Document:

Prepared by R.R. Donnelley Financial -- TDK Mediactive Inc. 1999 Director Stock Plan

 Exhibit 10.3 
  
 TDK MEDIACTIVE, INC. 
  
 AMENDED AND RESTATED 
 1999 DIRECTOR STOCK PLAN 
  
 ARTICLE I—PURPOSE OF THE PLAN

  
 The purpose of the TDK Mediactive, Inc. Amended and Restated 1999 Director Stock Plan is to promote the
long-term growth of TDK Mediactive, Inc. (hereinafter sometimes referred to as the “Corporation”) by increasing the proprietary interest of Directors in the Corporation and to attract and retain highly qualified and capable Directors. This
Amended and Restated 1999 Director Stock Plan amends and restates in its entirety the 1999 Director Stock Plan of Sound Source Interactive, Inc., which is the predecessor of the Corporation. 
  
 ARTICLE II—DEFINITIONS 
  
 Unless
the context clearly indicates otherwise, the following terms shall have the following meanings: 
  
 2.1  “Annual Retainer” means the annual cash retainer fee payable by the Corporation to a Director for services as a director of the Corporation, as such amount may be changed from time to time. 

 
 2.2  “Award” means an award granted to a Director under the Plan in the form of Options or
Shares, or any combination thereof. 
  
 2.3  “Board” means the Board of Directors
of TDK Mediactive, Inc. 
  
 2.4  “Corporation” means TDK Mediactive, Inc.

  
 2.5  “Director” means a non-employee director of the Corporation.

  
 2.6  “Fair Market Value” means, with respect to the value of the Shares on
any date: (i) if the principal market for the Common Stock is a national securities exchange or if the Shares are quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or the OTC Bulletin Board, the
closing sales price of the Shares on such day as reported by such exchange or NASDAQ or the OTC Bulletin Board, or on a consolidated tape reflecting transactions on such exchange or NASDAQ or the OTC Bulletin Board; or (ii) if the principal market
for the Shares are not a national securities exchange and the Shares are not quoted on NASDAQ, the mean between the highest bid and lowest asked prices for the Shares on such day as reported by the National Quotation Bureau, Inc.; provided that if

 
clauses (i) and (ii) of this paragraph are all inapplicable, or if no trades have been made or no quotes are available for such day, the Fair Market Value of the Shares shall be determined by the
Board of Directors or the Committee, as the case may be, which determination shall be conclusive as to the Fair Market Value of the Shares. 
  
 2.7  “Option” means an option to purchase Shares award under Article VIII or IX which does not meet the requirements of Section 422 of the Internal Revenue Code of 1986, as amended,
or any successor law. 
  
 2.8  “Option Grant Date” means the date upon which an
Option is granted to a Director. 
  
 2.9  “Optionee” means a Director of the
Corporation to whom an Option has been granted or, in the event of such Director’s death prior to the expiration of an Option, such Director’s executor, administrator, beneficiary or similar person, or, in the event of a transfer permitted
by Article VII hereof, such permitted transferee. 
  
 2.10  “Plan” means the TDK
Mediactive, Inc. 1999 Director Stock Plan, as amended and restated from time to time. 
  
 2.11  “Shares” means shares of the common stock, par value $.001 per share, of the Corporation. 
  
 2.12  “Stock Award Date” means the date on which Shares are awarded to a Director. 
  
 2.12  “Stock Option Agreement” means a written agreement between a Director and the Corporation evidencing an Option. 

 
 ARTICLE III—ADMINISTRATION OF THE PLAN 
  
 3.1  ADMINISTRATOR OF THE PLAN.    The Plan shall be administered by the Compensation Committee of the Board (the “Committee”).

  
 3.2  AUTHORITY OF COMMITTEE.    The Committee shall have full power and authority
to: (i) interpret and construe the Plan and adopt such rules and regulations as it shall deem necessary and advisable to implement and administer the Plan, and (ii) designate persons other than members of the Committee to carry out its
responsibilities, subject to such limitations, restrictions and conditions as it may prescribe, such determinations to be made in accordance with the Committee’s best business judgment as to the best interests of the Corporation and its
stockholders and in accordance with the purposes of the Plan. The Committee may delegate administrative duties under the Plan to one or more agents as it shall deem necessary or advisable. 
  
