Document:

SEPARATION AND GENERAL RELEASE AGREEMENT

 

This SEPARATION AND GENERAL RELEASE AGREEMENT
(the “Agreement”) is made by and among Mandalay Digital Group, Inc., a Delaware corporation, previously known as NeuMedia,
Inc. and Mandalay Media, Inc., a Delaware corporation (collectively the “Employer”), on the one hand, and David Mandell
(the “Executive”), on the other hand (all collectively referred to as the “Parties”).

 

RECITALS

 

A.          WHEREAS, the Employer and the Executive
entered into the Employment Agreement, effective February 1, 2012;

 

B.          WHEREAS, the Executive is an
attorney who served as the General Counsel of the Employer and in that capacity acquired confidential and attorney-client communications;

 

B.          WHEREAS, the Employer and the Executive
also entered into a Restricted Stock Agreement on or about January 3, 2012 (the “Stock Agreement”); and

 

C.          WHEREAS, the Executive now desires
to voluntarily resign and sever his employment relationship with the Employer, or any of their past and present affiliated, parent,
related, and subsidiary companies, joint ventures and partnerships, specifically including, but not limited to, Twistbox Entertainment,
Inc. (the “Employer Entities”), and resolve any and all claims, known and unknown, between them including, but not
limited to, claims arising during the Executive’s employment with the Employer Entities, and claims relating to the Employment
Agreement and Stock Agreement.

 

NOW, THEREFORE, in consideration of the
promises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENTS

 

1.          Consulting Payment. Upon the
Effective Date of this Agreement, the Employer agrees to pay the Executive a total sum of One Hundred Twenty Five Thousand Dollars
($125,000) for Executive to perform consulting services as described in Paragraph 5, below. The Employer shall pay this amount
to the Executive in equal payments over a nine (9) month period from March 9, 2012, pursuant to its normal payroll cycle (but no
less frequently than twice per month), and subject to all required federal and state tax withholdings. While the nine (9) month
period shall commence beginning March 9, 2012, the first payment shall be made on the first regular pay day after the Effective
Date of this Agreement, provided that, a “catch-up” payment shall be included in such first payment in the event the
Effective Date commences after the first regular payroll payment following March 9, 2012. The “catch-up” payment does
not change the net amount Executive is to receive under this Section. Failure to make any of these payments as and when due, for
any reason, shall be deemed a material breach of this Agreement and shall render any and all release of claims provided by Executive
to Employer to be null and void.

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2.          Rights Under The Stock Agreement.
Upon the Effective Date of this Agreement, the Executive shall retain the 375,000 shares of common stock that vested as of the
date of the Stock Agreement as set forth in Section 2(a)(i) of the Stock Agreement, subject to all terms and restrictions in the
Stock Agreement. The Executive agrees to waive and relinquish any right, interest or claim to the non-vested 375,000 shares of
common stock identified in Section 2(a)(ii) of the Stock Agreement, and further acknowledges and agrees that he has no other right,
interest or claim to any common stock under the Stock Agreement. The Parties agree that this Agreement shall constitute a modification
of the Stock Agreement pursuant to Section 15 of the Stock Agreement. This Section does not affect any other right, interest or
claim Executive has to stock acquired by means other than the Stock Agreement. Notwithstanding anything to the contrary herein,
the Executive shall retain all rights and remedies as a stockholder contained in the Stock Agreement as respects the 375,000 shares
of common stock that vested as of the date of the Stock Agreement.

 

3.          Cobra Payments. Upon the Effective
Date of this Agreement, Executive agrees that he shall elect to exercise his rights under COBRA to keep in place his current employer-sponsored
health/dental/vision benefits plan for him and his family (which is provided through the Employer’s wholly owned subsidiary,
Twistbox Entertainment, Inc.,) (the “Health Plan”) and Employer agrees to pay the monthly premiums for such Health
Plan for nine (9) months through and including December 8, 2012. Alternatively, in the event the Health Plan ceases to be available,
for any reason, prior to December 8, 2012, Employer shall reimburse the Executive in an amount not to exceed $2500.00 per month
in connection with the monthly premium payments made by the Executive for an alternative comparable health plan. Failure to reimburse
the Executive for any of these payments as and when due, for any reason, shall be deemed a material breach of this Agreement and
shall render any and all release of claims provided by Executive to Employer to be null and void.

 

4.          Resignation; Hold Harmless. Effective
as of the Employer’s execution of this Agreement, the Employer and the Executive agree that the Executive voluntarily resigned
his employment, and any other positions including, but not limited to, any position as officer, director or secretary, that he
ever held with the Employer Entities. Employer Entities shall take all necessary and immediate action to formally and legally remove
the Executive from any such positions and to make all appropriate timely regulatory filings as may be required to effectuate such
removal. Notwithstanding anything to the contrary herein, the Employer Entities shall continue to hold harmless and indemnify the
Executive as provided in that certain Indemnification Agreement dated February 20, 2011 (the “Indemnity Agreement”)
with respect to Executive’s Corporate Status (as that term is defined in the Indemnity Agreement). Executive and Employer
agree that the Executive was on an unpaid leave of absence and not accruing any benefits or wages from March 9, 2012 through the
date of his execution of this Agreement.

 

5.          Agreement to Consult and Cooperate.
In consideration for the mutual promises and covenants herein, Executive agrees to provide reasonable services and consult for
the Employer as reasonably requested by the Employer (as and when Executive is or may be reasonably available) as is necessary
to orderly transition his duties and responsibilities as directed by the Employer during the nine (9) month period that he is to
receive consulting payments under Section 1 of this Agreement, but in no event beyond December 8, 2013.

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6.          Litigation and Regulatory Cooperation.
The Executive shall cooperate reasonably with requests from the Employer Entities’ legal counsel, in the defense or prosecution
of any claims or actions now in existence or which may be brought in the future against or on behalf of the Employer Entities which
relate to events or occurrences that transpired while the Executive was employed by the Employer Entities. The Executive’s
cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel
to prepare for discovery or trial and to act as a witness on behalf of the Employer Entities at mutually convenient times. The
Executive also shall cooperate fully with the Employer Entities in connection with any investigation or review of any federal,
state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while
the Executive was employed by the Employer Entities. The Employer shall reimburse the Executive for any reasonable out-of-pocket
expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section 6, and if the Executive
spends more than five (5) hours in performance of these obligations, the Employer shall pay the Executive $300.00 per hour for
each part of an hour over five (5) hours.

 

7.          No Attendance Required. Executive
will not be required to be present at the Employer’s office or perform any regularly scheduled duties for the Employer. Nothing
in this Agreement will prevent Executive from undertaking employment with any other entity on a full-time, part-time or consulting
basis, subject to the confidentiality, non-solicitation and other restrictions set forth herein and subject to the duties (fiduciary
duty and duty of loyalty) owed by an employee to his employer, at any time subsequent to March 9, 2012.

