Document:

Executive's Restricted Stock Purchase Agreement dated August 26, 2005

 Exhibit 10.9 
  
 EXECUTIVE’S RESTRICTED STOCK PURCHASE AGREEMENT 
  
 This Executive’s Restricted Stock Purchase Agreement (the “Agreement”) is made as of August 26, 2005,
by and between Online Music Corporation, a Delaware corporation (the “Company”), and Peter Koulouris (the “Purchaser”). 
  
 In consideration of the mutual covenants and representations set forth below, the Company and Purchaser agree as follows: 
  
 1. Purchase and Sale of the Shares. Subject to the terms and
conditions of this Agreement, the Company agrees to sell to Purchaser and Purchaser agrees to purchase from the Company on the Closing (as defined below) One Hundred and Sixty (160) shares of the Company’s Common Stock (the
“Shares”) at a price of $0.10 per share (the “Purchase Price”), for an aggregate purchase price of $16.00. 
  
 2. Closing. The purchase and sale of the Shares shall occur at a closing (the “Closing”) to be held on the date first set forth
above, or at any other time mutually agreed upon by the Company and Purchaser. The Closing will take place at the principal office of the Company or at such other place as shall be designated by the Company. At the Closing, Purchaser shall deliver
the aggregate Purchase Price set forth above to the Company by cash, check or any other method of payment approved by the Company’s Board of Directors (or any combination thereof), and the Company will issue, as promptly thereafter as
practicable, a stock certificate, registered in the name of the Purchaser, reflecting the Shares. 
  
 3. Repurchase Option. 
  
 A. In the event the Purchaser ceases to be an employee, consultant, advisor or director (a “Service Provider”) of the
Company for any or no reason, including, without limitation, by reason of Purchaser’s death or disability (“Disability”) as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”), the Company shall, upon the date of such termination (as reasonably fixed by the Company), have an irrevocable, exclusive option to repurchase (the “Repurchase Option”) any Shares which have not yet been
released from the Repurchase Option (the “Unreleased Shares”), at a price per share equal to the lesser of (x) the fair market value of the shares at the time the Repurchase Option is exercised, as determined by the Company’s
board of directors and (y) the Purchase Price (the “Repurchase Price”). The Company may exercise its Repurchase Option as to any or all of the Unreleased Shares at any time following Purchaser’s termination; provided,
however, that without requirement of further action on the part of either party hereto, the Company’s Repurchase Option shall be deemed to have been automatically exercised as to all Unreleased Shares at 5:00 p.m. PST on the date that is
60 days following the date of Purchaser’s termination, unless the Company declines in writing to exercise its Repurchase Option prior to such time. 
  
 B. If the Company decides not to exercise its Repurchase Option, it shall notify the Purchaser within 60 days of the Purchaser’s
termination, in which event the Repurchase Option shall terminate. If the Company decides to exercise its Repurchase Option, within 90 days from the 

 
Purchaser’s termination as a Service Provider, the Company shall deliver payment to the Purchaser, with a copy to the Escrow Agent (as defined in
Section 7 hereof), by any of the following methods, in the Company’s sole discretion: (i) delivering to the Purchaser or the Purchaser’s executor a check in the amount of the aggregate Repurchase Price, (ii) canceling an amount of the
Purchaser’s indebtedness to the Company equal to the aggregate Repurchase Price, or (iii) any combination of (i) and (ii) such that the combined payment and cancellation of indebtedness equals such aggregate Repurchase Price. Upon delivery of
the payment of the aggregate Repurchase Price in any of the ways described above, the Company shall become the legal and beneficial owner of the Unreleased Shares being repurchased and all related rights and interests therein, and the Company shall
have the right to retain and transfer to its own name the number of Unreleased Shares being repurchased by the Company. In the event that Purchaser’s continuous status as a Service Provider terminates, and the Company neither notifies the
Purchaser within 60 days thereafter of the Company’s decision not to exercise its Repurchase Option, nor delivers payment of the Repurchase Price to the Purchaser within 90 days thereafter, then the sole remedy of the Purchaser thereafter shall
be to receive the Repurchase Price from the Company in the manner set forth above, and in no case shall the Purchaser have any claim of ownership as to any of the Unreleased Shares. 
  
 C. The Company in its sole discretion may designate and assign one or more employees, officers, directors or
stockholders of the Company or other persons or organizations to exercise all or a part of the Company’s Repurchase Option to purchase all or a part of the Unreleased Shares. 
  
 D. In the event that the Company’s Repurchase Option is exercised, whether automatically in the manner
provided for above or pursuant to written notice, then upon and following such exercise, the only remaining right of the Purchaser under this Agreement shall be the right to receive the Repurchase Price, and the Purchaser have no right whatsoever to
receive the Unreleased Shares. In the event that the Company’s Repurchase Option is terminated, then upon and following such termination, the only remaining right of the Purchaser under this Agreement shall be the right to receive the
Unreleased Shares, and the Purchaser shall have no right whatsoever to receive the Repurchase Price. 
  
 4. Release of Shares From Repurchase Option; Vesting. 
  
 A. So long as the Purchaser’s continuous status as a Service Provider has not yet terminated in each such instance,
1/24th of the total number of Shares shall be released from the Repurchase Option each month following the date
hereof, until all Shares have been released on the second anniversary of this Agreement. 
  
 Notwithstanding the foregoing, in the event that Purchaser’s continuous status as a Service Provider is terminated by the Company
without Cause (as defined below), or by the Purchaser for Good Reason (as defined below), the remaining unreleased Shares shall be released from the Repurchase Option immediately. 
  
 B. Subject to the provisions of Section 8, the Shares which have been released from the Company’s
Repurchase Option shall be delivered to the Purchaser at the Purchaser’s request. 
  
