Document:

Exhibit 10.6

EMPLOYMENT AGREEMENT

          AGREEMENT made as of the __ day of ______,
2008 between FRIENDFINDER NETWORKS INC., a Nevada corporation (the “Company”)
having an office at 6800 Broken Sound Parkway, Boca Raton, Florida 33487 and
MARC H. BELL (the “Executive”).

                    WHEREAS,
the Company desires to employ
Executive and Executive desires to accept such employment by the Company on the
terms and subject to the conditions hereinafter set forth.

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

1. Employment. The Company hereby employs
the Executive, and the Executive hereby accepts such employment by the Company,
upon the terms and conditions set forth below.

2. Term. Subject to the provisions for
termination herein provided, the employment of the Executive shall commence as
of the date of this Agreement and shall continue for a term of five (5) years
(the “Term”).

3. Duties and Responsibilities.

          3.1
During the Term, the Executive shall have the position of Chief Executive
Officer of the Company and in connection therewith, the Executive shall perform
such executive duties and responsibilities commonly incident to such office as
may be assigned to him from time to time by or under the authority of the Board
of Directors of the Company (the “Board”), and, in the absence of such
assignment, such duties customary to such offices as are necessary to the
operations of the Company.

          3.2
The Executive’s employment by the Company shall be full-time, and during the
Term, the Executive agrees that he will devote his business time and attention,
his best efforts, and all his skill and ability to promote the interests of the
Company. Notwithstanding the foregoing, the Executive shall be permitted to
devote up to twenty percent (20%) of his business time to such other business
activities that the Executive desires, engage in charitable and civic
activities and manage his personal passive investments; provided, however, that
such activities (individually or collectively) (a) do not interfere with the
performance of his duties or responsibilities under this Agreement and (b) do
not injure the reputation, business or business relationships of the Company or
any of its affiliates as determined by the Company in good faith.

          3.3
The Executive’s services shall be substantially performed at the Company’s
offices in Boca Raton, Florida, subject to necessary travel requirements of his
position and duties hereunder.

          3.4
Nothing contained herein shall require the Executive to follow any directive or
to perform any act which would violate any laws, ordinances, regulations or
rules of any governmental, regulatory or administrative body, agent or
authority, any court or judicial authority, or any public, private or industry
regulatory authority. The Executive shall act in accordance with all laws,
ordinances, regulations or rules of any governmental, regulatory or 

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administrative
body, agent or authority, any court or judicial authority, or any public,
private or industry regulatory authority.

4. Compensation.

          4.1
Base Salary. The Company shall pay
the Executive $1,000,000 per annum (the “Base Salary”) in equal
semi-monthly installments or at such other intervals as the parties shall
agree. The Base Salary may be increased in each fiscal year of the Company
following the first anniversary of the date hereof (the “First Anniversary”)
at the rate of ten percent (10%) of the then current Base Salary. 

          4.2
Bonus. In addition to the Base
Salary, the Executive will be eligible to receive a performance bonus during
each year of employment with the Company of up to one hundred percent (100%) of
the Base Salary. The award of each year’s performance bonus, if any, shall be
based upon the following performance criteria: (a) seventy-five percent (75%)
based on the Board’s objective evaluation of revenue growth, successful
integration of acquisitions, EBIDTA growth and margin improvement and (b)
twenty-five percent (25%) based on the Board’s subjective evaluation of the
Executive’s performance. Such determination shall be made after consultation
with the Executive within sixty (60) days of the end of each Fiscal Year during
the Term commencing with the Fiscal Year ended December 31, 2008. The Company
shall pay any performance bonus payable hereunder within ninety (90) days of
the end of the applicable Fiscal Year. The full performance bonus that may be
awarded pursuant to this Section 4.2, as it may be increased from time to time
in the discretion of the Board, shall be referred to herein as the “Bonus.”

