
      Link. Upon a User's selection of Licensed Content, Licensee
      will
      ensure that Users have access to a "buy button" or similar hyperlink, through
      which the User can purchase permanent copies (in electronic and/or physical
      format) of the applicable Licensed Content (with respect to which Licensor
      is
      compensated under Third Party Financial Arrangements).

     

    (e)             Join
      Button. Subject to Licensor providing adequate technical and
marketing
      resources necessary, Licensee shall provide and display a "Join Button" in
      connection with the Licensed Content; allowing Users to register with Licensor
      or to join the Licensor-provided fan clubs, such that Users can thereafter
      receive information directly frorri Licensor about the band, notices of
      concerts, new album releases, special offers from the artist related to a
      specific unit of Licensed COntent,

     

    (f)      Metadata.
      Licensor will provide Licensee with all metadata associated with the Licensed
      Content. Licensee shall use commercially reasonable efforts to
      use 11 metadata delivered by Licensor to Licensee hereunder. Licensor shall
      deliver such metadata to Licensee via FTP in either XML or tab delineated format
      or as otherwise mutually agreed between the parties in writing. Notwithstanding
      anything to the contrary contained in this Agreement, Licensor shall retain
      all
      right, title and interest in and to any Licensor-provided metadata delivered
      hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)                     Security
      Compliance.

     

    (i)                     In
      connection with any use of Licensed Content, Licensee shall implement and
      maintain copy protection and DRM technology and systems, consistent with
      accepted industry practices (collectively, "Security
Systems") with respect to the Service under its
      supervision and/or control, Including Secured Servers and operating systems,
      that:

     

    (A)  are
      designed to prevent unauthorized reproduction and distribution of Licensed
      Content;

     

    (B)  encrypt
      Licensed Content with a reasonably current version of DRM technology accepted
      within the industry;

     

    (C)  are
      sufficient to track and enforce the use and other license limitations
      contemplated by this Agreement; and

     

    (D)  generally
      meet or exceed accepted industry practices for the licensed delivery of music
      via digital transmission.

     

    Provided
      however, Licensee may distribute MP3 files in an unprotected format when the
      distribution of such files Is expressly approved by Licensor.

     

    (ii)                     If
      Licensor has a good-faith basis to believe that Licensee is in compliance with
      such Security Systems, Licensor shall be entitled, upon thirty (30) business
      days' prior written notice to Licensee, to conduct or have a third party conduct
      an examination (a "Security Compliance Examination")
of the operations and Security Systems
      of Licensee solely with respect
      to rights covered by this Agreement. Licensee shall make commercially reasonable
      efforts to cooperate with Licensor and/or Licensor's qualified designated
      representative regarding such Compliance Examination. Licensor shall not conduct
      any Security. Compliante Examinations of Licensee more frequently than once
      every twelve (12) months.

     

    3.           Accounting.

     

     

    (a)           Payment
      Process. Licensee shall pay royalties due to Licensor hereunder
      within sixty (60) days after the end of each quarterly accounting period (or
      partial period in
      the event of an early termination or expiration before the calendar
      close
      of such quarterly period) by wire or ACH banking transfer, provided Licensor
      provides
      such bank account and related information to Licensee in writing Within
      a
      reasonable period of time.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)             Accounting
      Statements. In connection with each royalty payment hereunder,
      Licensee shall provide Licensor with an electronic statement ("Statement")
      which
      shall set forth aggregate User consumption history of the
      Licensed Content in sufficient detail to determine Music Royalties and Video
      Royalties Payable hereunder. Each statement shall also include detail on the
      relevant Master Recordings and A/V Master
      Recordings distributed to Users via the Service as (i) Limited Music
      Downloads, (ii) Limited Video Downloads, (iii) Music Streams and (iv) Video
      Streams.

     

    (c)      Audit.
      Licensor shall be entitled, once during every calendar year, upon at least
      thirty days' prior written notice, to examine the books and records of Licensee
      to determine the accuracy of Licensee royalty statements (a "Royalty
      Examination").
      Such Royalty Examination shall be conducted by a certified
      public accountant in good standing with experience in digital music royalty
      payments. Such Royalty Ekamination shall take place at Licensee's place
      of
      business during normal business hours, in a manner designed to be as
      non-disruptive to Licensee's business as possible.
      Licensor shall not conduct an audit more frequently than
      once
every
      twelve (12) months.