 

8.          Mutual General Release. In consideration
of the mutual promises set forth herein, the Employer, including their past and present affiliated, parent, related, and subsidiary
companies, joint ventures and partnerships, as well as their respective past and present directors, officers, shareholders, representatives,
employees, agents, attorneys, investors, successors, and assigns, past and present (“the Employer Releasees”), on the
one hand, and Executive, including his heirs, executors, administrators, trustees, attorneys, representatives, and assigns (“Executive
Releasees”), on the other hand, hereby irrevocably and unconditionally release and forever discharge each other from any
and all claims, causes of action, demands, rights, damages, liabilities or suits of any type or kind, whether known or unknown,
including, without limitation, any and all claims arising from or in any way related to Executive’s employment with, or separation
from the Employer Entities, any compensation of any type or nature from the Employer Entities, the Employment Agreement (except
as provided in Section 13 of this Agreement) or the Stock Agreement (except as provided in Section 2 of this Agreement); provided,
however, notwithstanding any provision herein to the contrary, nothing in this Agreement shall be deemed a release or waiver of
(i) Executive’s rights of indemnification and directors and officers liability insurance coverage to which Executive was
entitled immediately prior to the Effective Date under the Employer’s Bylaws, organizational documents, the Employment Agreement,
the Indemnity Agreement or otherwise, (ii) Executive’s rights under any tax-qualified pension plan maintained by the Employer
or claims for accrued, vested benefits under any other employee benefit plan or COBRA, (iii) Executive’s rights as a stockholder
and stock option holder of the Employer and (iv) any rights under this Agreement.

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This release specifically
includes, but is not limited to, any claims for fraud; breach of contract; breach of implied covenant of good faith and fair dealing;
inducement of breach; interference with contract; wrongful or unlawful discharge or demotion; violation of public policy; assault
and battery (sexual or otherwise); invasion of privacy; intentional or negligent infliction of emotional distress; intentional
or negligent misrepresentation; conspiracy; failure to pay wages, benefits, vacation pay, bonuses, commissions, salary, severance
pay, stock, stock options, attorneys’ fees, or other compensation of any sort; retaliation; discrimination or harassment
on the basis of age, race, color, sex, gender, national origin, ancestry, religion, disability, handicap, medical condition, marital
status, sexual orientation or any other protected category under federal, state or local law; any claim under Title VII of the
Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, the California Fair Employment and Housing Act, the California Labor Code, the Family and Medical
Leave Act, the California Family Rights Act, or Section 1981 of Title 42 of the United States Code; violation of COBRA; violation
of any safety and health laws, statutes or regulations; violation of ERISA; violation of the Internal Revenue Code; or any other
wrongful conduct of any kind, based upon events occurring prior to the Effective Date of this Agreement.

 

9.          Mutual Release of Unknown Claims.
In addition, the Parties expressly release and waive all rights and protections of California Civil Code Section 1542, which reads:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT TO THE DEBTOR.”

 

The Parties intend this release to be a
full and comprehensive general release, waiving all claims, demands and causes of action, known and unknown, to the fullest extent
permitted by law. Nothing in this Agreement is intended to nor shall it be interpreted to release any claim which, by law, may
not be released.

 

10.          Reaffirmation of Separation and
General Release Agreement. Executive agrees that, on the last day that he has agreed to provide services to Employer pursuant
to Section 5 of this Agreement, to execute the Reaffirmation Agreement, attached hereto as Exhibit A, which extends the releases
in Paragraphs 8 and 9 of this Agreement to include the period from the date of execution of this Agreement to the execution date
of the Reaffirmation Agreement. The Employer shall execute and delivery a copy of the Reaffirmation Agreement to Executive within
five (5) business days following receipt thereof from the Executive.

 

11.          Representations and Warranties.
Executive makes the following representations and warranties:

 

11.1          Executive acknowledges that the
consideration set forth in this Agreement are things to which Executive would not be entitled except for his decision to sign this
Agreement and to abide by the terms of this Agreement.

 

11.2          Subject to Section 11.3 below,
Executive represents and warrants that, other than what is provided for in this Agreement, the Employer has paid to Executive all
wages and other benefits owing and due to him by the Employer as a result of Executive’s employment with and separation from
the Employer, including but not limited to all salary, bonuses, commissions, incentive pay, management fees, director fees, grants
of stock, issuances of stock options, vacation pay, severance, or any other remuneration in any type or form.

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11.3          Executive represents and warrants
that he has no right or interest to additional shares or stock options in the Employer, Twistbox Entertainment, Inc., or any of
their past and present affiliated, parent, related, and subsidiary companies, joint ventures and partnerships, other than the following:

 

a.          An option to purchase 58,669 shares
of common stock of Mandalay Digital Group, Inc., all of which are vested on the date hereof, at a strike price of $0.80/share as
provided for in the December 6, 2006 Non-Qualified Stock Option Agreement;

 

b.          An option to purchase 54,725 shares
of common stock of Mandalay Digital Group, Inc., all of which are vested on the date hereof, at a strike price of $0.80/share as
provided for in the October 2, 2007 Non-Qualified Stock Option Agreement;

 

c.          375,000 vested shares of common
stock of Mandalay Digital Group, Inc. as set forth in Paragraph 2 of this Agreement and as provided for in the Stock Agreement;

 

d.          An option to purchase 400,000 shares
of common stock of Mandalay Digital Group, Inc. , all of which are vested on the date hereof, at a strike price of $0.25/share,
as provided for in the February 20, 2011 Non-Qualified Stock Option Agreement;

 

e.           An option to purchase 50,000 shares
of Mandalay Digital Group, Inc., all of which are vested on the date hereof, at a strike price of $4.75/share as provided for in
the February 12, 2008 Non-Qualified Stock Option Agreement; and

 

f.          60,000 vested shares of common stock
of Mandalay Digital Group, Inc. issued pursuant to the Restricted Stock Agreement dated March 16, 2009 (the “March 16, 2009
Stock Agreement”).

 

In connection with the Executive’s period
of time to exercise any or all of the above referenced options to purchase common stock of Mandalay Digital Group, Inc., the Executive
shall have until the later of (i) one (1) year from the date hereof or (ii) ninety (90) days after the Employer notifies the Executive
in writing that it has filed a registration statement covering those non-qualified stock options. The Parties agree that this Agreement
shall constitute a modification of each of the non-qualified stock option agreements referenced above, provided however, that Executive’s
interest is still subject to all terms and restrictions in each of the non-qualified stock option agreements referenced above,
except as provided for in this Agreement. All other rights to equity in Employer, Twistbox Entertainment, Inc., or any of their
past and present affiliated, parent, related, and subsidiary companies, joint ventures and partnerships, are hereby terminated
and released pursuant to Sections 8 and 9 of this Agreement.

