Document:

Execution
      Version

     

    THE
      WAAT CORP.

     

    May
      16,
      2006

     

    Mr. Adi
      McAbian

    c/o
      The
      WAAT Corp.

    14242
      Ventura Blvd, 3rd Floor

    Sherman
      Oaks, California 91423

     

    Dear
      Adi:

     

    The
      purpose of this letter (the “Letter
      Agreement”) is
      to
      acknowledge and set forth
      the
      terms and conditions of your employment with The WAAT Corp., a California
corporation
      (the “Company”).

     

    1.
      Duties
      and Responsibilities.
      During
      the Employment Term, you will serve as
      the
      Managing Director of the Company or in such other position as determined by
      the
Chief
      Executive Officer of the Company from time to time. You will report to the
      Chief
Executive
      Officer of the Company (or its designee). You will have such duties and
responsibilities
      that are commensurate with your position and such other duties and responsibilities
      as are from time to time assigned to you by the Chief Executive Officer
(or
      its
      designee)..
      During
      the Employment Term, you will devote your full business time, energy
      and skill to the performance of your duties and responsibilities hereunder,
      provided
      the foregoing shall not prevent you from (i) serving on the board of directors
      of non-profit
      organizations and, with the prior written approval of the Board, other
companies,
      (ii) participating in charitable, civic, educational, professional, community
      or
industry
      affairs and (iii) managing your and your family’s passive personal investments;
provided
      such activities in the aggregate do not interfere or conflict with your duties
      hereunder
      or create a potential business conflict.

     

    2.
      Employment
      Term. The
      term
      of your employment under this Letter Agreement
      (the “Employment
      Term”) will
      be
      for a term commencing on the date first written above (the “Effective
      Date”) and,
      unless terminated earlier as provided in paragraph
      6 hereof or extended by mutual consent of you and the Company on terms at least
      as favorable as those in the final year of the Employment Term, ending on the
      third anniversary
      of the Effective Date.

     

    3.
      Base
      Salary.
      During
      the Employment Term, the Company will pay you a base
      salary at the rate of $300,000 per year, in accordance with the usual payroll
      practices of
      the
      Company. Your Base Salary shall be subject to annual review by the Board and
      may
      be
      increased, but not decreased, from time to time by the Board; provided, however,
      that,
      commencing January 1, 2007, you shall receive a minimum annual increase in
      Base
      Salary equal to the lesser of 5% or the percentage equal to the increase, if
      any, in the Consumer
      Price Index measured for the 12 month period immediately preceding the effective
      date of the increase. The base salary as determined herein from time to time
      shall
      constitute “Base
      Salary”
for
      purposes of this Letter Agreement. For purposes of this
      paragraph 3, “Consumer
      Price Index”
shall
      mean the Consumer Price Index for Urban
      Wage Earners and Clerical Works (1982 - 1984
      =
      100) for the Los Angeles Metropolitan
      area published by the United States Department of Labor, Bureau of Statistics.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      2

     

    4.
      Annual
      Bonus. You
      will
      be eligible to receive an annual target cash bonus of up to 35% of Base Salary,
      if earned, determined by the Board (the “Bonus”).
      Such
      bonus will
      be
      based upon the achievement of performance goals set by the Board (or a
committee
      thereof), including, without limitation, the operating results of the Company
      and
      your
      individual performance, as determined by the Board in its sole
      discretion.

     

    5.
      Benefits
      and Fringes.

     

    (a)
      General. During
      the Employment Term, you will be entitled to such benefits and fringes, if
      any,
      as are generally provided from time to time by the
      Company to its employees at a level commensurate with your position, subject
      to
      the
      satisfaction of any eligibility requirements.

     

    (b)
      Vacation.
      You will
      also be entitled to annual paid vacation in accordance
      with the Company’s vacation policies in effect from time to time, but
in
      no
      event less than four weeks per calendar year (as prorated for partial years),
      which vacation may be taken at such times as you elect with due regard to the
      needs of the Company.