 3.3  DETERMINATIONS OF COMMITTEE.    A majority of the Committee shall constitute a quorum at any meeting of the Committee, and all
determinations of the 
 

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Committee shall be made by a majority of its members. Any determination of the Committee under the Plan may be made without notice or a meeting of the Committee by a written consent signed by all
members of the Committee. 
  
 3.4  EFFECT OF COMMITTEE DETERMINATIONS.    No member of
the Committee or the Board shall be personally liable for any action or determination made in good faith with respect to the Plan or any Award or to any settlement of any dispute between a Director and the Corporation. Any decision or action taken
by the Committee or the Board with respect to an Award or the administration or interpretation of the Plan shall be conclusive and binding upon all persons. 
  
 ARTICLE IV—AWARDS UNDER THE PLAN 
  
 Awards in the form
of Options shall be granted to Directors in accordance with Article VIII. Deferred Contingent Shares may be granted to Directors in accordance with Article IX. Each option granted under the Plan shall be evidenced by a Stock Option Agreement.

  
 ARTICLE V—ELIGIBILITY 
  
 Directors (and, with respect to Deferred Contingent Shares issuable in satisfaction of Accrued Retainers, former Directors) of the Corporation shall be eligible to participate in the Plan in accordance
with Articles VIII and IX. 
  
 ARTICLE VI—SHARES SUBJECT TO THE PLAN 
  
 Subject to adjustment as provided in Article XII, the aggregate number of Shares which may be issued upon the award of Shares and the
exercise of Options shall not exceed 1,000,000 Shares. To the extent that Shares subject to an outstanding Option are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such Option or by reason of the
delivery of Shares (either actually or by attestation) to pay all or a portion of the exercise price of such Option, then such Shares shall again be available under the Plan. 
  
 ARTICLE VII—NONTRANSFERABILITY OF OPTIONS 
  
 All Options granted under the Plan shall not be transferable by a Director during his or her lifetime and may not be assigned, exchanged, pledged, transferred or otherwise encumbered or disposed of except by court order, will or by
the laws of descent and distribution. Notwithstanding the foregoing, in the event Options may be transferable without failing to comply with Rule 16b-3 under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), then each
Option shall be transferable to the extent set forth in the related Stock Option Agreement, as determined by the Committee (provided 
 

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that all Options granted under Article VIII with the same Option Grant Date shall have identical provisions relating to the transferability of such Options). In the event that any Option is
thereafter transferred as permitted by the preceding sentence, the permitted transferee thereof shall be deemed the Optionee hereunder. Options shall be exercisable during the Optionee’s lifetime only by the Optionee or by the Optionee’s
guardian, legal representative or similar person. 
  
 ARTICLE VIII—OPTIONS 
  
 Each Director shall be granted Options, subject to the following terms and conditions: 
  
 8.1  TIME OF GRANT.    On the first business day of July of each year (or, if later, on the
date on which a person is first elected or begins to serve as a Director), each person who is a Director shall be granted an Option to purchase 10,000 Shares (which number shall be pro-rated if such Director is first elected or begins to serve as a
Director on a date other than the date of an annual meeting of stockholders). 
  
 8.2  PURCHASE PRICE.    The purchase price per Share under each Option granted pursuant to this Article shall be 100% of the Fair Market Value per Share on the Option Grant Date. 
  
 8.3  EXERCISE OF OPTIONS.    Each Option ranted pursuant to this Article shall become
exercisable as to 50% of the Shares subject to the Option on the first anniversary of the Option Grant Date and as to the remaining 50% of the Shares subject to the Option on the second anniversary of the Option Grant Date. In no event shall the
period of time over which the Option may be exercised exceed ten years from the Option Grant Date. An Option, or portion thereof, may be exercised in whole or in part only with respect to whole Shares. 
  