 

12.          Knowing and Voluntary. Executive
represents and agrees that he is entering into this Agreement knowingly and voluntarily and that he is an attorney and that he
has had the opportunity to be represented by counsel of his own choosing in connection with the negotiation and drafting of this
Agreement. Executive affirms that no promise or inducement was made to cause him to enter into this Agreement, other than the consideration
promised to Executive herein. Executive further confirms that he has not relied upon any other statement or representation by anyone
other than what is in this Agreement as a basis for his decision to sign this Agreement.

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13.          Execution of Agreement. Executive
expressly acknowledges that he has been provided twenty-one (21) days to consider this Agreement and that he was informed in writing
that he has the right to consult with counsel regarding this Agreement, and that he has had the opportunity to consult with counsel.
To the extent that Executive has taken fewer than twenty-one (21) days to consider this Agreement, Executive acknowledges that
he had sufficient time to consider the Agreement and to consult with counsel and that he does not desire additional time.

 

14.          Revocation. This Agreement
is revocable by Executive for a period of seven (7) calendar days following his execution of this Agreement. The revocation must
be in writing, must specifically revoke this Agreement, and must be received by the Employer prior to the eighth calendar day following
the execution of this Agreement. This Agreement becomes effective, enforceable and irrevocable on the eighth (8th) calendar
day following Executive’s execution of this Agreement (the “Effective Date”).

 

15.          Attorney-Client Confidentiality,
Confidential Information, Non-Solicitation and Cooperation. Executive acknowledges and agrees that
Section 8 of the Employment Agreement shall remain in full force and effect and expressly agrees to remain bound by the provisions
therein. 

 

16.          Non-Disclosure of this Agreement.
Executive agrees not to disclose the terms of this Agreement, any claims he has or might have against the Employer, or any of the
facts and circumstances which gave rise to the separation of Executive’s employment with the Employer or which led to the
execution of this Agreement, except in the following circumstances:

 

a.          Executive may disclose the terms of
this Agreement to Executive’s immediate family, so long as such family members agree to be bound by the confidential nature
of this Agreement;

 

b.          As long as they are advised in writing
of the confidential nature of this Agreement, Executive may disclose the terms of this Agreement to: (i) Executive’s tax
advisors; (ii) taxing authorities if requested by such authorities; and (iii) Executive’s legal counsel; and

 

c.          Pursuant to the order of a court
or governmental agency of competent jurisdiction, or for purposes of securing enforcement of the terms and conditions of this Agreement
should that ever be necessary.

 

17.          Taxes/Withholdings. All payments
under this Agreement are subject to any applicable employment or tax withholdings or deductions. In addition, the parties hereby
agree that it is their intention that all payments or benefits provided under this Agreement comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and this Agreement shall be interpreted accordingly. Executive hereby
is advised to seek independent advice from Executive’s tax advisor(s) with respect to the application of Section 409A of
the Code to any payments under this Agreement. Notwithstanding the foregoing, the Employer does not guarantee the tax treatment
of any payments or benefits under this Agreement, including without limitation under the Code, federal, state or local laws. The
Employer shall have the right to withhold from any cash consideration paid hereunder any applicable withholding taxes due in connection
with any of the cash consideration paid hereunder, and will timely remit to applicable taxing authorities all withholding taxes
or other taxes it is required by law to remit in connection therewith.

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18.          Public Disclosure. In connection
with the Employer’s public disclosure requirements related to the Executive’s resignation and upon inquiry from a prospective
employer or third party, it will limit the disclosure to the following statement: The parties have entered into a consulting arrangement
whereby Mr. Mandell shall provide certain non-exclusive consulting services to the Employer through December 8, 2012 in exchange
for periodic payments totaling $125,000 and the Employer’s payment of his COBRA premium payments. Notwithstanding anything
in this Agreement to the contrary (including this Section 18), the Company shall be entitled to summarize this Agreement in a publicly
filed Current Report on Form 8-K or other appropriate SEC form and file this Agreement as an exhibit to an appropriate publicly
filed SEC form, if the Company in good faith determines that such summary and/or filing is required by applicable SEC rules.

 

19.          Dispute
Resolution. In the event of any dispute or controversy arising out of, or relating to, any interpretation, construction, performance,
termination or breach of this Agreement, the parties hereto agree to submit such dispute or controversy to binding arbitration
before one arbitrator at JAMS in Santa Monica, California, in accordance with the rules governing employment disputes of JAMS
then in effect. A link to the current JAMS Employment Arbitration Rules & Procedures can be found at the following link: http://www.jamsadr.com/rules-employment-arbitration/.
Such arbitration shall be conducted in accordance with Section 1280 et seq. of the California Code of Civil Procedure. Each party
hereby waives any right it may have to object to JAMS having sole and exclusive jurisdiction to adjudicate any such dispute and
stipulates that the Arbitrator shall have personal jurisdiction over each party for the purpose of litigating any dispute, controversy,
or proceeding arising out of or related to this Agreement.

 

The arbitrator shall be selected by the
mutual agreement of the parties. If the parties cannot agree on an arbitrator, the parties shall alternately strike names from
a list provided by the American Arbitration Association until only one name remains.

 

Notwithstanding anything to the contrary
in the rules governing employment disputes of JAMS, the arbitration shall provide (i) for written discovery and depositions as
provided under California law, and (ii) for a written decision by the arbitrator that includes the essential findings and conclusions
upon which the decision is based which shall be issued no later than thirty (30) days after a dispositive motion is heard and/or
an arbitration hearing has completed.

 

The Executive and the Employer shall have
the same amount of time to file any claim against any other party as such party would have if such a claim had been filed in state
or federal court. In conducting the arbitration, the arbitrator shall follow the rules of evidence of the State of California (including
but not limited to all applicable privileges), and the award of the arbitrator must follow California and/or federal law, as applicable.

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The decision of the Arbitrator shall be
final and binding on all the parties to the arbitration, shall be non-appealable and may be enforced by a court of competent jurisdiction.
The Employer shall advance all fees and costs in connection with the arbitration. The prevailing party shall be entitled to recover
from the non-prevailing party its reasonable attorney’s fees and costs, as well as the costs and fees paid to the arbitrator
or JAMS, to the extent allowed by law. The Arbitrator may grant any legal or equitable remedy appropriate including, without limitation,
injunctive relief or specific performance, but shall not have the power to grant any remedy that would not be available in a state
or federal court in California. By entering into this arbitration provision, the Employer is not waiving the attorney-client privilege.

 

20.          Binding Effect of this Agreement.
This Agreement is binding upon Executive and Executive’s successors, assigns, heirs, executors, administrators and legal
representatives.

 

21.          No Admission. This Agreement
may not be cited as, and does not constitute any admission by any Party of, any violation of any law or legal obligation with respect
to any aspect of Executive’s employment or separation from the Employer or with respect to any other matter which is the
subject of this Agreement. The Parties specifically deny that they violated any law, statute, ordinance or regulation.

 

22.          Severability. If any portion
of this Agreement is found to be illegal or unenforceable, such action shall not affect the validity or enforceability of the remaining
portions of this Agreement. Each party agrees that the restrictions and prohibitions contained herein shall be effective to the
fullest extent allowed under applicable law.

