Document:

Exhibit
10.2

INDEPENDENT CONTRACTOR AGREEMENT

THIS INDEPENDENT CONTRACTOR AGREEMENT (“Agreement”) is entered into as of
November 28, 2006 by and between ARTISTdirect, Inc., a Delaware
corporation (the “Company”), and Nicholas
Turner, an individual (“Contractor”).

RECITALS

A.            Contractor resigned his position as the Company’s
Vice President, Business Development, effective as of August 31, 2006.

B.            In order to provide for the availability of
Contractor’s services to the Company, the Company and Contractor have agreed to
enter into this Agreement.

C.            Concurrently with the
execution and delivery of, and as a material inducement to the Company to enter
into, this Agreement, Contractor has entered into and delivered a release to
the Company (to which this Agreement is attached) (the “Release”).

D.            The Company’s management
considers it in the best interests of the Company to foster the continued
availability of Contractor, and Contractor agrees to provide services to the
Company and its subsidiaries, in accordance with the terms hereof.

AGREEMENT

NOW, THEREFORE, in consideration of the
premises and mutual covenants contained herein and for other good and valuable
consideration, the parties agree as follows:

1.             Consulting
Services; Status.

(a)           During the Term (as defined
in Section 6 below), Contractor shall make himself available to provide non
exclusive consulting services to the Company and its subsidiaries, as set forth
on Exhibit 1.  Contractor agrees
to relocate from the Company’s offices to another location reasonably selected
and paid for by him (including appropriate amounts of insurance); provided,
that, Contractor shall be available to personally attend meetings at
Company’s premises, or such other location, upon reasonable advance notice by
the Company. Contractor will comply with the Company’s rules and policies
relating to workplace conduct and security while at the Company’s premises.

(b)           It is mutually understood
and agreed that the Contractor, while performing the responsibilities under
this Agreement, is and shall at all times be, act, function, and perform all
services and responsibilities in the legal capacity as an independent
contractor.  It is mutually further
understood and agreed that no work, act, commission or omission of any act by
Contractor pursuant to the terms of this Agreement shall be construed to make
or render the Contractor an employee of the Company, and Contractor shall have
no authority to enter into contracts on behalf of or bind the Company, or
represent himself as an employee, agent, authorized representative or officer
of the Company.

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(c)           Contractor shall, at all
times in the performance of his services hereunder, act in the best interests
of the Company and shall use his best efforts to discharge and fulfill all of
his obligations hereunder.  Contractor
shall organize his business and affairs such that he is available on a first
call, priority basis as to all matters affecting or relating to the Company.

(d)           Contractor shall, promptly
upon request of the Company, make introductions and referrals to persons with
which Contractor has had any material contact or negotiation regarding the
Company or its Affiliates.

2.             Base Compensation; Commission.  During the Term, Contractor’s base monthly
fee (“Base Fee”) and commission
rate (“Commission”) will be as set
forth on Exhibit 1.

3.             Bonus.  Consultant may be eligible
to receive a cash bonus, as set forth on Exhibit 1 (the “Bonus”).

4.             Stock
Options.  The Company
shall endeavor, consistent with applicable law and its obligations to its stockholders
and creditors, to register Contractor’s stock options to purchase shares of the
Company’s common stock outstanding as of the date hereof on a Registration
Statement on Form S-8.   The number of
stock options currently granted to Contractor is set forth on Exhibit 2.  Contractor is not entitled to, and does not
hold or possess (directly or indirectly) any stock, stock options or other
forms of equity, equity derivatives, equity linked instruments or similar forms
of compensation or equity in the Company or any of its affiliates.  Except as set forth in this Section 4,
nothing in this Agreement shall affect the vesting, exercise, strike price or
other terms and conditions of the option agreements and stock option plans
under which such stock options were granted.

5.             Reimbursement; Benefits.

(a)           The Company agrees to
reimburse Contractor for reasonable and necessary out-of-pocket expenses
incurred during the Term that are directly related to performance of Contractor’s
duties under this Agreement, to the extent such expenses are in accordance with
the existing policies and procedures of the Company or are approved by the
Company’s chief executive officer or chief financial officer.  In connection with, but not as limitation on,
the foregoing, Contractor’s travel on behalf of the Company in connection with
the performance of his duties hereunder shall be taken in a manner that is
consistent with the Company’s past practice involving travel by Contractor
during 2006.  Reimbursement is subject to
Contractor providing the Company with copies of satisfactory documentation in
sufficient detail to allow the Company to confirm the business nature of the
expenses and to claim applicable deductions.

(b)           During the Term, the Company
shall reimburse Contractor for monthly expenses associated with maintaining
current health care coverage under the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”),
which currently equals $667.78 per month. 
The Company shall not be obligated to provide any health care coverage
that exceeds coverage provided by the Company as of August 31, 2006.  Except as required by applicable law or as
otherwise set forth herein, the Company shall have no obligation to provide any
other benefits to Contractor during the Term.

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6.             Term.  The term
(the “Term”) of this Agreement
shall commence as of September 1, 2006 (the “Effective
Date”) and shall terminate on April 30, 2007; provided
that the Term may end earlier in accordance with Section 9 below.

