Document:

Employment Agreement

 Exhibit 10.2 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is effective as of January 1, 2006 by and between the
Sigma-Aldrich Corporation, a Delaware corporation (“Company”) and Jai Nagarkatti (“Executive”). 
  
 WHEREAS, Executive desires to serve as the Chief Executive Officer of the Company and in exchange for the protection and other consideration set forth in
this Agreement, is willing to give the Company, under certain circumstances, his covenant not to compete, and the Company desires to so employ Executive. 
  
 NOW, THEREFORE, in consideration of the promises and the mutual agreements contained herein, the Company and Executive hereby agree as follows:

  
 ARTICLE I 
 Definitions 
  

	1.1	Definitions. As used herein, the following terms shall have the following meanings. 

  

	(a)	“Affiliate” when used with reference to a Change of Control, shall be defined by reference to the Securities Exchange Act of 1934 and rules in effect thereunder as of the
Effective Date of this Agreement. 

  

	(b)	“Associate” when used with reference to a Change of Control, shall be defined by reference to the Securities Exchange Act of 1934 and rules in effect thereunder as of the
Effective Date of this Agreement. 

  

	(c)	“Beneficial Owner” when used with reference to a Change of Control, shall be defined by reference to the Securities and Exchange Act of 1934 and rules in effect thereunder
as of the Effective Date of this Agreement. 

  

	(d)	“Board” means the board of directors of the Company. 

  

	(e)	“Cause” means (i) engaging by Executive in willful misconduct which is materially injurious to Company; (ii) conviction of Executive by a court of competent
jurisdiction of, or entry of a plea of nolo contendere with respect to a felony; (iii) engaging by Executive in fraud, material dishonesty or gross misconduct in connection with the business of Company; (iv) engaging by
Executive in any act of moral turpitude reasonably likely to materially and adversely affect Company or its business; or (v) Executive’s current chronic abuse of or dependency on alcohol or drugs (illicit or otherwise).

  

	(f)	“Change of Control” occurs if any individual, corporation, partnership or other Person or entity, together with its Affiliates and Associates, acquires as the Beneficial
Owner more than twenty-five percent (25%) in the aggregate of the outstanding shares of the Company entitled to vote in the election of directors, or a majority of directors elected to the Board, or a majority of the persons constituting a
group authorized to hire or terminate employment of officers, if other than the Board, are different from the directors or persons constituting the Board or group just prior to the start of such period or a group other than the Board is created to
hire or terminate employment of officers. 

	(g)	“Confidential Information” as used in Sections 2.5, 2.6 and 2.7 of this Agreement, shall mean all technical and business information of the Company, or which is learned or
acquired by the Company from others with whom the Company has a business relationship in which, and as a result of which, similar information is revealed to the Company, whether patentable or not, which is of a confidential, trade secret and/or
proprietary character and which is either developed by Executive (alone or with others) or to which Executive shall have had access during his employment. Confidential Information shall include (among other things) all confidential data, designs,
plans, notes, memoranda, work sheets, formulas, processes, and Customer and supplier lists. 

  

	(h)	“Customer” means any Person or entity to whom the Company has sold any products (i) in the case of on-going employment, during the twenty-four (24) calendar
months immediately preceding any dispute under Section 2.6 of this Agreement, and, (ii) in the case of the employment having ended, the twenty-four (24) calendar months preceding Executive’s termination of employment.

  

	(i)	“Good Reason” when used with reference to a voluntary termination by Executive from his employment with Company, shall mean (i) a reduction in Executive’s base
salary as in effect on the date hereof, or as the same may be increased from time to time, during the Employment Period; (ii) a reduction in Executive’s status, position, responsibilities or duties during the Employment Period; or
(iii) notice of termination of this Agreement by the Company pursuant to Section 2.4(a), provided Executive terminates employment with the Company within six months of the expiration of the Term. 

  

	(j)	“Person” means an individual, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated
organization or a governmental entity or any department, agency or political subdivision thereof. 

  

	(k)	“Potential Customer” shall mean any Person or entity who, during the applicable twenty-four (24) month period described above in Section 1.1(h) of this
Agreement, has (i) been involved in discussions or negotiations with the Company for products sold by the Company; (ii) initiated contact with the Company in order to obtain information regarding products sold by the Company;
(iii) been the subject of repeated personal contacts by Executive and/or any other Company employee for purposes of soliciting business for the Company; or (d) been the subject of the Company’s efforts to gather, learn or evaluate
information which may help the Company obtain any future order from such Person or entity. 

  
 ARTICLE II 
 Employment 
  

	2.1	Employment. Company agrees to employ Executive and Executive hereby accepts such employment with the Company, upon the terms and conditions set forth in this
Agreement, for the period beginning on January 1, 2006 (“Start Date”) and ending as provided in Section 2.4 of this Agreement (the “Employment Period”). 

  

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	2.2	Position and Duties. 

  

	(a)	Commencing on the Start Date and continuing during the Employment Period, Executive shall serve as Chief Executive Officer of the Company or in such other capacity as the Board may
determine. As Chief Executive Officer, Executive, subject to the control of the Board, shall have general supervision and control over the business, property and affairs of the Company and perform such duties as may be assigned to him by the Board.

