Document:

Third Amended and Restated Secured Convertible Promissory Note dated Oct 31,2003

 EXHIBIT 10.14 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), NOR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS AND HAS BEEN TAKEN FOR INVESTMENT PURPOSES ONLY. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT AND QUALIFICATION UNDER
APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO BORROWER THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. 
  
 THIRD AMENDED AND RESTATED 
 CONVERTIBLE SECURED
PROMISSORY NOTE 
  

			
	 $2,403,528.00
	  	 October 31, 2003

	 	  	 New York, New York

  
 THIS
THIRD AMENDED AND RESTATED CONVERTIBLE SECURED PROMISSORY NOTE (the “Third Restated Note” or “this Note”) is
hereby issued by eUniverse, Inc., a Delaware corporation (“Borrower”) to 550 Digital Media Ventures Inc. (f.k.a. New Technology Holdings Inc.) (“Lender”). This Note amends and restates in its entirety that certain Second Amended
and Restated Convertible Secured Promissory Note dated July 15, 2003 in the principal amount of $1,789,764.00 (the “Second Restated Note”), which Second Restated Note replaced, and represented the remaining unsold portion of, that certain
Second Amended and Restated Convertible Secured Promissory Note dated March 28, 2003 in the principal amount of $2,289,764.00 (the “Original Second Restated Note”), which Original Second Restated Note amended that certain Amended and
Restated Convertible Secured Promissory Note dated October 23, 2001 (the “First Restated Note”), which First Restated Note amended a certain Secured Promissory Note dated February 14, 2001 (the “Replacement Note”), which
Replacement Note replaced the original Secured Promissory Note issued on September 6, 2000 (the “Original Note”). This Note is issued pursuant to Section 5 of that certain Consent and Waiver Agreement, dated October 29, 2003, by and
between Borrower, Lender and the affiliates of VantagePoint Venture Partners named therein, which calls for replacement of the Second Restated Note with a new note in the principal amount hereof representing the principal amount of the Second
Restated Note plus all accrued interest thereunder. 
  
 FOR VALUE RECEIVED, Borrower hereby unconditionally promises to pay on demand to the order of Lender in lawful money of the United States of America and in immediately available funds, the
aggregate principal sum of up to $2,403,528.00, or, if less, the aggregate principal amount of the borrowing outstanding (the “Principal Amount”) together with accrued and unpaid interest thereon, in the manner set forth herein. Borrower
further agrees to pay interest on the Principal Amount at the rate per annum equal to the rate reported in the Wall Street Journal as the prime rate for major banks plus 2% on the outstanding Principal Amount. 

 Interest shall be calculated from and including the date of this Note to but not including the date such Principal Amount
has been repaid in full. Interest shall be calculated on the basis of a 365-day or 366-day year, as the case may be, for the actual number of days elapsed and shall be paid together with the outstanding Principal Amount, as provided in Section 1 of
this Note. 
  
 All borrowings evidenced by this Note and all
payments (including those described in Sections 1(b)) and prepayments of the principal hereof and interest hereon and the respective date thereof shall be endorsed by the holder hereof on the grid schedule attached hereto and made a part hereof, or
on a continuation thereof which shall be attached hereto and made a part hereof (the “Grid”); provided, however, that the failure of the holder hereof to make such a notation or any error in such a notation shall not affect
the obligations of Borrower under this Note. 
  
 This Note is a
portion of that “Second Restated Note” referred to in that certain Letter Agreement by and between the Borrower and the Lender dated March 28, 2003, as the same may from time to time be amended or supplemented (the “Debt Amendment
Letter Agreement”). 
  
 1. Repayment.

  
 (a) The outstanding Principal Amount and all
interest accrued thereon shall be payable on demand, unless Lender has received a written notice from Borrower within 30 days of its delivery of a Demand Notice of Borrower’s intent to convert pursuant to Section 6 below; provided, however,
that unless there has been an Event of Default (as defined in the Security Agreement described in Paragraph 2 below) or a Change of Control (as defined below), Lender agrees not to make demand prior to March 31, 2005 and provided, further, that
Lender shall provide Borrower with 30 days’ advance written notice of such demand (the “Demand Notice”). 
  
 (b) Borrower may at any time and from time to time prepay the Principal Amount, in whole or in part, without premium or penalty.

  
 2. Security Agreement. This Note is entitled to the benefit of that
certain Security Agreement, dated as of September 6, 2000, between Lender and Borrower, as and to the extent amended by (i) the Debt Amendment Letter Agreement and (ii) that certain Intercreditor Agreement, dated as of July 15, 2003, between Lender,
Borrower and VP Alpha Holdings IV, L.L.C. (“VPVP”), as the same may from time to time be amended or supplemented (as amended, the “Security Agreement”), pursuant to which Lender is granted a first priority security interest in
the Collateral (as such term is defined in the Security Agreement). This Note shall be subject to the terms and conditions set forth in such Security Agreement. 
  

3. Place of Payment; Application of Payments. All amounts payable hereunder shall be payable to Lender in United States dollars at such bank account as shall be
designated by Lender in the Demand Notice in immediately available funds. Payment on this Note shall be applied first to any expenses of collection, then to accrued interest, and thereafter to the outstanding principal balance hereof. 
  