          4.3
Stock Options. The Company hereby
agrees to grant to the Executive an option to purchase 83,333 shares of common
stock of the Company on the date hereof and on each anniversary of the date of
this Agreement (each such grant, an “Option”). The respective exercise
price per share of each Option shall be equal to (i) if the Option is granted
prior to the date of the Company’s initial public offering of it’s common stock
pursuant to an effective registration statement filed with the Securities
Exchange Commission (the “IPO”), the price per share offered to the
public pursuant to such IPO, or (ii) if the Option is granted after the IPO,
the fair market value for each share of the common stock of the Company on the
date immediately prior to the date such Option was granted. Subject to
accelerated vesting provisions set forth in Section 6 herein, each Option shall
vest as to twenty percent (20%) of the shares subject to such Option on the
first anniversary of the grant of such Option and as to (20%) of the shares
subject to such Option each anniversary thereafter, subject to the Executive’s
continued employment with the Company on the relevant vesting dates. In all other
respects, each Option shall be subject to the terms, definitions and provisions
of the stock option agreement by and between the Executive and the Company (the
“Option Agreement”), which document is incorporated herein by reference.
In the case of any conflict between the terms of any Option Agreement and the
terms of this Agreement, the terms of the Option Agreement will govern.

          4.4
Restricted Stock. On the First
Anniversary and on each anniversary thereafter, the Company shall issue to the
Executive 50,000 shares of restricted stock (the “Restricted Stock”),
which stock the Executive shall not sell, transfer, assign or otherwise convey
prior to the third anniversary of the date such Restricted Stock is issued. In
the event the Executive’s ceases to be employed by the Company, except for
termination of Executive’s employment under 

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Certain
Circumstances, the Company shall have the right to repurchase any Restricted
Stock issued less than three years prior to the date of such termination at a
price of $0.10 per share. The Company shall provide written notice the
Executive of its intention to exercise such repurchase right no later than five
(5) days after the date of termination of employment and the repurchase of the
Restricted Stock shall be consummated within ten (10) days of such notice. 

For purposes
of this Agreement, “Certain Circumstances” shall mean the termination of
Executive’s employment (i) by the Company Without Cause (as defined in Section
5.1); or (ii) by the Executive for Good Reason (as defined in Section 5.2); or
(iii) as a result of a Change in Control (as defined in Section 6).

          4.5
Share Adjustment. All share
amounts contemplated in Sections 4.3 and 4.4 are subject to appropriate
adjustment in the event of stock split, reverse stock split, merger,
recapitalization and similar transactions which may take place after the date
hereof.

          4.6
Expenses. The Company shall pay or
reimburse the Executive for all reasonable out-of-pocket expenses incurred by
the Executive, accompanied by vouchers therefore in accordance with the
Company’s policies, in the course of providing management services to the
Company.

          4.7
Vacation. The Executive shall be
entitled to [four (4)] weeks of paid vacation during each calendar year, to be
taken during such calendar year at times selected by the Executive, as well as
paid holidays and personal days according to the Company policy in effect from
time to time.

          4.8
Benefits. During the Term of this
Agreement, Executive shall be eligible to participate in each of the Company’s
existing or future benefit plans, policies or arrangements maintained by the
Company and made available to employees generally, as well as all such existing
or future benefit plans, policies or arrangements maintained by the Company for
the benefit of executives. Except as specifically provided for herein, no
additional compensation under any such plan, policy or arrangement shall be
deemed to modify or otherwise effect the terms of this Agreement.

5. Termination. 

          5.1
Termination by the Company for Cause. The
Company may terminate this Agreement at any time during the Term for Cause,
effective immediately upon written notice to the Executive of such termination.
For purposes of this Section 5.1, “Cause” shall mean:

                    (a)
The Executive’s gross incompetence or willful and serious misconduct, that is
injurious to the business, operations or affairs of the Company;

                    (b)
The Executive’s conviction or plea of nolo contendere to any felony or a
determination by the Company, following an opportunity by the Executive to
appear and be heard by the Board, that the Executive is engaging in or has
engaged in fraud, misappropriation, dishonesty in financial dealings or
embezzlement in connection with the business, operations or affairs of the
Company.

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A termination
of the Executive’s employment by the Company for any reason not provided for in
this Section 5.1 or in any other circumstances will be a termination “Without
Cause.”