 C. “Cause” shall mean: (i) Purchaser’s failure to perform his assigned duties or responsibilities as a Service
Provider (other than a failure resulting from the Purchaser’s Disability) after notice thereof, and opportunity to cure for a period of sixty (60) days after written notice of 

  

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such failure has been provided to Purchaser (if curable as determined in good faith by the Board of Directors of the Company), from the Company describing
Purchaser’s failure to perform such duties or responsibilities; (ii) Purchaser being convicted of any act of dishonesty, fraud or misrepresentation; (iii) Purchaser’s violation of any federal or state law or regulation applicable to the
Company’s business; (iv) Purchaser’s breach of any confidentiality agreement or invention assignment agreement between Purchaser and the Company; or (v) Purchaser being convicted of, or entering a plea of nolo contendere to, any
felony, other than with respect to moving vehicle violations, or committing any act of moral turpitude. 
  
 D. “Good Reason” shall mean: (i) Purchaser’s position with the Company is changed in a manner which materially
reduces his level of responsibility or the nature of his functions; (ii) Purchaser’s level of compensation (including base salary, fringe benefits and participation in non-discretionary bonus programs under which awards are payable pursuant to
objective financial or performance standards) is reduced by more than fifteen percent (15%) without his consent; or (iii) Purchaser is required to relocate his principal office of employment more than fifty (50) miles without his consent.

  
 5. Limitation on Payments. In the event that the
severance and other benefits provided for in this Agreement or otherwise payable to the Purchaser (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then Purchaser’s benefits under this Agreement shall be either 
  
 A. delivered in full, or 
  
 B. delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, 
  
 whichever of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the Excise Tax, results in the receipt by Purchaser on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.

  
 Unless the Company and the Purchaser otherwise agree in
writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Purchaser and the
Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Section 280G and 4999 of the Code. The Company and the Purchaser shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this
Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. 
  
 6. Restrictions on Transfer. 
  
 A. The Purchaser hereby makes the investment representations listed on Exhibit A to the Company as of the date of this Agreement and as of
the date of the Closing, and agrees that such 

  

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representations are incorporated into this Agreement by this reference, such that the Company may rely on them in issuing the Shares. Purchaser understands
and agrees that the Company shall cause the legends set forth below, or substantially equivalent legends, to be placed upon any certificate(s) evidencing ownership of the Shares, together with any other legends that may be required by the Company or
by applicable state or federal securities laws: 
  
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE
OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT. 
  
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, A RIGHT OF FIRST REFUSAL, AND A REPURCHASE OPTION HELD BY THE
ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF
FIRST REFUSAL AND REPURCHASE OPTION ARE BINDING ON TRANSFEREES OF THESE SHARES. 
  
 B. Stop-Transfer Notices. Purchaser agrees that to ensure compliance with the restrictions referred to herein, the Company may
issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
  
 C. Refusal to Transfer. The Company shall not be
required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so transferred. 
  
 D. Lock-Up Period. Purchaser hereby agrees that Purchaser shall not sell, offer, pledge, contract to sell, grant any option or
contract to purchase, purchase any option or contract to sell, grant any right or warrant to purchase, lend or otherwise transfer or encumber, directly or indirectly, any Shares or other securities of the Company, nor shall Purchaser enter into any
swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Shares or other securities of the Company, during the 540-day period (or such other shorter period as may be
requested in writing by the managing underwriter and agreed to in writing by the Company) following the effective date of the first registration statement of the Company filed under the Securities Act that includes securities to be sold on behalf of
the Company to the public in an underwritten public offering under the Securities Act. Purchaser further agrees, if so requested by the Company or any representative of its underwriters, to enter into such underwriter’s standard form of
“lockup” or “market standoff” agreement in a form satisfactory to the 

  

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Company and such underwriter. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the
end of such period. 
  
 E. Unreleased
Shares. No Unreleased Shares subject to the Repurchase Option contained in Section 3 of this Agreement, nor any beneficial interest in such Shares, shall be sold, gifted, transferred, encumbered or otherwise disposed of in any way (whether by
operation of law or otherwise) by the Purchaser. 
  
 F. Released Shares. No Shares purchased pursuant to this Agreement, nor any beneficial interest in such Shares, shall be sold, transferred, encumbered or otherwise disposed of in any way (whether by operation of law or otherwise) by
the Purchaser or any subsequent transferee, other than in compliance with the Company’s right of first refusal provisions contained in Section 7 of this Agreement. 
  
 7. Company’s Right of First Refusal. Before any Shares acquired by the purchaser pursuant to this Agreement (or
any beneficial interest in such Shares) may be sold, transferred, encumbered or otherwise disposed of in any way (whether by operation of law or otherwise) by the Purchaser or any subsequent transferee (each a “Holder”), such Holder
must first offer such Shares or beneficial interest to the Company and/or its assignee(s) as follows: 
  
 A. Notice of Proposed Transfer. The Holder shall deliver to the Company a written notice stating: (i) the Holder’s bona fide
intention to sell or otherwise transfer the Shares; (ii) the name of each proposed transferee; (iii) the number of Shares to be transferred to each proposed transferee; (iv) the bona fide cash price or other consideration for which the Holder
proposes to transfer the Shares; and (v) that by delivering the notice, the Holder offers all such Shares to the Company and/or its assignee(s) pursuant to this Section and on the same terms described in the notice. 
  
 B. Exercise of Right of First Refusal. At any time
within 30 days after receipt of the Holder’s notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of
the proposed transferees, at the purchase price determined in accordance with Section 7.C. 
  