 Shares shall be issued to the Optionee pursuant to the exercise of an Option only upon receipt by the Corporation from the Optionee of
payment in full either in cash or by surrendering (or attesting to the ownership of) Shares together with proof acceptable to the Committee that such Shares have been owned by the Optionee for at least six months prior to the date of exercise of the
Option, or a combination of cash and Shares, in an amount or having a combined value equal to the aggregate purchase price for the Shares subject to the Option or portion thereof being exercised. The Shares issued to an Optionee for the portion of
any Option exercised by attesting to the ownership of shares shall not exceed the number of Shares issuable as a result of such exercise (determined as though payment in full therefore were being made in cash) less the number of Shares for which
attestation of ownership is submitted. The value of owned Shares submitted (directly or by attestation) in full or partial payment for the Shares purchased upon exercise of an Option shall be equal to the aggregate Fair Market Value of such owned
Shares on the date of the exercise of such Option. 
 

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 ARTICLE IX—ELECTION TO RECEIVE CONTINGENT DEFERRED SHARES 
  
 9.1  ELECTION PROCEDURE.    On the first business day of July of each year, Shares shall be identified pursuant to this Article as being for
the contingent benefit of each Director who, not later than December 31 of the preceding calendar year, files with the Committee or its designee a written election to receive Shares in lieu of all or a portion of such Director’s Annual
Retainer. An election pursuant to the first sentence of this Section 9.1 may not be revoked or changed subsequently to December 31 of the year preceding the year to which the election applies. 
  

9.2  TERM OF DEFERRAL.    Receipt of Shares subject to a Director election made pursuant to Section 9.1 shall be deferred until such
Director’s retirement, resignation, disability, death or termination (other than termination resulting in forfeiture as described in Section 9.8), or in the event of emergency or necessity, as hereinafter provided. 
  
 9.3  ACCOUNTING.    The Committee shall cause records to be kept in the name of each Director electing to
participate pursuant to Section 9.1 which shall reflect the number of contingent Shares deferred by that Director. 
  
 9.4  CONTINGENCY.    Until and except to the extent that deferred Shares hereunder are distributed to or vested in the Directors or beneficiaries from time to time in accordance with orders of the
Committee, the interest of each Director and beneficiary therein is contingent only and is subject to forfeiture as provided in Section 9.8. Title to and beneficial ownership of the Shares, which the Corporation will identify as subject to its
contingent obligation hereunder, shall at all times remain in the Corporation; and no Director or beneficiary shall under any circumstances acquire any property interest in any specific assets of the Corporation. 
  
 9.5  METHOD OF PAYMENT. 
  
 (a)  In order to meet its contingent Share obligation hereunder, the Corporation shall each year set aside shares in an amount equal to the total amounts deferred for such year under this
Article IX. 
  
 (b)  In the event of vesting, or upon the retirement, resignation,
disability, death or termination (other than termination resulting in forfeiture as described in Section 9.8) of a Director, the number of contingent deferred Shares payable to such Director of his beneficiary shall be determined as of that date. If
the Committee, in the exercise of its discretion provided in Section 9.6, determines to make installment distributions of such amount, the Corporation shall 
 

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 continue to set aside Shares in an amount equal of the unpaid balance of such obligation to pay Shares. 

 
 9.6    METHOD OF DISTRIBUTION.    The Committee shall from time to time determine the
time and manner of making distributions of contingent deferred Shares in case of the retirement, resignation, disability, or death of a Director or in the event of an emergency or necessity affecting the personal or family affairs of any Director of
beneficiary of a deceased Director by such methods as it shall find appropriate for providing incentive to Directors for their continued service on behalf of the Corporation. Commencement of distribution in each case may be deferred by the
Committee, but (subject to Section 9.8) not beyond one year after the retirement, disability or death of the Director or, in the case of a Director who shall have resigned, not beyond one year after such Director reaches the age of 65 or incurs a
disability or dies. In the case of a Director’s death before distribution is completed, the balance may be distributed in a lump sum or on an installment basis as the Committee may determine. 
  