 4. Default. Upon the occurrence of an Event of Default (as defined in the Security
Agreement) the unpaid Principal Amount, all unpaid accrued interest thereon and all other amounts owing hereunder may, at the option of Lender, become immediately due and payable to Lender with the effect provided in the Security Agreement.

 5. Change of Control. As used herein, the term “Change of Control” means the occurrence of any of the
following events: 
  
 (a) a sale of all or
substantially all of the assets of the Borrower in one transaction or a series of transactions; 
  
 (b) the merger or consolidation of Borrower with or into another person under circumstances in which the holders of the voting stock of
Borrower immediately prior to such merger or consolidation, do not own a majority of the voting stock of Borrower or the surviving corporation immediately after such merger or consolidation; 
  
 (c) any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), after the date of this Note, becomes the “beneficial owner” (as defined in Rules 13-d-3 and 13d-5 under the
Exchange Act), directly or indirectly, of voting stock of Borrower entitled to cast more than 30% of the votes entitled to be cast by the holders of the outstanding voting stock of Borrower. 
  
 6. Conversion. 
  
 (a) Mechanics of Conversion. Within 60 days following
receipt of a Demand Notice, Borrower may at its option elect to automatically convert the outstanding Principal Amount and unpaid accrued interest thereon as of such date into shares of the Borrower’s Series B Preferred Stock, $.10 par value
per share (the “Series B Preferred Stock”), in accordance with this Section 6. The Borrower shall give at least 15 days prior notice to Lender of the date on which such automatic conversion is to be effectuated (such date, the
“Conversion Date”). The number of shares of Series B Preferred Stock (calculated to the nearest 1/100,000th of a share) to which Lender shall be entitled upon such automatic conversion shall be determined by dividing (x) the outstanding
Principal Amount and unpaid accrued interest thereon as of the Conversion Date by (y) the lower of (i) the average Closing Price (as defined below) for the twenty (20) trading days immediately prior to the date of the Original Second Restated Note
as set forth above in the preamble hereof and (ii) the average Closing Price (as defined below) for the twenty (20) trading days immediately prior to March 31, 2005. “Closing Price” means, the price with respect to the shares of the
Borrower’s Common Stock on any day, (i) the last reported sales price, or in the case no such reported sale takes place on such day, the average of the reported closing bid and asked prices, in either case on any national securities exchange on
which the shares of Common Stock are listed or admitted to trading, or (ii) if the shares of Common Stock are not listed on any national securities exchange, the average of the closing bid and asked prices in the over-the-counter market as furnished
by any NYSE member firm selected from time to time by Borrower for that purpose, or (iii) if such prices in the over-the-counter market are not available, the fair market value of such shares. On the Conversion Date, the outstanding Principal Amount
and unpaid accrued interest thereon shall be converted automatically into the Series B Preferred Stock without further action by the Lender and whether or not this 

 Note has been surrendered to Borrower or its transfer agent, and Lender shall be deemed to be the
shareholder of record as of the Conversion Date with respect to the Series B Preferred Stock. Within fourteen (14) days subsequent to the Conversion Date Lender shall surrender this Note to Borrower or its transfer agent, duly marked cancelled and,
in exchange therefor, Lender shall receive from Borrower share certificates evidencing the Series B Preferred Stock in the name or names in which Lender wishes such certificate or certificates for the Series B Preferred Stock to be issued. If within
fourteen (14) days of the Conversion Date, Lender is unable to deliver this Note, Lender shall notify Borrower or its transfer agent that such Note has been lost, stolen or destroyed and shall deliver to Borrower an acknowledgement that the
obligations evidenced by this Note, shall have been upon the Conversion Date be deemed fully satisfied, and, if requested by Borrower, Lender shall execute an agreement reasonably satisfactory to Borrower to indemnify Borrower from any loss incurred
by it in connection with inability of Lender to deliver such Note. 
  
 (b) Issue Taxes. Borrower shall pay any and all stamp, issue and other taxes that may be payable in respect of the issuance or delivery of the Series B Preferred Stock. 
  
 (c) In the event that the Company exercises the option to
convert this Note pursuant to Section 6(a) after all Series B Preferred Stock held by 550 DMV has been converted into the Company’s common stock, par value $.001 per share (the “Common Stock”), than the outstanding principal and
interest of this Note may be converted by the Company into Common Stock at the price per share otherwise applicable to the Series B Preferred Stock. 
  
 (d) Reservation of Stock Issuable Upon Conversion. Upon any automatic conversion pursuant to Section 6(a) above, Borrower will take all
corporate action as may be necessary to increase its authorized but unissued shares of Series B Preferred Stock or Common Stock, as the case may be, to such number of shares as shall be sufficient to effect the conversion of this Note under Section
6(a) above, including, without limitation, obtaining the requisite stockholder approval of any necessary amendment to Borrower’s certificate of incorporation. 
  