7.             Rights
to Works; Confidentiality.  In return for the consideration described
herein, Contractor agrees as follows:

(a)           All inventions, trade
secrets, ideas, recordings, original works of authorship or other work product
of any kind that Contractor conceives, develops, discovers or makes in whole or
in part in the course or scope of his services hereunder or to the Company, and
contributions thereto (hereinafter referred to as “Work
Product”) shall belong solely and exclusively to the
Company.  The Company shall have the
perpetual and exclusive right to use, exhibit, distribute, or license
throughout the universe, any Work Product or part thereof in which Contractor’s
services with the Company are utilized in all forms of audio, visual, textual,
digital, electronic or other distribution that are now known or may hereafter
exist, and otherwise exploit such Work Product in such media, forums and for
such uses throughout the universe as it deems appropriate.  All revenues derived by the Company from the
use, exhibition, distribution, licensing, or other exploitation of such Work
Product shall be the sole and exclusive property of the Company.

(b)           To the extent that Work
Product is considered: (i) a contribution to collective works and/or
(ii) a part or component of audiovisual works, the parties hereby expressly
agree that Work Product shall be considered “works made for hire” under the
United States Copyright Act of 1976, as amended (17 U.S.C.  Section 101 et seq.).  In accordance therewith, the sole right of
copyright in and to the Work Product shall belong exclusively to the Company in
perpetuity.  To the extent that the Work
Product is deemed a work other than a contribution to a collective work and/or
a part or component of an audiovisual work, Contractor hereby irrevocably
assigns and transfers to the Company to the maximum extent permitted by law all
right, title and interest in the Work Product, including but not limited to,
all copyrights, patents, trade secret rights, and other proprietary rights in
or relating to the Work Product.  At the
Company’s reasonable written request and sole expense, Contractor shall
execute, verify, acknowledge, deliver and file any and all formal assignments,
recordations and any and all other documents that the Company may prepare to
give effect to the provisions of this Agreement.  In furtherance of the foregoing, Contractor
hereby and irrevocably constitutes and appoints the Company, with full power of
substitution, to be Contractor’s true and lawful attorney, in his name, place,
and stead, to execute, acknowledge, swear to, and file all instruments,
conveyances, certificates, agreements, and other documents, and to take any
action which may be necessary or appropriate to effect the provisions of this
Section 7.  The powers of attorney
granted herein shall be deemed to be coupled with an interest and shall be
irrevocable.

(c)           It is understood that the
rights granted to the Company in this Section 7 shall continue in effect after
the termination or expiration of this Agreement.

(d)           All provisions of this
Agreement relating to the assignment by Contractor of any invention or
innovation are subject to the provisions of California Labor Code Sections
2870, 2871 and 2872.  In accordance with
Section 2870 of the California Labor Code, the obligation to assign as provided
in this Agreement does not apply to an invention or innovation that Contractor
developed entirely on his own time without using the Company’s equipment,

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supplies, facilities, or trade secrets except
for those inventions that either: (i) relate to either (A) the business of the
Company or any of its subsidiaries at the time of conception or reduction to
practice of the invention, or (B) actual or demonstrably anticipated research
or development of the Company or any of its subsidiaries; or (ii) result from
any work performed by Contractor for the Company or any of its
subsidiaries.  A copy of California Labor
Code Sections 2870, 2871 and 2872 is attached to this Agreement as Exhibit 3.

(e)           Contractor shall disclose
all inventions and innovations to the Company, even if he does not believe that
he is required under this Agreement, or pursuant to California Labor Code
Section 2870, in order to assign his interest in such invention or innovation
to the Company.  If Contractor and the
Company disagree as to whether or not an invention or innovation is included
within the terms of this Agreement, it will be Contractor’s responsibility to
prove that it is not included.

(f)            Contractor shall, at the
request of the Company, enter into the Company’s standard confidentiality agreement
for, and otherwise comply with the Company’s standard policies regarding
confidential information that are applicable to, its employees and/or
contractors (as such agreement and policies may be modified and/or updated from
time to time).  In the event that such
confidentiality agreement or policies conflict with the provisions of any of
the terms and conditions of this Agreement, this Agreement shall govern to the
extent of the such conflict.

8.             Covenant
Not to Compete or Solicit.

(a)           Beginning on the date hereof
and ending on the later of: (i) April 30, 2007 or (ii) the
date of termination of Contractor’s services with the Company (the “Non-Competition Period”), Contractor
shall not (other than on behalf of the Company), without the prior written consent
of the Company, engage in a Competitive Business Activity (as defined below)
anywhere in the Restricted Territory (as defined below). For all purposes
hereof, the term “Competitive Business Activity”
shall mean: (i) engaging or investing in, managing or directing persons
engaged in, or otherwise providing financial or other support to, any business,
persons or entities acting, or proposing or planning to act, in competition
with the Company or any of its affiliates or subsidiaries; (ii) acquiring or having
an ownership interest in any entity that competes (or which is intended or
anticipated to compete) with the Company or any of its affiliates or
subsidiaries; or (iii) participating in the operation or control of any firm,
partnership, corporation, entity or business that competes (or which is
intended or anticipated to compete) with the Company or any of its affiliates
or subsidiaries.  For all purposes
hereof, the term “Restricted Territory” shall
mean in any State of the United States of America, or in any foreign country in
which the Company or an affiliate or subsidiary of the Company is conducting
such Competitive Business Activity. 
Notwithstanding the foregoing, Contractor’s services for a company whose
primary business is e-commerce shall not be deemed engagement in a “Competitive
Business Activity” as defined herein.

(b)           During the Non-Competition
Period, and for a period of twelve (12) months thereafter, the Contractor shall
not approach, solicit, encourage or take any other which could cause, induce or
encourage, or could reasonably be expected to have the effect of causing,
inducing or encouraging, any employee, customer, client or vendor of the
Company or any of its

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subsidiaries to terminate, modify or change
his or her employment or other relationship with the Company or its
subsidiaries or affiliates. 
Notwithstanding the foregoing, and during the term of this Agreement,
Contractor may approach customers and clients of the Company for the purpose of
advancing the Company’s sales, revenues and goodwill with such customers and
clients (and Contractor shall regularly update the Company as to any actual or
proposed contacts with current and prospective customers and clients of the
Company).