     

    (d)    All
      statements rendered by
      Licensee
      shall be incontestable
      within three (3) years of the date due, unless an objection
in
      writing is made for each such
statement. Any objection
      must specify, with particularity, the reason for such objection, and if an
      audit is to be
      conducted with respect to such statement, it must be conducted within
      three (3) years of
      the issuance of such statement.
Notwithstanding
      any applicable statutes
      of limitations, Licensor waives any action brought in connection
      with an audit of
      any royalty statement unless such action is brought within one (1)
      year of the date
      of the commencement of any such audit.

     

     

     (e)          If
      Licensee
      is required by law to. withhold any taxes or other moneys ("withholdings")
      from
      any payMent due to Licensor, Licensee will deliver to Licensor an offitial
      receipt evidencing Licensee's payment of the tax or other amount withheld and
      such other docuMentation as Licensor may require to obtain credit against
      Licensor's taxes for the withholding concerned. If that documentation is not
      fUrnished or if that tax credit is not available to Licensor, Licensee will
      bear
      the obligation concerned at Its own expense without recourse to Licensor and
      will remit the full amount of the payment Concerned'to Licensor without
      deduction; if the withholding COncerned has already been deducted from payments
      to Licensor, Licensee will remit the arneunt of the withholding to Licensor
      upon
      Licensor's request.

     

    (f)          All
      payments
      to Licensor shall be computed and remitted in United States dollars. Each
      conversion frOm another currency for the purpose of computing such payments
      shall be calculated at the rate of exchange in effect on the last day of the
      accounting period concerned.

     

    (g)    If
      Licensee is actually prevented
      by law or government order from making any payment to Licensor in United.
      States Dollars, Licensee will
      promptly notify Licensor and will
      not commingle the moneys concerned
      with Licensee's other assets or with the property of any other person
      or
      entity, but will hold those moneys separately and in trust for Licensor or
      deposit them as Licensor instructs in writing. Licensee will continue to be
      obligated for each such amount, with interest at the local equivalent "prime"
      commercial rate, until Licensor (or the depository.So designated
      by
      Licensor) has actually received it.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)     N
      and
      when available, Licensee shall permit Licensor on-line access to portions of
      Licensee's sales reporting system to allow Licensor to monitor its sales and
      estimated royalty activity hereunder.

     

    (i)    In
      addition to the foregoing, if Licensee makes available to all other licensors
      weekly reports that state when Licensed Content first becomes available to
      Users, then Licensee will provide such a report to Licensor.

     

    4.           Licensed
      Content List I Takedown Procedure.

     

    (a)           The
      rights granted hereunder shall apply solely to the Master Recordings
      and A/V Master Reccirdings set forth on the Licensed Content List, attached
      hereto as Exhibit "A". Licensor will deliver, and Licensee may provide to its
      Users, new Licensed Content, as soon as Licensed Content is delivered by
      Licensor, but no less often than LiCensor updates its other digital-service
      and retail partners.
      Such delivery of the Litensed COntent serves to automatically
      add new Licensed Content to the Licensed Content LiSt. Additionally, Licensor
      will provide Licensee a complete, updated Licensed COntent List (Including
      both
      additions and subtractions)
periodically,
      but no less often than Licensor updates its other
      digital-service and retail partners. The Licensed Content List shall include
      at
      least all Master Recordings, A/V Master Recordings and Related Content as
      licensed to the digital. music provider
      that
      has received the largest number of Master Recordings and A/V Master Recordings
      owned/controlled by LiCensor. If Licensor provides additional Master Recordings
      or A/V Master Recordings to any other third-party digital music or digital
      Music
      video service, then Licensor shall deliver such additional Master Recordings
      and/or A/V Master Recordings to Licensee at the same time. Notwithstanding
      the
      fOregOing subparagraph 4(a), Licensor shall not be considered in breach of
      subparagraph 4(a) if Licensor fails to deliver those MaSter Recordings and
      A/V
      Master Recordings that are delivered to third-party online retailers or service
      providers on an exclusive basis under written agreement ("Exclusives"); provided
      however, Licensor will provide Licensee the ExclusiveS immediately when
      available pursuant to such written agreement and Licensor and Licensee shall
      also discuss such special
      promotions on a mutually beneficial basis. Licensee agrees to
      abide by any reasonable territory restrictions communicated to Licensee by
      LitenSor in writing according to the terms of Sections 4 and 13 of the Standard
      Terms and Conditions {including in the metadata
      accompanying the Licensed COntent, Exhibit"C" or otherwise).