 (e) Fractional Shares. No fractional shares shall be issued upon the conversion of this Note into the Series
B Preferred Stock or Common Stock, as the case may be. If the conversion would result in the issuance of a fraction of a share of the Series B Preferred Stock or Common Stock, as the case may be, Borrower shall, in lieu of issuing any fractional
share, pay Lender who is otherwise entitled to such fraction a sum in cash equal to the fair market value of such fraction on the Conversion Date, with respect to the Series B Preferred Stock, or Common Stock, as the case may be, (in each case as
determined in good faith by the Board of Directors of Borrower and agreed to by Lender). 
  
 (f) Registration Rights. If the outstanding Principal Amount of and unpaid accrued interest thereon has been converted pursuant to Section
6(a) hereof into Series B Preferred Stock or Common Stock, as the case may be, Borrower shall grant to Lender the same registration rights and other minority shareholder rights granted to other holders of Series B Preferred Stock. If the outstanding
Principal Amount and unpaid accrued interest thereon has been converted pursuant to Section 6(a) in to Series B Preferred Stock or Common Stock, as the case may be, Borrower shall ensure that Lender shall receive registration rights and other
minority shareholder rights whenever such rights are granted by Borrower to other holders of 

 its securities (such holders, “Other Shareholders”), and the terms of such rights granted to
Lender shall, in each case, be equal (including, without limitation, any holding periods) to the terms governing the grant of such registration rights and minority shareholder rights to such Other Shareholders. 
  
 7. Waiver. Except as otherwise provided herein, Borrower waives presentment and
written demand for payment, notice of dishonor, protest and notice of protest of this Note, and shall pay all costs of collection when incurred, including, without limitation, reasonable attorneys’ fees, costs and other expenses. BORROWER
WAIVES ITS RIGHTS TO A JURY TRIAL IN CONNECTION WITH ANY CLAIMS ARISING UNDER THIS NOTE TO THE FULLEST EXTENT PERMITTED BY LAW. The right to plead any and all statutes of limitations as a defense to any demands hereunder is hereby waived to the
fullest extent permitted by law. 
  
 8. Expenses; Attorney’s Fees;
Collection Costs. Borrower agrees that it will pay the reasonable costs and expenses of the parties (including legal and accounting fees) in connection with this Note. Without limiting the foregoing, if there has been an Event of Default by
Borrower hereunder, Lender shall be entitled to receive and Borrower agrees to pay all costs of enforcement and collection incurred by Lender, including, without limitation, reasonable attorney’s fees relating thereto. 
  
 9. Successors and Assigns; Assignment. The provisions of this Note shall inure to the
benefit of and be binding on any successor to Borrower and shall extend to any holder hereof. Borrower may assign this Note to any of its affiliates or the affiliates of Sony Music Entertainment Inc., and such rights may be similarly assigned by
such assignee. 
  
 10. Further Assurances. Borrower shall, at any time and
from time to time, upon the written request of Lender, execute and deliver to Lender such further documents and instruments (including, without limitation, financing statements in connection with Lender’s security interest granted hereby) and
do such other acts and things as Lender may reasonably request in order to effectuate fully the purpose and intent of this Note. 
  
 11. THIS NOTE HAS BEEN EXECUTED AND DELIVERED IN THE CITY OF NEW YORK, STATE OF NEW YORK, UNITED STATES OF AMERICA. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF
ANY OTHER JURISDICTION). 
  

			
	 BORROWER

	
	 EUNIVERSE, INC.

		
	 By:
	 	 /s/ Brett Brewer

	 Name:
	 	 Brett Brewer

	 Title:
	 	 President

 [SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CONVERTIBLE SECURED PROMISSORY NOEmployment Agreement with Richard Rosenblatt,dated Jan 23, 2004

 EXHIBIT 10.32 
  
 February 23, 2004 
  
 Mr. Richard Rosenblatt 
 219 Arizona Ave. 
 Santa Monica, CA 90401 
  

	 	Re:	 	Employment Agreement with eUniverse, Inc. 

  
 Dear Richard: 
  
 On behalf of eUniverse, Inc. (the “Company”), I am pleased to offer you employment as the Chief Executive Officer of the Company on the terms and conditions set forth in this letter agreement (this
“Agreement”). You may accept this Agreement by signing and returning a copy of this Agreement to the Company as provided below. 
  
 1. Term of Employment. Your employment under this Agreement shall commence on February 23, 2004 (“Start Date”) and continue until February 28, 2008,
unless it is terminated earlier either by you or the Company or is extended by both you and the Company in a signed writing (“Separation Date”). Your employment under this Agreement is terminable at will by you or the Company at any time
(for any reason or for no reason) subject to the provisions of Section 3. 
  
 2. Position and Duties. During the term of this Agreement, the Company shall employ you as the Chief Executive Officer of the Company and you shall report to the Board of Directors of the Company (the “Board”). Your duties
shall include the duties set forth in the bylaws of the Company for your position and any other duties the Board may delegate to you from time to time that are not inconsistent with duties assigned to a Chief Executive Officer of a publicly-traded
company of comparable size and with a similar business as the Company. You agree, beginning March 1, 2004 and until the Separation Date, to commit substantially all of your working time, attention and efforts to the position on a full-time basis.
Subject to the foregoing, the Company acknowledges that, outside of your obligations to the Company, you may also be spending a reasonable amount of time on Permitted Activities (as defined below). Upon your employment, the Board shall appoint you
to serve as a member of the Board. Thereafter, you may be elected and re-elected to the Board in accordance with the terms of the bylaws of the Company. This Agreement is personal to you and you may not assign or delegate any of your rights or
obligations hereunder without first obtaining the written consent of the Company by action of the Board. 
  