          5.2
Termination by the Executive for Good Reason.
A resignation for “Good Reason” shall mean a resignation by the
Executive of the Executive’s employment within sixty (60) days of the
occurrence of any of the following events: 

                    (a)
Without the Executive’s written consent, a material reduction of his duties,
position or responsibilities; 

                    (b)
Without the Executive’s written consent, a significant reduction by the Company
in the Base Salary or Bonus as in effect immediately prior to such reduction;
or 

                    (c)
Without the Executive’s written consent, a requirement by the Company that the
Executive relocate his office to a location more than fifty (50) miles from its
then-current location. 

          5.3
Voluntary Termination. The
Executive may terminate his employment hereunder, upon not less than 180 days
prior written notice to the Company.

6. Severance. 

          6.1
In the event the Executive’s employment is terminated as a result of a Change
in Control (as defined below), by the Company Without Cause or by the Executive
for Good Reason, the Executive shall be entitled to receive, and the Company
shall be obligated to provide, the following severance benefits:

                    (a)
Payment to the Executive of an amount equal to the lesser of (i) 2.99 times the
Base Salary in the year of such termination or (ii) the amount of Base Salary
owed to the Executive for the remainder of the Term;

                    (b)
Payment to the Executive of an amount equal to one hundred percent (100%) of
the greater of (i) the Executive’s Bonus for the year of termination or (ii)
the Bonus actually earned for the year prior to the year of termination, if
any; this amount shall be paid within thirty (30) days of the termination date;

                    (c)
The same level of health (i.e. medical, vision and dental) coverage and
benefits as in effect for the Executive on the day immediately preceding the
day of termination of employment; provided, however that (i) the Executive
constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of the
Internal Revenue Code of 1986, as amended; and (ii) the Executive elects
continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant
to COBRA. The Company shall continue to provide the Executive with such health
coverage until the earlier of (A) the date the Executive is no longer eligible
to receive continuation coverage pursuant to COBRA, or (B) [twelve (12)] months
from the termination date; and

                    (d)
The vesting of the Option will accelerate on the date of termination as to that
number of shares that would have become vested if the Executive had remained
employed by the Company until the date [twelve (12)] months following the
termination date.

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For purposes
of this Agreement, a “Change in Control” shall mean: (i) the direct or
indirect acquisition, whether in one or a series of transactions by any person
(as such term is used in Section 13(d) and Section 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)), or related
persons (such person or persons, an “Acquirer”) constituting a group (as
such term is used in Rule 13d-5 under the Exchange Act), of (A) beneficial
ownership (as defined in the Exchange Act) of issued and outstanding shares of
stock of the Company, the result of which acquisition is that such person or
such group possesses in excess of [50]% of the combined voting power of all
then-issued and outstanding capital stock of the Company, or (B) the power to
elect, appoint, or cause the election or appointment of at least a majority of
the members of the Board (or such other governing body in the event the Company
or any successor entity is not a corporation); (ii) a merger or consolidation
of the Company with a person or a direct or indirect subsidiary of such person,
provided that the result of such merger or consolidation, whether in one or a series
of related transactions, is that the holders of the outstanding voting stock of
the Company immediately prior to the consummation of such transaction do not
possess, whether directly or indirectly, immediately after the consummation of
such merger or consolidation, in excess of [50]% of the combined voting power
of all then-issued and outstanding capital stock of the merged or consolidated
person, its direct or indirect parent, or the surviving person of such merger
or consolidation; or (iii) a sale or disposition, whether in one or a series of
transactions, of all or substantially all of the Company’s assets. 

7. Miscellaneous.

          7.1
Notices. All notices under this
Agreement shall be in writing and shall be deemed to have been duly given if personally
delivery against receipt or if mailed by first class registered or certified
mail, return receipt requested, addressed to Company and to the Executive at
their respective addresses set forth in the first paragraph of this Agreement,
or to such other person or address as may be designated by like notice
hereunder. Any such notice shall be deemed to be given on the day delivered, if
personally delivered, or on the third day after the mailing if mailed.

          7.2
Parties in Interest. No party shall
assign this Agreement without the prior written consent of the other party.
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective heirs, legal
representatives, successor and permitted assigns, but no other person shall
acquire or have any rights under or by virtue of this Agreement.