     

    (b)           If
      any Licensed Content ceases to be owned or controlled by Licensor for
      any
      reason, or if a third party formally challenges Licensor's rights in a Master
      Recording and/or A/V Master Recording where such challenge may have a material
      affect on the rights granted under this Agreement, then upon Licensor's written
      notice and request, Licensee shall remove access to such Master Recording and/or
      A/V Master Recording from the Service within three (3) business days of such
      request. Licensor shall not exercise the takedown right described in this
      paragraph in a manner that would defeat or frustrate the rights granted to
      Licensee under theAgreement unless such exercise of the takedown right is
      reasonably necessary to protect Licensor's interests.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)            Licensee
      shall not exploit the rights conveyed herein relating to any LicenSed
      Content prior to the official USA release date of an album embodying such
      Licensed Content, provided Licensor prgvides Licensee with sufficient advance
      notice in writing. Further and notwithstanding the foregoing, Licensee
      may.exploit those rights conveyed herein before such release. date to
      the extent
      that Licensee must reproduce Licensed Content to receive, store, and prepare.
      its availability to Users (for example, as ephemeral copies) without
      distributing it to Users.

     

    5.            Licensee's
      Third-Party
      Obligations. Except as specifically set forth herein,
Licensee
      will be solely responsible for procuring any and all licenses, clearances and/or
      consents that may be required to operate, or from the operation of, the Service
      as contemplated hereby. Without limiting the generality of the foregoing,
      Licensee will be responsible for all payments required to be paid in connection
      with public performance licenses, digital phonorecord delivery mechanical
      licenses, and, if applicable, synchronizatiOn licenses, from owners and/or
      administrators of music composition copyrights (or their agents, including,
      without limitation, performance rights societies, mechanical collection
      societies and other bodies) in connection with the Service.

     

    6.            Licensor's
      Third-Party Obligations.

     

    (a)  With
      respect to Licensed Content, Licensor shall be responsible for any sound
      recording rights, licenses, clearances and/or consent, all related payments,
      including, but not limited to, all associated so-called "record royalties"
      that,
      as a result of the Service, may be required for, or due to, an artist and any
      other third party record royalty participants (e.g., an artist or producer).
      In
      addition, Licensor shall be responsible for any payments that may be due to
      the
      Musical Performance Trust Fund and the Administrator of the Special Payment
      Fund
      of the American Federation of Musicians, and any similar fund established by
      a
      collective bargaining agreement within the recorded music industry.

     

    (b)  Licensor
      shall provide, and shall bear sole responsibility to provide, any necessary
      parental advisory warnings (if and to the extent artists and record labels
      furnish same to Licensor) in connection with the Licensed Content.

     

    7.      Intellectual
      Property

     

    (a)  Ownership
      of Licensed Content. All right, title and interest in and to the Licensed
      Content, including all intellectual property rights inherent therein are owned
      and retained exclusively by Licensor.

     

    (b)      Ownership
      of Licensee Service and related systems. As between Licensee and Licensor,
      Licensee owns all right, title and interest in and to the Service (subject
      to
      ownership of Licensed Content as described in paragraph 7(a)), Including all
      intellectual property rights in and to all elements and components related
      thereto, and all goodwill associated with the Service will inure solely to
      the
      benefit of Licensee. Licensor understands and agrees that it shall not acquire
      any right, title or interest in or to the Licensee Service, or any part thereof,
      by reason of this Agreement or the performance hereof. All rights not
      specifically granted herein with respect to the Service are reserved to
      Licensee. Licensor will not contest, or assist other non-affiliated parties
      in
      contesting, Licensee's rights and interests in the Service or the validity
      of
      such ownership {including all intellectual property rights in and to all
      elements and components related thereto).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)
      Consumer Data. Licensee shall be the sole owner of any and all
      demographic and User data related to the Service, including, but not limited
      to,
      survey information, IP
      addresses, User activity, cookies and email addresses. To the extent
      practicable and at Licensee's discretion, Licensee shall provide Licensor with
      anonymous, aggregate consumer data related to Licenser's Licensed
      Content.