  

	(b)	Executive shall devote his best efforts and his full business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the
business and affairs of the Company. The Executive shall perform his duties and responsibilities to the best of his abilities in a diligent, trustworthy, businesslike and efficient manner. In the performance of his duties hereunder, Executive shall
at all times report and be subject to the lawful direction of the Board and perform his duties hereunder subject to and in accordance with the resolutions or any other determinations of the Board and the certificate of incorporation and by-laws of
the Company and applicable law. During the Employment Period, Executive shall not become an employee of any Person or entity other than the Company. This section shall not be construed to prohibit Executive from serving on the board of directors of
one or more other entities (with the consent of the Board in the case of a for-profit entity) or from investing in a business to the extent consistent with the provisions of Section 2.6(a). 

  

	2.3	Base Salary, Bonus and Benefits. 

  

	(a)	Subject to the terms of this Agreement, in consideration of Executive’s agreements contained herein, for the period beginning January 1, 2006, Executive’s base salary
shall be $600,000.00 per annum (“Base Salary”), which shall be payable in semi-monthly or other agreed-upon equal installments during the year and shall be subject to deductions for customary withholdings, including, without limitation,
federal and state withholding taxes and social security taxes. Executive shall be entitled to the opportunity to earn annual performance bonuses (with a target bonus equal to 67% of base salary) in accordance with the Board-approved annual bonus
program. In addition to the Base Salary, Executive shall be entitled, during the Employment Period to participate in all retirement, disability, pension, savings, health, medical, dental, insurance and other fringe benefits or plans of the Company
generally available to executive employees. 

  

	(b)	Executive’s cash compensation and bonus opportunity for 2007 and future years shall be reviewed and set annually by the Compensation Committee of the Board, but his base salary
shall not be reduced below $600,000.00 per annum. 

  

	(c)	During the two-year period commencing on a Change of Control, Executive’s Base Salary and bonus opportunity may not be reduced below the level established by the Compensation
Committee of the Board immediately prior to the Change of Control. 

  

	2.4	Term. 

  

	(a)	General Term. This Agreement shall commence on January 1, 2006 and terminate on December 31, 2008 unless extended prior to that date. The Term shall automatically
be extended for successive additional one-year periods unless either party to this Agreement provides the other party with notice of termination of this Agreement at least one hundred and eighty (180) days prior to the expiration of the
original three-year period or any one-year period thereafter. 

  

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	(b)	Termination for Cause or Voluntary Termination. If the Executive is terminated by the Company for Cause or if the Executive voluntarily terminates his employment in any
manner except as provided in Section 2.4(d) prior to the end of the Employment Period, the Executive shall be entitled only to his Base Salary through the date of termination, but shall not be entitled to any further Base Salary or any
applicable bonus or Benefits for that year or any future year, except as may be provided in an applicable benefit plan or program, or to any severance compensation of any kind, nature or amount. 

  

	(c)	Termination Without Cause. 

  

	 	(i)	Before or More Than Twenty-Four Months Following Change of Control. If the Executive is involuntarily terminated by the Company prior to the end of the Employment Period
without Cause before a Change in Control (excluding any involuntary termination which is a direct result of a Change in Control and which occurs within 60 days before a Change in Control) or more than twenty-four months following a Change of
Control, the Executive shall be entitled to all previously earned and accrued but unpaid Base Salary up to the date of such termination and severance pay equal to one year of Base Salary. Such severance payments will be made in equal installments
over a one-year period payable on the dates on which the Executive’s Base Salary would have otherwise been paid if Executive’s employment had continued. All payments shall be subject to deductions for customary withholdings, including,
without limitation, federal and state withholding taxes and social security taxes. 

  

	 	(ii)	Within Twenty-Four Months After Change of Control. If the Executive is involuntarily terminated by the Company without Cause prior to the end of the Employment Period within
twenty-four months after a Change of Control or within 60 days before a Change in Control if such involuntary termination without Cause is a direct result of the Change in Control, the Executive shall be entitled to all previously earned and accrued
but unpaid Base Salary up to the date of such termination and severance pay equal to three (3) years of Base Salary. Such severance payments will be made in equal installments over a three-year period payable on the dates on which the
Executive’s Base Salary would have otherwise been paid if Executive’s employment had continued. All payments shall be subject to deductions for customary withholdings, including, without limitation, federal and state withholding taxes and
social security taxes. 

  

	 	(iii)	In the event that the Executive is determined to be a specified employee in accordance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
and other guidance issued thereunder for purposes of any severance pay payment under this subsection (c), such severance payments shall begin on the first payroll date which is more than six months following the date of separation from service.