(c)           The covenants contained in
Section 8(a) hereof shall be construed as a series of separate covenants, one
for each country, province, state, city or other political subdivision of the
Restricted Territory. The parties acknowledge that the Competitive Business
Activity is and will be national and international in scope and thus the
covenants in this Section 8 would be particularly ineffective if the covenants
were to be limited to a particular geographic area of the United States. If any
court of competent jurisdiction at any time deems the Non-Competition Term
unreasonably lengthy, or the Restricted Territory unreasonably extensive, or
any of the covenants set forth in Section 8 not fully enforceable, the other
provisions of Section 8, and this Agreement in general, will nevertheless
stand and to the fullest extent consistent with law continue in full force and
effect, and it is the intention and desire of the parties that the court treat
any provisions of this Agreement which are not fully enforceable as having been
modified to the extent deemed necessary by the court to render them reasonable
and enforceable and that the court enforce them to such extent (for example,
that the Restricted Term be deemed to be the longest period permissible by law,
but not in excess of the length provided for in Section 8(a)), and the
Restricted Territory be deemed to comprise the largest territory permissible by
law under the circumstances, but not in excess of the territory provided for in
Section 8(a) and Section 8(b).

(d)           Notwithstanding the
foregoing, the Company understands that during the Term, Contractor may seek
employment or other consulting assignments.

9.             Termination.

(a)           The Company shall have the
right, upon written notice to Contractor, to immediately terminate this
Agreement and Contractor’s services with the Company for “Cause.”  Upon such termination, Contractor will have
no further right to compensation or payments under Sections 2 or 3 or Exhibit 1.  For purposes of this Agreement only, “Cause” shall mean the determination
by the Company in the exercise of its sole discretion, of any of the
following:  (i) Contractor’s financial dishonesty, including, without
limitation, misuse, misappropriation or embezzlement of the funds or property
of the Company or any subsidiary or affiliate, falsification or alteration of any
Company or subsidiary of affiliate documents or records or any unauthorized
attempt by Contractor to take any business or business opportunities of the
Company or any subsidiary or affiliate for Contractor’s own personal gain or
benefit (or the gain or benefit of any other person or entity); (ii) Contractor’s
unauthorized or improper use or disclosure of the Company or any subsidiary or
affiliate’s confidential or proprietary information, or trade secrets; (iii)
any action by Contractor that has or is likely to have a material detrimental
or adverse effect on the Company or any subsidiary’s or affiliate’s reputation,
business or prospects (including, without limitation, making or causing to be
disseminated any disparaging comments regarding management or the Company);
(iv) Contractor’s failure, refusal or inability to perform any material duties
contemplated by this Agreement; (v) negligent, reckless or willful misconduct
in performance of Contractor’s duties; (vi) any material breach by

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Contractor of any agreement between
Contractor and the Company or any subsidiary or affiliate; (vii) Contractor’s
conviction (including any plea of guilty or nolo contendere) of any felony or
the commission of any other material act or material omission involving
dishonesty, disloyalty or fraud with respect to the Company, its subsidiaries
or affiliates, any customer, supplier or other material business relations;
(viii) Consultant entering into (A) any full time employment or consulting
arrangement with any person or entity other than the Company or its
subsidiaries or (B) any other arrangement that, in the case of this subclause
(viii)(B), the Company determines it is reasonably likely to conflict with the
provisions of Sections 1, 7, 8 and/or Exhibit 1 of this Agreement,
or (ix) a material or willful violation by Contractor of the Company policies,
including, without limitation, policies on prohibition of unlawful harassment
and insider trading; provided, that with respect to the events described
in subclauses (iii), (iv), (v), (vi), (viii) or (ix) to the extent the matter
giving rise to “cause” is capable of being cured without cost, liability, or
reputational damage to the Company or its affiliates (in each case as
determined by the Company in the exercise of its reasonable discretion) then
the Company may give Consultant a reasonable period to cure such breach in all
respects (but not more than thirty (30) days).

(b)           The Company shall have the
right to terminate this Agreement and to terminate Contractor’s services with the
Company after the occurrence, and during the continuance, of any “Disability”
upon thirty (30) days written notice to Contractor.  For purposes of this Agreement only, “Disability” means Contractor’s
incapacity to perform the essential functions of his duties with or without
reasonable accommodation as required hereunder for sixty (60) days or more
because of mental or physical condition, illness or injury, consistent with
applicable state and federal law.  In the
event of any dispute regarding the existence of Contractor’s Disability, the
matter shall be resolved by the determination of a physician qualified to
practice medicine in the State of California, selected by the Company and
reasonably approved by Contractor.  For
this purpose, Contractor will submit to appropriate medical examinations.

(c)           This Agreement shall
automatically terminate upon the event of Contractor’s death.

(d)           Contractor may terminate
this Agreement for any reason upon ten (10) business days’ prior written notice
to the Company.

(e)           The Company may terminate
this Agreement at its option effective as of December 31, 2006 by a one-time
payment to Contractor of $30,000 in the aggregate.  Such right of termination may be exercised
(if at all) by delivery of notice of termination to Contractor at any time
after the Base Fee for December 2006 has been made and on or prior to December
20, 2006.  The one-time payment of
$30,000 shall be due no later than six (6) business days following delivery of
written notice of termination, but in no event later than December 31, 2006.