     

    8.      Reoreoentations.
      Warranties
      and Covenants; Indemnity.

     

    (a)           Each
      Party represents to the other Party that:

     

    (i)        such
      Party has the full right, power and authority to execute, deliver
      and perform this Agreement and to consummate the transactions contemplated
      hereby;

     

    (ii)  the
      execution, delivery, and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby have been duly authorized by all necessary
      corporate action;

     

    (iii)  this
      Agreement has been duly executed and delivered by an authorized officer, and
      is
      a legal, valid and binding obligation enforceable against such Party in
      accordance with its terms, except as enforcement may be limited by general
      principles of equity (regardless of whether such enforceability is considered
      In
      a proceeding at law or in equity) and the effect of applicable bankruptcy,
      insolvency, moratorium and other similar laws of general application relating
      to
      or affecting creditor's rights generally, including the effect of statutory
      or
      other laws regarding fraudulent conveyances and preferential
      transfers;

     

    (iv)  the
      execution, delivery and performance of this AgreeMent will not constitute a
      breach or default under any contract or agreement to which such Party is a
      party
      or by which such Party is bound or otherwise violate the rights of any third
      Person;

     

    (vi)      that
Party's
      performance hereunder will not violate federal, state
      or
      local laws, regulations and ordinances; and,

     

    (v)  no
      consent, approval or authorization of or from any governmental entity or any
      other Person not a party to this Agreement, whether prescribed by law,
      regulation, contract or agreement, is required for its execution, delivery
      and
      performance of this Agreement or consummation of the transactions contemplated
      hereby.

     

    (b)    Licensor
      hereby warrants and represents to. Licensee
      that:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)  Licensor
      owns or controls the Licensed Content and has the right to
      grant all rights contained herein to the Licensed Content;

     

    (ii)  Licensor
      is a duly organized and existing company in good standing under the laws of
      its
      place and country of formation, and has the exclusive right, power and authority
      to enter into this Agreement, to grant the rights agreed to be granted by
      Licensor hereunder.

     

    (iii)  Licensor
      has not made and will not make any grant, assignment, commitment, license or
      do
      or permit any act which will or might materially interfere with or impair the
      full and complete performance of Licensee's full and complete enjoyment and
      exercise of the rights and privileges granted herein.

     

    (iv)  There
      are
      no liens, claims or encumbrances which might conflict with or otherwise affect
      any of the provisions of this Agreement or Licensee's promotion or exploitation
      of the Licensed Content in any and all media whether now known or hereafter
      devised throughout the universe in perpetuity.

     

    (c)    Licensee
      hereby represents and warrants to Licensor that:

     

     (i)            it
      shall take all reasonable steps necessary to implement and shall
      comply with its security obligations set forth in this Agreement;
      and,

     

    (ii)            all
      of the Licensed Content and related artwork and metadata shall
      only reside on.serVers owned, authorized or controlled by Licensee.

     

    (d)    Licensee
      agrees to indemnify, defend.and hold harmless Licensor, ("Inclamniteel"
from and against any kisses, injuries, darnages, claims,
      expenses and
      costs (including without limitation reasonable attorneys' fees)
("Claims") incurred or suffered by Indemnitee, arising from any
      third-party actions, claims, suits or legal proceedings Of any kind, caused
      by,
      arising from or related to: 

     

    (i)
      Licensee's failure to perform any of its obligations under this Agreement and/or
      any breach or alleged breach of any representation or warranty
      hereunder;

     

    (ii)
      the
      operation of the SerVite or Licensee's business; and

     

    (iii)
      any
      acts or omissions of any Licensee employee or agent. Licensor shall promptly
      notify LiCensee In writing of any Claim and allow Licensee to control the
      defense thereof

     

    (e)            Licensor
      agrees to indemnify, defend and hold harmless Licensee, its respective
      officers; employees and agents, (colleCtively, the 'Licensee
      Indemnitees")
      from
      and against any losses, Injuries, damages, claims, expenses.
      and costs
      (Including without limitation reasonable attorneys' fees) ("Claims"). incurred
      or suffered by any Licensee Indemnitee, arising from any third-party actions,
      claims, suits or legal proceedings of any kind, caused by,. arising from or
      related to: (i). Licensor's failure to perfprm any of its obligations
      .underthis.
      Agreement and/or any breach or alleged breach of any representation or warranty
      hereunder; and (ii) any acts or omissions. of any Licensor employee or agent.
      Licensee shall promptly notify Licensor in writing of any Claim and allow
      Licensor to control the defense thereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.    Termination;
      Survival,.