 C. Purchase Price. The purchase price for the Shares purchased by the Company and/or its assignee(s) under this Section shall be
the price listed in the Holder’s notice. If the price listed in the Holder’s notice includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the
Company in its sole discretion. 
  
 D.
Payment. Payment of the purchase price shall be made, at the option of the Company and/or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company and/or its
assignee(s), or by any combination thereof within 30 days after receipt by the Company of the Holder’s notice (or at such later date as is called for by such notice). 
  
 E. Holder’s Right to Transfer. If all of the Shares proposed in the notice to be transferred to
a given proposed transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that proposed transferee, provided that: (i) the transfer is made
only on the terms provided for in the 

  

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notice, with the exception of the purchase price, which may be either the price listed in the notice or any higher price; (ii) such transfer is consummated
within 60 days after the date the notice is delivered to the Company; (iii) the transfer is effected in accordance with any applicable securities laws, and if requested by the Company, the Holder shall have delivered an opinion of counsel acceptable
to the Company to that effect; and (iv) the proposed transferee agrees in writing that the provisions of this Section shall continue to apply to the transferred Shares in the hands of such proposed transferee. If any Shares described in a notice are
not transferred to the proposed transferee within the period provided above, then before any such Shares may be transferred, a new notice shall be given to the Company, and the Company and/or its assignees shall again be offered the right of first
refusal described in this Section. 
  
 F.
Exception for Certain Family Transfers. Notwithstanding anything to the contrary contained elsewhere in this Section, the transfer of any or all of the Shares during the Holder’s lifetime or on the Holder’s death by will or
intestacy to the Holder’s spouse, child, father, mother, brother, sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, grandfather, grandmother, grandchild, cousin, aunt, uncle, niece, nephew, stepchild, to a university or
charitable organization, or to a trust or other similar estate planning vehicle for the benefit of the Holder or any such person, shall be exempt from the provisions of this Section; provided that, in each such case, the transferee shall
agree in writing to receive and hold the Shares so transferred subject to all of the provisions of this Agreement, including but not limited to this Section, and there shall be no further transfer of such Shares except in accordance with the terms
of this Section. 
  
 G. Termination of Right
of First Refusal. The right of first refusal contained in this Section shall terminate as to all Shares purchased hereunder upon the earlier of: (i) the closing date of the first sale of Common Stock of the Company to the general public pursuant
to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act, as amended, and (ii) the closing date of a Change of Control pursuant to which the holders of the outstanding voting
securities of the Company receive securities of a class registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended. 
  
 H. For purposes of this Agreement, a “Change of Control” means either: 
  
 (1) the acquisition of the Company by another entity by
means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation or stock transfer, but excluding any such transaction effected primarily for the purpose of changing the domicile
of the Company), unless the Company’s shareholders of record immediately prior to such transaction or series of related transactions hold, immediately after such transaction or series of related transactions, at least 50% of the voting power of
the surviving or acquiring entity; or 
  
 (2) a
sale of all or substantially all of the assets of the Company. 
  
 8. Escrow. 
  
 A. As security for
the faithful performance of this Agreement, Purchaser agrees, immediately upon receipt of the certificate(s) evidencing the Shares, to deliver such certificate(s), together with a stock power in the form of Exhibit B attached to this
Agreement, executed by Purchaser and by Purchaser’s spouse, if any (with the date and number of Shares left blank), to the 

  

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Secretary of the Company or its designee (the “Escrow Agent”). These documents shall be held by the Escrow Agent pursuant to the Joint
Escrow Instructions of the Company and Purchaser set forth in Exhibit C attached to this Agreement, which instructions are incorporated into this Agreement by this reference, and which instructions shall also be delivered to the Escrow Agent
after the Closing Date. 
  
 B. Subject to the
terms hereof, the Purchaser shall have all the rights of a stockholder with respect to such Shares while they are held in escrow, including without limitation, the right to vote the Shares. If, from time to time during the term of the Company’s
Repurchase Option, there is (i) any stock dividend, stock split or other change in the Shares, (ii) any dividend of cash or other property on the Shares, or (iii) any merger or sale of all or substantially all of the assets or other acquisition of
the Company, any and all new, substituted or additional securities or cash or other consideration to which the Purchaser is entitled by reason of the Purchaser’s ownership of the Shares shall immediately become subject to this escrow, deposited
with the Escrow Agent and included thereafter as “Shares” for purposes of this Agreement and the Company’s Repurchase Option. 
  
 9. Tax Consequences. The Purchaser has reviewed with the Purchaser’s own tax advisors the federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement. The Purchaser is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Purchaser understands that the Purchaser
(and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement. The Purchaser understands that Section 83 of the Code, taxes as ordinary income the difference between
the purchase price for the Shares and the Fair Market Value of the Shares as of the date any restrictions on the Shares lapse. In this context, “restriction” includes the right of the Company to buy back the Shares pursuant to the
Repurchase Option. The Purchaser understands that the Purchaser may elect to be taxed at the time the Shares are purchased rather than when and as the Repurchase Option expires by filing an election under Section 83(b) of the Code with the IRS
within 30 days from the date of purchase. THE FORM FOR MAKING THIS SECTION 83(B) ELECTION IS ATTACHED TO THIS AGREEMENT AS EXHIBIT D AND THE PURCHASER (AND NOT THE COMPANY OR ANY OF ITS AGENTS) SHALL BE SOLELY
RESPONSIBLE FOR APPROPRIATELY FILING SUCH FORM, EVEN IF THE PURCHASER REQUESTS THE COMPANY OR ITS AGENTS TO MAKE THIS FILING ON PURCHASER’S BEHALF. 
  