  

	(d)	Voluntary Termination for Good Reason. If Executive voluntarily terminates his employment for Good Reason within twenty-four (24) months after a Change of Control,

  

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	 	Executive shall notify Company in writing if he believes the termination is for Good Reason. Executive shall set forth in reasonable detail why Executive believes Good Reason
exists. If such termination is determined to be for Good Reason, Executive shall be entitled to all previously earned and accrued but unpaid Base Salary up to the date of such termination and severance pay equal to three (3) years of Base
Salary. Such severance payments will be made in equal installments over a three-year period payable on the dates on which the Executive’s Base Salary would have otherwise been paid if Executive’s employment had continued. In the event that
the Executive is determined to be a specified employee in accordance with Section 409A of the Internal Revenue Code and the regulations and other guidance issued thereunder for purposes of any severance pay payment under this subsection (d),
such severance payments shall begin on the first payroll date which is more than six months following the date of separation from service. All payments shall be subject to deductions for customary withholdings, including, without limitation, federal
and state withholding taxes and social security taxes. 

  

	(e)	No Mitigation. To the extent that Executive shall receive compensation for personal services from employment other than with the Company subsequent to a termination of
Executive’s employment with the Company, the amounts so earned shall not be offset against the amounts (if any) due under this Agreement following Executive’s termination of employment. 

  

	(f)	Limitation on Certain Additional Payments. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by
Company to or for the benefit of Executive (“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (“Code”), then the Payments due under this Agreement shall
be decreased to the greatest amount that could be paid to Executive such that receipt of Payments would not give rise to any such excise tax. 

  

	(g)	Severance Forfeiture. Executive agrees that the Executive shall be entitled to the severance pay as set forth in this Section 2.4 only if the Executive has not
materially breached as of the date of termination any provisions of this Agreement and does not materially breach such provisions at any time during the period for which such payments are to be made. The Company’s obligation to make such
payments will terminate upon the occurrence of any such material breach during the severance period. 

  

	(h)	No Additional Severance. Executive hereby agrees that no severance compensation of any kind, nature or amount shall be payable to Executive, except as expressly set forth in
this Section 2.4, and Executive hereby irrevocably waives any claim for any other severance compensation. 

  

	(i)	Death or Disability. The Company’s obligation under this Agreement terminates on the last day of the month in which the Executive’s death occurs or on the date as
of which Executive first becomes entitled to receive disability benefits under the Company’s long-term disability plan. The Company shall pay to Executive or the Executive’s estate all previously earned and accrued but unpaid Base Salary
up to such date. Thereafter, the Executive or his estate shall not be entitled to any further Base Salary, bonus or Benefits for that year or any subsequent year, except as may be provided in an applicable benefit plan or program.

  

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	2.5	Confidential Information. 

  

	(a)	Executive recognizes that the Company is engaged in the business of research, development, manufacture and sale of chemicals, chemical products and allied activities throughout the
world (the “Company’s Business”), which business requires for its successful operation the fullest security of its Confidential Information of which Executive will acquire knowledge during the course of his employment.

  

	(b)	Executive shall use his best efforts and diligence both during and after his employment with the Company, regardless of how, when or why Executive’s employment ends, to protect
the confidential, trade secret and/or proprietary character of all Confidential Information. Executive shall not, directly or indirectly, use (for himself or another) or disclose any Confidential Information, for so long as it shall remain
proprietary or protectible as confidential or trade secret information, except as may be necessary for the performance of Executive’s duties for the Company. 

  

	(c)	Executive shall promptly deliver to the Company, at the termination of the Employment Period or at any other time at the Company’s request, without retaining any copies, all
documents, information and other material in Executive’s possession or control containing, reflecting and/or relating, directly or indirectly, to any Confidential Information. 

  

	(d)	Executive’s obligations under this Section 2.5 shall also extend to the confidential, trade secret and proprietary information learned or acquired by Executive during his
employment from others with whom the Company has a business relationship. 

  

	(e)	Executive’s breach of Section 2.5 of this Agreement shall relieve Company of its obligations (if any) to pay any further severance benefits under this Agreement.

  

	2.6	Competitive Activity. 

  

	(a)	Executive shall not, directly or indirectly (whether as owner, partner, consultant, employee or otherwise), at any time during his employment with the Company and for a period of
two (2) years following his employment with the Company, regardless of how, when or why Executive’s employment terminates, (i) engage in or invest in any business that is engaged in any work or activity that involves a product,
process, service or development which is then competitive with and the same as or similar to a product, process, service or development on which Executive worked or with respect to which Executive had access to Confidential Information while with
the Company, or (ii) otherwise compete against the Company’s Business. 

  

	(b)	Following expiration of the two-year period in Section 2.6(a) of this Agreement, Executive shall continue to be obligated under Section 2.5 of this Agreement not to use or
to disclose Confidential Information so long as it shall remain proprietary or protectible as confidential or trade secret information. 

  

	(c)	Following termination of Executive’s employment with the Company for any reason, Executive agrees to advise the Company of his new employer, work location and job

  

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	 	responsibilities within three (3) days after accepting new employment if such new employment commences within two (2) years following Executive’s termination of
employment with the Company. Executive further agrees to keep the Company so advised of any change in his employment for two (2) years following the termination of his employment with the Company. 

  

	(d)	Executive understands that the intention of Sections 2.5 and 2.6 of this Agreement is not to prevent the Executive from earning a livelihood and Executive agrees nothing in this
Agreement would prevent Executive from earning a livelihood utilizing his general purchasing, sales, professional or technical skills in any of the hospitals, businesses, research or manufacturing facilities of companies which are not directly or
indirectly in competition with the Company. 