(f)            No termination of this
Agreement, regardless of the reason therefor or circumstances thereof, shall
terminate or modify any of the obligations and agreements of the parties under
Section 5 (to the extent Contractor has not theretofore been provided with the
payments required to be made thereunder), Sections 6-19, and Contractor’s
obligation to reimburse certain loan amounts and advance commissions (as more
fully set forth on Exhibits 1 and 5), all of which shall continue in
full force and effect following termination.

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10.          Contractor’s Tax Obligations;
Insurance Coverage.  All fees, compensation, payments and other
benefits payable or provided under this Agreement shall be construed to include
local, state or federal sales, use, excise, personal property or other similar
taxes or duties, and any such taxes shall be assumed and paid for by
Contractor. Contractor shall be solely responsible for and shall make proper
and timely payment of any withholding or other taxes, such as Contractor’s
estimated state and federal income taxes, employment taxes and self-employment
taxes.  Contractor shall maintain
appropriate insurance coverage, as may be required by applicable law, in each
case, for the benefit of Contractor (which coverage shall name the Company and
its subsidiaries as additional insureds).

11.          Securities Laws; Insider Trading
Policies.

(a)           Contractor agrees to comply
with all provisions of the securities laws of the United States.

(b)           Contractor agrees to comply
with all provisions of the Company’s insider trading policy.

12.          Equitable Relief.  Contractor acknowledges that any breach or
threatened breach by Contractor of the provisions of Sections 7 or 8 of this
Agreement will result in immediate and irreparable to the Company, for which
there will be no adequate remedy at law, and that the Company will be entitled
to equitable relief to restrain Contractor from violating these Sections,
and/or to compel Contractor to perform its obligations thereunder, without
posting bond or other security. 
Notwithstanding anything contained herein to the contrary, the parties
shall be entitled to seek a temporary restraining order for an alleged breach
or threatened breach of Sections 7 or 8 of this Agreement pursuant to
California Code of Civil Procedure Section 1281.8.

13.          Complete
Agreement; Amendment; Waiver.  This Agreement is the complete agreement and
understanding between the parties with respect to its subject matter and
supersedes any prior understandings, agreements or representations, written or
oral (whether included in any written, electronic, oral or other correspondence
(or otherwise)) which may relate to the subject matter hereof in any way.  The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and
Contractor, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

14.          Counterparts.  This Agreement may be executed
in separate counterparts, each of which is deemed to be an original and all of
which taken together constitute one and the same agreement.

15.          Successors
and Assigns.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by all the parties and their respective
heirs, successors and assigns, except that Contractor may not assign his rights
or delegate his obligations hereunder.

16.          Choice of
Law.  This Agreement is made and entered into, and
shall be interpreted and construed in accordance with the laws of, the State of
California.

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17.          Dispute Resolution.  The parties agree that any disputes related
to this Agreement, or otherwise related to services provided by Contractor to
the Company, shall be submitted to binding arbitration in accordance with the
employment arbitration rules of American Arbitration Association (“AAA”) by a single impartial
arbitrator. The arbitration shall take place in the County of Los Angeles,
California, and all parties agree to submit to the jurisdiction of the
arbitrator selected in accordance with AAA’s rules and procedures.  The parties agree that the arbitration
procedure provided for in this section will be the exclusive avenue of redress
for any disputes relating to or arising from this Agreement or otherwise
related to Contractor’s service with the Company, and that the award of the
arbitrator shall be final and binding on all parties, and nonappealable.  The arbitrator shall have discretion to award
monetary and other damages, or no damages, and to fashion such other relief as
the arbitrator deems appropriate, in accordance with applicable law.  The arbitrator shall also have discretion to
award the prevailing party reasonable costs and attorneys’ fees incurred in
bringing or defending an action under this provision, in accordance with
applicable law.  THE PARTIES ACKNOWLEDGE
AND AGREE THAT BY AGREEING TO ARBITRATE THE DISPUTES COVERED BY THIS
SECTION 17, THEY ARE WAIVING ANY RIGHT TO BRING AN ACTION AGAINST THE
OTHER IN A COURT OF LAW, EITHER STATE OR FEDERAL, AND ARE WAIVING THE RIGHT TO
HAVE CLAIMS AND DAMAGES, IF ANY, DETERMINED BY A JURY WITH RESPECT TO SUCH
DISPUTES.  Notwithstanding the foregoing,
the parties shall be entitled to seek a provisional remedy, including, but not
limited to, a temporary restraining order pursuant to California Code of Civil
Procedure Section 1281.8 before or during arbitration.

18.          Indemnity.  The Contractor agrees to indemnify and hold
the Company and its affiliates, subsidiaries, officers, directors, employees
and agents harmless from any and all claims, demands, judgments, damages,
liabilities, costs and fees, including reasonable attorneys’ fees, relating to
or arising out of any claim or the defense of any claim that relates either to
the performance by Contractor of his services under this Agreement or
Contractor’s failure to comply with any of the terms of this Agreement.  The Company agrees to indemnify Contractor
for losses incurred as a direct consequence of the discharge of Contractor’s
duties hereunder.

19.          Notices.  Any notice or communication
required or permitted by this Agreement shall be deemed sufficiently given if
in writing and, if delivered personally, when it is delivered or, if delivered
in another manner, the earlier of when it is actually received by the party to
whom it is directed or when the period set forth below expires (whether or not
it is actually received):  (i) if
deposited with the U.S. Postal Service, postage prepaid, and addressed to the
party to receive it as set forth below, forty-eight (48) hours after such
deposit as registered or certified mail; or (ii) if accepted by Federal Express
or a similar delivery service in general usage for delivery to the address of
the party to receive it as set forth next below, twenty-four (24) hours after
the delivery time promised by the delivery service.

