Document:

Exhibit 10.28

Exhibit 10.28

VARIOUS, INC.

  EMPLOYEE PROPRIETARY INFORMATION AGREEMENT

In consideration of and as a condition of my employment by VARIOUS, INC. and/or by companies which it owns, controls, or is affiliated with, and their predecessors and successors (the “Company”), and the compensation previously, now and hereafter paid to me for such employment directly or through an agency as well as other agreements involving the Company which I acknowledge will benefit me, I hereby agree as follows, and confirm my compliance with the following during the entire course of employment with the Company or engagement in any other capacity whatsoever, whether as a consultant, independent contractor or in any other relationship:

1.

CONFIDENTIALITY.  I agree to hold in strictest confidence and not to disclose, make any use of, except for the benefit of the Company, lecture upon or publish, at any time either during the term of or subsequent to my employment, any of the Company’s Proprietary Information (as defined below) which I may produce, obtain or otherwise acquire during the course of my employment, except as the Company may otherwise consent to in writing in its sole and absolute discretion. I further agree not to deliver, reproduce or in any way allow such Proprietary Information, or any documentation relating to such information, to be delivered or used by any third parties without the specific written direction or consent of a duly authorized representative of the Company.

The term “Proprietary Information” shall mean any and all trade secrets, confidential knowledge, data or any other proprietary information pertaining to any business of the Company or any of its clients, customers or consultants, licensees or affiliates.  By way of illustration but not limitation, “Proprietary Information” includes (a) inventions, ideas, improvements, discoveries, trade secrets, processes, data, programs, source code, web site designs, web site  processes, knowledge, know-how, designs, techniques, formulas, test data, computer code, complaints, complaint processes and analysis, security procedures and processes, passwords, user ids, customer information, affiliate information, customer lists, affiliate lists, other works of authorship and designs whether or not patentable, copyrightable, or otherwise protected by law, and whether or not conceived of or prepared by me, either alone or jointly with others (hereinafter collectively referred to as “Inventions”); (b) information regarding research, development, new products and services, marketing plans and strategies, merchandising and selling, business plans, strategies, forecasts, projections, profits, investments, operations, financings, records, budgets and financial statements, licenses, prices and costs, suppliers and customers; and (c) identity, requirements, preferences, practices and methods of doing business of specific parties with whom the Company transacts business, and information regarding the skills and compensation of other employees of the Company and independent contractors performing services for the Company.

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2.

THIRD PARTY INFORMATION.  I understand that the Company, from time to time, may enter into agreements with other parties which impose obligations or restrictions on the Company regarding Inventions made during the course of the work under such agreements or regarding the confidential nature of such works, or otherwise receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  During the term of my employment and thereafter, I agree to be bound by all such obligations and restrictions, will hold Third Party Information in the strictest confidence, will not disclose (to anyone other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with my work for the Company, Third Party Information unless expressly authorized by the Company in writing, and will otherwise take all action necessary to discharge the obligations to the Company arising in connection with such Third Party Information. 

3.

WORK FOR HIRE STATEMENT.  I hereby acknowledge and agree that all original works of authorship (the “Works of Authorship”) which are produced, developed or authored by me (whether alone or jointly with others), or otherwise resulting from my work within the scope of my employment with the Company and which are protectible by copyright are “works made for hire,” as that term is defined in the United States Copyright Act (17 U.S.C., Section 101). In the event that any rights to the Works of Authorship are deemed not to be works made for hire, or in the event that I should, by operation of law, be deemed to retain any rights in such Works of Authorship, I hereby irrevocably and fully assign, without any further consideration and regardless of any use by the Company of any such Work of Authorship, all of my rights, title and interest, if any, in and to such Works of Authorship to the Company. I agree that the Company, as the owner of all rights to the Works of Authorship, has the full and complete right to prepare and create derivative works based upon the Works of Authorship and any derivative works of such Works of Authorship and to use, reproduce, publish, print, copy, market, advertise, distribute, transfer, sell, publicly perform and publicly display, and otherwise exploit by all means now known or later developed, such Works of Authorship and derivative works anywhere throughout the world.