          7.3
Further Assurances. From and after
the date of this Agreement, each of the parties hereto shall from time to time,
at the request of the other party and without further consideration, do,
execute and deliver, or cause to be done, executed and delivered, all such
further acts, things and instruments as may be reasonably requested or required
more effectively to evidence and give effect to the transactions provided for
in this Agreement.

          7.4
Governing Law. This Agreement
shall be governed by and construed in accordance with the laws and decisions of
the State of [________] applicable to contracts made and to be performed
therein without giving effect to the principles of conflict of laws.

          7.5
Counterparts; Facsimile Signatures. This
Agreement may be executed in counterparts and by facsimile, and each such
counterpart shall be deemed to be an original 

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instrument,
but all such counterparts together shall constitute but one agreement.
Facsimile signatures shall be considered originals for all purposes.

          7.6
Severability. The provisions of
this Agreement are severable, and if any one or more provisions are determined
to be judicially unenforceable, in whole or in part, the remaining provisions
shall nevertheless be binding and enforceable.

          7.7
Entire Agreement; Modification; Waiver.
This Agreement contains the entire agreement and understanding between the parties
with respect to the subject matter hereof and supersedes all prior negotiations
and oral understandings, if any. Neither this Agreement nor any of its
provisions may be modified, amended, waived, discharged or terminated, in whole
or in part, except in writing signed by the party to be charged. No waiver of
any such provision or any breach of or default under this Agreement shall be
deemed or shall constitute a waiver of any other provision, breach or default.

[ signature page follows ]

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

	
 

	
 

	
 

	
 

	
FRIENDFINDER NETWORKS INC.

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	 

	
 

	
Name:

	
 

	
Title:

	
 

	
 

	
 

	
EXECUTIVE:

	
 

	
 

	
 

	 

	
 

	
MARC H. BELL

[Signature Page to Marc H. Bell Employment Agreement]Exhibit 10.26

Exhibit 10.26

EXECUTION DOCUMENT

Various, Inc.

445 Sherman Avenue

Palo Alto, CA 94306

September 21, 2007

Hinok Media Inc. (the “Consultant”)

116 El Nido 

Portola Valley CA, 94028 

Attn: Chief Executive Officer

Re:

Independent Contractor Agreement (the “Agreement”)

Dear Andrew:

This Independent Contractor Agreement (“Agreement”) sets forth the terms pursuant to which Consultant will provide consulting services to Various, Inc. (“Company”) and its Affiliates.  Capitalized terms used but not defined in this Agreement shall have the respective meanings ascribed to them in that certain Stock Purchase Agreement, dated as of the date hereof,  by and among Company, Andrew B. Conru (the “Founder”) and Lars Mapstead (the “SPA”) and the other parties thereto.

1.

Premises.  Consultant has agreed to provide certain consulting services to Company and its Affiliates pursuant to the terms of this Agreement.  

2.

Term and termination.  This Agreement’s term (“Term”) shall start on the Closing Date and continue for a period of one (1) year, and thereafter will automatically renew for one month periods until either party provides thirty (30) days prior written notice of their desire to terminate this Agreement.  The Company may terminate this Agreement at any time by giving written notice to the Consultant that its consulting services are no longer required. Company understands and agrees that Consultant’s consulting services are non-exclusive to Company, and that Consultant may provide consulting and other services to other persons or entities, provided, that this Agreement shall not abridge or limit the non-competition and other obligations of the Founder set forth in the SPA and the other Transaction Agreements.

3.

Services.  

a.

Nature.  Consultant will provide the following services to the Company (collectively, the “Services”).  Consultant will upon Company’s request review strategic business plans, tactical marketing budgets, allocations of marketing spend among channels, and within channels, individual partners, development plans for new product offerings and will consult with the Company on other executive-level matters of a non-administrative nature.  For clarity, Services shall not include general office administration, human resources and similar ministerial matters.

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EXECUTION DOCUMENT

b.

Time commitment.  During the Term, Consultant will devote sufficient time to the Services to perform them to the standards set forth in Section 3(c).

c.