 3. Compensation and Benefits. In consideration for your services to the Company during the time period in which this Agreement is effective, you shall receive the
following compensation and benefits from the Company. 

 February 23, 2004 
 Page 2

  
 (a) Base Salary. The Company shall pay you an annual
base salary at the rate of two hundred fifty thousand dollars ($250,000) per year to be paid in installments according to the Company’s regular payroll policy. The Company shall withhold and deduct all applicable federal and state income and
employment and disability taxes from your base salary as required by applicable laws. You shall be eligible for discretionary annual increases in your base salary in connection with the Company’s annual executive compensation and performance
review conducted by the Board. 
  
 (b) Annual Incentive
Opportunity. You shall be eligible to participate in any bonus plan which the Company may maintain or establish for the executives of the Company on the terms that apply to the executives of the Company. Until the Company establishes such a
plan, it shall provide you with an individual annual incentive opportunity under which you would be eligible to receive an annual target bonus based on the achievement of individual and/or corporate objectives set by the Compensation Committee of
the Board and/or the Board. Such annual target bonus shall be set at seventy-five percent (75%) of your annual base salary with the bonus target for Fiscal Year 1 (beginning April 1, 2004) to be set by the Compensation Committee of the Board and/or
the Board in consultation with you and shall be based upon the achievement of quarterly and annual EBITDA milestones, subject to the discretion of the Board to award the bonus or a portion thereof in the event such milestones are not attained. The
incentive payment shall be in cash or such other form agreed upon by you and the Compensation Committee of the Board or the Board. 
  
 (c) Stock Options. The Company shall grant you two stock options to purchase up to 2,000,000 shares of the common stock of the Company (jointly
referred to as the “Options”) under and pursuant to the Company’s 1999 Stock Award Plan (the “Plan”) upon the commencement of your employment with the Company as follows: 
  
 (1) Standard Option Grant. The Company shall grant you a nonqualified
stock option to purchase 1,300,000 shares of the common stock of the Company at an exercise price equal to $1.83 per share of the common stock of the Company on the date of the commencement of your employment with the Company (the “Standard
Option”), pursuant to the Plan and the stock option agreement for the Standard Option. One hundred thousand (100,000) shares subject to the Standard Option shall be fully vested on the date of the grant of the Standard Option and the remaining
one million two hundred thousand (1,200,000) shares shall vest monthly in equal increments (25,000) per month over a four year period subject to your remaining in continuous employment or service as required by the stock option agreement for the
Standard Option. 
  
 (2) Milestone Option Grant. The
Company shall also grant you a second, nonqualified stock option to purchase 700,000 shares of the common stock of the Company at an exercise price equal to $1.83 per share of the common stock of the Company on the date of the commencement of your
employment with the Company (the “Milestone Option”), pursuant to the Plan and the stock option agreement for the Milestone Option. The 700,000 shares of 

 February 23, 2004 
 Page 3

  
 common stock subject to the Milestone Option shall vest in full after six (6)
years of your remaining in continuous employment or service as required by the stock option agreement for the Milestone Option, provided, however, that such vesting of the Milestone Option shall be accelerated upon the achievement of the following
performance milestones if you remain in continuous employment or service with the Company through such milestone date or dates: 
  
 (i) One hundred thousand (100,000) shares shall vest upon the Company’s achievement of positive EBITDA over any consecutive four quarter period.

  
 (ii) Two hundred thousand (200,000) shares shall vest upon
the Company’s achievement of each of $7 million, $12.5 million and $20 million in EBITDA over any consecutive four quarter period. In the event that the Company achieves less than 100%, but greater than 90%, of the EBITDA corresponding to any
of these three EBITDA performance milestones (i.e., 90% of $7 million, $12.5 million and $20 million), then 80% of the Milestone Option associated with such performance milestone shall vest with the remaining 20% vesting upon the
Company’s achievement of 100% of such milestone. 
  

	
	Example of EBITDA vesting of the Milestone Option: If the Company were to achieve (i) positive EBITDA for the four quarter period ended September 30, 2004, (ii) EBITDA of $12.5 million
for the four quarter period ended March 31, 2005, and (iii) EBITDA of $20 million for the four quarter period ended September 30, 2005, then (x) 100,000 shares of the Milestone Option would vest effective as of September 30, 2004, (y) 400,000
additional shares of the Milestone Option would vest effective March 31, 2005 and (z) the remaining 200,000 shares of the Milestone Option would vest effective September 30, 2005.

  
 (3) Terms of the
Options. Except as otherwise specifically provided in this Agreement, each of the Options shall be governed by the terms of the Plan and the respective stock option agreement for such stock option (which shall contain the provisions in the form
of the stock option agreement attached as Exhibit A hereto), the policies of the Company (including but not limited to the insider trading policy of the Company) and applicable laws (including but not limited to state and federal securities laws).
The Company represents and warrants to you that the Options and shares underlying the Options are registered under federal securities laws under a registration statement on Form S-8 that is effective as of the date hereof. 
  