 10. General Provisions. 
  
 A. Choice of Law; Entire Agreement. This Agreement shall be governed by the internal substantive laws, but not the choice of law
rules, of California. 
  
 B. Integration.
This Agreement represents the entire agreement between the parties with respect to the purchase of the Shares by the Purchaser and supercedes and replaces any and all prior written or oral agreements regarding the subject matter of this Agreement
including, but not limited to, any representations made during any interviews, relocation discussions or negotiations whether written or oral. 
  
 C. Notices. Any notice, demand, offer, request or other communication required or permitted to be given by either the Company or
the Purchaser pursuant to the terms of this Agreement shall be in writing and shall be deemed effectively given the earlier of (i) when received, 

  

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(ii) when delivered personally, (iii) 1 business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) 1 business day after
being deposited with an overnight courier service or (v) 4 days after being deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties at the addresses provided to the Company (which the Company agrees to disclose to
the other parties upon request) or such other address as a party may request by notifying the other in writing. 
  
 D. Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation
or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as
the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and
delivers the assumption agreement described in this Section or which becomes bound by the terms of this Agreement by operation of law. Subject to the restrictions on transfer set forth in this Agreement, this Agreement shall be binding upon
Purchaser and his heirs, executors, administrators, successors and assigns. 
  
 E. Assignment. The rights granted to the Purchaser under this Agreement are not assignable by the Purchaser under any circumstances. 
  
 F. Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any
way be construed as a waiver of any such provision, nor prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and shall not constitute a waiver of either
party’s right to assert any other legal remedy available to it. 
  
 G. Purchaser Investment Representations and Further Documents. The Purchaser agrees upon request to execute any further documents or instruments necessary or reasonably desirable in the view of the Company to
carry out the purposes or intent of this Agreement, including (but not limited to) Exhibits A, B, C, D and E of this Agreement 
  
 H. Severability. Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions shall
nevertheless remain effective and shall remain enforceable to the greatest extent permitted by law. 
  
 I. Rights as Shareholder. Subject to the terms and conditions of this Agreement, Purchaser shall have all of the rights of a
shareholder of the Company with respect to the Shares from and after the date that Purchaser delivers a fully executed copy of this Agreement (including all exhibits and attachments thereto) and full payment for the Shares to the Company, and until
such time as Purchaser disposes of the Shares in accordance with this Agreement. Upon such transfer, Purchaser shall have no further rights as a holder of the Shares so purchased except (in the case of a transfer to the Company) the right to receive
payment for the Shares so purchased in accordance with the provisions of this Agreement, and Purchaser shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation.

  

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 J. Adjustment for Stock Split. All references to the number of Shares and the
purchase price of the Shares in this Agreement shall be adjusted to reflect any stock split, stock dividend or other change in the Shares which may be made after the date of this Agreement. 
  
 K. Employment at Will. PURCHASER ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THIS AGREEMENT IS EARNED ONLY BY CONTINUING SERVICE AS A SERVICE PROVIDER AT WILL (AND NOT THROUGH THE ACT OF BEING HIRED OR PURCHASING SHARES HEREUNDER). PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, OR FOR ANY PERIOD AT ALL, AND
SHALL NOT INTERFERE WITH PURCHASER’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE PURCHASER’S RELATIONSHIP WITH THE COMPANY AT ANY TIME, WITH OR WITHOUT CAUSE OR NOTICE. 
  
 L. Arbitration. Any and all controversies, claims, or disputes arising out of, relating to, or
resulting from this Agreement shall be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including section 1283.05 (the “Rules”) and pursuant to
California law. Any arbitration will be administered by the American Arbitration Association (“AAA”) in accordance with its Rules for the Resolution of Commercial Disputes. Purchaser agrees that the arbitrator shall have the power
to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Purchaser also agrees that the arbitrator shall have
the power to award any remedies, including attorneys’ fees and costs, available under applicable law. Purchaser understands that each party shall bear its own costs and expenses, including attorney’s fees, incurred in connection with any
Arbitration. The decision of the arbitrator shall be in writing. Except as provided by the Rules, arbitration shall be the sole, exclusive and final remedy for any dispute under this Agreement. Accordingly, except as provided for by the Rules,
neither the Purchaser nor the Company will be permitted to pursue court action regarding this Agreement. In addition to the right under the Rules to petition the court for provisional relief, the Purchaser agrees that any party may also petition the
court for injunctive relief where either party alleges or claims a violation of any confidential information or invention assignment agreement between the Purchaser and the Company or any other agreement regarding trade secrets, confidential
information, nonsolicitation or Labor Code §2870. In the event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys fees. 
  
 M. Counterparts. This Agreement may be executed in
one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals. 
  
 * * * * * 
  

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 The parties represent that they have read this Agreement in its entirety, have had an opportunity to
obtain the advice of counsel prior to executing this Agreement and fully understand this Agreement. The Purchaser agrees to notify the Company of any change in his address below. 
  

					
	PURCHASER	 	 	 	ONLINE MUSIC CORPORATION
			
	 /S/    PETER
KOULOURIS
	 	 	 	 /S/    STEVE
COLMAR

	Signature	 	 	 	Signature
			
	Peter Koulouris	 	 	 	Steve Colmar
	Print Name	 	 	 	Print Name
			
	  	 	 	 	 Chairman of the Board

	 	 	 	 	Print Title
			
	Address:	 	 	 	 
			
	  	 	 	 	  
			
	  	 	 	 	  

  
 EXHIBIT A

  
 INVESTMENT REPRESENTATION STATEMENT 

 

					
	PURCHASER	 	:	    	Peter Koulouris
			
	COMPANY	 	:	    	Online Music Corporation
			
	SECURITY	 	:	    	Common Stock
			
	AMOUNT	 	:	    	160 shares
			
	DATE	 	:	    	August 26, 2005

  
 In connection with the
purchase of the above-listed shares, I, the undersigned purchaser, represent to the Company as follows: 
  
 1. The Company May Rely on These Representations. I understand that the Company’s sale of the shares to me has not been registered under the
Securities Act of 1933, as amended, because the Company believes, relying in part on my representations in this document, that an exemption from such registration requirement is available for such sale. I understand that the availability of this
exemption depends upon the representations I am making to the Company in this document being true and correct. 
  