     

    (c)
      Reimbursement
      of Business and Entertainment Expenses; Travel. Upon
      presentation of appropriate documentation, you will be reimbursed in
      accordance with the Company’s expense reimbursement policy for all reasonable
      and necessary business and entertainment expenses incurred in connection with
      the performance of your duties and responsibilities hereunder. If
      you
      travel on business of the Company, you will be reimbursed for the cost of
      airfare (business class airfare or other airfare class comparable in cost to
      business class
      airfare on all flights scheduled to have a flight time of three or more hours)
      and
      the
      reasonable cost of business class lodging accommodations, as well as for
your
      reasonable and necessary out-of-pocket expenses incurred in connection
therewith,
      in accordance with the Company’s policies.

     

    (d)
      Automobile
      Allowance. During
      the Employment Term, you will receive
      an automobile allowance in the amount of $600 per month.

     

    6.
      Termination
      of Employment.
      Your
      employment and the Employment Term will
      terminate on the first of the following to occur:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      3

     

    (a)
      Disability.
      Upon
      written notice by the Company to you of termination due to Disability, while
      you
      remain Disabled. For purposes of this Letter
      Agreement, “Disability”
will
      be
      defined as your inability to perform your material duties hereunder due to
      a
      physical or mental injury, infirmity or incapacity for a continuous period
      of
      not less than 90 days (including weekends and
      holidays) or for 180 days (including weekends and holidays) in any 365-day
      period.

     

    (b)
      Death. Automatically
      on the date of your death.

     

    (c)
      Cause.
      Immediately
      upon written notice by the Company to you of
      a
      termination for Cause. For purposes of this Letter Agreement, “Cause”
      will
      mean:

     

    (1)
      your
      willful misconduct which, in the good faith judgment of
      the
      Board, has a material negative impact on the Company (either economically
      or on its reputation);

     

    (2)
      your
      indictment for, conviction of, or pleading of guilty or nolo
      contendere to,
      a
      felony (or equivalent outside of the United States) or any crime involving
      fraud, dishonesty or moral turpitude;

     

    (3)
      your
      failure to perform your duties, which failure is not remedied
      within 20 days of written notice from the Board specifying the details
      thereof;

     

    (4)
      your
      failure to follow the legal direction of the Board after written
      notice from the Board specifying the details thereof; and

     

    (5)
      any
      other
      material breach of this Letter Agreement by you that
      is
      not remedied within 20 days of written notice from the Board specifying
      the details thereof.

     

    (d)
      Without
      Cause. Upon
      30
      days’ prior written notice by the Company
      to you of an involuntary termination without Cause, other than for death
      or
      Disability;

     

    (e)
      Good
      Reason. Upon
      written notice by you to the Company of a termination
      for Good Reason, unless such events are corrected in all material respects
      by
      the Company within 20 days following your written notification to the
Company
      for one of the reasons set forth below. “Good
      Reason” will
      mean, withbut
      your express written consent, any reduction of, or failure to timely pay,
your
      Base
      Salary or any material breach of paragraphs 4 or 5 of this Letter Agreement.
      Good Reason will cease to exist for an event on the 90th day following its
      occurrence, unless you have given the Company written notice thereof prior
      to
      such date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      4

     

    (f)
      Expiration
      of Employment Term. Upon
      the
      end of the Employment
      Term.

     

    7.
      Compensation
      Upon Termination.

     

    (a)
      Disability;
      Death; Cause. If
      your
      employment terminates on account
      of your Disability or your death or if the Company terminates you for Cause,
      the
      Company will pay or provide to you (i) any unpaid Base Salary through the date
      of termination; (ii) other than if the Company terminates your employment for
      Cause, any Bonus earned but unpaid with respect to the fiscal year
      ending on or preceding the date of termination; (iii) reimbursement for any
      unreimbursed
      expenses incurred through the date of termination; (iv) any accrued but unused
      vacation time in accordance with Company policy; and (v) all other payments,
      benefits or fringe benefits to which you may be entitled under the terms
of
      any
      applicable compensation arrangement or benefit, equity or fringe benefit
plan
      or
      program or grant or this Letter Agreement (collectively items (i) through
(v)
      shall
      be hereafter referred to as “Accrued
      Benefits”)