 (i) Vesting of the Options. Except as otherwise specifically provided
in this Agreement, after your employment or service with the Company has terminated for any reason, the vesting of the Options shall cease immediately. 
  
 (ii) Exercisability of the Options. Except as otherwise specifically provided in this Agreement, you may exercise the vested portion of the
Options while you remain in employment or service with the Company. You or your estate (if applicable) may exercise the vested portion of your Options following the termination of your employment or service as follows: 
  
 (A) Termination for Cause. In the event that your employment or
service with the Company is terminated for Cause by the Company, you shall be permitted to exercise the vested portion of your Options for a period of 90 days after the date of termination. 

 February 23, 2004 
 Page 4

  
 (B) Termination For Reasons Other Than For Cause, Death or
Disability. In the event that your employment or service with the Company is terminated by you in the absence of any grounds for Cause or is terminated by the Company for any reason other than for Cause, you shall be permitted to exercise the
vested portions of your Options for a period of 180 days after the termination of your employment. 
  
 (C) Termination Due to Death or Disability. In the event that your employment or service with the Company is terminated due to your death or
“Disability” (as defined below), you or your estate (if applicable) shall be permitted to exercise the vested portions of your Options for a period of 12 months after the termination of your employment. 
  
 (d) Section 401(k) Plan and Other Benefits. As an employee of the
Company, you shall be eligible to participate in the Company’s 401(k) Plan, subject to the terms of that plan. Subject to the terms of such other plans, you shall be eligible to receive such other benefits or rights as may be provided under any
employee benefit plans provided by the Company to its executives that are now or hereafter will be in effect, including participation in life, medical, disability and dental insurance plans. 
  
 (e) Vacation and Sick Leave. You shall be entitled to accrue up to
three (3) weeks of paid vacation each year of employment under this Agreement plus sick leave on the same basis as all other executives of the Company in accordance with the terms and conditions of the vacation and sick leave policies of the
Company. 
  
 (f) Termination and Change of Control Payments and
Benefits. 
  
 (1) Termination for Cause or Termination for
Other than Good Reason. In the event that your employment with the Company is terminated by the Company for “Cause” (as defined below) or is terminated by you for reasons other than “Good Reason” (as defined below) then you
shall be entitled to payment of your accrued but unpaid salary and vacation pay through the date of the termination of your employment plus any accrued but unpaid incentive payments tied to your quarterly bonus targets achieved through the
termination date. 
  
 (2) Termination Without Cause or for Good
Reason or Termination Due to Death or Disability. In the event that your employment as the Chief Executive Officer of the Company is terminated by the Company without Cause, is terminated by you due to a Good Reason or is terminated due to your
death or Disability, then you or your estate (if applicable) 

 February 23, 2004 
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 shall be entitled to payment of your accrued but unpaid salary and vacation
pay through the date of the termination of your employment plus any accrued but unpaid incentive payments tied to your quarterly bonus targets achieved through the termination date plus the following severance benefits in this Section 3(f)(2)
provided that you (unless you are deceased) execute an effective release in a form to be provided by the Company with terms substantially as set forth in the attached Exhibit B: 
  
 (i) Cash Severance Payment. The Company shall pay you or your estate (if applicable) an additional nine (9) months
of your then current base salary and shall continue your health insurance coverage for such nine month period. 
  
 (ii) Acceleration of Vesting of Standard Option. The vesting of your Standard Option shall be accelerated in the amount of (A) 200,000
shares of the common stock of the Company if the termination of your employment occurs within the first 12 months of your employment with the Company, or (B) 400,000 shares of the common stock of the Company (or, if less, the number of remaining
unvested shares of the common stock of the Company subject to the Standard Option) if termination of your employment occurs after 12 months of the commencement of your employment with the Company. 
  
 (3) Change of Control. 
  
 (i) Change of Control Benefits. In the event of a “Change of
Control” (as defined below) of the Company, then you shall receive immediate vesting of fifty percent (50%) of the unvested portion of the Milestone Option. In the event of a Change of Control and the simultaneous or subsequent
termination of your employment by the Company for any reason or termination of your employment by you for “Good Reason” within six (6) months of the closing of the Change of Control, then you shall receive immediate vesting of the unvested
shares subject to the Options (the Standard Option and the Milestone Option). 
  
 (ii) Parachute Excise Tax. If any cash payments, benefits or acceleration of the vesting of the Options under this Agreement that are deemed contingent upon a Change of Control (collectively “COC
Benefits”) would (i) constitute a “parachute payment” within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by
section 4999 of the Code (the “Excise Tax”), then such COC Benefits shall be reduced to the Reduced Amount. The “Reduced Amount” shall be whichever of the following which would provide the largest after-tax benefit to Executive:
(i) the largest portion of the COC Benefits that would result in no portion of the COC Benefits being subject to the Excise Tax or (ii) the largest portion, up to and including the total, of the COC Benefits, whichever amount, after taking into
account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the COC Benefits
notwithstanding that all or some portion of the COC Benefits may be subject to the Excise Tax. In the event that the COC Benefits are to be reduced, such COC Benefits shall be cancelled in the order of benefits, cash compensation and the
acceleration of the Options unless the you elect in writing a different order for cancellation. 