 2. I am Purchasing for Investment. I am purchasing the shares solely for investment purposes, and not for further distribution. My entire legal and
beneficial ownership interest in the shares is being purchased and shall be held solely for my account, except to the extent I intend to hold the shares jointly with my spouse. I am not a party to, and do not presently intend to enter into, any
contract or other arrangement with any other person or entity involving the resale, transfer, grant of participation with respect to or other distribution of any of the shares. My investment intent is not limited to my present intention to hold the
shares for the minimum capital gains period specified under any applicable tax law, for a deferred sale, for a specified increase or decrease in the market price of the shares, or for any other fixed period in the future. 
  
 3. I Can Protect My Own Interests. I can properly evaluate the merits
and risks of an investment in the shares and can protect my own interests in this regard, whether by reason of my own business and financial expertise, the business and financial expertise of certain professional advisors unaffiliated with the
Company with whom I have consulted, or my preexisting business or personal relationship with the Company or any of its officers, directors or controlling persons. 
  
 4. I am Informed About the Company. I am sufficiently aware of the Company’s business affairs and financial
condition to reach an informed and knowledgeable decision to acquire the shares. I have had opportunity to discuss the plans, operations and financial condition of the 

 
Company with its officers, directors or controlling persons, and have received all information I deem appropriate for assessing the risk of an investment in
the shares. 
  
 5. I Recognize My Economic Risk. I realize
that the purchase of the shares involves a high degree of risk, and that the Company’s future prospects are uncertain. I am able to hold the shares indefinitely if required, and am able to bear the loss of my entire investment in the shares.

  
 6. I Know the Shares are Restricted Securities. I
understand that the shares are “restricted securities” in that the Company’s sale of the shares to me has not been registered under the Securities Act in reliance upon an exemption for non-public offerings. In this regard, I also
understand and agree that: 
  
 A. I must hold the
shares indefinitely, unless any subsequent proposed resale by me is registered under the Securities Act, or unless an exemption from registration is otherwise available (such as Rule 144); 
  
 B. the Company is under no obligation to register any
subsequent proposed resale of the shares by me; and 
  
 C. the certificate evidencing the shares will be imprinted with a legend which prohibits the transfer of the shares unless such transfer is registered or such registration is not required in the opinion of counsel for
the Company. 
  
 7. I am Familiar With Rule 144. I am
familiar with Rule 144 adopted under the Securities Act, which in some circumstances permits limited public resales of “restricted securities” like the shares acquired from an issuer in a non-public offering. I understand that my ability
to sell the shares under Rule 144 in the future is uncertain, and will depend upon, among other things: (i) the availability of certain current public information about the Company; (ii) the resale occurring more than one year after my purchase and
full payment (within the meaning of Rule 144) for the shares; and (iii) if I am an affiliate of the Company, or a non-affiliate who has held the shares less than two years after my purchase and full payment: (A) the sale being made through a
broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker, as said term is defined under the Securities Exchange Act of 1934, as amended, (B) the amount of shares being sold during any three month
period not exceeding the specified limitations stated in Rule 144, and (C) timely filing of a notice of proposed sale on Form 144, if applicable. 
  
 8. I Know Rule 144 May Never be Available. I understand that the requirements of Rule 144 may never be met, and that the shares may never be
saleable. I further understand that at the time I wish to sell the shares, there may be no public market for the Company’s stock upon which to make such a sale, or the current public information requirements of Rule 144 may not be satisfied,
either of which would preclude me from selling the shares under Rule 144 even if the one-year minimum holding period had been satisfied. 
  
 9. I Know I am Subject to Further Restrictions on Resale. I understand that in the event Rule 144 is not available to me, any future proposed sale
of any of the shares by me will not be possible without prior registration under the Securities Act, compliance with some other registration exemption (which may or may not be available), or each of the following: (i) my written notice to

  

 -2- 

 
the Company containing detailed information regarding the proposed sale, (ii) my providing an opinion of my counsel to the effect that such sale will not
require registration, and (iii) the Company notifying me in writing that its counsel concurs in such opinion. I understand that neither the Company nor its counsel is obligated to provide me with any such opinion. I understand that although Rule 144
is not exclusive, the Staff of the SEC has stated that persons proposing to sell private placement securities other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. 
  
 10. I Know I May Have Tax Liability Due to the Uncertain Value of the Shares. I understand that the Board of
Directors believes its valuation of the shares represents a fair appraisal of their worth, but that it remains possible that, with the benefit of hindsight, the Internal Revenue Service may successfully assert that the value of the shares on the
date of my purchase is substantially greater than the Board’s appraisal. I understand that any additional value ascribed to the shares by such an IRS determination will constitute ordinary income to me as of the purchase date, and that any
additional taxes and interest due as a result will be my sole responsibility payable only by me, and that the Company need not and will not reimburse me for that tax liability. I understand that if such additional value represents more than 25% of
my gross income for the year in which the value of the shares is taxable, the IRS will have 6 years from the due date for filing the return (or the actual filing date of the return if filed thereafter) within which to assess me the additional tax
and interest due. 
  