 

23.          Entire Agreement. This Agreement
sets forth the entire agreement between the parties and fully supersedes all other oral or written understandings or agreements
between the parties pertaining to Executive’s employment with and separation from the Employer, including but not limited
to the Employment Agreement and the Stock Agreement, except as provided in Sections 2 and 15 of this Agreement. Notwithstanding
anything to the contrary contained in the Employment Agreement, Executive and the Employer acknowledge and agree that no provisions
of, or any covenants of either party contained in, the Employment Agreement shall be deemed to survive the Effective Date other
than Executive’s obligations under Section 8 of the Employment Agreement and the Employer’s obligations under Section
18 of the Employment Agreement. Executive and the Employer agree that no promises, representations, or inducements have been made
to either of them which caused either of them to sign this Agreement other than those which are expressly set forth herein. For
the avoidance of doubt, this provision shall have no effect whatsoever with respect to (i) Executive’s rights of indemnification
and directors and officers liability insurance coverage to which Executive was entitled immediately prior to the Effective Date
under the Employer’s Bylaws, organizational documents, the Employment Agreement, the Indemnity Agreement or otherwise, (ii)
Executive’s rights under any tax-qualified pension plan maintained by the Employer or claims for accrued, vested benefits
under any other employee benefit plan or COBRA, and (iii) Executive’s rights as a stockholder and stock option holder of
the Employer.

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24.          Counterparts. This Agreement
may be executed in one or more counterparts, each of which will be deemed an original, all of which together will constitute one
and the same agreement. A facsimile copy or pdf copy of a party’s signature on this Agreement will be deemed as an original.

 

25.          Modification. This Agreement
may not be changed or altered, except by a writing signed by an authorized representative of the Employer and by Executive.

 

26.          Governing Law. This Agreement
is entered into in the State of California, and the laws of the State of California will apply to any dispute concerning it, excluding
the conflict-of-law principles thereof.

 

27.          Waiver. The failure to enforce
any provision of this Agreement shall not be construed to be a waiver of such provision or to affect the validity of this Agreement
or the right of any Party to enforce this Agreement.

 

28.          Ambiguities. Both Parties have
participated in the negotiation of this Agreement and, thus, it is understood and agreed that the general rule that ambiguities
are to be construed against the drafter shall not apply to this Agreement. In the event that any language of this Agreement is
found to be ambiguous, each Party shall have an opportunity to present evidence as to the actual intent of the Parties with respect
to any such ambiguous language.

 

PLEASE READ CAREFULLY.
THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. THE UNDERSIGNED AGREE TO THE TERMS OF THIS AGREEMENT AND VOLUNTARILY
ENTER INTO IT WITH THE INTENT TO BE BOUND THEREBY.

 

IN WITNESS WHEREOF, this Agreement has been
executed by the Employer and by the Executive as of the Effective Date.

 

 

EMPLOYER

 

Mandalay Digital Group, Inc., a Delaware Corp.

 

	By:	 	 	Dated:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	EXECUTIVE	 	 	 	 
	 	 	 	 	 	 
	 	 	Dated:	 	 
	David Mandell	 	 	 	 

 

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EXHIBIT A

 

REAFFIRMATION OF SEPARATION AND RELEASE
AGREEMENT

 

By his signature below, David Mandell (“Executive”)
hereby reaffirms the Separation and General Release Agreement entered into between Mandalay Digital Group, Inc., previously known
as NeuMedia, Inc. (the “Employer”) and Executive on March __, 2012 (“the Separation Agreement”), which
is incorporated herein by reference as if set forth fully (this agreement shall hereafter be referred to as the “Reaffirmation”).
The intent of this Reaffirmation is to effectuate a complete release of all matters released, as described in Paragraphs 8 and
9 of the Separation Agreement (the “Released Matters”), while extending the timeframe of that release, and its full
effect, to and including the date of Executive’s signature below.

 

1. Reaffirmation of Executive’s Release
of Known and Unknown Claims. In reaffirming the Separation Agreement and in consideration of the Employer’s release herein,
the Executive, including his heirs, executors, administrators, trustees, attorneys, representatives, and assigns, hereby irrevocably
and unconditionally release and forever discharges the Employer, including their past and present affiliated, parent, related,
and subsidiary companies, joint ventures and partnerships, as well as their respective directors, officers, shareholders, representatives,
executives, agents, attorneys, investors, successors, and assigns, past and present from any and all claims, causes of action,
demands, rights, damages, liabilities or suits of any type or kind, whether known or unknown, including, without limitation, any
and all claims arising from or in any way related to Executive’s employment with, or separation from the Employer, any compensation
of any type or nature from the Employer, the Employment Agreement or the Stock Agreement; provided, however, notwithstanding any
provision herein or in the Separation Agreement to the contrary, nothing in this Reaffirmation shall be deemed a release or waiver
of any rights under the Separation Agreement or this Reaffirmation.

 

This release specifically
includes, but is not limited to, any claims for fraud; breach of contract; breach of implied covenant of good faith and fair dealing;
inducement of breach; interference with contract; wrongful or unlawful discharge or demotion; violation of public policy; assault
and battery (sexual or otherwise); invasion of privacy; intentional or negligent infliction of emotional distress; intentional
or negligent misrepresentation; conspiracy; failure to pay wages, benefits, vacation pay, bonuses, commissions, salary, severance
pay, stock, stock options, attorneys’ fees, or other compensation of any sort; retaliation; discrimination or harassment
on the basis of age, race, color, sex, gender, national origin, ancestry, religion, disability, handicap, medical condition, marital
status, sexual orientation or any other protected category under federal, state or local law; any claim under Title VII of the
Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, the California Fair Employment and Housing Act, the California Labor Code, the Family and Medical
Leave Act, the California Family Rights Act, or Section 1981 of Title 42 of the United States Code; violation of COBRA; violation
of any safety and health laws, statutes or regulations; violation of ERISA; violation of the Internal Revenue Code; or any other
wrongful conduct of any kind, based upon events occurring prior to the date of execution of this Agreement.

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2. Employer’s
Release of Known and Unknown Claims. In consideration for Executive’s unrevoked execution of this Reaffirmation, the
Employer and the Employer’s past and present affiliated, parent, related, and subsidiary companies, joint ventures and partnerships,
as well as their respective past and present directors, officers, shareholders, representatives, employees, agents, attorneys,
investors, successors, and assigns, past and present (“Company Releasors”), agree unconditionally and forever to waive,
release and discharge Executive, including his heirs, executors, administrators, trustees, attorneys, representatives, and assigns
(“Executive Releasees”) from any and all claims, actions, causes of action, demands, rights, or damages of any kind
or nature which they may now have, or ever have, whether known or unknown, including but not limited to any claims, causes of action
or demands of any nature arising out of or in any way relating to Employee’s employment with, or separation from the Employer.