     

    (b)
      Termination
      Without Cause or For Good Reason. If
      your
employment
      by the Company is terminated by the Company without Cause or by you for Good
      Reason, the Company will pay or provide you with (x) any Accrued Benefits;
      and (y) subject to your compliance with the obligations in paragraphs 8
and
      9
      hereof: (1) continued payment of your base salary (but not as an employee)
      in
      accordance with the usual payroll practices of the Company for the greater
      of
(A)
      a
      period equal to the period between the date of termination and the end of the
      Employment
      Term or (B) a period equal to three months following such termination (the
      “Severance
      Period”);
      (2)
      at
      the time bonuses are typically paid to
      employees, a pro-rata portion of the Bonus for the fiscal year in which your
      termination occurs based on actual results for the plan year (determined by
      multiplying
      the amount of the Bonus which would be due for the full fiscal year by
      a
      fraction, the numerator of which is the number of days during the fiscal year
      of
      termination that you are employed by the Company and the denominator of
which
      is
      365); (3) subject to (A) your timely election of continuation coverage
under
      the
      Consolidated Budget Omnibus Reconciliation Act of 1985, as amended (“COBRA”)
      and
      (B) your continued copayment of premiums at the same level and cost to you
      as if
      you were an employee of the Company (excluding, for purposes of calculating
      cost, an employee’s ability to pay premiums with pre-tax dollars),
      to the extent permitted under applicable law and the terms of such plan,
continued
      participation during the Severance Period in the Company’s group health
      plan which covers you as of the date of termination at the Company’s
expense
      (other than the aforementioned premiums), provided that you are eligible
and
      remain eligible for COBRA coverage; provided, however, that in the event that
      you
      obtain other employment that offers substantially similar or improved group
      health benefits, such continuation of coverage by the Company under this
sub-paragraph
      shall immediately cease; and (4) immediate vesting and exercisability
      of 50% of all outstanding stock options to purchase shares of the Company’s
      common stock. Payments or benefits provided in this paragraph 7(b) shall
      be
      in lieu of any termination or severance payments or benefits for which you
      may
      be eligible under any of the plans, policies or programs of the
      Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      5

     

    (c) Expiration
      of Employment Term. If
      the
      Employment Term ends at
      the
      third anniversary of the Effective Date and you do not continue as an
employee
      beyond such time, the Company will pay or provide you with (x) any Accrued
      Benefits; and (y) subject to your compliance with the obligations in
paragraphs
      8 and 9 hereof: (1) continued payment of your base salary (but not as
an
      employee) in accordance with the usual payroll practices of the Company for
      a
      period equal to three months following such termination; and (2) the benefits
      provided
      in paragraph 7(b)(3)
      for a period of three months.

     

    8.
      Release;
      No Set-Off; No Mitigation.

     

    (a)
      Any
      and
      all amounts payable and benefits or additional rights provided
      pursuant to this Letter Agreement beyond Accrued Benefits shall only be payable
      if you deliver to the Company and do not revoke a general release of
all
      claims related to the Company, its affiliates, and their respective past,
      present and
      future employees, officers, trustees, agents and representatives in a form
      substantially in the form of Exhibit A hereto and mutually agreed upon by you
      and
      the
      Company.

     

    (b)
      The
      Company’s obligation to make any payment provided for in this
      Letter Agreement shall not be subject set-off, counterclaim or recoupment of
      amounts
      owed by you to the Company or its affiliates.