 11. Residence. The address of my
principal residence is set forth on the signature page below. 
  
 By signing below, I acknowledge my agreement with each of the statements contained in this Investment Representation Statement as of the date first set forth above, and my intent for the Company to rely on such statements in issuing the
shares to me. 
  

	
	
	 /S/    PETER
KOULOURIS

	Purchaser’s Signature
	
	Peter Koulouris
	Print Name

  

	
	Address of Purchaser’s Principal Residence:
	
	  
	
	  

  

 -3- 

  
 EXHIBIT B

  
 STOCK POWER AND ASSIGNMENT 
 SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED and pursuant to that certain Executive’s Restricted Stock Purchase Agreement dated as of August 26, 2005, the undersigned hereby
sells, assigns and transfers unto
                                        
                        ,
                                        
     (            ) shares of Common Stock of Online Music Corporation, a Delaware corporation, standing in the undersigned’s name on the books of said
corporation represented by certificate number              delivered herewith, and does hereby irrevocably constitute and appoint
                                        
as attorney-in-fact, with full power of substitution, to transfer said stock on the books of said corporation. 
  
 Dated: 
  

	
	
	 /S/    PETER
KOULOURIS

	 (Signature)

	
	Peter Koulouris
	 (Please Print Name)

	
	 /S/    LORI
KOULOURIS

	 (Spouse’s Signature, if any)

	
	 Lori Koulouris

	 (Please Print Name)

  
 This Assignment
Separate From Certificate was executed in conjunction with the terms of a Executive’s Restricted Stock Purchase Agreement between the above assignor and the above corporation, dated as of August 26, 2005. 
  
 Instruction: Please do not fill in any blanks other than the signature and
name lines. 

  
 EXHIBIT C

  
 JOINT ESCROW INSTRUCTIONS 
  
 August 26, 2005 
  
 Online Music Corporation 
 1545 River Park
Drive, Suite 210 
 Sacramento, CA 95815 
 Attn: Corporate
Secretary 
  
 Dear Mr. Secretary: 
  
 As Escrow Agent for both Online Music Corporation, a Delaware corporation
(the “Company”), and Peter Koulouris (“Purchaser”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Founder’s Restricted Stock Purchase
Agreement (the “Agreement”), dated as of August 26, 2005, to which a copy of these Joint Escrow Instructions is attached, in accordance with the following instructions: 
  
 1. In the event that the Company and/or any assignee of the Company (referred to collectively for convenience herein as the
“Company”) exercises the Repurchase Option set forth in the Agreement, the Company shall give to Purchaser and you a written notice specifying the number of shares of stock to be purchased, the purchase price, and the time for a
closing hereunder at the principal office of the Company. Purchaser and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice. 
  
 2. At the closing, you are directed (a) to date the stock assignments
necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver same, together with the certificate evidencing the shares of stock to be transferred, to the Company against the simultaneous delivery
to you of the purchase price (by check or such other form of consideration mutually agreed to by the parties) for the number of shares of stock being purchased pursuant to the exercise of the Repurchase Option. 
  
 3. Purchaser irrevocably authorizes the Company to deposit with you any
certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares as defined in the Agreement. Purchaser does hereby irrevocably constitute and appoint you as his attorney-in-fact and agent for
the term of this escrow to execute with respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transaction herein contemplated. Subject to the provisions of this paragraph 3,
Purchaser shall exercise all rights and privileges of a stockholder of the Company while the stock is held by you. 

 4. Upon written request of Purchaser after each successive 1-year period from the date of the Agreement,
unless the Repurchase Option has been exercised, you will deliver to Purchaser a certificate or certificates representing so many shares of stock as are not then subject to the Repurchase Option. 
  
 5. If at the time of termination of this escrow you should have in your
possession any documents, securities, or other property belonging to Purchaser, you shall deliver all of same to Purchaser and shall be discharged of all further obligations hereunder. 
  
 6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto.

  
 7. You shall be obligated only for the performance of such
duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You
shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith and in the exercise of your own good judgment, and any act done or omitted by you pursuant
to the advice of your own attorneys shall be conclusive evidence of such good faith. 
  
 8. The Company and the Purchaser hereby jointly and severally expressly agree to indemnify and hold harmless you and your designees against any and all claims, losses, liabilities, damages, deficiencies, costs and
expenses, including reasonable attorneys’ fees and expenses of investigation and defense incurred or suffered by you and your designees, directly or indirectly, as a result of any of your actions or omissions or those of your designees while
acting in good faith and in the exercise of your judgment under the Agreement, these Joint Escrow Instructions, exhibits hereto or written instructions from the Company or Purchaser hereunder. 
  
 9. You are hereby expressly authorized to disregard any and all warnings
given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or
comply with any such order, judgment or decree, you shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently
reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction. 
  
 10. You shall not be liable in any respect on account of the identity, authorities or rights of the parties executing or delivering or purporting to
execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 
  
 11. You shall not be liable for the outlawing of any rights under the Statute of Limitations with respect to these Joint Escrow Instructions or any documents deposited with you. 
  
 12. You shall be entitled to employ such legal counsel and other experts as
you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the 

  

 -2- 

 
advice of such counsel, and may pay such counsel reasonable compensation therefor. The Company shall reimburse you for any such disbursements. 
  
 13. Your responsibilities as Escrow Agent hereunder shall terminate if you
shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent. 
  
 14. You are expressly authorized to delegate your duties as Escrow Agent hereunder to the law firm of Hayden Bergman, Professional Corporation, or any
other law firm, which delegation, if any, shall survive your resignation as Escrow Agent. 
  
 15. If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in furnishing such instruments.

  
 16. It is understood and agreed that should any dispute arise
with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in your possession without liability to anyone all or any part of said securities until such
disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you
shall be under no duty whatsoever to institute or defend any such proceedings. 
  