 

3. Mutual Release of Unknown Claims.
In addition, the parties expressly release and waive all rights and protections of California Civil Code Section 1542, which reads:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT TO THE DEBTOR.”

 

          The parties intend this release to be
a full and comprehensive general release, waiving all claims, demands and causes of action, known and unknown, to the fullest extent
permitted by law. Nothing in this Agreement is intended to nor shall it be interpreted to release any claim which, by law, may
not be released.

 

4. Review and Revocation
Period. Executive also understands and acknowledges that the review and revocation rights described in the Separation Agreement
at Paragraphs 13 and 14 apply equally to this Reaffirmation of Separation Agreement, including the period of twenty-one (21) days
to consider the terms of this Reaffirmation and seven (7) days following the date of execution of this Reaffirmation to revoke.
The revocation must be in writing, must specifically revoke this Reaffirmation, and must be received by the Employer prior to the
eighth calendar day following the execution of this Agreement. This Reaffirmation becomes effective, enforceable and irrevocable
on the eighth (8th) calendar day following Executive’s execution of this Reaffirmation and the Employer’s
execution and delivery to Executive of a counter-signed copy of this Reaffirmation.

 

PLEASE READ CAREFULLY.
THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. THE UNDERSIGNED AGREE TO THE TERMS OF THIS AGREEMENT AND VOLUNTARILY
ENTER INTO IT WITH THE INTENT TO BE BOUND THEREBY.

 

	 	 	 	Mandalay Digital Group, Inc. 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Dated: 	 	 	By:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

    	11

    	 

    
 

 

I have carefully read this Reaffirmation and understand that
it contains a release of known and unknown claims. I acknowledge and agree to all of the terms and conditions of this Reaffirmation.
I further acknowledge that I enter into this Reaffirmation voluntarily with a full understanding of its terms.

 

 

	Dated:	 	 	 	 
	 	 	 	David Mandell	 

 

 

    	12EMPLOYMENT AGREEMENT

 

 

 

PARTIES

 

 

 

This agreement (“Agreement”)
is made as of the 1st day of April, 2012 (“Effective Date”) between:

 

		(A)	On the one hand, Diligent Boardbooks Limited a UK Company, whose company number is 06029195
with the registered address New Derwent House, 69 - 73 Theobalds Road, London, WC1X 8TA, UK (“DBL,” the “Company,”
or “Employer”); and

 

		(B)	On the other hand, Charlie Horrell, an individual residing at
45 DeVere Gardens, London W8 5AW, UK (“Executive”).

 

		1.	Employment

 

		1.1.	DBL hereby agrees to employ the Executive and the Executive hereby
agrees to provide services as an employee to DBL on the terms and conditions set out in this Agreement ("Appointment").

 

		2.	Term

 

		2.1.	The Executive's employment will commence on 1 April 2012.

 

		2.2.	The Executive's continuous employment will commence on 1 April 2012
and no work undertaken previously with DBL, whether as a self employed consultant or otherwise, counts towards the Executive's
period of continuous employment.

 

		2.3.	subject to the remaining terms of this Agreement, the Appointment
shall thereafter continue unless or until terminated:

 

		(a)	For Cause, in accordance with Clause 6; or

 

		(b)	Other than for Cause, by either party giving the other not less than one hundred and eighty (180)days
prior written notice.

 

		2.4.	The Company may, in its sole and absolute discretion, terminate the
Appointment at any time and with immediate effect by paying a sum in lieu of notice ("Payment in Lieu") equal
to the Base Compensation (as at the date of termination) which the Executive would have been entitled to receive under this Agreement
during the notice period (or, if notice has already been given, during the remainder of the notice period) less income tax and
National Insurance contributions. The Company may pay any sums due under this clause in equal monthly installments.

 

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		2.5.	Following service of notice to terminate the Appointment
by either party, or if the Executive purports to terminate the Appointment in breach of contract, DBL may by written notice place
the Executive on garden leave for the whole or part of the remainder of the Appointment. During any period of garden leave:

 

		(a)	DBL shall be under no obligation to provide any work to the Executive
and may revoke any powers the Executive holds on behalf of the DBL;

 

		(b)	DBL may require the Executive to carry out reasonable alternative
duties or to only perform such specific duties as are expressly assigned to the Executive, at such location as DBL may reasonably
decide;

 

		(c)	The Executive shall continue to receive his Base Compensation and
all contractual benefits in the usual way and subject to the terms of any benefit arrangement;

 

		(d)	The Executive shall remain an employee of DBL and bound by the terms
of this Agreement;

 

		(e)	The Executive shall ensure that DBL knows where he will be and how
he can be contacted during each working day (except during any periods taken as holiday in the usual way);

 

		(f)	DBL may exclude the Executive from any premises of DBL and may require
the Executive not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer,
supplier, agent, distributor, shareholder, adviser or other business contact of DBL.

 

		3.	Duties

 

		3.1.	During the Appointment, the Executive shall perform the duties set
forth on Schedule A, or such other duties that are commensurate with his role as Managing Director as DBL considers appropriate.

 

		4.	Hours and place of work

 

		4.1.	The Executive's normal place of work shall be DBL's headquarters
at Swan Centre, Fishers lane, Chiswick, London, W4 1RX or such other headquarters as the Company may reasonably determine. The
Executive agrees to travel on the Company's business (both within the United Kingdom or abroad) as may be required for the proper
performance of his duties during the Appointment.

 

		4.2.	The Executive will not be required to work outside the UK for more
than one continuous month during the Appointment.

 

		4.3.	The Executive's normal working hours shall be 9.00am to 5.00pm on
Mondays to Fridays and such additional hours as are necessary for the proper performance of his duties. The Executive acknowledges
that he shall not receive further remuneration in respect of such additional hours.

 

		4.4.	The Executive's working time in any reference period may exceed forty-eight
hours in any seven day period and the executive agrees to exclude his right to limit his working time to forty-eight hours a week
as specified in Regulation 4 of the Working Time Regulations 1998. The Executive must give the Company not less than three months
written notice if he wishes to withdraw his agreement. 

 

 

 

 

 

 

 

 

 

 

  

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		5.	Compensation

 

		5.1.	In return for all services rendered by the Executive and for all
covenants undertaken by the Executive pursuant to this Agreement, DBL shall provide and the Executive shall accept the following
(which is inclusive of any fees due to the Executive as an officer):

 

		(a)	Base Compensation. DBL shall pay the Base Compensation to
the Executive as provided in Schedule B; and

 

		(b)	Fringe Benefits. During the Appointment, DBL shall extend
to the Executive other fringe benefits as provided in Schedule B. DBL makes no provision for retirement or death in service benefits
to the Executive save as may be provided from time to time within the terms of DBL’s pension or profit sharing plan, if any,
or as may be required by law. Fringe benefits does not include stock options or bonuses.

 

		5.2.	The Company may deduct from the Base Compensation, or any other sums
owed to the Executive, any money owed to the Company by the Executive.