Performance standards.  Consultant will provide all Services using commercially reasonable efforts.  The Company reserves the absolute right in its sole discretion to approve or reject any and all of Consultant’s recommendations, programs, strategies, cross-promotional opportunities and proposals, and portions thereof, for any reason or for no reason.  The Company is entitled to use or not use Consultant’s work product created in connection with the Services, in whole or in part, and all such work product shall be deemed as of its creation the exclusive intellectual property and confidential information of the Company.  Consultant agrees to execute all work made for hire, assignment and other documents prepared by Company at its sole expense and take necessary steps at the Company’s request to confirm and effect the intent and purpose of this Agreement.  Consultant shall abide by the applicable and relevant policies set forth in the Company’s Employee Manual (e.g., anti-sexual harassment, anti-discrimination) generally applicable to Company employees.

d.

Work product deliverables.  Upon the Company’s request from time to time, Consultant shall deliver to the Company in a reasonably usable form and format its work product resulting from the rendering of Services.

4.

Independent contractor status.  During the Term, Consultant shall be deemed for all purposes an independent contractor and not an employee, agent, joint venturer or partner of the Company.  Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between the Company and Consultant or any of its principals, employees, representatives or agents.  The Company is not obligated to extend health insurance, life insurance, disability, other employee benefits or other perquisites customarily provided to its own employees.  Consultant shall not at any time act or hold itself out to the public or the trade as an agent or employee of the Company.  For tax purposes, Consultant shall as the Company deems necessary receive a Form 1099 or other appropriate tax-related documents for its services as a consultant, and Consultant shall be responsible for its own taxes associated with its performance of the Services and receipt of payments pursuant to this Agreement.  Consultant acknowledges that Company may withhold taxes from payments to Consultant unless Consultant’s tax identification number is provided to Company.

5.

Compensation; expense reimbursement; invoicing; timesheets; etc. 

a.

Compensation.  Company shall compensate Consultant for its Services at the rate of $9,615.38 twice per month, payments made on or about the 15th and last day of each calendar month during the Term.

b.

Reimbursement of business expenses.  Consultant’s reasonable expenses incurred directly on behalf of the Company while providing the Services will be reimbursed by the Company within thirty (30) days of receipt from Consultant’s 

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EXECUTION DOCUMENT

request accompanied by sufficient back-up documentation.  Consultant agrees to use the Company’s standard reimbursement forms and procedure for such purpose.  Consultant shall send its expense reimbursement requests to the Company to the physical mailing address above or to the Company’s Controller at fmatasavage@pmgi.com, or to another address specified by the Company from time to time for such purpose.

6.

Geographic location.  Consultant may render the Services from one or more locations of Consultant’s choosing. Consultant shall bear its own costs for securing or maintaining appropriate workspace.

7.

Intellectual property.  All inventions, trade secrets, works of authorship and other intellectual property created by Consultant in part or in whole during and in connection with its engagement as a consultant with the Company, using Company resources and related to the actual or communicated prospective businesses or interests of the Company, shall be owned exclusively by the Company.  Consultant agrees to execute and deliver promptly, at the Company’s sole expense, necessary assignments and other documents requested by the Company to confirm the Company’s ownership of such intellectual property.  Consultant hereby waives any and all moral rights it may have in such intellectual property.  Consultant agrees that any inventions, products, processes, apparatus, designs, improvements, or business related suggestions and information, conceived, discovered, made or developed by Consultant, solely or jointly with others, after termination of this Agreement that are based solely on the Company’s trade secrets or confidential information shall belong to the Company and Consultant hereby assigns any and all rights in such items to the Company.  Upon the Company’s request, Consultant promptly will disclose to the Company all material inventions, trade secrets, works of authorship and other intellectual property created by Consultant resulting from the Services.  For sake of clarification, the Company shall not own and shall have no rights to Consultant’s likeness or use of Consultant’s likeness arising under this Agreement, which likeness shall be exclusively owned by Consultant. 

8.

Confidential information.  

a.