 17. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or 4 days following deposit in the United States Post Office, by registered or
certified mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by written notice to each of the other parties hereto.

  

			
	COMPANY:	  	Online Music Corporation
	 	  	1545 River Park Drive, Suite 210
	 	  	Sacramento, CA 95815
		
	PURCHASER:	  	Peter Koulouris
	 	  	____________________________________
	 	  	____________________________________
		
	ESCROW AGENT:	  	Corporate Secretary
	 	  	Online Music Corporation
	 	  	1545 River Park Drive, Suite 210
	 	  	Sacramento, CA 95815

  
 18. By signing these
Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement. 
  

 -3- 

 19. This instrument shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns. 
  

 -4- 

			
	 Very truly yours,

	
	ONLINE MUSIC CORPORATION
a Delaware corporation
		
	By:	 	 /S/    STEVE
COLMAR

		
	Title:	 	 Chairman of the Board

	
	PURCHASER:
	
	/s/    PETER KOULOURIS
	(Signature)

  

	
	ESCROW AGENT:
	
	/S/    RICHARD REES
	Corporate Secretary

  
 [SIGNATURE PAGE TO
JOINT ESCROW INSTRUCTIONS] 
  

 -5- 

  
 EXHIBIT D

  
 ELECTION UNDER SECTION 83(b) OF THE

 INTERNAL REVENUE CODE OF 1986, AS AMENDED 
  
 The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to
include in his or her gross income for the current taxable year, the amount of any compensation taxable to him or her in connection with his or her receipt of the property described below: 
  
 1. The name, address, taxpayer identification number and taxable year of the
undersigned are as follows: 
  

							
	NAME OF TAXPAYER: Peter Koulouris	  	SPOUSE: ___________________________
				
	TAXPAYER’S ADDRESS:	  	___________________	  	 	  	 
	 	  	___________________	  	 	  	 
		
	TAXPAYER ID #: ________________________	  	SPOUSE’S ID #: _____________________

  
 2. The property with
respect to which the election is made is described as follows: 160 shares (the “Shares”) of the Common Stock of Online Music Corporation (the “Company”). 
  
 3. The date on which the property was transferred is: August 26, 2005. 
  
 4. The property is subject to the following restrictions: The Shares may be
repurchased by the Company, or its assignee, upon the occurrence of certain events. This right lapses with regard to a portion of the Shares over time. 
  
 5. The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never
lapse, of such property is: $        . 
  
 6. The amount, if any, paid for such property: $        . 
  
 The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s
receipt of the above-described property. The transferee of such property is the person performing the services in connection with the transfer of said property. 
  

The undersigned understand(s) that the foregoing election may not be revoked except with the consent of the Commissioner. 
  

							
		
	Dated: __________________.	 	 
	 	 	 	 	Peter Koulouris, Taxpayer

  
 The undersigned spouse of taxpayer
joins in this election. 
  

							
		
	Dated: __________________.	 	 
	 	 	 	 	Spouse of Taxpayer

  
 EXHIBIT E

  
 SPOUSAL CONSENT 
  
 I, Lori Koulouris, spouse of Peter Koulouris, have read and approve of
the foregoing Founder’s Restricted Stock Purchase Agreement, dated as of August 26, 2005, together with all exhibits and attachments thereto (collectively, the “Agreement”), by and between my spouse and Online Music
Corporation, a Delaware corporation (the “Company”). In consideration of the Company’s granting of the right to Peter Koulouris to purchase 160 Shares of Common Stock of the Company as set forth in the Agreement, I hereby
appoint Peter Koulouris as my attorney-in-fact in respect to the exercise or waiver of any rights under the Agreement, and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares issued
pursuant thereto under the community property laws of the State of California, or under similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement. 
  
 Dated: August 26, 2005. 
  

	
	“Spouse of Purchaser”
	
	/s/    LORI FRENCH
KOULOURIS        
	 (Signature)

	
	Lori French KoulourisNon-Competition and Non-Solicitation Agreement dated September 13, 2005

 Exhibit 10.10 
  
 NON-COMPETITION AND NON-SOLICITATION AGREEMENT 
  
 THIS NON-COMPETITION AND NON-SOLICITATION AGREEMENT (this “Agreement”) is made and entered into as of September
12, 2005 by and among Digital Music Group, Inc., a Delaware corporation (“DMG”), and the undersigned shareholder (“Shareholder”) of Digital Musicworks International, Inc., a California corporation (the “Company”). The
Closing Date (as defined in the Merger Agreement (as defined below)) shall be the “Effective Date” of this Agreement. 
  
 RECITALS 
  
 A. Concurrent with the execution of this Agreement, DMG and the Company have entered into an Agreement and Plan of Reorganization dated as of September
12, 2005 (the “Merger Agreement”) pursuant to which the Company shall merge with and into DMG (the “Merger”). 
  
 B. Pursuant to the Merger, all of the issued and outstanding shares of capital stock of the Company will be converted into the right to receive shares of
Common Stock of DMG, upon the terms and subject to the conditions, set forth in the Merger Agreement. 
  
 C. Shareholder acknowledges that he is a substantial shareholder, officer and/or director of the Company. 
  
 D. As a condition and mutual inducement to the Merger, and to preserve the
value of the business being acquired by DMG after the Merger, the Merger Agreement contemplates, among other things, that Shareholder shall enter into this Agreement and that this Agreement shall become effective on the Effective Date. 

 
 E. The Merger shall be conditional upon and shall occur concurrent with
the initial public offering of shares of Common Stock of DMG. 
  