4.

MORAL RIGHTS.  I hereby irrevocably and unconditionally transfer and assign to the Company, without any further consideration, any and all Moral Rights (as defined below) I may have in or with respect to any and all Works of Authorship.  To the extent that I cannot assign such rights, I hereby waive and agree never to assign such rights against the Company, the Company’s successors-in-interest, or any of their licensees. “Moral Rights” shall mean any right to (i) divulge such Inventions to the public; (ii) retract such Invention from the public; (iii) claim authorship of such Invention; (iv) object to any distortion, mutilation, or other modification of such Invention; and (v) any and all similar rights, existing under judicial or statutory law of any country or jurisdiction in the world, or under any treaty regardless of whether or not such right is called or generally referred to as a “moral right.” 

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5.

ASSIGNMENT OF INVENTIONS. 

(a)

In addition to the foregoing, I hereby assign and transfer to the Company my entire right, title and interest in and to all Inventions, whether or not patentable, and whether or not reduced to practice, made, learned or conceived by me (whether alone or jointly with others and whether before or after execution of this Agreement) during the period of my employment or engagement in any capacity with the Company which relate in any manner at the time of conception or reduction to practice to the actual or demonstrably anticipated research or product development by the Company or to its business, or result from or are suggested by any task assigned to me or any work performed by me for or on behalf of the Company. I agree that all such Inventions shall be the sole and exclusive property of the Company and its assigns, and the Company and its assigns shall be the sole owners of all Inventions and any and all patents, copyrights and other proprietary rights related thereto; provided, however, that I hereby acknowledge and agree that this Agreement does not require assignments of an Invention which qualifies fully and expressly for protection under Section 2870 of the California Labor Code.  A copy of the text of Sections 2870-2872 of the California Labor Code is attached to this Agreement as Exhibit B. 

(b)

If I have any right or rights to Inventions that cannot be assigned to the Company or waived by me, I unconditionally grant to the Company during the term of such rights, an exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license, with rights to sublicense through multiple levels of sublicenses, to use, reproduce, publish, create derivative works of, market, advertise, distribute, sell, publicly perform and publicly display and otherwise exploit by all means now known or later developed, such Inventions.

6. 

DISCLOSURE OF INVENTIONS; PATENTS. 

I agree that in connection with any Invention:

(a)

I will disclose such Invention promptly in writing to my immediate supervisor at the Company, with a copy to the Company’s then acting Chief Operating Officer, regardless of whether I believe the invention is protected by Section 2870 of the California Labor Code, in order to permit the Company to claim rights to which it may be entitled under this Agreement. Such disclosure shall be received in confidence by the Company.

(b)

I will, at the Company’s request, promptly execute a written assignment of title to the Company for any Invention required to be assigned by Paragraph 4 (“Assignable Invention”) and I will preserve any such Assignable Invention as confidential information of the Company.

(c)

Upon request, I agree to assist the Company or its nominee (at its expense) during and at any time subsequent to my employment in every reasonable way to obtain for its own benefit patents and copyrights for such Assignable Inventions in any and all countries, which Inventions shall be and 

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remain the sole and exclusive property of the Company or its nominee whether or not patented or copyrighted. I agree to execute such papers and perform such lawful acts as the Company deems to be necessary to allow it to exercise all rights and interest in such patents and copyrights.

7.

EXECUTION OF DOCUMENTS. 

(a)

In connection with this Agreement, I further agree to execute, acknowledge and deliver to the Company or its nominee upon request and at its expense all such documents, including application for patents and copyrights and assignments of inventions, patents and copyrights to be issued therefor, as the Company may determine necessary or desirable to apply for, and obtain letters, patents and copyrights on such assignable invention in any and all countries and/or to protect the interest of the Company or its nominee in such inventions, patents or copyrights and to vest title thereto in the Company or its nominee.