20.          Letter of Recommendation.  On or prior to the fifth (5th) business day after the
date hereof, the Company will provide a letter of recommendation to Contractor
in the form of Exhibit 4.

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

	
  

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTISTDIRECT, INC.

  
	
   

  	
   

  	
  /s/ Robert N. Weingarten

  	
   

  
	
   

  	
   

  	
  By:

  	
  Robert N. Weingarten

  
	
   

  	
   

  	
  Its:

  	
  Chief Financial Officer 

  
	
   

  	
   

  	
  Address:

  	
  1601 Cloverfield Boulevard, Suite 400 South

  Santa Monica, California 90404-4082

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONTRACTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Nicholas Turner

  	
   

  
	
   

  	
   

  	
  Nicholas Turner 

  
	
   

  	
   

  	
  Address:

  	
  2026 E. Lakeshore Drive

  Agouro, California 91301

  
							

 

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EXHIBIT 1

	
  Duties:

  	
  Advancing, promoting
  and marketing the Company’s network operations and relationships in Europe
  and other foreign territories (which shall including taking a limited number
  of business trips to Europe to advance such efforts during the Term),
  advancing and promoting the Company’s goodwill and client (actual and
  prospective) relationships (both domestically and abroad) and such other
  non-exclusive consulting and advisory services with respect to the business
  and operations of the Company and its subsidiaries (including MediaDefender,
  Inc.) as the Company may request from time to time.

  
	
   

  	
   

  
	
   

  	
  Contractor shall report
  to or consult with such employees of the Company and its subsidiaries as may
  be identified from time to time by the Company.  

  
	
   

  	
   

  
	
  Base Fee:

  	
  During the four (4)
  month period ended December 31, 2006, and so long this Agreement has not
  theretofore been terminated, Contractor shall be entitled to receive a base
  monthly fee $5,000 and, in addition thereto, the Company shall make a loan to
  Contractor of $7,500 per month (which loan shall be evidenced by a promissory
  note substantially in the form of Exhibit 5).  The aggregate monthly loan amount shall be
  forgiven on April 30, 2007 assuming Contractor’s continued compliance with
  the covenants set forth in Section 8 of the Agreement during the Term.  The base monthly fee and loan proceeds
  shall be disbursed to Contractor not later than the tenth (10th) day of each month during such four-month period in
  2006.

  
	
   

  	
   

  
	
   

  	
  During the four (4)
  month period ended April 30, 2007, and so long this Agreement has not
  theretofore been terminated, the base monthly fee shall be increased to
  $7,500 per month and, in addition thereto, Contractor will receive a
  recoupable advance against commission (see “Commission,”
  below) of $2,500 per month (the “Advance Commission”)
  through April 30, 2007.  The base
  monthly fee and recoupable advance shall be disbursed to Contractor not later
  than the tenth (10th) day each month during such four-month
  period in 2007.

  
	
   

  	
   

  
	
  Commission:

  	
  Through
  the period ended April 30, 2007, and so long this Agreement has not
  theretofore been terminated, Contractor shall be entitled to receive a
  commission (a “Commission”) equal to 7.5%
  of total gross revenues attributable to the Company’s international network
  sales in any month that network sales actually collected and recognized by
  the Company exceed $30,000 (meaning that at $66,667 of monthly gross foreign
  revenues, Contractor will receive a $5,000 bonus).  The determination of “total gross revenues
  attributable to the Company’s international network sales” shall be made by
  the Company’s accounting personnel in the ordinary course of business and in
  their good faith (but sole) discretion. 
  Payments of commission shall be made within 15 days after the end of
  each month and shall be offset and reduced by any unrecouped Advance
  Commissions that have previously been disbursed to Contractor.

  

 

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  Assuming
  compliance with Section 8 of the Agreement through and at April 30,
  2007, and notwithstanding the level of total gross revenues attributable to
  the Company’s international network sales during such four month period, the
  unrecouped Advance Commissions shall be forgiven on April 30, 2007.

  
	
   

  	
   

  
	
  Bonus:

  	
  If, for the eight (8)
  month period ended April 30, 2007, the Company’s gross international
  local ad revenues exceed $600,000, and so long this Agreement
  has not theretofore been terminated, Contractor will receive a one (1) time bonus of
  $30,000 (the “International Sales Bonus”).  For this purpose, the Company’s
  international local ad revenues means revenues in the Company’s media segment
  from sales of advertising outside of the United States on local web pages in
  Canada, the United Kingdom and Australia and other foreign territories, in
  each case as approved by the Company and actually recognized and collected by
  it. The determination of “international local ad revenues” shall be made by
  the Company’s accounting personnel in the ordinary course of business and in
  their good faith (but sole) discretion. 
  The bonus shall be payable within thirty (30) days following
  April 30, 2007.

  
	
   

  	
   

  
	
   

  	
  In addition to the
  foregoing, during the first fiscal quarter of 2007, Contractor will be
  considered for a discretionary bonus based upon his performance during
  calendar 2006 (both as an employee of and consultant to the Company).  Any such bonus will be made at the
  Company’s sole discretion.  Contractor
  understands, acknowledges and agrees that he has not entered into this
  Agreement or the Release upon any understanding, promise, inducement or
  agreement that he will or may receive a bonus in any particular amount or at
  any particular time, or any bonus at all.

  
	
   

  	
   

  
	
  Release:

  	
  As a condition to any
  agreement of the Company to forgive any loans, waive recoupment of any
  advance commissions, make any payments under Section 9(e) or make a bonus
  payment (if any) to Contractor, the Company may require Contractor to enter
  into a release substantially in the form of the release to which this
  Agreement is attached.