 9.7  DESIGNATION OF BENEFICIARIES.    Each Director shall have the right to designate beneficiaries who are
to succeed to such Director’s contingent right to receive future payments hereunder in the event of death. In case of the failure of a Director to make a designation or the death of a designated beneficiary without the Director having
designated a successor, distribution shall be made to the Director’s estate. No designation of beneficiaries shall be valid unless it is in writing, signed by the Director, dated, and filed with the Committee. Beneficiaries may be changed
without the consent of any prior beneficiaries. 
  
 9.8  POSSIBLE FORFEITURE OF SHARES. 

 
 (a)  The contingent right of a Director or beneficiary to receive deferred Shares hereunder shall be
forfeited upon the occurrence of any one or more of the following events: 
  
 (1)  If the
Director is discharged for cause by the Corporation or a subsidiary thereof; or 
  
 (2)  If
the Director shall enter into a business or employment which the Committee determines to be (i) detrimentally competitive with the business of the Corporation or a subsidiary, and (ii) substantially injurious to the corporation’s financial
interests; 
  
 (b)  The Committee may at any time and from time to time order all or any
part of the value of the contingent right of a Director or beneficiary to receive future Shares to be vested and no longer subject to forfeiture, and may order payment of the amounts so 
 

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 vested on dates specified in such orders, if it finds such action appropriate in the circumstances. 

 
 9.9  NUMBER OF SHARES.    The number of Shares identified pursuant to this Article shall be the
number of whole Shares equal to (i) the portion of the Annual Retainer which the Director has elected pursuant to Section 9.1 to be payable in Shares, divided by (ii) the Fair Market Value per Share on the date stock is identified as contingent
deferred stock of the director (which will occur either on July 1st of the year of election or on the Effective Date, whichever is applicable). Any fraction of a Share shall be disregarded and the remaining amount of such Annual Retainer shall be
paid to the Director in cash and shall not be deferred pursuant to this Article. 
  
 9.10  CHARACTERIZATION
OF THE RELATIONSHIPS BY THIS ARTICLE.    Nothing contained herein shall be deemed to create a trust of any kind or create any fiduciary relationship. Shares identified hereunder shall continue for all purposes to be treasury
stock held by the Corporation, and no person other than the Corporation shall, by virtue of the provisions of this Article IX, have any interest in such Shares. To the extent that any person acquires a right to receive Shares from the Corporation
under this Article IX, such right shall be no greater than the right of any unsecured general creditor of the Corporation. 
  
 ARTICLE X—AMENDMENT AND TERMINATION 
  
 The Board may amend the Plan from time to time or
terminate the Plan at any time; provided, however, that no action authorized by this Article shall adversely change the terms and conditions of an outstanding Option without the Optionee’s consent and, subject to Article XII, the number of
Shares subject to an Option granted under Article VIII, the purchase price therefor, the date of grant of any such Option and the termination provisions relating to such Option, shall not be amended more than once every six (6) months, other than to
comply with changes in the Internal Revenue Code of 1986, as amended, or any successor law, or the Employee Retirement Income Security Act of 1974, as amended, or any successor law, or the rules and regulations thereunder. 
  
 ARTICLE XI—ADJUSTMENT PROVISIONS 
  
 11.1  If the Corporation shall at any time change the number of issued Shares without new consideration to the Corporation (such as by stock dividend, stock split, recapitalization,
reorganization, exchange of shares, liquidation, combination or other changes in corporate structure affecting the Shares) or make a distribution of cash or property which has a substantial impact on the value of issued Shares, the total number of
Shares reserved for issuance under the Plan shall be appropriately adjusted 
 

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 and the number of Shares covered by each outstanding Option and the purchase price per Share under each
outstanding Option and the number of Shares underlying Options to be issued annually pursuant to Section 8.1 shall be adjusted so that the aggregate consideration payable to the Corporation and the value of each such Option shall not be changed.