  

	(e)	Executive agrees that during his employment with the Company and for a period of two (2) years following Executive’s termination of employment, regardless of how, when or
why employment ceased, Executive shall not in any manner or in any capacity, directly or indirectly, for himself or any other Person or entity, actually or attempt to: (i) solicit any Customer or Potential Customer of the Company for the
purpose of selling any products competitive with products sold by the Company, or otherwise interfere with or take away any Customer or Potential Customer of the Company or the business of any such Customer or Potential Customer; or
(ii) interfere with the Company’s relationship with any Customer or supplier of the Company. 

  

	(f)	During Executive’s employment with the Company and for a period of two (2) years following Executive’s termination of employment, regardless of how, why or when
employment ceased, Executive shall not, directly or indirectly, solicit for employment, hire or offer employment to, or otherwise aid or assist (by disclosing information about employees or otherwise) any other person or entity other than the
Company in soliciting for employment, hiring or offering employment to, any employee of the Company. 

  

	(g)	Executive’s breach of Section 2.6 of this Agreement shall relieve Company of its obligations (if any) to pay any further severance benefits under this Agreement.

  

	2.7	Ideas, Inventions and Discoveries. 

  

	(a)	Executive shall promptly disclose to the Company any ideas, inventions or discoveries, whether or not patentable, which Executive may conceive or make (alone or with others) during
the Employment Period, whether or not during working hours, and which, directly or indirectly (i) relate to matters within the scope of Executive’s duties or field of responsibility during Executive’s employment with the Company; or
(ii) are based on Executive’s knowledge of the actual or anticipated business or interest of the Company; or (iii) are aided by the use of time, materials, facilities or information of the Company. 

  

	(b)	Executive hereby assigns to the Company or its designee, without further compensation, all of the right, title and interest in all such ideas, inventions or discoveries in all
countries of the world except for patents currently held by Executive developed outside of employment with the Company. 

  

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	(c)	Without further compensation but at the Company’s expense, Executive shall give all testimony and execute all patent applications, rights of priority, assignments and other
documents and in general do all lawful things requested of Executive by the Company to enable the Company to obtain, maintain and enforce protection of such ideas, inventions and discoveries for and in the name of the Company or its designee, as the
case may be, in all countries of the world. However, should Executive render any of the services in this Section 2.7(c) during a two-year period following termination of Executive’s employment, Executive shall be compensated at a rate per
hour equal to the base salary Executive received from the Company at the time of termination and shall be reimbursed for reasonable out-of-pocket expenses incurred in rendering the services. 

  

	(d)	Executive’s breach of Section 2.7 of this Agreement shall relieve Company of its obligations (if any) to pay any further severance benefits under this Agreement.

  
 ARTICLE III 
 Miscellaneous 
  
 3.1 Executive’s Representations. Executive hereby represents and warrants to the Company that (i) Executive’s execution, delivery and
performance of this Agreement do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which he is bound, (ii) Executive is
not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid
and binding obligation of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and represents that he fully understands the terms and conditions contained herein. 
  
 3.2 Survival. Sections 2.5, 2.6 and 2.7 and Sections 3.3 through 3.12 shall
survive and continue in full force in accordance with their terms notwithstanding any termination of the Employment Period. 
  
 3.3 Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement will be in writing
and will be deemed to have been given when delivered personally, mailed by certified or registered mail, return receipt requested and postage prepaid, or sent via a nationally recognized overnight courier, or sent via facsimile to the recipient.
Such notices, demands and other communications will be sent to the address indicated below: 
  
 To the Company: 
 Mr. Kirk Richter 
 Sigma-Aldrich Corporation 
 3050 Spruce 
 St. Louis, MO 63103 
  
 To Executive: 
 Mr. Jai Nagarkatti 
 14967 Straub Hill Lane 
 Chesterfield, MO 63017 
  
 or such other address or to the attention of such other person as the recipient party shall
have specified by prior written notice to the sending party. 
  

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 3.4 Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, (a) the parties agree that such provision(s)
will be enforced to the maximum extent permissible under the applicable law, and (b) any invalidity, illegality or unenforceability of a particular provision will not affect any other provision of this Agreement. 
  
 3.5 Successors and Assigns. Except as otherwise provided herein, all covenants
and agreements contained in this Agreement shall bind and inure to the benefit of and be enforceable by the Company, and their respective successors and assigns. This Agreement is personal to Executive and except as otherwise specifically provided
herein, this Agreement, including the obligations and benefits hereunder, may not be assigned to any party by Executive. 
  
 3.6 Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

  
 3.7 Counterparts. This Agreement may be executed in one or more
identical counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 3.8 Waiver. Neither any course of dealing nor any failure or neglect of either party hereto in any instance to exercise any right, power or privilege
hereunder or under law shall constitute a waiver of such right, power or privilege or of any other right, power or privilege or of the same right, power or privilege in any other instance. Without limiting the generality of the foregoing,
Executive’s continued employment without objection shall not constitute Executive’s consent to, or a waiver of Executive’s rights with respect to, any circumstances constituting Good Reason. All waivers by either party hereto must be
contained in a written instrument signed by the party to be charged therewith, and, in the case of Company, by its duly authorized officer. 
  