 

		6.	Termination of the
Executive for cause

 

		6.1.	DBL may terminate this Agreement for “Cause,”
with immediate effect without notice and with no liability to make any further payment to the Executive (other than in respect
of amounts accrued due at the date of termination) upon the occurrence of one or more of the following:

 

		(a)	The Executive is guilty of any gross misconduct affecting
the business of DBL;

 

		(b)	The Executive is, in the opinion of DBL, consistently
negligent and/or incompetent in the performance of his duties;

 

		(c)	The Executive commits any material act of dishonesty,
deceit, or breach of fiduciary duty in the performance of the Executive’s duties;

 

		(d)	The Executive neglects or fails, on a recurring basis,
to perform the Executive’s job duties as defined in Schedule A and/or any other lawful instruction from DBL;

 

		(e)	The Executive substantially violates any written policy
or reasonable expectation of DBL regarding behavior or conduct that has been communicated to the Executive by DBL or such behavior
or conduct is outside the remit of the Executive’s job description and Executive does not remedy such breach within thirty
(30) days after written notice from DBL;

 

		(f)	The Executive is convicted of, or pleads nolo contender,
to (i) any felony, or any misdemeanor involving moral turpitude or (ii) any crime or offense involving dishonesty with respect
to DBL;

 

		(g)	The Executive materially breaches any provision of
this Agreement and does not cure such breach within thirty (30) days after written notice from DBL, except that such remedy period
shall not apply to any breach by the Executive of the restrictive covenants in Clause 11 of this Agreement;

 

		(h)	The Executive is declared bankrupt or makes any arrangement
with or for the benefit of his creditors or has an administration order made against him; or

 

		(i)	The Executive becomes of unsound mind, or a patient
under any statute relating to mental health.

 

		6.2.	In the event DBL opts to terminate this Agreement for Cause, DBL
shall provide written notice of such termination which shall also specify the reason for such termination.

 

    	23

    	 

    
 

		6.3.	In the event DBL terminates this Agreement for Cause, all obligations
of DBL under this Agreement shall terminate.

 

		7.	Incapacity of the Executive

 

		7.1.	If the
Executive is absent from work for any reason he must notify the Company Secretary of the reason for his absence as soon
as possible on the first day of absence.

 

		7.2.	In all cases of absence, a self-certification form,
which is available from the Company Secretary, must be completed on the Executive's return to work. For any period of incapacity
due to sickness or injury which lasts for seven consecutive days or more a doctor's certificate stating the reason for absence
must be obtained and supplied to the Company Secretary. Further certificates must be obtained if the absence continues for longer
than the period of the original certificate.

 

		7.3.	If the
Executive is absent from work for more than three days by reason of sickness or injury and satisfies the relevant requirements,
he will be entitled to statutory sick pay. The qualifying days for Statutory Sick Pay purposes are Monday to Friday.

 

		7.4.	The Executive agrees
to consent to medical examinations (at DBL's expense) by a doctor nominated by DBL should DBL
so require. The Executive agrees that any report produced in connection
with any such examination may be disclosed to DBL and DBL may
discuss the contents of the report with the relevant doctor.

 

		7.5.	If the Executive is unable for health reasons to perform
his duties for DBL for a continuous period of more than ninety (90) days, DBL shall have the right to terminate this Agreement
on written notice to Executive, such notice to be provided on or after the expiration of the ninety (90) day period. In such event,
the Executive shall be paid all compensation due under this Agreement until the date of termination provided in the notice.

 

		8.	Death of the Executive

 

		8.1.	This Agreement will terminate immediately upon the
death of the Executive and in such case the surviving named beneficiary or the Executive’s estate shall receive any compensation
earned and unpaid as of the date of the Executive’s death. 

 

		9.	Expenses

 

		9.1.	In addition to the compensation payable hereunder, the Executive
shall be entitled to incur other expenses (detailed in Schedule B) on behalf of DBL in the proper performance of the Executive’s
duties. The Executive will charge such expenses to DBL credit or charge cards or to DBL vendors or, if the Executive pays such
expenses from his own resources, the Executive will be reimbursed upon the submission of appropriate receipts.

 

		10.	Devotion to the Company

 

		10.1.	Throughout the Executive’s Appointment, the Executive will
devote 100% of the Executive’s professional and business hours and the Executive’s undivided attention to the business
and affairs of DBL and its divisions and affiliates, except as otherwise set forth in this Agreement.

 

    	24

    	 

    
 

		10.2.	Nothing in this Agreement will preclude the Executive from devoting
reasonable periods of time as may be required to outside activities and engagements so long as those activities:

 

		(a)	will not reflect adversely on DBL;

 

		(b)	are not inconsistent with the mission or purposes of
DBL; and

 

		(c)	will not conflict with the Executive fulfilling his
duties hereunder, including, but not limited to, such activities as the following: (i) service as a director, trustee, or member
of a committee of any organization involving no conflict of interest with the interests of DBL; (ii) fulfilling speaking engagements,
teaching at continuing education seminars, or fulfilling other professional or business educational opportunities; and/or (iii)
engaging in charitable and community activities that are not inconsistent with the mission and purposes of DBL.

 

		11.	Restrictive covenants

 

		11.1.	Competition.
The Executive agrees that while this Agreement is in effect, and for a period of one year after its termination, the Executive
will not, without the prior written consent of DBL, engage, directly or indirectly, either as principal, agent, proprietor, director,
officer, employee or consultant, or participate in the ownership, management, operation or control, of any business or organisation
directly competitive with the business conducted by DBL at the date of termination of this Agreement. A business competitive with
the business of DBL shall include, without limitation, a business that manufactures, provides or markets software for digital board
books or board portals (whether delivered via the Application Service Provider model or as installed software) to desktop PCs,
laptops, iPads, PDAs, mobile phones and computing devices or any other form of computing or electronic device. Nothing in this
section shall prevent the Executive from purchasing securities of any business whose securities are regularly traded on any national
securities exchange, or in the over-the-counter market, provided that such purchases shall not result in the Executive owning,
directly or indirectly, at any time, one percent (1%) or more of the voting securities of any entity engaged in any business competitive
to that carried on by DBL at the termination of this Agreement. The geographic area of the restrictions set forth in this section
shall be Europe, including the UK.

 

		11.2.	The Executive agrees that while this Agreement is in
effect, and for a period of one year after its termination, the Executive will not, without the prior written consent of DBL, engage,
directly or indirectly, either as principal, agent, proprietor, director, officer, employee or consultant, or participate in the
ownership, management, operation or control, of any 'Nasdaq' named or owned company, ICSA Limited or Board Vantage Inc. The geographic
area of the restrictions set forth in this section shall be Europe, including the UK

 

		11.3.	Recruitment of personnel.
The Executive agrees that he will not, while this Agreement is in effect and for a period of one year thereafter, directly or indirectly,
individually or in conjunction with other persons, aid or endeavor to solicit or induce:

 

		(a)	any remaining workers, directors or employees of DBL
or its affiliates, or agents, licensees, franchisees, or consultants performing contracted work for DBL or its affiliates, to leave
their employment or independent contractor positions to accept employment or contractor positions with another person or entity,
or 

 

		(b)	then customers or prospective customers of DBL to obtain
from another person or entity products or services similar to or competitive with the products or services then sold or provided
by DBL. 