 February 23, 2004 
 Page 6

  
 The accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change of Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting
the Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be
made hereunder. 
  
 The accounting firm engaged to make the
determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and you within fifteen (15) calendar days after the date on which your right to the COC Benefits arises (if requested at that
time by the Company or you) or at such other time as requested by the Company or you. If the accounting firm determines that no Excise Tax is payable with respect to a COC Benefit, either before or after the application of the Reduced Amount, it
shall furnish the Company and you with an opinion reasonably acceptable to you that no Excise Tax shall be imposed with respect to such COC Benefits. Any good faith determination of the accounting firm made hereunder shall be final, binding and
conclusive upon the Company and you. 
  
 (g) Definitions.

  
 As used in this Agreement, the following terms shall have the
meanings set forth below: 
  
 (1) “Cause” shall
mean: 
  
 (i) your failure (other than due to Disability) to
materially comply with written Company policies generally applicable to Company officers or employees or any directive of the Board that is reasonably achievable, that is not inconsistent with your position as Chief Executive Officer or the
fulfillment of your fiduciary duties and that is not otherwise prohibited by law or established public policy, subject to notice and 30 day cure period to the extent curable; 
  
 (ii) your engagement in willful misconduct against the Company that is materially injurious to the Company; 
  
 (iii) your engagement in any activity that is a conflict of interest or
competitive with the Company (other than (1) any action not taken in bad faith and which is promptly remedied by you upon notice by the Board, (2) your management of current personal investments which do not require your active participation in the
management or the operation of the investments and (3) your continuing to serve on the board of directors of Dolphinsearch and Superdudes and as Managing Member of Prime Ventures and Highview Ventures to the extent 

 February 23, 2004 
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 such service does not constitute a breach of your fiduciary duties to the
Company or prevents you from discharging all of your duties under this Agreement (the activities described in clauses (2) and (3) are hereafter referred to as “Permitted Activities”); 
  
 (iv) your engaging in any act of fraud or dishonesty against the Company or
any of its Affiliates or any material breach of federal or state securities or commodities laws or regulations; 
  
 (v) your engaging in an act of assault or other acts of violence in the workplace; 
  
 (vi) your harassment of any individual in the workplace based on age, gender or other protected status or class or
violation of any policy of the Company regarding harassment (subject to investigation by an independent third party of such harassment claim); or 
  
 (vii) your conviction, guilty plea or plea of nolo contendre for any felony charge. 
  
 (2) “Change of Control” shall mean: 
  
 (i) a sale, lease or other disposition of all or substantially all of the
assets of the Company (which shall mean the business assets responsible for 85% or more of the revenue of the Company); or 
  
 (ii) any consolidation or merger of the Company or a subsidiary of the Company with or into any other corporation or other entity or person, or any other
corporate reorganization, in which, and as a result of which, stockholders of the Company immediately prior to such consolidation, merger or reorganization, owns less than fifty percent (50%) of the Company’s voting power immediately after such
consolidation, merger or reorganization, or any transaction or series of related transactions in which in excess of fifty percent (50%) of the Company’s voting power is transferred. 
  
 (3) “Disability” shall mean a disability as determined under the Company’s long-term disability plan
that prevents you from performing your duties under this Agreement (even with a reasonable accommodation by the Company) for a period of six months or more. 
  
 (4) “EBITDA” shall mean the Company’s reported earnings before interest, taxes, depreciation and
amortization expenses . 
  
 (5) “Good
Reason” shall mean any one of the following without your consent: 
  
 (i) a demotion or any action by the Company which results in diminution of your position, authority, duties or responsibilities (other than any insubstantial action not taken in bad faith and which is promptly
remedied by the Company upon notice by you); 

 February 23, 2004 
 Page 8

  
 (ii) requirement that you report to work more than 60 miles
from the Company’s existing headquarters (not including normal business travel required of your position); 
  
 (iii) a reduction in your base salary or benefits (unless, in the case of a reduction in benefits only, such reduction in benefits applies to all
officers of the Company); 
  
 (iv) a material breach by the
Company of its obligations hereunder which is not cured within thirty (30) days following written notice to the Board by you; or 
  
 (v) any failure by a successor to the Company to assume and agree to perform the Company’s obligations hereunder. 
  
 4. Employment and Post Termination Covenants. By accepting the terms of this Agreement
and as a condition for the termination payments and benefits contemplated by Section 3(f)(2)(i), you hereby agree to the following covenants in addition to any obligations you may have by law and make the following representations. 
  
 (a) Confidentiality. You acknowledge that, in connection with your
employment by the Company, you will have access to trade secrets of the Company and other information and materials which the Company desires to keep confidential, including customer lists, supplier lists, financial statements, business records and
data, marketing and business plans, and information and materials relating to the Company’s services, products, methods of operation, key personnel, proprietary software and other proprietary intellectual property and information disclosed to
the Company of third parties to which the Company owes a duty of nondisclosure (collectively, the “Confidential Information”); provided, however, that Confidential Information does not include information which (i) is or becomes publicly
known other than as a result of your actions in violation of this Agreement; (ii) is or becomes available to you from a source (other than the Company) that you reasonably believe is not prohibited from disclosing such information to you by a
contractual or fiduciary obligation to the Company, (iii) has been made available by the Company, directly or indirectly, to a non-affiliated third party without obligation of confidentiality; or (iv) you are obligated to produce as a result of a
court order or pursuant to governmental action or proceeding, provided that you give the Company prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting such Confidential Information from
public disclosure. You covenant and agree that, both during and after the term of your employment with the Company, you will keep secret all Confidential Information and will not disclose, reveal, divulge or otherwise make known any Confidential
Information to any person (other than the Company or its employees or agents in the course of performing you duties hereunder) or use any Confidential Information for your own account or for the benefit of any other individual or entity, except with
the prior written consent of the Company. 