  

 

 11
 

 

EXHIBIT 2

Number of Stock Options

Options
to purchase 92,000 shares as evidenced pursuant to a Notice of Stock Option
Grant dated as of April 29, 2005.

 12
 

 

EXHIBIT 3

California
Labor Code Sections 2870, 2871 and 2872

SECTION 2870

(a)           Any provision in an
employment agreement which provides that an employee shall assign, or offer to
assign, any of his or her rights in an invention to his or her employer shall
not apply to an invention that the employee developed entirely on his or her
own time without using the employer’s equipment, supplies, facilities, or trade
secret information except for those inventions that either:

i.              Relate at the time of
conception or reduction to practice of the invention to the employer’s
business, or actual or demonstrably anticipated research or development of the
employer; or

ii.             Result from any work
performed by the employee for the employer.

(b)           To the extent a provision in
an employment agreement purports to require an employee to assign an invention
otherwise excluded from being required to be assigned under subdivision (a),
the provision is against the public policy of this state and is unenforceable.

SECTION 2871

No employer shall require a provision made void and
unenforceable by Section 2870 as a condition of employment or continued
employment.  Nothing in this article
shall be construed to forbid or restrict the right of an employer to provide in
contracts of employment for disclosure, provided that any such disclosures be
received in confidence, of all of the employee’s inventions made solely or
jointly with others during the term of his or her employment, a review process
by the employer to determine such issues as may arise, and for full title to
certain patents and inventions to be in the United States, as required by
contracts between the employer and the United States or any of its agencies.

SECTION 2872

If an employment agreement entered into after
January 1, 1980, contains a provision requiring the employee to assign or
offer to assign any of his or her rights in any invention to his or her employer,
the employer must also, at the time the agreement is made, provide a written
notification to the employee that the agreement does not apply to an invention
which qualifies fully under the provisions of Section 2870.  In any suit or action arising thereunder, the
burden of proof shall be on the employee claiming the benefits of its
provisions.

 13
 

 

EXHIBIT 4

Letter of Recommendation

ARTISTdirect, Inc.

1601 Cloverfield Boulevard, Suite 400 South

Santa Monica, California  90404-4082

[Date]

[Address of Recipient Party]

RE:         Nicholas
Turner

To Whom It May Concern:

Mr. Turner has been associated with ARTISTdirect,
Inc. (the “Company”) since January 2005. 
He served as our Executive Vice President, Business Development from
January 2005 to December 2005 and as our Vice President Business Development
from January 2006 to August 2006.  Mr.
Turner presently provides non-exclusive consulting services to the Company.

During his tenure as an executive with the Company,
Mr. Turner was responsible for advancing, promoting and marketing the Company’s
network operations in the United States and in Europe and for advancing and
promoting the Company’s goodwill and client relationships.

We have enjoyed working with
Mr. Turner and during his tenure he worked diligently to fulfill his
responsibilities to the Company.

	
  

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jonathan V. Diamond

  
	
   

  	
   

  	
  President and Chief Executive Officer

  

 

 14
 

 

EXHIBIT 5

Form of Promissory Note

This
promissory note has not been registered pursuant to the registration
requirements of the Securities Act of 1933, as amended (the “Act”), or
qualified pursuant to any applicable state securities law.  This promissory note may be resold only if
registered pursuant to the provisions of the Act and qualified pursuant to
applicable state securities laws or if an exemption from such registration and
qualification is available, except under circumstances where neither such
registration, qualification nor exemption is required by law.

PROMISSORY NOTE

	
  Principal:     $7,500

  	
   

  	
   

  	
   

  	
  Issuance Date:

  	
   

  	
             ,
  2006

  
	
  No. 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

FOR
VALUE RECEIVED, Nicholas Turner, an individual (“Maker”), promises to
pay to the order of ARTISTdirect, Inc., a Delaware corporation (“Holder”),
the principal sum of Seven Thousand Five Hundred Dollars ($7,500), with
interest accruing on the unpaid principal balance at the applicable federal
rate under Section 1274(d) of the Internal Revenue Code in effect on the
Issuance Date on a per annum basis, as provided herein.  All payments shall be made in lawful money of
the United States and shall be paid at such place as Holder hereof may
designate from time to time.

Principal,
and all unpaid accrued interest (collectively, the “Balance”), shall be
due and payable in full on or before April 30, 2007 (the “Maturity Date”);
provided, however, that in the event Maker complies in all
respects with the covenants set forth in Section 8 of that certain Independent
Contractor Agreement entered into by Maker and Holder as of November 28, 2006 (“Contractor
Agreement”) during the term of such agreement, the Balance shall be
forgiven by Holder effective as of the Maturity Date.

Maker
shall have the right to prepay this promissory note in full or any portion
thereof at any time during the term hereof without penalty.  All pre-payments shall be credited first on
accrued interest and the balance on principal.

In
the event Maker breaches any of the covenants set forth in Section 8 of the
Contractor Agreement during the term of such agreement, the Holder of this
promissory note may declare the Balance immediately due and payable (the
declaration date is referred to herein as the “Accelerated Payment Date”).  Failure to exercise such option shall not
constitute a waiver of the right to exercise the same at any other time or
times.

In
the Balance is not paid in full within ten (10) days after the Maturity Date or
the Accelerated Payment Date, as the case may be, the undersigned shall pay a
late payment charge of five percent (5%) of the amount so overdue to compensate
Holder for its time and effort to collect such sum.