 3.9 Entire Agreement. This instrument constitutes the entire agreement of the parties in this matter and shall supersede any other agreement between the
parties, oral or written, concerning the same subject matter including, but not limited to, any prior employment and severance agreements, including the Employment Agreement between the Company and Executive that was effective March 7, 2003 and
the agreement regarding confidential information and competitive activities executed by the parties on October 1, 1982. 
  
 3.10 Amendment. This Agreement may be amended only by a writing which makes express reference to this Agreement as the subject of such amendment and which
is signed by Executive and by a duly authorized officer of the Company. 
  
 3.11 Governing Law. This Agreement shall be signed by the parties in St. Louis, Missouri. All questions concerning the construction, validity and interpretation of this Agreement will be governed by and construed in
accordance with the domestic law of the State of Missouri, without 
  

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 giving effect to any choice of law or conflict of law provision or rule (whether of the State of Missouri or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Missouri. Any litigation relating to or arising out of this Agreement shall be filed and litigated exclusively in the St. Louis County Circuit
Court or the United States District Court for the Eastern District of Missouri. 
  
 3.12 Remedies. Each of the parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorneys’ fees) caused by any
breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement,
including, without limitation, Sections 2.5, 2.6 and 2.7 hereof, and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other
injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. 
  
 3.13 Exit Interview. To ensure a clear understanding of this Agreement, Executive agrees, at the time of termination of Employee’s employment, to engage in an exit interview with the Company
at a time and place designated by the Company and at the Company’s expense. Executive understands and agrees that during said exit interview, Executive may be required to confirm that he will comply with his on-going obligations under this
Agreement. The Company may elect, at its option, to conduct the exit interview by telephone. 
  
 3.14 Future Employment. Executive shall disclose the existence of this Agreement to any new employer or potential new employer which offers products or services that compete with the
Company’s Business if such new employment commences within two (2) years following Executive’s termination of employment with the Company. Executive consents to the Company informing any subsequent employer of Executive, or any entity
which the Company in good faith believes is, or is likely to be, considering employing Executive, of the existence and terms of this Agreement if such subsequent employment commences (or is expected to commence) within two (2) years following
the Executive’s termination of employment with the Company. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement this 16th day of January, 2006 and effective as of the date first written above. 
  

			
	SIGMA-ALDRICH CORPORATION
		
	By:	 	 /s/ Kirk Richter

	Name:	 	Kirk Richter
	Title:	 	Treasurer
	
	EXECUTIVE
		
	By:	 	 /s/ Jai Nagarkatti

	Name:	 	Jai Nagarkatti

  

 11Digital Rights Purchase Agreement  dated July 12, 2004

 Exhibit 10.18 
  
 DIGITAL RIGHTS PURCHASE AGREEMENT 
  
 THIS DIGITAL RIGHTS PURCHASE AGREEMENT (hereinafter, “Agreement”) shall constitute and set forth the terms and conditions by which
PRIME ENTERTAINMENT GROUP, INC. (hereinafter, “SELLER”) agrees to sell, and DIGITAL MUSICWORKS INTERNATIONAL, INC., (hereinafter, “BUYER”) agrees to buy, the exclusive Digital Rights (hereinafter, “Digital Rights”) to
the Master Recordings (hereinafter, “Masters”) owned by SELLER and generally referred to as the PRIME and RCA Masters (hereinafter, individually as “Catalog” or collectively as “Catalogs”), on the following terms and
conditions: 
  
 RECITALS 
  
 WHEREAS, BUYER is a company organized principally to acquire digital rights in master
recordings for transmission and sale in the developing Internet-based digital music industry, which is rapidly replacing the so-called “brick and mortar” retail record store as a source of recorded music for consumers. Accordingly, the
contents and subject matter of this Agreement pertain to the sale of the Digital Rights to the Masters set forth in the Track Listings, attached hereto as Attachments A and B and incorporated herein by this reference. As used in this Agreement, the
term “Digital Rights” shall and does mean the following: In addition to the definition set forth more fully in Paragraph 4, below, “Digital Rights” means the right, title and license of and to transmissions or communications of
recordings by way of digital phonorecord deliveries and digital transmissions (including without limitation direct delivery to the consumer via broadcast, cable, telephonic, Internet or satellite transmissions now or hereafter known), transmitted or
communicated for any use whatsoever, including sound alone and/or coupled with audiovisual recordings and interactive media as well as the right to re-license the rights granted herein to third-parties and all rights transferable by means of
assignment, sale or other transfer of ownership. And, whereas SELLER owns certain Masters more fully set forth within, 
  
 FOR, AND IN CONSIDERATION OF, the promises and the mutual covenants contained herein, SELLER and BUYER do hereby agree as follows: 
  

	 	1.	SALES PRICE. SELLER hereby agrees to sell and BUYER hereby agrees to purchase the Digital Rights to Masters listed in Attachments A and B, for the total consideration
of (i) [*]: 

  

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	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

	 	a.	[*] upon execution of this Agreement, whereupon SELLER shall immediately deliver [*] mutually acceptable to the parties, [*] for an additional [*], or in the alternative, during the
period that SELLER exercises its best efforts to deliver that number of [*]; 

  

	 	b.	[*] and [*] upon completion of delivery to BUYER of the entire [*], as required under a. above; 

  

	 	c.	[*] and [*] upon the completion of delivery to BUYER of the [*]; and 

  

	 	d.	Final payment of [*] and [*] upon completion of delivery to BUYER of the [*]. 