 

		(c)	The geographic area of the restrictions set forth in
this Clause 11.2(c) and its preceding subsections shall be Europe, including the UK.

 

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		12.	Confidential information

 

		12.1.	The Executive agrees that he will not, while this Agreement
is in effect or at any time thereafter, use or disclose, whether directly or indirectly, to any unauthorized person any trade secrets
or other confidential information of DBL or its affiliates. The Executive acknowledges and agrees that trade secrets and other
confidential information, whether created by the Executive in connection with his employment or by others, constitute DBL’s
sole and exclusive property. For purposes of this section, the term “Confidential Information” includes all
documents, materials and other information, whether in oral, written or electronic form, that have been created by the Executive
for DBL during the Executive’s employment, that have been or will be furnished by or on behalf of DBL to the Executive or
that the Executive becomes aware of in the course of his duties (or that have been or will be created for DBL while Executive is
employed by DBL) and includes, without limitation, all notes, analyses, compilations, materials, manuscripts, books, pamphlets,
tapes, CDs, products, product information, mailing lists, customer information and customer lists, business plans, business methods,
web site designs, technology information, software, source code, pricing information, and any studies or other documents or materials
prepared by the Executive which contain or reflect all or any portion of the originally disclosed materials. Notwithstanding the
foregoing, Confidential Information does not include information that:

 

		(a)	was or becomes generally available to the public other
than as a result of a disclosure by the Executive or the Executive’s agents; or

 

		(b)	becomes available to the Executive on a non confidential
basis from an independent source without breach of any confidentiality obligations; or

 

		(c)	which the Executive is required to disclose under applicable
laws or regulations or in connection with judicial or administrative proceedings, provided that to the extent possible the Executive
shall notify DBL if compelled to disclose Confidential Information prior to its disclosure, so as to permit DBL an opportunity
to seek a protective order or other appropriate relief it deems prudent. 

 

		12.2.	The Executive will return to DBL all documents and
other tangible evidence related to DBL’s trade secrets and any Confidential Information on termination of his employment
with DBL. No breach or alleged breach of this Agreement by DBL shall alter the obligations of Executive set forth in this Clause.

 

		13.	Right to injunctive relief and other remedies

 

		13.1.	The Executive agrees that the restrictions contained
in Clause 11 are necessary for the protection of DBL and any breach thereof may cause DBL irreparable harm for which there may
not be adequate remedy at law. The Executive consents in the event of such breach to the issuance of injunctive or other equitable
relief in favor of DBL restraining the breach of the Clause 11 covenants by any court having jurisdiction. The Executive agrees
that the rights of DBL to obtain an injunction shall not be considered a waiver of DBL’s rights to assert any other remedy
it may have at law or in equity. With regard to any preliminary injunctive or similar equitable relief that may be granted to enforce
the covenants set forth in Clause 11, the Executive waives the requirement of a bond being posted in connection with such relief.

 

		14.	Non-disparagement

 

		14.1.	During the Appointment and thereafter, the Executive shall not, directly
or indirectly, disparage or make negative, derogatory or defamatory statements about DBL, its business activities, or any of DBL’s
directors, officers, employees, affiliates, agents, or representatives to any other person or business entity. DBL shall use its
reasonable endeavours to ensure that its directors, officers, employees, affiliates, agents and representatives shall not, directly
or indirectly, disparage or make negative, derogatory or defamatory statements about the Executive.

 

		14.2.	Except pursuant to a subpoena validly issued or enforced by a court,
arbitrator, agency, or other governmental body of competent jurisdiction, or in response to a valid investigative demand by a governmental
body, neither the Executive nor DBL (including any of its directors, officers, employees, affiliates, agents and representatives)
will testify, consult, cooperate or otherwise communicate with any other person concerning any legal proceeding, judicial or administrative,
against or adverse to the Executive, DBL or an affiliate of DBL, actual or contemplated. The Executive and DBL shall give prompt
notice (i.e., no later than five (5) business days following receipt) to each other of any such subpoena or investigative demand
before taking any action in response thereto.

 

    	26

    	 

    
 

		15.	Inventions

 

		15.1.	The Executive agrees that all inventions conceived of or developed
by the Executive during the term of the Executive’s employment with DBL, whether alone or jointly with others and whether
during working hours or otherwise, which relate to the business or interests of DBL shall be DBL’s exclusive property. With
respect to any invention, Executive shall (i) promptly disclose in writing to DBL each invention related to the business or interests
of DBL that is conceived or developed by the Executive during the term of Executive’s employment with DBL, (ii) assign all
rights to such inventions to DBL and (iii) assist DBL, at DBL’s expense, in every way to obtain and protect any patents,
trademarks or copyrights on such inventions. This Clause shall survive termination of this Agreement.

 

		16.	Miscellaneous

 

		16.1.	Disciplinary and grievance procedures. The Executive's
attention is drawn to the disciplinary and grievance procedures applicable to his employment, a copy of which is available from
the Company Secretary. These procedures do not form part of the Executive's contract of employment. If the Executive wishes to
appeal against a disciplinary decision he may apply in writing to the Company Secretary in accordance with the Company's disciplinary
procedure. If the Executive wishes to raise a grievance he may apply in writing to the Company Secretary in accordance with the
Company's grievance procedure.

 

		16.2.	Data protection. The Executive shall comply with any accepted
data protection policies or practices at DBL when handling personal data in the course of employment including personal data relating
to any employee, customer, client, supplier or agent of DBL. The Executive consents to DBL processing data relating to the Executive
for legal, personnel, administrative and management purposes and in particular to the processing of any sensitive personal data
(as defined in the Data Protection Act 1998) relating to the Executive. DBL may make such information available to those who provide
products or services to DBL (such as advisers and payroll administrators), regulatory authorities, potential or future employers,
governmental or quasi-governmental organisations and potential purchasers of DBL or the business in which the Executive works.
The Executive consents to the transfer of such information to DBL'S business contacts outside the European Economic Area in order
to further its business interests, even where the country or territory in question does not maintain adequate data protection standards.

 

		16.3.	Collective agreements. There are no collective agreements
applicable to the Executive's employment.

 

		16.4.	Severability. If any provision of this Agreement shall be
adjudicated to be invalid, it shall not affect the remaining provisions of this Agreement. In addition, if any provision of this
Agreement shall be adjudicated to be invalid as it relates to the restrictive covenants in Clause 11, such provision shall be modified
automatically to provide for the maximum restriction on the Executive that is lawful as, for example, by decreasing the geographical
area or duration of any such restriction.

 

		16.5.	Further assurances.
Each of DBL and the Executive agrees, at the expense of DBL, to do such acts and execute such documents as are reasonably necessary
to implement fully his or its respective covenants under this Agreement.