 15
 

 

In
the event of any action hereon or for the enforcement hereof or in the event of
referring of this promissory note for collection, Maker promises to pay all
costs thereof, including reasonable attorneys’ fees for trial and appeal
actions, and all costs pertaining to securing the indebtedness hereunder.

This promissory note may not be changed, modified,
amended without the prior written consent of Holder.

This promissory note is assignable by Maker or Holder
without the prior written consent of the other party.

This
promissory note shall be governed by and construed in accordance with the laws
of the State of California.

This promissory note is delivered by Maker to Holder
as of the Issuance Date first set forth above.

	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Nicholas Turner

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

 16EMPLOYMENT AGREEMENT

EXHIBIT 10.29

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (the “Agreement”) is made as of the __th day of October, 2006 (the “Effective Date”), by and between Broadcaster, Inc., a California corporation (the “Company”) and Kathryn Felice (“Executive”), an individual residing in California. 

WHEREAS, the Company is in need of an executive with significant experience in legal matters; and

WHEREAS, Executive has experience in such fields; and

WHEREAS, the Company wishes to engage Executive to serve as its General Counsel and Secretary,

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

1.

DUTIES AND POSITION.  During the term of this Agreement, Executive agrees to be employed by and to serve the Company as its General Counsel and Secretary.  The Company agrees to employ and retain Executive in such capacity and Executive accepts and agrees to such employment, subject to the general supervision, advice and direction of the Company’s Board of Directors.  Executive shall perform such duties as are customarily performed by an executive in a similar position.  Executive shall devote his full business time to the performance of his duties as General Counsel and Secretary.  Executive’s reasonable attention to personal investments and other business matters of his immediate family shall not be deemed to be a violation of this Agreement.

2.

TERMS OF EMPLOYMENT.

2.1.

Term of Employment.  The Term of Executive's employment commenced effective as of the date first set forth above and shall continue until the __th day of October, 2009, unless sooner terminated pursuant to the provisions set forth hereinbelow (the “Term”).

2.2.

Place of Performance.  Executive shall be based at the principal offices of the Company, which are located at 9201 Oakdale Avenue, Chatsworth, California.  In no case will Executive be required or expected to move his principal residence from the Los Angeles Area.

3.

SALARY, BENEFITS AND BONUS COMPENSATION.

3.1.

Salary.  As payment for the services to be rendered by Executive as provided in Section 1 and subject to the terms and conditions of Section 4, the Company agrees to pay to Executive a salary equal to One Hundred Fifty Thousand Dollars ($150,000) per year, payable in twenty-four equal installments on the 15th and the last days of each month (as may be adjusted from time to time, the “Base Salary”).  Executive’s salary shall be reviewed by the Company’s Board of Directors in accordance with Company policies, and Executive shall be eligible for 

1

increases in salary and benefits as determined by the Company’s Board of Directors in its sole discretion.  In no event shall Executive’s salary be reduced below the Base Salary except with Executive’s consent which may be withheld in Executive’s sole discretion.

3.2.

Bonuses.  Executive shall be eligible to receive discretionary quarterly bonuses of up to $15,000 related to Executive’s success in meeting job specific MBOs and corporate performance as documented in the Quarterly Bonus Plan to be agreed on by Executive and his direct supervisor, as determined by the Company’s Board of Directors.

3.3.

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

4.

TERMINATION.

4.1.

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

(a)

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

(b)

“Termination Other Than For Cause” shall mean termination by the Company of Executive’s employment by the Company (other than a Termination For Cause), or a Demotion, as defined below.

(c)

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

(d)

“Demotion” shall mean (i) any reduction of Executive’s then current Base Salary; (ii) any material reduction in the package of benefits and incentives provided to Executive or any action by the Company which would materially and adversely affect Executive’s participation or reduce Executive’s benefits under any such plans, except to the extent that such benefits and incentives of all other officers of the Company are similarly reduced; (iii) any material diminution of Executive’s duties, responsibilities, or authority; or (iv) any requirement that Executive relocate to a work site that would increase Executive’s one-way commute distance to more than fifty (50) miles from Executive’s principal residence.

4.2.

Termination For Cause.  

(a)

Termination For Cause may be effected by the Company at any time during the Term and shall be effected by notice to Executive.  

2

(b)

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

4.3.

Termination Other Than For Cause.  

(a)

Notwithstanding anything else in this Agreement, the Company may effect a Termination Other Than For Cause at any time upon notice to Executive of such termination.  

(b)

Upon any Termination Other Than For Cause, Executive shall be paid any accrued salary, any bonus compensation to the extent earned, any deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any accrued vacation pay and any appropriate business expenses incurred by Executive in connection with his duties hereunder, all to the date of termination, and any severance compensation provided in Section 5, but Executive shall be entitled to no other compensation or reimbursement of any kind.

4.4.

Termination by Reason of Disability.  

(a)

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

(b)

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

4.5.

Death.  

(a)

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

(b)

Upon termination by death, the Company shall pay to Executive’s estate any accrued salary, any bonus compensation to the extent earned, any vested deferred compensation 

3

(other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any accrued vacation pay and any appropriate business expenses incurred by Executive in connection with his duties hereunder, all to the date of termination, but no other compensation or reimbursement of any kind.

4.6.

Voluntary Termination.  Executive may effect a Voluntary Termination of this Agreement at any time upon sixty (60) days notice to the Company.  In the event of a Voluntary Termination, the Company immediately shall pay any accrued salary, any bonus compensation to the extent earned, any vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Company in which Executive is a participant to the full extent of Executive’s rights under such plans, any accrued vacation pay and any appropriate business expenses incurred by Executive in connection with his duties hereunder, all to the date of termination, but no other compensation or reimbursement of any kind.