     

    (a)  Licensor
      shall have the right to terminate this. Agreement after providing thirty (30)
      days' prior written notice to Licensee in the event of a material breach of
      any
      provision of this Agreement, only if during such thirty (30) day period,
      Licensee fails to cure such alleged breach. The foregoing notice and cure period
      shall not apply in the event: (i) Licensee breaches in a material respect
      Section 4 of the Standard Terms and Conditions above, or (ii) if Licensee
      purports to assign any of its rights and/or obligations hereunder to a third
      party except as specifically permitted hereunder, without Licensor's prior,
      written consent.

     

    (b)  Licensee
      shall have the right to terminate this Agreement at any time on thirty (30)
      days' prior written notice to Licensor, in the event of a material breach of
      any
      provision of this Agreement, only if during such thirty (30) day period,
      Licensor fails to cure such alleged breach.

     

    (c)  All
      representations, warranties and indemnities shall survive expiration or
      termination of this Agreement.

     

    (d)  Within
      ninety (90) days after the effective date of any termination under this
      paragraph, each User's rights to the Licensed Content shall lapse.

     

    (e)          This
      subparagraph 9(e), paragraphs 8, 11, 14, 15, 17, and 18 and those
      obligations of this Agreement that may reasonably be expected to survive the
      termination or expiration of this Agreement shall survive the termination or
      expiration of this Agreement

     

    10.           Assionment.                              

     

        This
      Agreement shall not be assignable by either without the
      prior
      written consent of the non-assigning party and any such assignment shall be
      invalid ab initie. Notwithstanding the preceding sentence; either party may
      assign this Agreement in conjunction with a transfer, Merger and/or acquisition
      of a substantial portion of the assigning party's buisness, stock, or assets,
      or
      to any entity controlled by, controlling or under common control with the
      assigning party.

     

    11.           Choice
      of
      Law.                                           

     

        The
      parties
      .agree that it is to their mutual benefit that their
      respective rights and obligations under this Agreement are guided by, and their
      disputes hereunder are determined In accordance with,.a well deVeloped body
      of
      law. Accordingly, the parties agree that the validity, interpretation and legal
      effect.of this Agreement shall be governed by the internal laws of the State
      of
      New York, U.S.A., applicable to contracts entered in and performed entirely
      within the State of New York, U.S.A. The parties agree. that any legal suit,
      action or proceeding arising out of pr relating to this Agreement must be
      instituted in New York, and LicensOr and Licensee each 

     

    (i)     irrevocably
      submits to the exclusive jurisdiction of the United States District Court for
      the Southern District of New York, or the Supreme Court of the State of New
      York, County of New York, and 

     

    (ii)     waives
      any
      objection to the waving of any suit, action or proceeding or any claim to forum
      non convenins. In any such suit, action, or porceedings, any summons order
      to show cause rit, judgement, decree, or other process may be delivered
      tolicensor or licensee outside of New York or outside of the United States
      and
      when so delievered such party will be subjected to the jurisdiction to such
      court.Served within the state of New York will be subject action
      or proceeding is pending. In any action subject to this suit the pervating
      party
      will be entitled to the awarding of an attorneys fees.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

     

    12.             No
      Partnership.                                           

     

        Nothing
      contained
      herein shall be construed to place the
      parties in the relationship of partners or joint venturers, and Licensee shall
      have no power to obligate or bind Licensor in any manner
      whatsoever.

     

    13.             Notices.                     

     

        All
      notices
      required hereunder shall be in writing and shall be given
      either by personal delivery, teleoopy or by registered or certified mail
      (postage prepaid), and shall be deemed given hereunder (unless actual receipt
      is
      hereinabove required) on the date delivered, telegraphed, telecopied or telexed
      or a date forty-eight (48) hours after the date mailed. Until further notice,
      the addresses of the parties shall be as follows:

     

    UCENSEE:

    Mohen,
      Inc

    95
      Morton St,

    New
      York,
      NY 10014

    Attn:
      Chief Executive Officer

     

    With
      a courtesy copy to:

     

    Greenberg
      Traurig, LLP 200 Park Avenue

    New
      York,
      NY 10166

    Attn:
      Marc Jacobson, Esq.