  
 11.2  Notwithstanding any other provision of the Plan, and without affecting the number of Shares
reserved or available hereunder, the Committee shall authorize the issuance, continuance or assumption of outstanding Options or provide for other equitable adjustments after changes in the Shares resulting from any merger, consolidation, sale of
assets, acquisition of property or stock, recapitalization, reorganization or similar occurrence in which the Corporation is the continuing or surviving corporation, upon such terms and conditions as it may deem necessary to preserve Optionees’
rights under the Plan. 
  
 11.3  In the case of any sale of assets, merger, consolidation or combination of
the Corporation with or into another corporation other than a transaction in which the Corporation is the continuing or surviving corporation and which does not result in the outstanding Shares being converted into or exchanged for different
securities, cash or other property, or any combination thereof (an “Acquisition”), any Optionee who holds an outstanding Option shall have the right (subject to the provisions of the Plan and any limitation applicable to the Option)
thereafter and during the terms of the Option, to receive upon exercise thereof the Acquisition Consideration (as defined below) receivable upon the Acquisition by a holder of the number of Shares which would have been obtained upon exercise of the
Option or portion thereof, as the case may be, immediately prior to the Acquisition. The term “Acquisition Consideration” shall mean the kind and amount of shares of the surviving or new corporation, cash, securities, evidence of
indebtedness, other property or any combination thereof receivable in respect of one Share of the Corporation upon consummation of an Acquisition. 
  
 ARTICLE XII—EFFECTIVE DATE 
  
 The Plan was approved by the Board on November
11, 1999 and the stockholders of the Corporation on December 29, 1999. 
 

 8Prepared by R.R. Donnelley Financial -- Indemnification Agreement for Eugene Code

  
 Exhibit 10.7 
  
 TDK MEDIACTIVE, INC. 
  
 INDEMNIFICATION
AGREEMENT 
  
 This Indemnification Agreement (“Agreement”) is effective as of March 27, 2001, by and
between TDK Mediactive, Inc., a Delaware corporation (the “Company”), and Eugene Code (“Indemnitee”). 
  
 WHEREAS, the Company and Indemnitee recognize the increasing difficulty in obtaining liability insurance for its officers and directors, the significant increases in the cost of such insurance and the general reductions in the
coverage of such insurance; and 
  
 WHEREAS, the Company and Indemnitee further recognize the substantial increase in
corporate litigation, subjecting officers and directors to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited; and 
  
 WHEREAS, Indemnitee does not regard the current protection available as adequate under the present circumstances, and the Indemnitee and other officers and directors of the
Company may not be willing to continue to serve in such capacities without additional protection; and 
  
 WHEREAS,
the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company and, in part, in order to induce Indemnitee to continue to provide services to the Company, wishes to provide for the
indemnification and advancing of expenses to Indemnitee to the maximum extent permitted by law. 
  
 NOW, THEREFORE,
in consideration for Indemnitee’s agreement to continue to serve the company, the Company and Indemnitee hereby agree as follows: 
  
 1.  Indemnification. 
  
 (a)  Indemnification of
Expenses.    The Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee was or is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or
other participant in, any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any
such action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other (hereinafter a “Claim”) by reason of (or arising in part out of) any event or occurrence related to
the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or by reason of any action or inaction on the part of Indemnitee while serving in such capacity (hereinafter an “Indemnifiable Event”) against any and all expenses (including
attorneys’ fees and all other costs, expenses and obligations incurred in connection with investigating, defending, being a witness in or participating in (including an appeal), or preparing to defend, be a witness in or participate in, any
such action, suit, 

 proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation), judgments, fines, penalties and amounts paid in
settlement (if such settlement is; approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim and any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed
receipt of any payments under this Agreement (collectively, hereinafter (“Expenses”), including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses. Such payment of Expenses shall
be made by the Company as soon as practicable but in any event no later than five days after written demand by Indemnitee therefor is presented to the Company. 
  