5.

SEVERANCE COMPENSATION.

Upon a Termination Other Than for Cause, Executive shall receive a severance fee equal to one month salary for each three months Executive has been employed by the Company, calculated at his then-current Base Salary, not to exceed a total of six months severance fee.   At the Company's option, such fee shall be payable in full at the time of severance, or in equal monthly increments, each equal to at least the Executive's monthly base salary at the time of severance.   In addition, Executive shall receive:

(a)

any benefits under any medical and dental plans of the Company in which Executive is a participant to the full extent of Executive’s rights under such plans for a period of six (6) months following the date of termination, or (at the Company’s option) payment in cash of the cost of such benefits at COBRA rates then in effect; and

(b)

full vesting of any and all unvested stock options held by Executive as of the date of termination.

6.

PAID TIME OFF. Executive shall eligible to accrue vacation and sick leave according to company policy.  During the first year of employment, Executive will accrue vacation time off on a monthly basis at the rate of 0.833 days per month or ten (10) days per year. In the second and subsequent years, Executive will accrue vacation time off on a monthly basis at the rate of 1.25 days per month or fifteen ten (15) days per year. By virtue of past service with Access-media Networks, Inc., executive had accrued five (5) days of vacation time at the Effective Date, which days are deemed to have accrued under this Agreement. Executive is ineligible to accrue vacation benefits while Executive is absent without pay including, but not limited to, unpaid leaves of absence.  The purpose of vacation leave is, among other things, to provide time for recreation and relaxation.  The Company encourages all of its employees to take accrued vacation leave each year.  Accordingly, the maximum vacation Executive will be permitted to accrue is twenty-four (24) days or 192 hours.  Once this cap on the accrual of vacation has been reached, no additional vacation leave will accrue until Executive has reduced the balance of unused vacation to less than twenty-four (24) days.  Thereafter, vacation leave will accrue on a prospective basis as long as Executive’s total accrual remains under the cap.  The Company 

4

reserves the right to compensate Executive for earned, unused vacation at any time in its sole discretion. In addition to vacation leave, Executive will be eligible to accrue six (6) days of sick leave a year.  

7.

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

8.

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

9.

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

10.

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

11.

MISCELLANEOUS.

11.1.

Every notice or other communication required or contemplated by this Agreement by either party shall be delivered to the other party at the address set forth on the signature page below by: (i) personal delivery; (ii) postage prepaid, return receipt requested, registered or certified mail; (iii) internationally recognized express courier, such as Federal Express, UPS or DHL; or (iv) facsimile or email with a confirmation copy sent simultaneously by postal mail.  Notice not given in writing shall be effective only if acknowledged in writing by a duly authorized representative of the party to whom it was given.  Either party may change its or his address for notice from time to time by providing written notice in the manner set forth above.

11.2.

Dispute Resolution.  Any disputes between Company and Executive arising out of or relating to this Agreement, or the performance or breach thereof, shall be determined as follows: within seven (7) days of either party notifying the other of a dispute, which the Parties have been unable to reconcile, a meeting will be held between Company’s CEO or Chairman of Board and Executive in an attempt to reach an amicable conclusion of the dispute.  Should they be unable or unwilling to reach an amicable and mutually agreed conclusion to the dispute then either party may resort to binding arbitration conducted in accordance with the Judicial Arbitration and Mediation Services (“JAMS”) Comprehensive Arbitration Rules.  The Federal Arbitration Act, 9 U.S.C. Sections 1-6, not state law, will cover the arbitrability of disputes.    This agreement will otherwise be governed by the substantive laws of the state of California (without respect of its conflict or choice of law provisions) The costs of arbitration, including 

5

arbitor’s fees, shall be shared equally by the parties; provided, however, that each party will bear the cost of preparing and presenting its own claims and/or defenses (including its own attorneys’ fees).  The venue for arbitration will be in Chatsworth, California.  A single arbitrator engaged in the practice of law, who is knowledgeable about the subject matter of this Agreement, will conduct the arbitration.  The arbitrator shall be selected by JAMS.  The arbitrator is bound to apply and enforce the terms of this Agreement.  The arbitrator’s decision will be final, binding and enforceable in a court of competent jurisdiction.  If a party is required to enforce compliance with this Section (including nonpayment of an award), then the non-complying party must reimburse all costs and expenses incurred by the party seeking such enforcement (including reasonable attorneys’ fees).

BY ENTERING THIS AGREEMENT EACH PARTY EXPRESSLY ACKNOWLEDGE THAT THEY UNDERSTAND THAT BY AGREEING TO BINDING ARBITRATION THEY ARE EACH GIVING UP THE RIGHT TO JUDICIAL DISCOVERY, TRIAL ON THE MERITS, BY EITHER JUDGE OR JURY, OR TRIAL DE NOVO AND THE RIGHT TO APPEAL

11.3.

Entire Agreement.  This Agreement supersedes all prior agreements, and the terms set forth herein represent the entire understanding and agreement between the Company and Executive regarding compensation, employment, status and position.  It is further understood that the Company’s policies, procedures and rules may be amended or changed at any time by the Company.

11.4.

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

11.5.

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

11.6.

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

11.7.

Applicable Law.  This Agreement shall be governed by the laws of the State of California.

In witness whereof, the parties hereto have executed, or caused to be executed, this Agreement this 24th day of October, 2006, but as of the day and year first above written.   

Broadcaster, Inc.

Executive

By: /s/ Martin R. Wade, III

/s/ Kathryn Felice

Martin Wade, CEO

Kathryn Felice 

6

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