     

    LICENSOR,:Copies
      to both:

     

    The
      Orchard Enterprises, Inc. 100
      Park Av., 2nd floor

    New
      York,
      NY 10017

    Attn:
      CEO

     

    The
      Orchard Enterprises, Inc. 100 Park Av., 17th floor

    New
York,
      NY
      10017

    Attn:
      Legal Dept.

     

    Each
      party will provide current contacts for each of technical, marketing, content,
      financial and publicity matters. Licensor will provide notices regarding
      territorial restrictions in the metadata accompanying the
      Licensed Content. The initial list of such contacts for each party is
      attached as Exhibit E.

     

    19

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14.     Confidential
      Information,

     

    (a)  The
      Party
      receiving Confidential Information shall not disclose the Confidential
      Information of the disclosing Party, except as permitted under this Agreement.
      All Confidential Information will be held and protected by the receiving Party
      in confidence and will be used and disclosed by the receiving Party only as
      required to render performance or to exercise rights and remedies under this
      Agreement. The foregoing shall not apply to any information generally available
      to the public, independently developed, or lawfully and independently obtained.
      The receiving Party may disclose the disclosing Party's Confidential Information
      to its officers, directors, employees, legal representatives, accountants,
      tax
      advisors, agents and contractors, on a need-to-know basis. Notwithstanding
      the
      foregoing, this Agreement and its contents may be disclosed by Licensee to
      a
      third party under appropriate confidentiality requirements in connection with
      (i) a due diligence examination being conducted by such third party in
      connection with the corporate organization, reorganization, or capitalization
      of
      Licensee; (ii) subject to a court order or subpoena; or, (iii) as required
      in a
      case brought by or against a party hereto.

     

    (b)  The
      disclosing Party's Confidential Information is and will remain the property
      of
      the disclosing party, and no disclosure under this Agreement grants or confers
      any ownership rights in or license to any of that information to the
      non-disclosing party (excluding express licenses and grants set forth in this
      Agreement).

     

    (c)   Promptly
      upon expiration
      or termination of this Agreement and upon the request of the disclOsing Party;
      the receiving Party will either: 

        (i)    return
      to the
      disclosing Party all of its Confidential InfOrmation; or 

     

        (ii)   destroy
      all of such
      disclosing Party Confidential Information and certify to such destruCtion in
      writing.

     

    14a.     Public
      communications. 

       

         Neither
      party
      hereto shall, without the prior written consent of the other party, issue any
      press release or make any other public announcement or statement relating to
      any
      terms and conditions of this agreement or any fact, matter, event or surrounding
      circumstance leading to or relating to the negotiation thereof to which such
      party was privy or of which it was otherwise made aware.

     

    14b.    
      Coovright Notices. 

        Licensee
      shall cause all copyright notices relating to uses of Licensed Content to be
      conspicuously displayed upon the web page by means of which Licensee's customers
      commence use of the Licensed Content and related metadata. Each copyright notice
      shall be displayed in the following format, as designated by Licensor in each
      instance for the download concerned: "(P) (C) [Year of first publitation]
      [Licensor-designated name]." Licensee shall not, through its acts or omissions,
      defeat, impair or alter in any way any copyright protection technolOgyf metadata
      or
      mechanism embedded in or associated with the Licensed Content or any related
      artwork or materials deliVered by Licensor hereunder. Litensee shall not
      contest, or voluntarily assist others in contesting, Licensors rights or
      Interests in the Licensed Content or the validity of such ownership at any
      time,
      during or after the Term.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15.             Entire
      Aareement / Amendment

     

        This
      Agreement, including all exhibits, schedules and attachments hereto
      (incorporated herein by this reference), represents the entire understanding
      of
      the parties with respect to the subject matter hereof, supersedes all prior
      and
      contemporaneous agreements and understandings of the parties (whether written
      or
      oral) with respect to the subject matter hereof. This Agreement may not be
      altered or amended except in a written instrument executed by authorized
      representatives of both parties. This Agreement shall be deemed to exist and
      the
      parties intend to be bound only upon signature of a written agreement by both
      parties, and no negotiation, exchange of draft or partial performance shall
      be
      deemed to Imply an agreement or other understanding between the
      parties.