 (b)  Reviewing Party.    Notwithstanding the foregoing, (i) the obligation of the Company under Section 1(a) shall be subject to the condition that the Reviewing
Party (as described in Section 10(e) hereof) shall not have determined (in a written opinion in any case in which the Independent Legal Counsel referred to in section 1(c) hereof is involved) that Indemnitee would not be permitted to be indemnified
under applicable law, and (ii) the obligation of the Company to make an advance payment of Expenses to Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be subject to the condition that, if, when and to the extent that the
Reviewing Party shall have determined that Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts
theretofore paid; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any
determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial
determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee’s obligation to reimburse the Company for any Expense Advance shall be unsecured and no interest shall be charged
thereon. If there has not been a Change in Control (as defined in Section 10(c) hereof), the Reviewing Party shall be selected by the Board of Directors, and if there has been such a Change in Control (other than a Change in Control which has been
approved by a majority of the Company’s Board of Directors who were directors immediately prior to such Change in Control), the Reviewing Party shall be the Independent Legal Counsel referred to in Section 1(c) hereof. If there has been no
determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee substantively would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation seeking
an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in any such
proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee. 
  
 (c)  Change in Control.    The Company agrees that if there is a Change in Control of the Company (other than a Change in Control which has been approved by a majority of the Company’s Board
of Directors who were directors immediately prior to such Change in Control) then with respect to all matters thereafter arising concerning the rights of Indemnitee to payments of Expenses and Expense Advances under this Agreement or any other
agreement or under the Company’s Certificate of Incorporation or Bylaws as now or hereafter in effect, Independent Legal Counsel, (as defined in Section 10(d) hereof) shall be selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld). Such counsel, among other things, shall render its written opinion to 
 

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 the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to be indemnified under applicable law and the Company
agrees to abide by such opinion. The Company agrees to pay the reasonable fees of the Independent Legal Counsel referred to above and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities
and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
  
 (d)  Mandatory Payment of Expenses.    Notwithstanding any other provision of this Agreement other than Section 9 hereof, to the extent that Indemnitee has been successful on the merits or
otherwise, including, without limitation, the dismissal of an action without prejudice, in defense of any action, suit, proceeding, inquiry or investigation referred to in Section 1(a) hereof or in the defense of any claim, issue or matter therein,
Indemnitee shall be indemnified against all Expenses incurred by Indemnitee in connection therewith. 
  
 2.  Expenses; Indemnification Procedures. 
  
 (a)  Advancement of
Expenses.    The Company shall advance all expenses incurred by Indemnitee. The advances to be made hereunder shall be paid by the Company to Indemnitee as soon as practicable but in any event no later than five days after
written demand by Indemnitee therefor to the Company. 
  
 (b)  Notice/Cooperation by
Indemnitee.    Indemnitee shall, as a condition precedent to Indemnitee’s right to be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any Claim made against Indemnitee for
which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the
Company shall designate in writing to Indemnitee). In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power. 
  
 (c)  No Presumptions; Burden of Proof.    For purposes of this Agreement, the termination of any
Claim by Judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that indemnitee did not meet any particular standard of conduct or have
any particular belief or that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to have made a determination as to whether Indemnitee has not any particular
standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to
secure a judicial determination that Indemnitee should be indemnified under applicable law, shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee has not met any particular standard of conduct or did not have any
particular belief. In connection with any determination by the Reviewing Party or otherwise as to whether the Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company to establish that Indemnitee is not so
entitled. 
  
 (d)  Notice to Insurers.    If, at the time of the receipt by the
Company, of a notice of a Claim pursuant to Section 2(b) hereof, the Company has liability insurance in effect which may cover such claim, the Company shall give prompt notice of the commencement of such Claim to the insurers in accordance with the
procedures set forth in the respective policies. 
 

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 The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts
payable as a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. 
  
 (e)  Selection of Counsel.    In the event the Company shall be obligated hereunder to pay the Expenses of any Claim, the Company, if appropriate, shall be entitled to assume the defense of such
Claim with counsel approved by Indemnitee, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same Claim; provided that, (i) Indemnitee shall have the right to employ Indemnitee’s counsel in any
such Claim at Indemnitee’s expense and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the
Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to retain such counsel to defend such Claim, then the reasonable fees and expenses of Indemnitee’s counsel shall be at the expense of the Company.