Consultant will have access to “confidential information” of and about the Company (and the Company’s Affiliates, which shall be deemed included in references to “Company” for purposes of this Section 8) and its business.  Consultant agrees that except in communications with its advisors, accountants, and attorneys or if necessary for valid Company business reasons, government inquiry, tax reasons, or due to legal reasons or subpoena or equivalent, it will not at any time use for its own benefit, or directly or indirectly, divulge or communicate to any person, firm, corporation or entity, any confidential information concerning the Company and its business, which was disclosed to or acquired by Consultant at any time during or prior to the Term, except upon direct written authority of Marc Bell, Dan Staton, the Company’s Chief Operating Officer, or the Company’s General Counsel.  Consultant specifically agrees that all confidential information matters affecting or relating to the Company’s business obtained by Consultant during its independent contractor relationship is deemed to be included within the terms of this paragraph and may constitute important, material and confidential trade secrets that affect the successful conduct of the Company’s business and its goodwill.  Without limiting the foregoing, “confidential information” as used herein, means information which 

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EXECUTION DOCUMENT

includes, but is not limited to, the names, buying habits or practices of any of the Company’s customers; marketing methods and related data; the names of any vendors or suppliers; costs of materials; the prices the Company obtains or has obtained or at which it sells or has sold its products or services; sales costs; lists or other written records used in the Company’s business; operational, marketing and fundraising strategies; production techniques; production and programming strategies; compensation paid to employees and other terms of employment, merchandising or sales techniques; contracts and licenses; business systems; computer programs; actual or prospective corporate transactions; or any other confidential information of, about, or concerning the business of the Company, its manner of operation, or other confidential data of any kind.

b.

Consultant covenants and agrees that it will not (i) use such confidential information, membership lists, records, or systems except in furtherance of the Company’s interests and its rendering of the Services; or (ii) disclose to third persons or entities such confidential information who are not bound by confidentiality agreements for the benefit of the Company or for reasons other than in furtherance of the Company’s interests. 

c.

Information that (i) has been or is later received from a source independent of the Company who is not known to Consultant to be bound by a confidentiality agreement or other legal or fiduciary obligation of confidentiality or (ii) is or becomes generally known to the public other than by reason of Consultant’s breach of these confidentiality undertakings, shall as of the occurrence of such circumstance no longer be subject to the use and disclosure restrictions contained in this Agreement.  

d.

If Consultant’s disclosure of confidential information is required by a subpoena then Consultant shall (i) promptly notify the Company in writing of such requirement (unless such notification violates the order of a governmental body or is otherwise prohibited by law); (ii) cooperate with the Company in efforts to obtain a protective order or other appropriate remedy to protect confidential information against unauthorized use or disclosure, at the Company’s request and expense; and (iii) not in any event disclose more confidential information than required.

e.

If the Company so requests, Consultant promptly shall return to the Company or destroy, or irretrievably delete, as specified by the Company, any and all of the Company’s confidential information, and documents which contain such information, together with all copies, extracts, notes or summaries thereof, unless such information is needed by Consultant for valid Company business reasons, tax reasons, or for use in pending or potential litigation, and then only for such time.

9.

Termination or expiration.  Upon expiration or termination of this Agreement for any reason, Consultant will surrender to the Company all property, security credentials and other items issued to Consultant by the Company in connection with its rendering of the Services.  The following provisions of this Agreement shall survive its expiration or termination:  Section 5 (as to payment and reimbursement), Section 7, Sections 8(a) through 8(d) (but such Sections only for a period of five (5) years after such termination or expiration), Section 8(e) and Sections 9-16.  This Agreement will terminate upon the death of Founder, in which case Consultant will have no further obligations to Company to render the Services.

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10.