  

In connection with the [*] to SELLER, SELLER shall sign and enter into a standard form of [*]. 
  

	 	2.	CERTIFICATION. SELLER hereby certifies that he is the sole and lawful SELLER of Masters, or has lawful power to effectuate the sale of Digital Rights in and to said
Masters. 

  

	 	3.	CATALOG. In the event that SELLER hereafter agrees to sell and BUYER hereafter agrees to buy SELLER’s entire ownership interest in the Catalogs of Masters (in
addition to the Digital Rights therein as otherwise provided herein), including all right and title thereto, the price for such purchase shall be [*] (hereinafter referred to as “the Price”), inclusive of the Digital Rights purchased and
acquired by BUYER hereunder. BUYER shall be required to pay the Price, less any amount paid [*] to SELLER under Paragraph 1 hereof, such net purchase price to be payable [*]. 

  

	 	4.	 RIGHTS DEFINED. For the purpose of this Agreement, “Digital Rights” shall be deemed to include: all transcriptions, duplications, encoding
or any other method, now known or hereafter devised, which can now or may be used in the 

  

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	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

	 	 
future to duplicate the said performances/recordings of Masters stated herein with specific emphasis being on but not limited to, Electronic Distribution
media and automated retailing systems which use the “Internet” “World Wide Web” or electronic bulletin board services to distribute/sell music product and particularly the stated recordings/performances of Master(s), and to
include Electronic Distribution through any and all methods of Electronic Distribution, including without limitation wireless satellite transfer of said Masters. 

  

	 	5.	METADATA. SELLER hereby agrees to and shall provide BUYER with an Excel Spreadsheet upon delivery of Masters as set forth in Paragraph 10, below, which shall contain
information requested by BUYER, including, without limitation, Master title, Artist Name, Date of original release, if available, and name of party from whom SELLER acquired Master. At SELLER’s election, BUYER shall provide SELLER with Excel
database set-up computer diskette. 

  

	 	6.	CHAIN OF TITLE. SELLER hereby agrees to and shall provide to BUYER, upon delivery of Masters, as more specifically referred to in Paragraph 1 hereof, and as a
condition to the payment of [*] thereunder, the originals or true and correct copies of all contracts, bills of sale and other documents that support SELLER’s ownership of all Masters delivered to BUYER hereunder. Additionally, SELLER hereby
agrees to and shall provide BUYER with access to, and the opportunity to copy, any and all documents pertaining to SELLER’s Chain of Title and rightful and lawful ownership of all Masters delivered to BUYER hereunder, including without
limitation, deeds and bills of sale. 

  

	 	7.	PRO-RATA. SELLER and BUYER agree that in the event BUYER is unable to pay the entire amount agreed upon for the Masters, Rights to said Masters already purchased shall
remain the property of BUYER on a pro rata basis; and in the event SELLER is unable to deliver Masters to BUYER, said Masters already delivered and paid for shall remain the property of BUYER on a pro rata basis. In the event a dispute develops
between BUYER and SELLER under this provision which requires the payment of any monies to SELLER, each Master as to which such dispute applies shall be deemed to have a value of [*]. 

  

	 	8.	FITNESS. BUYER may contract the services of a technician or other qualified person to inspect Masters to ensure the durability and/or mechanical fitness of Masters
before [*] have been transferred to SELLER or before sale is deemed to be final. 

  

	 	9.	 MERCHANTABILITY. In the event that BUYER determines in BUYER’s sole discretion, that any Masters delivered and paid for under this Agreement are
not technically or mechanically fit, acknowledging that the vast majority of the Masters are re-recordings completed without the benefit of current technology, 

  

 3 
  
  

	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

	 	 
BUYER may reject such delivery and SELLER shall either replace rejected Master with a replacement which BUYER in BUYER’s sole discretion deems
acceptable or issue BUYER refund in the amount of [*]. 

  

	 	10.	COOPERATION. The Parties agree to execute any and all subsequent documents, including without limitation, instruments, deeds or other documents which are necessary to
carry out the terms of this Agreement. 

  

	 	11.	CONTENT. It is hereby understood that the Catalogs are generally constituted by the following Master Recordings: 

  

	 	a.	[*] Masters – Comprising approximately [*] as represented in Attachment A, herein, and 

  

	 	b.	[*] Masters – Comprising approximately [*] as represented in Attachment B, herein. 