  
 3.  Additional Indemnification Rights; Nonexclusivity. 
  
 (a)  Scope.    Notwithstanding any other provision of this Agreement, the Company hereby agrees to
indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the Company’s
Bylaws or by statute. In the event of any change after the date of this Agreement in any applicable law, statute or rule which expands the right of a Delaware corporation to indemnify a member of its Board of Directors or an officer, such changes
shall be, ipso facto, within the purview of an Indemnitee’s rights, and the Company’s obligations, under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its Board of Directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’ rights and
obligations hereunder. 
  
 (b)  Nonexclusivity.    The indemnification provided
by this Agreement shall not be deemed exclusive of any rights to which an Indemnitee may be entitled under the Company’s Certificate of Incorporation, the Company’s Bylaws, any agreement, any vote of stockholders or disinterested
Directors, the General Corporation Law of the State of Delaware, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though Indemnitee may have ceased to serve in such capacity at the time of any action, suit or other covered proceeding. 

 
  4.  No Duplication of Payments.    The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, Certificate of Incorporation, Bylaw or otherwise) of the amounts otherwise
indemnifiable hereunder. 
 

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 5.  Partial Indemnification.    If
Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses incurred by him in connection with any Claim, but not, however, for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled. 
  
 6.  Mutual Acknowledgment.    Both the Company and Indemnitee acknowledge that in certain instances, Federal law or applicable public policy may override Delaware law and prohibit the Company from
indemnifying its directors and officers under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the Securities and Exchange Commission has taken the position that indemnification is not permissible for liabilities
arising under certain federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with
the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee. 
  
 7.  Officers and Director Liability.    The Company shall, from time to time, make the good faith
determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful
acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such
coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s
directors, if the Indemnitee is a director; or of the Company’s officers, if the Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key
employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are
disproportionate to the amount of coverage provided, the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or Indemnitee is covered by a similar insurance maintained by a subsidiary or parent of
the Company. 
  
 8.  Exceptions.    Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement: 
  
 (a)  Excluded Action or Omissions.    To indemnify Indemnitee for acts, omissions or transactions from which Indemnitee may not be relieved of liability under applicable law; 

 
 (b)  Claims Initiated by Indemnitee.    To indemnify or advance expenses
to Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee and not by way of defense, except (i) with respect to actions or proceedings brought to establish or enforce a right to indemnification under this Agreement or any
other agreement or insurance policy or under the Company’s Certificate of Incorporation or Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, (ii) in specific cases if the Board of Directors has approved the
initiation or bringing of such Claim, or (iii) as otherwise required under Section 145 of the Delaware General Corporation Law, regardless of whether Indemnitee ultimately 
 

 5 

 is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be;

  
 (c)  Lack of Good Faith.    To indemnify Indemnitee for any
expenses incurred by the Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of intent jurisdiction determines that each of the material assertions made by the Indemnitee in such
proceeding was not made in good faith or was frivolous; 
  
 (d)  Insured
Claims.    To indemnify indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, Judgments, fines ERISA excise taxes or Penalties, and amounts paid in settlement) which have been paid
directly to Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance maintained by the Company or any parent or subsidiary of the Company; or 
  

(e)  Claims Under Section 16(b).    To indemnify Indemnitee for expenses or the payment of profits arising from
the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute. 
  
 9.  Period of Limitation.    No legal action shall be brought and no cause of action shall be asserted by or in the right of the
Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company
shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter
period shall govern. 
  
 10.  Construction of Certain Phrases. 
  
 (a)  For purposes of this Agreement, references to the “Company” shall include, in addition to the resulting
corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its officers and directors,
so that if Indemnitee is or was an officer or director of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture,
employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued. 
  