     

    16.       Force
      Maieure.

     

        Neither
      party
      shall be liable to the other for any failure or delay caused by events beyond
      the parties' control, including, without limitation, sabotage, failure or delays
      In transportation or communication, failures or substitutions of equipment,
      labor disputes, accidents, shortages of labor, fuel, raw materials or equipment,
      technical failures, fire, flood, war, blockage, acts of public enemy, civil
      disturbance, and/or any resultant interruption in public services, including
      mail delivery (except that no such event shall excuse performance hereunder
      for
      an excess of three (3) months).

     

    17.            Waiver:
      Severabilitin Headings: Counterparts.

     

        No
      right that
      either party has regarding this Agreement may be waived or modified except
      by
      the waiving party In writing. If any provision of this agreement is held to
      be
      invalid or unenforceable, the remainder shall remain in full force and effect.
      The diviSion of this Agreement into sections, clauSes, paragraphs or
      subdivisions thereof, and the insertion of headings; are for convenience and
      referente only and shall not affect the construction or interpretation hereof.
      This Agreement may be executed in one or more counterparts, each of which shall
      be deemed to be an original, but all of which shall be one and the same
      document. A copy or facsimile of a signature shall be binding upon the signatory
      as If It were an original signature.

     

    18.            limitation
      of Liability.

     

        IN
      NO EVENT
      SHALL EITHER PARTY BE RESPONSIBLE FOR ANY CONSEQUENTIAL, SPECIAL, PUNITIVE
      OR
      OTHER INDIRECT DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST REVENUE OR PROFITS,
      IN ANY WAY ARISING OUT OF OR RELATED TO THE AGREEMENT, EVEN IF THE AFFECTED
      PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, UNLESS DUE TO
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
      THE NON-AFFECTED PARTY.

     

    -
      End of
      Standard Terms and Conditions -

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      "A"

    Service
      Description

     

    The
      SpiralFrog TH
service
      is a broadband. Internet-based entertainment destination
      that gives registered users the opportunity to experience entertainment content,
      including music and video'downloads, in exchange for viewing advertising.
      Initially, SpiralFrog will offer tethered audio and video downloads using
      Windows DRM with a license that expires after 30 days, as well as music and
      video streaming. Once downloaded, users must sign-in to the service at least
      monthly, which will automatically renew all licenses for that user. Songs may
      be
      downloaded to one computer and can be synchronized with up to two portable
      devices, complete with the same license.

     

    Revenue
      will be generated by targeting advertising to those users who have been
      unwilling:to pay for their digital downloads, giving a revenue stream back
      to
      the rights owners. Record labels and publishers will receive .a pro-rata
      share of revenue derived from the total advertising dollar pool, apportioned
      by
      the number of plays of each digital file of their Licensed Content downloaded
      whether that be on the local computer or a portable device.

     

    User
      Experience

    1.
      Users
      will register with the service with:

    a.  Age
      (13
& over)

    b.  Zip
      code,
      (US), or Rasta! Code, (International)

    c.  Gender

    d.  Email
      address

    2.
      They
      will choose a personal userid.

    3.  Users
      will login to the service using their personal userids

    4.  Registered
      users will immediately experience targeted ads at login.

    5.
      Users may engage in various activities during which time they Will be presented
      with ads:

    a.  Search
      or
      discover music

    b.  Search
      or
      discover music videos

    c.  Play
      30-second clips of music

    d.  Stream
      music videos

    e.  Click
      through to etailers

    f.  Engage
      in
      other miscellaneous entertainment.

    6.
Core
      Activity — Music
and
      Video
DbOgridaels;

    a.  Registered
      users search for music tracks or music videos

    b.  Registered
      users select a track or video to download.

    c.  Tracks
      and videos may be
      queued for download

    d.  Tracks
      and videos are downloaded. Each track or video is downloaded
      individually.

    e.  Downloads
      are timed at 90 seconds whereas video.downloads are timed 4120
      seconds

    
      	
               

            	
              f.

            	
              At
                the end of each download users must verify completion of the download
                by
                keyword

            

    

    
      	
               

            	
              identification

            

    

    9.    All
      downloads
      are created with Windows DRM

    
      	
              h.  

            	
              Registered
                users may use downloaded tracks and videos to create faVorites listathat
                can be shared with other users

            

    

    i.  Registered
      users
      may syrichroniZe, (copy), downlOaded tracks to up to two portable
      devices, (digital music-players and mobile phones, etc.) that support Windows
      DRM. 7. Other activities.

    
      	
              a.  