Personal services.  Consultant understands and agrees that the Company has entered into this Agreement because Consultant, by the Founder, will furnish its personal services, and that Consultant, by the Founder, is personally qualified to render the Services on behalf of Consultant.  Consultant will cause the Founder to comply with the terms and conditions of the Agreement.  Accordingly, Consultant agrees that Founder will render the Services on behalf of Consultant, and that Consultant will not assign or delegate the responsibility of providing such Services to the Company pursuant to this Agreement.  Consultant may not otherwise assign, delegate or transfer its obligations under this Agreement.  The Company may assign or otherwise transfer this Agreement to its Affiliates, subsidiaries or other successors to all or substantially all assets of the Company.  Any purported assignment, transfer or delegation in violation of this provision shall be void.  Should Consultant be unable to perform the Services due to the disability or other incapacitation of Founder, Consultant shall provide written notice to the Company immediately and such inability to perform in whole or in part, and the death of Founder, shall not act as a basis for any remedy or claim for damages against Consultant or Founder nor shall it in any manner act as a breach of this Agreement or the SPA or any other agreements between the Company and Consultant and/or Founder.  Should Consultant be unable to perform the Services in whole or in part due to the Founder’s disability or other incapacitation, the Company may terminate this Agreement immediately upon written notice to Consultant, without any further obligations, monetary or otherwise, by Consultant to Company.

11.

Notices.  Any notice which a party hereto is required to give or may desire to give in connection with this Agreement shall be in writing and delivered by hand and deemed given upon receipt; by an overnight delivery service recognized in the U.S. and deemed given two (2) days after due deposit therewith; or by telecopy and deemed given upon recipient’s confirmation of receipt, addressed as follows (or to other coordinates a recipient party has specified in writing by giving notice thereof):  

		
	If to Consultant: 

Hinok Media Inc.

116 El Nido 

Portola Valley CA, 94028

Attn: Chief Executive Officer

	 

	If to the Company:

c/o Penthouse Media Group Inc.

6800 Broken Sound Parkway NW, Suite 100

Boca Raton, FL 33487 

Attention:  General Counsel

Tel: (561) 912-7000

Fax: (561) 912-1747 

	 

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EXECUTION DOCUMENT

12.

Severability/savings.  If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.  However, before severing any such illegal provision, such court may modify it to the extent necessary to render it enforceable at law or in equity.  

13.

Choice of law; choice of forum.  

(a)

If there shall be any dispute, controversy or claim (“Dispute”) between any of the parties hereto arising out of, relating to or connected with this Agreement and the other Transaction Agreements, any party (the “Claimant”) shall refer the Dispute to arbitration by one (1) or, at the request of any party, three (3) arbitrators, to be administered by JAMS pursuant to the then-existing Comprehensive Arbitration Rules and Procedures.  Each arbitrator appointed under this Section shall be qualified by education and experience in the subject matter of the submitted dispute and shall be a retired federal or state judge licensed to practice with at least 15 years in experience.  Arbitration under this Section 13 shall be the exclusive means for a party to seek resolution of any Dispute, provided, however, that any party may file a claim in any court having jurisdiction over the subject matter and parties for a provisional or injunctive remedy in connection with an arbitrable controversy, if the award which such party seeks might be rendered ineffectual without such provisional or injunctive relief.

(b)

The seat of arbitration shall be San Francisco, California. 

(c)

In arriving at their decision(s), the arbitrators shall apply the terms and conditions of this Agreement in accordance with the laws of the State of California.

(d)

The arbitrators are empowered to render the following awards in accordance with any provision of this Agreement or any related agreement:  (i) enjoining a party from performing any act prohibited, or compelling a party to perform any act required, by the terms of this Agreement and any order entered pursuant to this Agreement or deemed necessary by the arbitrators to resolve Disputes or any order; and (ii) ordering such other legal or equitable relief, including any provisional legal or equitable relief, or specifying such procedures as the arbitrators deem appropriate, to resolve any Dispute submitted for arbitration.  Monetary awards shall include interest from the date of breach or other violation of this Agreement to the date when the award is paid in full.

(e)

The arbitral panel shall issue a written explanation of the reasons for any award.  The award of the arbitral tribunal will be the sole and exclusive remedy between the parties regarding any and all claims and counterclaims with respect to the subject matter of the arbitrated Dispute.  An award rendered in connection with an arbitration pursuant to this section shall be final and binding upon the parties, and any judgment upon such an award may be entered and enforced in any court of competent jurisdiction.  With respect to any order or award issued by the arbitrators, the parties expressly agree and consent (i) to the bringing of an action by one party against the other in the federal courts of California to enforce and confirm such order or award; (ii) that such order or award shall be conclusive proof of the validity of the determination(s) of the arbitrator(s) underlying such order or award; and (iii) that any federal court sitting in California may enter judgment upon and enforce such order or award, whether pursuant to the Federal Arbitration Act or otherwise.