(b)

In the event the Company is unable, after reasonable efforts, to secure my signature on any document or documents needed to apply for or prosecute any patent, copyright or other right of protection relating to an Invention, whether because of my physical or mental incapacity or for any other reason whatsoever, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any such application or applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights or similar protections thereon with the same legal force and effect as if executed by me; it is being expressly understood and intended by me that the grant of the foregoing irrevocable power of attorney is coupled with an interest.

8.

MAINTENANCE OF RECORDS.  I agree to keep and maintain adequate and current written records of all inventions made by me (in the form of notes, sketches, and drawings as may be specified by the Company), which records shall be available to and remain the sole property of the Company at all times.

9.

PRIOR INVENTIONS.  It is understood that all Inventions, if any, patented or unpatented, which are made by me prior to my employment by the Company, are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit A attached to this Agreement a complete list of all my prior Inventions, including those which are the property of a previous employer. I represent and covenant that the list is complete and that, if no items are on the list, I have no such prior Inventions. I agree to notify the Company in writing before I make any disclosure or perform any work on behalf of the Company which appears to threaten or conflict with proprietary rights I claim in any Invention or idea. In the event of my failure to give such notice, I agree that I will make no claim against the Company with respect to such Inventions or ideas.

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10.

RETURN OF COMPANY PROPERTY.  I acknowledge and agree that all files, accounts, records, materials, documents, drawings, sketches, designs, diagrams, models, blue-prints, plans, specifications, manuals, books, forms, receipts, notes, reports, memoranda, studies, data, calculations, recordings, catalogues, compilations of information, correspondence, e-mails, financial data, marketing data, password data, user id data, customer data, affiliate data, and all copies, abstracts and summaries of the foregoing, instruments, tools and equipment and all other physical items related to the Company or to my employment with the Company, other than merely personal items, whether of a public nature or not, and whether prepared by me or not, are and shall remain the sole and exclusive property of the Company and shall not be removed from the premises of the Company, except as required in the course of employment by the Company, without prior written consent of the Company in each instance. In the event of termination of my employment with the Company for any reason whatsoever, I agree to promptly surrender and deliver to the Company all of the foregoing property, and I will not take with me any description containing or pertaining to any Proprietary Information which I may produce or obtain during the course of my employment. 

11.

TRADE SECRETS OF OTHERS.  I represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence Proprietary Information, knowledge or data acquired by me in confidence or in trust prior to my employment with the Company, and during my employment by the Company, I will not improperly use or disclose to the Company, or induce the Company to use, any confidential or proprietary information or material belonging to any previous employer or other parties. I have not brought and will not bring onto the premises of the Company or use in the performance of my responsibilities at the Company any unpublished documents or any property belonging to any previous employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that previous employer or person.  I agree not to enter into any agreement either written or oral in conflict with this Agreement.

12.

[Intentionally Omitted].

13.

ENFORCEMENT.  

(a)

I understand and agree that in the event of a prospective or actual breach of this Agreement by me, damages would not be an adequate remedy to compensate the Company for the losses suffered as a result of such breach.  Accordingly, in addition to all other rights and remedies the Company has at law or in equity, in the event of a threatened or actual breach of any of the terms and provisions of this Agreement, the Company shall be entitled to a temporary restraining order, and to temporary and permanent injunctive relief, to prevent or terminate such anticipated or actual breach, without the necessity of proving actual damages or being required to post any bond or other undertaking in connection with any such action, provided that nothing in this Agreement shall be construed to limit the damages otherwise recoverable by the Company in any such event.

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(b)

In addition, the Company shall have the right to inform any person, company, organization or business entity, and the principals of the foregoing, and any other third parties that the Company reasonably believes to be receiving or intending to receive from me any Proprietary Information in violation of the terms of this Agreement, that participation by such entity or persons with me in activities in violation of this Agreement may give rise to claims by the Company against such entity, persons or third parties.

14.

PURPOSE AND INTENT.  I acknowledge and agree that this Agreement does not constitute an agreement of employment and that nothing in this Agreement shall confer any right upon me with respect to my employment by the Company, including, without limitation continuation of such employment, and to the extent there is employment with Company such employment shall only be construed to be “at will”.