            	
              Lyric
                search – Lyrics will be displayed alone, with ads in a separate browser
                window, with the print/cut/paste functionality
                disabled.

            

    

    
      	
              b.  

            	
              Referral
                out to e7comnierce
                partners, including CD purchases, tour information, tickets; and
                the
                like.

            

    

    Anticipated:
      entertainment news, comedy and action shorts, Online entertainment communities,
      celebrity chats; contests, plus a full range and menu of interactive
      entertainment through strategic partnerships with the music industry, digital
      music player manufacturert, cable TV networks, and ether content
      providers

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      "C"

    Excluded
      Territories

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Licensor
      Direct Delivery Charges - Rate Card

     

    A.           For
      all of Licensor's current catalog of Licensed Content listed on Exhibit
      B

     

    (approximately
      450,000 tracks), delivered via hard drives containing WMA files (encoded at
      192Kbps) for audio and a format to be mutually agreed by the parties for
      video:

     

    
      	
              n  

            	
              A
                fee of USD$50,000.00 (payable within 5 business days of complete,
                Initial
                delivery of Licensor's catalog as of the date of such delivery, according
                to the terms of Section 1A of the
                Agreement.)

            

    

     

    
      	
              n  

            	
              Shipping
                paid by Litensee

            

    

     

    B.For
      all
      subsequent Licensed Content delivered by Licensor during the Term:

     

    
      	
              ·  

            	
              USD$0.20
                per track, delivered via 250 gig hard drive (payable within 5 days
                of
                complete delivery according to the terms of Section 1A of the
                Agreement)

            

    

     

    
      	
              ·  

            	
              Each
                250 gig hard drive holds approximately 5,000 way
                files, XML
                and album artwork;
                notwithstanding the foregoing, the files will be delivered using
                WMA
                files
                (encoded at 192Kbps) for audio and a format to be mutually determined
                by
                the parties for
                video.

            

    

     

    
      	
              ·  

            	
              Shipping
                paid by Licensee

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

              

          
            	              

                                    Exhibit
                      "D"              
            

          
      

                  
      
    

      

    

    Exhibit
      E Contacts

     

    Licensor
      contacts:

     

    Senior
      Management:                                                              Legal
      / Business Affairs:

    Greg
      Scholl, President &
CEO                                                              Stanley
      Schneider, SVP & General Counsel

     

    
      	
              +1

            	
              (212)
                201-9220 phone

            	
              +1

            	
              (212)
                201-9217 phone

            
	
              +1

            	
              (212)
                201-9202 fax

            	
              +1

            	
              (212)
                201-9202 fax

            

    

    preoadimensionalassociates
      corn

     

    Operational:

    Andy
      Bushey, VP Sales Operations

    +1
      (212)
      201-9227, 

    andvetheorchard.com,

     

    Royalties/Finance
      

    Jeff
      NiMérofsky, CFO Technology

    jeffatheorchard.com 

    +1
      (212)
      201-9244, :

     

    Ketan
      Shah, VP Technology

    +1.
      (212) 201-9234,

    ketanAtheorchard.corn

     

     

    Business
      Development:

    Jaime
      Gillespie, Licensing Manager

    +1
      (212)
      201-9280,

     iaimeatheorchard.com

     

    Marketing
      & Merchandising:

    Prashant
      Bahadur, Director Marketing & Merchandising

    +1
      (212)
      201-9258, 

    grashant@theorchard,corn

     

    Updates
      to Service address or contact information:

    contractadmin@theorchard.com

     

    Licensee
      contacts:

     

    1.  Technical:

    Mr.
      Vesa
      Suomalainen„ CTO, 

    vesaatpiralfnag..COM,
      

    206-605-8201
      

     

    Jim
      Campbell, CIO, 

    jim@spiralfrog.com.,

    212-905-3252

     

    2.  Marketing/Standards
      and Practices: 

     

    Lance
      Ford, Chief Sales and Marketing Officer, 

    lance05oiralfrog.corn,

    212-905-3259

     

    Vicki
      Saunders, VP
      Marketing

     vi_ckiPsoiralfro,com,

     212-905-3249

     

    3.  Publicity:

    Amy
      Levin

    acayPspiralfrog.com,

    (212)905-3321

     

    4.  Content
      and Financial:

    Orville
      Hagler, VP, Entertainment Programming 

    orvilleCasoiralfroa.com,
      

    212-905-3253

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]