 February 23, 2004 
 Page 9

  
 (b) Ownership of Intellectual Property. You agree that
all inventions, copyrightable material, software, formulas, trademarks, trade secrets and the like which are developed or conceived by you in the course of your employment by the Company or on the Company’s time or property (collectively, the
“Intellectual Property”) shall be disclosed promptly to the Company and the Company shall own all right, title and interest in and to the Intellectual Property. The parties expressly agree that any and all of the Intellectual Property
developed by the Employee shall be considered works made-for-hire for the Company pursuant to the United States Copyright Act of 1976, as amended from time to time. In order to ensure that the Company shall own all right, title and interest in and
to the Intellectual Property in the event that any of the Intellectual Property is not deemed a work made-for-hire (as defined in the Copyright Act of 1976) and in any other event, you hereby sell and assign all right, title and interest in and to
all such Intellectual Property to the Company, and you covenant and agree to affix to the Intellectual Property appropriate legends and copyright notices indicating the Company’s ownership of all Intellectual Property and all underlying
documentation to the extent reasonably appropriate, and shall execute such instruments of transfer, assignment, conveyance or confirmation as the Company reasonably considers necessary to transfer, confirm, vest, perfect, maintain or defend the
Company’s right, title and interest in and to the Intellectual Property throughout the world. Your obligation under this Section 4(b) to assign to the Company inventions created or conceived by you shall not apply to an invention that you
developed entirely on your own time without using the Company’s equipment, supplies, facilities, or trade secret information, provided that those inventions (1) do not or did not relate directly, at the time of conception or reduction to
practice of the invention, to the Company’s business as conducted at such time or actual or demonstrably anticipated research or development of the Company; and (2) do not or did not result from any work performed by you for the Company.

  
 (c) Non-Solicitation. You agree for a period of not
less than one year following the last receipt of any payments under this Agreement that you shall not solicit the services or employment of the employees of the Company and you shall not divert clients or customers of the Company to the disadvantage
of the Company; provided that (i) general advertisements not specifically directed at employees of the Company shall not constitute solicitation for purposes of this clause (c) and (ii) this clause (c) shall not prohibit you from hiring employees of
the Company who first approach you seeking employment. 
  
 (d)
Non-Competition. You agree not to compete directly or indirectly as a principal, partner, shareholder, limited liability company member, agent, officer, directors, employee, consultant or in any other capacity, with any current or future
business of the Company during the period of your employment with the Company and during the post-employment period during which you are being paid compensation by the Company; provided that (i) this clause (d) shall not prohibit you from acquiring
securities representing less than 5% of the voting interests of any entity (so long as you are not involved in the management of such entity) and (ii) this clause (d) will not prohibit you from engaging in Permitted Activities (during or after a
termination of employment) to the extent you are (or would be) permitted to engage in such Permitted Activity under Section 2 of this Agreement. 

 February 23, 2004 
 Page 10

  
 (e) Authorization To Work for the Company. You
represent that you are legally authorized to work in the United States and that your employment with the Company shall not constitute a violation of any contractual or other legal obligation you may have to another entity or employer. 
  
 5. Business Expenses. You shall be entitled to reimbursement by the Company for such
customary, ordinary and necessary business expenses as are incurred by you in the performance of your duties and activities associated with promoting or maintaining the business of the Company. All expenses as described in this paragraph shall be
reimbursed only upon presentation by you of such documentation as may be reasonably necessary to substantiate that all such expenses were incurred in the performance of his duties in accordance with the Company’s policies 
  
 6. Return Of Company Property. On the Separation Date or as earlier requested by the
Company, you agree to return to the Company all Company documents (and all copies thereof) and other Company property in your possession or control, including, but not limited to, Company files, correspondence, memos, notebooks, notes, drawings,
records, business plans and forecasts, financial information, specifications, computer-recorded information, tangible property and equipment, credit cards, entry cards, identification badges and keys; and any materials of any kind that contain or
embody any proprietary or confidential information of the Company (and all reproductions thereof in whole or in part) (collectively, the “Company Property”). You agree to conduct a good faith and diligent search of your belongings in
advance of the aforementioned deadline to ensure your compliance with the provisions of this Section 6. 
  
 7. Binding on Successors. This Agreement shall be binding upon the Company and any entity which is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the
Company, or an affiliate of any such entity, and becomes your employer by reason of (or as the direct result of) any direct or indirect sale or other disposition of the Company or substantially all of the assets of the business currently carried on
by the Company, without regard to whether or not such person actively adopts this letter agreement. 
  