15.

REPRESENTATIONS.  I represent and warrant to the Company that:

(a)

This Agreement does not constitute a violation of any other agreement to which I am a party and it has been executed and delivered by me after having an opportunity to consult with my legal and other professional counsel and advisors.

(b)

I have full power and authority to enter into, and have obtained all necessary authorizations and approvals required for the execution and deliver of, this Agreement.

(c)

I have taken all necessary actions to execute and deliver this Agreement, and this Agreement constitutes my valid and binding agreement, enforceable in accordance with its terms.

(d)      I have complied with the terms of this Agreement during the entire course of employment with the Company or engagement in any other capacity whatsoever, whether as a consultant, independent contractor or in any other relationship.

16.

MODIFICATION.  This Agreement may not be changed, modified, released, discharged, abandoned, or otherwise amended, in whole or in part, except by an instrument in writing, signed by me and the Company. I agree that any subsequent change or changes in duties, salary, or compensation shall not affect the validity of this Agreement.

17.

ENTIRE AGREEMENT.  I acknowledge receipt of this Agreement, and agree that with respect to the subject matter of this Agreement it is my entire agreement with the Company, superseding any previous written communications, representations, understandings or agreements with the Company or any of its officers or representatives.

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18.

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

19.

SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon my heirs, executors, administers and other legal representatives and is for the benefit of the Company, its successors and assigns.

20.

GOVERNING LAW.  This Agreement has been executed and delivered by the parties hereto in California, and shall be governed by and construed in accordance with the internal laws (and not laws pertaining to conflicts or choice of law) of the State of California in all respects, including all matters of validity, construction and performance of this Agreement.  All parties consent to the exercise of personal jurisdiction over them in California and agree that any lawsuit or arbitration arising out of or relating to this Agreement shall be brought exclusively in a court of competent subject matter jurisdiction located within the County of Santa Clara, State of California.

21.

COUNTERPARTS.  This Agreement may be signed in two counterparts, each of which shall be deemed an original and both of which shall together constitute one agreement.

22.

FAILURE TO ENFORCE.  The failure of the Company to enforce any threatened or existing violation, default or breach of this Agreement shall not be deemed a waiver of such a violation, default or breach, and the Company shall have the right to enforce the same at a later time and the right to waive in writing any condition imposed herein for its benefit without thereby waiving any other provision or condition.

[SIGNATURE PAGE FOLLOWS]

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VARIOUS, INC.

By: /s/ Rob Brackett

Name: Rob Brackett

Title: President

Date: 9/20/07

Accepted and Agreed:

By: 

Andrew B. Conru

       

Employee Name (Please Print)

/s/ Andrew B. Conru

Employee Signature

Title:  Programmer/Consultant

Employee Job Title

Date: 9/20/07

/s/ Natalie Cedeno

Human Resources Signature/Witness

[Signature Page to Employee Proprietary Information Agreement]

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EXHIBIT A

LIST OF PRIOR INVENTIONS

			
	TITLE

	DATE

	IDENTIFYING NUMBER OR DESCRIPTION

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

EXHIBIT B

California Labor Code Sections 2870-72.

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:

(1) 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

(2) 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 policy of this state and is unenforceable.

2871. No employee 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.

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.Exhibit 10.29

Exhibit 10.29

EXECUTION DOCUMENT

Various, Inc.

445 Sherman Avenue

Palo Alto, CA 94306

September 21, 2007

Legendary Technology Inc. (the “Consultant”)

c/o Various, Inc.

445 Sherman Avenue

Palo Alto, CA 94306

Attn: Chief Executive Officer

Re:

Independent Contractor Agreement (the “Agreement”)

Dear Lars:

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, Lars Mapstead (the “Founder”) and Andrew B. Conru (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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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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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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EXECUTION DOCUMENT

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 this 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: 

Legendary Technology Inc.

c/o Various, Inc.

445 Sherman Avenue

Palo Alto, CA 94306

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]

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AGREED AND ACCEPTED

CONSULTANT

/s/ Lars Mapstead

By: 

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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