 NOW, THEREFORE, in consideration of the mutual promises made herein, DMG and the Shareholder hereby agree as follows: 
  
 1. Covenant Not to Compete or Solicit. 
  
 (a) During the period commencing on the Effective Date and ending on the third anniversary of the Effective Date (the
“Non-Competition Period”), Shareholder shall not, other than on behalf of DMG, directly or indirectly, without the prior written consent of DMG: (i) engage in, anywhere in the United States in which DMG conducts business (the
“Restricted Area”), whether as an employee, agent, consultant, advisor, independent contractor, proprietor, partner, officer, director or otherwise, or have any ownership interest in (except for ownership of one percent (1%) or less of any
publicly-held entity), or participate in or facilitate the financing, operation, management or control of, any firm, partnership, corporation, entity or business that engages or participates in, a Competing Business Purpose (as defined below); or
(ii) interfere with the business of DMG or approach, contact or solicit DMG’s customers in connection with a Competing Business Purpose. For purposes of this Agreement, “Competing Business Purpose” shall mean the acquisition,
processing and distribution of music content for digital download. 
  
 (b) Beginning on the Effective Date and for the duration of the Non-Competition Period, Shareholder shall not, directly or indirectly, without the prior written consent of DMG, solicit, encourage or take any other
action which is intended to induce or encourage, or has the effect of inducing 

  

 - 1 - 

 
or encouraging, any employee of DMG or any subsidiary of DMG to (i) terminate his or her employment with the DMG, or (ii) engage in any action in which
Shareholder would, under the provisions of Section 1(a) hereof, be prohibited from engaging. 
  
 (c) The covenants contained in Sections 1(a) and 1(b) hereof shall be construed as a series of separate covenants, one for each country,
province, state, city or other political subdivision of the Restricted Area. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in Section 1(a) and Section 1(b), respectively. If,
in any judicial proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining
separate covenants (or portions thereof) to be enforced. In the event that the provisions of this Section 1 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the
maximum time, geographic or scope limitations, as the case may be, permitted by applicable laws. 
  
 (d) Shareholder acknowledges that (i) the goodwill associated with the existing business, customers and assets of the Company prior to the
Merger is an integral component of the value of the Company to DMG and is reflected in the portion of the consideration issuable to Shareholder, and (ii) Shareholder’s agreement as set forth herein is necessary to preserve the value of the
Company for DMG following the Merger. Shareholder also acknowledges that the limitations of time, geography and scope of activity agreed to in this Agreement are reasonable because, among other things: (A) the Company and DMG are engaged in a highly
competitive industry, (B) Shareholder has unique access to, and will continue to have access to, the trade secrets and know-how of the DMG, including, without limitation, the plans and strategy (and, in particular, the competitive strategy) of DMG,
(C) Shareholder is receiving significant consideration in connection with the Merger, and (D) in the event Shareholder’s employment with DMG ended, Shareholder would be able to obtain suitable and satisfactory employment without violation of
this Agreement. 
  
 2. Miscellaneous. 
  
 (a) Governing Law; Consent to Personal Jurisdiction.
This Agreement shall be governed by the laws of the State of California without reference to rules of conflicts of law. Shareholder hereby consents to the personal jurisdiction of the state and federal courts located in the Northern District of
California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants. 
  
 (b) Severability. If any portion of this Agreement is held by a court of competent jurisdiction to conflict with any federal, state
or local law, or to be otherwise invalid or unenforceable, such portion of this Agreement shall be of no force or effect and this Agreement shall otherwise remain in full force and effect and be construed as if such portion had not been included in
this Agreement. 
  
 (c) No Assignment.
Because the nature of the Agreement is specific to the actions of Shareholder, Shareholder may not assign this Agreement. This Agreement shall inure to the benefit of DMG and its successors and assigns. 
  

 - 2 - 

 (d) Notices. All notices and other communications hereunder shall be in writing
and shall be deemed given if delivered personally or by commercial messenger or courier service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile (with acknowledgment of complete transmission) to the parties
at the following addresses (or at such other address for a party as shall be specified by like notice); provided, however, that notices sent by mail will not be deemed given until received: 
  

			
	 If to DMG:
	  	Digital Music Group, Inc.
	 	  	1545 River Park Drive, Suite 210
	 	  	Sacramento, CA 95815
	 	  	Attn: Chief Executive Officer
	 	  	Telephone No.: (916) 239-6010
	 	  	Facsimile No.: (916) 239-6018
		
	 If to Shareholder:
	  	To the address set forth on the signature page hereof

  
 (e)
Entire Agreement. This Agreement contains the entire agreement and understanding of the parties and supersedes all prior discussions, agreements and understandings relating to the subject matter hereof. This Agreement may not be changed or
modified, except by an agreement in writing executed by DMG and Shareholder. 
  
 (f) Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, shall not operate as or be construed to be a waiver of any other previous or subsequent breach
of this Agreement. 
  
 (g) Headings. All
captions and section headings used in this Agreement are for convenience only and do not form a part of this Agreement. 
  
 (h) Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an
original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
  
 [remainder of page intentionally left blank] 
  

 - 3 - 

 IN WITNESS WHEREOF, DMG and Shareholder have caused this Agreement to be signed as of the date first
written above. 
  

									
	DIGITAL MUSIC GROUP, INC.	 	 	 	SHAREHOLDER:
					
	 By:
	 	/s/    STEVE COLMAR        	 	 	 	 By:
	 	/S/    MITCHELL
KOULOURIS        
	 Name:
	 	Steve Colmar	 	 	 	 Name:
	 	Mitchell Koulouris
	 Title:
	 	Chairman of the Board	 	 	 	 	 	 
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  

 - 4 -

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