 

		16.6.	Succession. This Agreement
shall extend to and be binding upon Executive and his heirs, administrators and executors and upon DBL and its successors and assigns.

 

    	27

    	 

    
 

		16.7.	Entire agreement; waiver.
This Agreement (and the attached Schedules) constitute the entire and only agreement between DBL and the Executive with respect
to the subject matter hereof. This Agreement supersedes all prior representations, agreements and understandings, whether oral
or written, upon the subject matter hereof, including, without limitation, the Executive’s employment with DBL. All waivers
and modifications of this Agreement shall be in writing and signed by the party against whom enforcement of such waiver or modification
is sought. No waiver or failure or delay by either party to enforce a right set forth in this Agreement shall operate as a waiver
of any term or condition of this Agreement as applied to the same or similar circumstances occurring thereafter.

 

		16.8.	Governing law. This Agreement and any dispute or
claim arising out of or in connection with it or its subject matter or formation shall be construed and interpreted in accordance
with the laws of England and Wales. The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction
to settle any dispute or claim arising out of or in connection with this Agreement or its subject matter or formation (including
non-contractual disputes or claims).

 

		16.9.	Notices. Any notice
or other communication required or permitted to be made or given to either party pursuant to this Agreement shall be sufficiently
made or given on the date of mailing if the notice or communication is in writing and is delivered by hand or sent to the recipient
by nationally recognized courier or certified mail, return receipt requested, addressed to the intended recipient at his or its
address set forth in the preamble to this Agreement or to such other address as the recipient shall have designated by written
notice given to the party providing notice.

 

		16.10.	Clause headings.
The clause headings in this Agreement are for convenience only and shall not be considered a part of, or modify, explain, enlarge,
restrict or in any way affect, the construction or interpretation of any provisions of this Agreement.

 

		16.11.	Counterparts.
This Agreement may be executed in counterparts. Facsimile and electronic signatures shall be treated as originals for all purposes
of this Agreement.

 

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WITNESS
the signatures of the parties hereto as of the date first written above.

 

		For and on behalf of 	 	 	 	 
		Diligent Boardbooks Limited 	 	 	The Executive	 
	 	 	 	 	 	 
	By:	/s/ Alessandro Sodi	 	By:	/s/ Charlie Horrell	 
	 	Alessandro Sodi, Director	 	 	Charlie Horrell	 
	 	 	 	 	 	 
	Date:	April 1, 2012	 	Date:	April 1, 2012	 

  

    	29

    	 

    

  

SCHEDULE A

 

	Title:		Managing Director 
	Reports to:		Alessandro Sodi, Non Executive Director of DBL 
	Accountabilities:	·	Managing Director is responsible for addressing all significant matters relating to or affecting DBL from time to time.
	 	·	Managing Director is responsible for development of strategies to be employed by DBL, subject to Board of Directors of Diligent Board Member Services’ (“Parent”) approval.
	 	·	Managing Director is responsible for managing DBL within its annual budget.
	 	·	Managing Director is responsible for managing and supervising all of his direct reports.  Managing Director shall ensure that all employees of DBL are putting forth their best efforts on behalf of DBL.
	                      
	·	Managing Director shall report all significant matters to the DBL Board of Directors and shall obtain Board approval of
any such significant proposed initiatives.

 

    	30

    	 

    
 

SCHEDULE B

 

Base compensation:

The Executive
will be entitled to base compensation of £200,000 sterling per annum ("Base Compensation").
The Base Compensation will accrue from day to day and will be paid monthly to the Executive by the Company in the third week of
the month for that month. The Base Compensation will be increased by a minimum of 5% on each anniversary of the Effective Date
over the next three (3) years and, following that time, may be increased further at the sole discretion of the Board of Directors
of the Parent.

 

Bonus compensation:

At the beginning of the second quarter
of every calendar year for the duration of this Agreement, the Board will consider approving a possible bonus payment to the Executive.
This payment will be at the sole discretion of the Board of the Parent. Among other things, the Board of the Parent shall consider
the performance of the Company measured against market conditions and current company performance.

 

Disability and term life insurance:

There currently is no disability or term life insurance offered
by Company.

 

Pension and profit sharing:

There is currently no profit sharing plan
offered by Company.

 

There is no entitlement to pensions benefits
in relation to the Executive's Appointment, but the Company shall provide access to a designated stakeholder pension scheme (Scheme)
as required by law. Full details of the Scheme are available from The Treasurer of the parent. The Company does not make any contributions
to the Scheme.

 

The Executive may make contributions to
the Scheme of an amount up to the lower of 100% of the Executive's salary and the annual allowance set by HM Revenue & Customs
from time to time. Such contributions shall be payable in equal monthly installments in arrears and shall be made by way of deduction
from the Executive's salary.

 

A contracting-out certificate is not in
force in respect of the Executives employment.

 

Vacation:

The Executive will be entitled to 5 calendar
weeks paid vacation per year - plus the public holidays in England and Wales and personal days - as per Company policy. The Executive
is entitled to his normal remuneration during such vacation.

 

Holiday dates must be agreed by the CEO
of the parent in writing in advance. The Company may require the Executive to take holiday on specific days which will be notified
to him.

 

The Executive cannot carry untaken holiday
entitlement forward from one holiday year to the following holiday year unless a period of statutory maternity, paternity or adoption
leave has prevented him from taking it in the relevant year.

 

Stock based compensation:

The Executive shall be entitled to participate
in the Parent’s 2007 and 2010 Stock Option and Incentive Plans and any successor plan available to other executives of DBL
(the “Plan”). Pursuant to the terms and conditions of the Plan, and upon execution by Executive of a Stock Option Agreement
substantially similarly to agreements executed by individuals previously awarded shares of the Parent’s common stock, the
Parent’s shall award the Executive options for shares of Parent’s common stock, as follows:

 

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Options for 400,000 shares of the Company’s
common stock exercisable according to the following schedule: 400,000 shares on or after March 31, 2015.

 

Tools:

Desktop and laptop computers, cell phones,
business cards and any other office equipment required by the Executive to fulfill his duties in the multiple countries in which
the Company operates will be provided by the Company as required. All marketing materials will be provided by the Company but remain
the property of the Company at all times.

 

Travel expense reimbursement:

The Executive shall be entitled to reimbursement
of reasonable travel expenses incurred in connection with travel on behalf of DBL, upon submission of appropriate documentation
and so long as they were incurred in accordance with DBL’s travel expense policy (as adopted and amended from time to time).

 

When traveling internationally on behalf
of Company, the Executive will be paid an additional £100 per day to cover personal expenses incurred.

 

Reservation of rights:

Nothing in this Schedule B shall be deemed
to limit the ability of the Company to adopt, amend, revoke or replace any fringe benefit plans or Company policies or from taking
any action in connection therewith that is applied uniformly to all executive employees of DBL.

  

    	32

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