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(f)

To the extent permitted by law, each party hereto irrevocably waives the right to a jury trial in connection with any legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement.

14.

Warranty Disclaimer and Limitation of Liability.

A.

Notwithstanding anything to the contrary in this Agreement, THE SERVICES ARE PROVIDED “AS-IS” AND CONSULTANT MAKES NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, CONCERNING THE SERVICES.  THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT OF THIRD-PARTY PROPRIETARY RIGHTS ARE EXPRESSLY DISCLAIMED.

B.

Consultant shall not be liable, in contract, tort (including negligence), or otherwise, for incidental, consequential, indirect, special, or punitive damages of any kind, or for the loss of revenue or profits, loss of business, loss of information or data, or other financial loss, arising out of or in connection with the use, inability to use, reliance upon, accuracy, performance, or failure of the Services, even if Consultant has been advised of the possibility of such damages and regardless of whether such damages were foreseeable; provided that the foregoing limitation shall not apply to damages arising from Consultant’s or Founder’s gross negligence or willful misconduct.

15.

Indemnity.  The Company agrees to indemnify and hold Consultant and Founder (collectively, the “Consultant Parties”) harmless against all costs, charges and expenses whatsoever incurred or sustained by the Consultant Parties in connection with any claim, action, suit or proceeding to which he may be made a party or have asserted against him by reason of his being or having been a consultant for the Company or having acted or being claimed to have acted on behalf of the Company in such capacity, to the fullest extent permitted by the laws of the State of California, provided and to the extent that Consultant acted in good faith, in a manner Consultant reasonably believed to be in the best interests of the Company and Consultant had reasonable cause to believe such conduct was lawful or no reasonable cause to believe such conduct was unlawful and not violative of third person or entity rights.  The Company shall have the right to select the counsel of its choice to represent the Consultant Parties for response to any such matters, including but not limited to any litigation of any type related to them, and further shall have the right make all decisions about the defense and/or resolution of any such matters.  The Consultant Parties shall be obligated to notify the Company as soon as the Consultant Parties receive any notice of any claims of any type to which this indemnification may apply, and to cooperate fully with the Company Parties in response to and defense of the same.  The Consultant Parties shall not settle or admit wrongdoing without the Company’s prior written consent.  Any failure by the Consultant Parties to do so shall relieve the Company of its indemnification obligations hereunder if such failure materially harms the ability of the Company to respond to and/or defend against any such matters.

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16.

General provisions.  Except as provided expressly herein, this Agreement represents the entire agreement among the parties, and no changes, alterations or deviation shall be recognized as valid unless such changes, alterations or deviations have been embodied in a new and superseding written agreement signed by all parties.  Each party to this Agreement acknowledges that no representations, inducement, promises or agreements, oral or otherwise, with regard to the relationship among the parties have been made by any party, or anyone acting on behalf or any party, which are not embodied herein and that no other agreement, statement or promise regarding performance of services not contained in this Agreement shall be valid or binding regarding the subject matter of this Agreement.  This Agreement cannot be amended other than by a written instrument executed by all parties.  This Agreement may be executed via facsimile and in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Failure by a party to insist on performance by any other party of any term or obligation of this Agreement shall not be construed as a waiver of that party’s right to demand such performance at a later time.  Captions and headings in this Agreement are for convenience and do not alter the terms of this Agreement in any way.

If Consultant agrees with the foregoing provisions, kindly so indicate by signing, dating and initialing this Agreement in the appropriate spaces and returning it to us.

[SIGNATURE PAGE FOLLOWS]

8

		
	

AGREED AND ACCEPTED

CONSULTANT

/s/ Andrew B. Conru

By:

Its:  

Date:  September 20, 2007

	Very truly yours, 

COMPANY

/s/ Rob Brackett

By: Rob Brackett

Its:  President

Date:  September 20, 2007

[Signature Page to Independent Contractor Agreement]

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