 (b)  For purposes of this Agreement, references to
“other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the
Company” shall include any service as an officer or director of the Company which imposes duties on, or involves services by, such officer or director with respect to an employee benefit plan, its participants or its beneficiaries and if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in 
 

 6 

  
 a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

  
 (c)  For purposes of this Agreement a “Change in Control” shall be deemed to have occurred if
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee or other fiduciary hold ing securities under an employee benefit plan of the Company or a
corporation owned directly or indirectly by the stockholders of the company in substantially the same proportions as their ownership of stock of the Company, (A) who is or becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 10% or more of the combined voting power of the Company’s then outstanding Voting Securities, increases his beneficial ownership of such securities by 5% or more over the percentage so owned by such person, or (B) becomes
the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing more than 20% of the total voting power represented by the Company’s then outstanding Voting
Securities, (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new director whose election by the Board of Directors or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination or election was previously so approved,
cease for any reason to constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation which would result in the Voting
Securities of the company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the company approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of (in one transaction or a series of transactions) all of substantially all of the Company’s assets. 
  
 (d)  For purposes of this Agreement, “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected in accordance with the provisions of Section 1(c) hereof, who shall not have
otherwise performed services for the Company or Indemnitee within the last three years (other than with respect to matters concerning the rights of Indemnitee under this Agreement, or of other indemnitee under similar indemnity agreements).

  
 (e)  For purposes of this Agreement, a “Reviewing Party” shall mean any appropriate person or
body consisting of a member or members of the Company’s Board of Directors or any other person or body appointed by the Board of Directors who is not a party to the particular claim for which Indemnitee is seeking indemnification, or
Independent Legal Counsel. 
  
 (f)  For purposes of this Agreement, “Voting Securities” shall
mean any securities of the Company that vote generally in the election of directors. 
  
 11.  Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall constitute an original. 
 

 7 

  
 12.  Binding Effect; Successors and
Assigns.    This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business and/or assets of the company, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director or
officer of the Company or of any other enterprise at the Company’s request. 
  
 13.  Attorneys’ Fees.    In the event that any action is instituted by Indemnitee under this Agreement or under any liability insurance policies maintained by the Company to enforce or
interpret any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee with respect to such action, regardless of whether Indemnitee is ultimately successful in such action, and shall be entitled to
the advancement of Expenses with respect to such action, unless as a part of such action a court of competent jurisdiction over such action determines that each of the material assertions made by Indemnitee as a basis for such action were not made
in good faith or were frivolous. In the event of an action instituted by or in the name of the Company under this Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee in defense of such action including costs and expenses incurred with respect to Indemnitee’s counterclaims and crossclaim made in such action), and shall be entitled to the advancement of Expenses with respect to such action, unless
as a part of such action a court having jurisdiction over such action determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous. 
  
 14.  Notice.    All, notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed
duly given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery, or (ii) if mailed by domestic certified or registered mail with postage prepaid, on the third business day after the date postmarked. Addresses
for notice to either party are as shown on the signature page of this Agreement, or as subsequently modified by written notice. 
  
 15.  Consent to Jurisdiction.    The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any
action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only in the Court of Chancery of the State of Delaware in and for New Castle
County, which shall be the exclusive and only proper forum for adjudicating such a claim. 
  
 16.  Severability.    The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or sentence)
are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions
of this Agreement (including, without limitations, each portion of this Agreement containing any 
 

 8 

 provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, illegal or unenforceable. 
  
 17.  Choice of Law.    This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts between Delaware
residents, entered into and to be performed entirely within the State of Delaware, without regard to the conflict of laws principles thereof. 
  
 18.  Subrogation.    In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all documents required and shall do all acts that say be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights. 
  

19.  Amendments and Termination.    No amendment, modification, termination or cancellation of this Agreement shall be effective
unless it is in writing signed by both the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver. 
  
 20.  Integration and Entire Agreement.    This Agreement
sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto.

  
 21.  No Construction As Employment Agreement.    Nothing contained in this
Agreement shall be construed as giving Indemnitee any right to be retained in the employ of the Company or any of its subsidiaries. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 
  
 
	 TDK MEDIACTIVE, INC.
 
	 
	 

	 Vincent J. Bitetti
 Chief
Executive Officer
 

 
  
 
	 AGREED TO AND ACCEPTED
  
 
	 INDEMNITEE:
  
 
	 
	 

 
 

 9

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