 8. Arbitration. You agree that any future disputes between you and the Company (the “parties”) including but not limited to disputes arising out of or related to this Agreement and Release of Claims,
shall be resolved by binding arbitration except where the law specifically forbids the use of arbitration as a final and binding remedy, or where section 8(g) below specifically allows a different remedy. 
  
 (a) The complainant shall provide the other party a written statement of the
claim identifying any supporting witnesses or documents and the relief requested. 

 February 23, 2004 
 Page 11

  
 (b) The respondent shall furnish a statement of the relief, if
any, that it is willing to provide, and identifying supporting witnesses or documents. If the matter is not resolved, the parties agree to submit their dispute to a non-binding mediation paid for by the Company, provided, however, that if the amount
in dispute is $50,000 or less, this step may be waived at the election of either party. 
  
 (c) If the matter is not resolved, the parties agree that the dispute shall be resolved by binding arbitration according to the California Code of Civil Procedure, including the provisions of Section 1283.05,
pertaining to discovery. 
  
 (d) The arbitrator shall have the
authority to determine whether the conduct complained of in section 8(a) violates the complainant’s rights and, if so, to grant any relief authorized by law; subject to the exclusions of section (g) below. The arbitrator shall not have the
authority to modify, change or refuse to enforce any lawful term of this Agreement and Release of Claims. 
  
 (e) The Company shall bear the costs of the arbitration. If the Company prevails, you shall pay any litigation costs of the Company to the same extent as
if the matter had been heard in a court of general jurisdiction. Each party shall pay its own attorneys’ fees, unless the arbitrator orders otherwise, pursuant to applicable law. 
  
 (f) Arbitration shall be the exclusive final remedy for any dispute between the parties, such as disputes involving claims
for discrimination or harassment (such as claims under the Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, or the Age Discrimination in Employment Act), wrongful termination, breach of
contract, breach of public policy, physical or mental harm or distress or any other disputes, and the parties agree that no dispute shall be submitted to arbitration where the complainant has not complied with the preliminary steps provided for in
sections (a) and (b) above. 
  
 (g) The parties agree that the
arbitration award shall be enforceable in any court having jurisdiction to enforce this Agreement and Release of Claims, so long as the arbitrator’s findings of fact are supported by substantial evidence on the whole and the arbitrator has not
made errors of law; however, either party may bring an action in a court of competent jurisdiction, regarding or related to matters involving the Company’s confidential, proprietary or trade secret information, or regarding or related to
inventions that you may claim to have developed prior to or after joining the Company, seeking preliminary injunctive relief in court to preserve the status quo or prevent irreparable injury before the matter can be heard in arbitration. 

 
 (h) The arbitration shall be held in the city of Los Angeles, California,
unless the parties mutually agree to a different location for the arbitration. 

 February 23, 2004 
 Page 12

  
 9. Indemnification. As soon as practicable following the commencement
of your employment with the Company, the Company shall enter into an indemnification agreement mutually acceptable to you and the Company which shall provide you with indemnification to the fullest extent permissible under Delaware law. In addition,
the Company shall maintain a Directors and Officers insurance policy covering its directors and officers consistent with prevailing commercial practice, and you shall be entitled to indemnification as set forth in the Company’s Certificate of
Incorporation and Bylaws. 
  
 10. Miscellaneous. 
  
 (a) This Agreement constitutes the complete, final and exclusive embodiment
of the entire agreement between you and the Company with regard to the terms and conditions of your employment with the Company and your anticipated termination of employment. It is entered into without reliance on any promise or representation,
written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations and any other written or oral statements concerning your rights to any compensation, equity or benefits from the
Company, its predecessors or successors in interest. 
  
 (b)
Subject to the mandatory arbitration provided in Section 8 above, jurisdiction and venue in any action to enforce any arbitration award or to enjoin any action that violates the terms of this Agreement shall be in the Superior Court of the County of
Los Angeles or the U.S. District Court for the Central District of California. 
  
 (c) This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement shall bind the heirs, personal representatives, successors and
assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination
shall not affect any other provision of this Agreement and the provision in question shall be modified by the court so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible. Headings and subheadings
in this Agreement are solely for convenience and do not constitute terms of this Agreement. 
  
 (d) This Agreement may be signed in counterparts and the counterparts taken together shall constitute one agreement. Facsimile signatures shall be deemed as effective as original signatures. 
  
 (e) This Agreement shall be deemed to have been entered into and shall be
construed and enforced in accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. 
  
 If this Agreement is acceptable to you, please sign below and return the original, fully executed Agreement to Chris Lipp, General Counsel and Corporate Secretary of the
Company. A copy of the Agreement is also being provided to you for your records. 

 February 23, 2004 
 Page 13

  
 I and the other members of the Board of Directors of the Company look forward
to your future contributions to the Company. 
  
 Sincerely, 
  

			
	eUNIVERSE, INC.
		
	 By:
	 	 /s/ Brett C. Brewer

	 	 	     Brett C. Brewer

	 	 	     President

  
 AGREED AND ACCEPTED:

  

					
	     /s/ Richard Rosenblatt

	 	 2/23/04

	 	 
	 Richard Rosenblatt
	 	 Date

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