  

	 	12.	REPRESENTATIONS AND WARRANTIES. SELLER represents and warrants that 

  

	 	a.	SELLER is free to enter into and perform the terms of this Agreement; 

  

	 	b.	SELLER is the sole owner of all Digital Rights in and to the Masters, including copyrights and the right to copyright the Masters listed in Attachments A and B, and has the
unencumbered title and right to sell the Digital Rights on the terms and conditions contained herein; 

  

	 	c.	SELLER owns the Digital Rights in perpetuity throughout the Universe and that the Digital Rights delivered to BUYER hereunder are free and clear of any and all encumbrances,
including liens or other charges, other than the normal payment of artist and mechanical royalties due to performers and music publishers in accordance with standard licensing practices in the music industry; 

  

	 	d.	The contracts made available to BUYER in the offices of SELLER, and reviewed by BUYER in the exercise of BUYER’s Due Diligence on or about April 13, 2004 were, are and
continue to be, true, coorect and accurate representations of SELLER’s Chain of Title documentation, and that there are no documents inconsistent therewith affecting SELLER’s ownership interests in the Masters; 

  

 4 
  
  

	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

	 	e.	None of the Digital Rights acquired hereunder, their contents or BUYER’s distribution and/or sale of such Digital Rights shall interfere or infringe upon the rights of any
person, firm or corporation under either common law, statutory law, or copyright, including without limitation contract rights, copyright and the right of privacy, and that SELLER has obtained all necessary clearances and permissions to permit BUYER
to exercise the rights acquired by BUYER hereunder; 

  

	 	f.	SELLER has the right to grant exclusive Digital Rights in the Masters and to make each and all of the grants of rights herein to BUYER; 

  

	 	g.	No other person, firm or corporation has any right, title or interest in or to the Masters, copies or duplicates thereof and copyrights relating thereto inconsistent with the terms
of this Agreement; 

  

	 	h.	SELLER has not heretofore done or permitted to be done, nor will it hereafter do or permit to be done, any act or thing which is or may be inconsistent with BUYER’s digital
distribution and sale of Digital Rights in said Masters and said performances or which may impair and/or curtail any of the Digital Rights granted hereunder. 

  

	 	i.	SELLER has not heretofore entered into and shall not hereafter enter into any licenses or other transfers of Digital Rights to any other person, firm or corporation; and

  

	 	j.	In the event that BUYER purchases any of the Masters outright under the terms of Paragraph 3 hereof, each and all of the foregoing representations and warranties shall be deemed
applicable to all rights in and to the Masters in addition to the Digital Rights purchased by BUYER hereunder. 

  

	 	13.	INDEMNIFICATION. SELLER hereby agrees to and shall indemnify, save and hold BUYER, including its directors, officers, shareholders and employees, wholly harmless of
and from any and all claims, demands, causes of action, loss, liability and expense, including attorneys’ fees, arising out of or otherwise connected with the breach or alleged breach of any of the warranties and/or representations contained
herein, including without limitation: 

  

	 	a.	any claim by any third party that is inconsistent with any of the warranties or representations made by SELLER in this Agreement; and 

  

 5 

	 	b.	any material breach or alleged breach by SELLER of this Agreement or any representations or warranties made hereunder. 

  
 SELLER will reimburse BUYER on demand for any claims, damages, expenses
(including reasonable attorneys’ fees), costs, and payments made by BUYER arising out of the foregoing indemnity. 
  

	 	14.	ARBITRATION. Any dispute which may arise between BUYER and SELLER hereunder shall be submitted for resolution to binding arbitration in Sacramento, California before a
mutually-selected arbitrator under the rules and regulations of the American Arbitration Association (“AAA”). In the event that a mutually-selected single arbitrator cannot be agreed upon, the arbitrator shall be selected by the AAA.
Either party shall serve a written Demand For Arbitration upon the other at such party’s last known address, providing details of the dispute and the time and place of arbitration. Such Notice shall be deemed equivalent to formal service upon
the other party. The prevailing party in such arbitration shall be entitled to an award of reasonable attorneys’ fees and reimbursement of costs. Any arbitration award may be confirmed in an appropriate court proceeding.

  

	 	15.	CONFIDENTIALITY. The terms and conditions of this Agreement and the Attachments hereto shall be deemed to be confidential information and subject to non-disclosure by
the Parties. 

  

	 	16.	FORCE MAJEURE. BUYER reserves the right to suspend the operation of this Agreement for the duration of any of the following contingencies if, by reason of such
contingencies, it is materially hampered in the performance of its obligations under this Agreement or its normal business operations are delayed or become impossible or commercially impracticable: Act of God, fire, catastrophe, terrorism, ruling or
action of any labor union or association of artists, musicians, composers or employers affecting BUYER or the industry in which it is engaged, acts of governments, or of any similar or dissimilar cause beyond the control of BUYER. A number of days
equal to the total of all such days of suspension shall be added to the then current period of this Agreement. 

  

	 	17.	 ASSIGNMENTS. BUYER may, at its election, assign this Agreement or any of its rights hereunder to any other party. SELLER shall refrain from any sale
or license transaction in relation to the Masters for the Catalogs for a period of five (5) years from the date of execution hereof, or until such time as BUYER shall have completed its purchase of Digital Rights in the Masters, as more specifically
set forth in Paragraph 1 hereof, whichever shall be later. Thereafter, BUYER shall have a right of first refusal, as that term is known in 

  

 6 

	 	 
the commercial world, to acquire any Masters offered for sale or license by SELLER to third parties on the same terms and conditions. In the event such a
transaction is contemplated by SELLER, SELLER shall be required to send written notification to BUYER specifying the full details of the intended transaction, and BUYER shall have a period of thirty (30) days following receipt of such
notification to notify SELLER of its intention to purchase the said Masters on the same terms and conditions, whereupon SELLER shall be obligated to conclude the transaction with BUYER. 

  

	 	18.	NOTICES. Any notice required or desired to be given hereunder shall be in writing and mailed by certified or registered mail, return receipt requested, or delivered by
messenger, by an overnight express service or by fax or confirmed email, and shall be deemed given on the date delivered by messenger, fax or confirmed email, on the day received if by overnight express service and three (3) days after mailing
in the event of registered or certified mail delivery. 

  
 Notices to SELLER shall be sent to: 
  
 2223 Magazine
Street 1st Floor 
 New Orleans Louisiana 70130 
  
 Notices to BUYER shall be sent to: 
  
 5105 Florin Perkins Road 
 Sacramento, CA
95628 
 Fax: 916-379-0610 
 Email: Mitch@digitalmusicworks.com 
  
 With a courtesy
copy to: 
  
 Robert E. Gordon, Esq. 
 One Harbor Drive, Suite 106 
 Sausalito, CA
94965 
 Fax: 415-331-3211 
 Email: Lawmuse@aol.com 
  

	 	19.	 SEVERABILITY. In the event that any provision of this Agreement shall be held invalid or otherwise contrary to law, the same shall be deemed deleted
from this Agreement, and the remainder shall continue in full force and effect. In the event that any portion of this Agreement shall be deemed by a court of 

  

 7 

	 	 
law to be unenforceable, the remaining portion of this agreement shall remain in full force and effect. 

  

	 	20.	MISCELLANEOUS. This Agreement sets forth the entire agreement between the parties with respect to the subject matter hereof, all previous negotiations, representations
and promises having been merged herein. No modification, amendment, waiver, termination or discharge of this Agreement will be binding unless confirmed by a written instrument signed by the party sought to be bound. No waiver of any provision or any
default under this Agreement shall affect the rights of DMI thereafter. In resolving any dispute which may arise between the parties, any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not
be employed in the interpretation of this Agreement. Nothing in this Agreement shall be construed as constituting a partnership or joint venture between the parties. This Agreement shall be deemed to have been made in the State of California and its
validity, construction, performance, breach and operation shall be governed by the laws thereof. 

  
 IN WITNESS WHEREOF, BUYER and SELLER hereby acknowledge that the foregoing terms and conditions, including those on the Attachments hereto, accurately set forth their agreement. 
  
 The signatures below confirm all parties involved understand and agree the
terms and conditions set forth herein are both fair and just. 
  

			
	 PRIME ENTERTAINMENT GROUP, INC.

		
	By:	 	/s/    JOSEPH W.
VALENZIANO        
	 	 	Joseph W. Valenziano
		
	 DATED:
	 	 9 July, 2004

  

			
	DIGITAL MUSICWORKS INTERNATIONAL, INC.
		
	By:	 	/s/    MITCHELL
KOULOURIS        
	 	 	 Mitchell Koulouris, President & CEO
 For Digital Musicworks International, Inc

		
	 DATED:
	 	 July 12, 2004

  

 8 

 Attachment A 
 [Not Delivered] 
  

 9 

 Attachment B 
 [Not Delivered] 
  

 10 

 Addendum to 
 Digital Rights Purchase Agreement 
 between 
 Digital Musicworks International, Inc and Prime Entertainment Group 
 Dated July 12,
2005 
  
 The parties agree to amend the Digital Rights Purchase Agreement dated
July 12, 2004 as follows: 
  

	 	19.	Territory. For the avoidance of doubt, the territory (“Territory”) covered in the Digital Rights Purchase Agreement between Digital Musicworks International, Inc
and Prime Entertainment, Inc., for all titles shall be worldwide, with the exception of the following titles, for which the territory shall be Europe, as that term is commonly used, and includes but is not limited to the UK, Germany, France, Spain,
Austria Switzerland and Scandinavia. 

  

	 	a.	[*] 

  

	 	b.	[*] 

  

	 	c.	[*] 

  

  
  

	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

 Addendum to 
 Digital Rights
Purchase Agreement between, 
 continued 
  

	 	d.	[*] 

  

									
	Dated: July 15, 2004	 	 	 	 
					
	By:	 	/s/    JOSEPH WILLIAM
VALENZIANO        	 	 	 	By:	 	/s/    MITCHELL
KOULOURIS        
	 	 	JOSEPH WILLIAM VALENZIANO	 	 	 	 	 	MITCHELL KOULOURIS
	 	 	for Prime Entertainment, Inc.	 	 	 	 	 	for Digital Musicworks International, Inc.

  

  
  

	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

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