     

    (c)
      In no
      event shall you be obliged to seek other employment or take any other action
      by
      way of mitigation of the amounts payable to you under any of the provisions
      of
      this Letter Agreement, nor shall the amount of any payment hereunder be reduced
      by any compensation earned by you as
      a
      result of employment
      by another employer (other than as provided in paragraph
      7(b)(y)(3)).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      6

     

    9.
      Restrictive
      Covenants.

     

    (a)
      Non-Competition. During
      the Employment Term, you will not, directly
      or indirectly, without the prior written consent of the Company, enter into
      Competition with the Company or any of its affiliates (the “Employer”). “Competition”
      means
      participating, directly or indirectly, as an individual proprietor,
      partner, stockholder, officer, employee, director, joint venturer, investor,
      lender, consultant or in any capacity whatsoever in a business in the field
      of
      business that the Employer is engaged in as of the date of your termination
      of
employment
      with the Company or is actively planning to engage in as of the date
of
      your
      termination of employment with the Company.

     

    (b)
      Confidentiality. During
      the Employment Term and thereafter, you
      will
      hold in a fiduciary capacity for the benefit of the Employer all secret or
      confidential
      information, knowledge or data relating to the Employer, and their respective
      businesses, which will have been obtained by you during your employment
      by the Company and which will not be or become public knowledge (other than
      by
      acts by you or your representatives in violation of this Letter Agreement).
      You will not, except as may be required to perform your duties hereunder
      or as may otherwise be required by law or legal process, without limitation
      in time or until such information will have become public or known in the
      Employer’s industry (other than by acts by you or your representatives in
      violation of this Letter Agreement), communicate or divulge to others or use,
      whether directly or indirectly, any such information, knowledge or data
      regarding the
      Employer, and their respective businesses.

     

    (c)
      Non-Solicitation
      of
      Customers. During
      the Employment Term and
      for
      the twelve-month period following your termination of employment for
any
      reason (the “Restricted
      Period”),
      you
      will
      not, directly or indirectly, influence
      or attempt to influence customers or suppliers of the Employer to divert their
      business to any competitor of the Employer.

     

    (d)
      Non-Solicitation
      of Employees. You
      recognize that you possess and
      will
      possess confidential information about other employees of the Employer
relating
      to their education, experience, skills, abilities, compensation and benefits,
      and
      inter-personal relationships with customers of the Employer. You recognize
      that
      the
      information you possess and will possess about these other employees is not
      generally known, is of substantial value to the Employer in developing its
      business
      and in securing and retaining customers, and has been and will be acquired
      by you because of your business position with the Employer. You agree
that,
      during the Restricted Period, you will not, directly or indirectly, solicit
      or
recruit
      any employee of the Employer for the purpose of being employed by you
or
      by any
      competitor of the Employer on whose behalf you are acting as an agent,
representative
      or employee and that you will not convey any such confidential information
      or trade secrets about other employees of the Employer to any other person.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      7

     

    (e)
      Non-Disparagement. You
      shall
      not, or induce others to, Disparage
      the Employer or any of their past and present officers, directors, employees
      or
      products. “Disparage”
      shall
      mean making comments or statements to
      the
      press, the Employer’s employees or any individual or entity with whom the
Employer
      has a business relationship which would adversely affect in any manner:
      (i) the conduct of the business of the Employer (including, without limitation,
      any products or business plans or prospects); or (ii) the business reputation
      of
      the Employer, or any of their products, or their past or present officers,
      directors or employees.

     

    (f)
      Cooperation. Upon
      the
      receipt of notice from the Company (including
      outside counsel), you agree that during the Employment Term and thereafter,
      you will respond and provide information with regard to matters in which you
      have knowledge as a result of your employment with the Company, and will provide
      reasonable assistance to the Employer and its representatives in defense of
      any
      claims that may be made against the Employer, and will assist the Employer
      in
      the prosecution of any claims that may be made by the Employer, to the extent
      that such claims may relate to the period of your employment with the
Company
      (or any predecessor). You agree to promptly inform in the Company if
you
      become aware of any lawsuits involving such claims that may be filed or
threatened
      against the Employer. You also agree to promptly inform the Company
      (to the extent you are legally permitted to do so) if you are asked to
assist
      in
      any investigation of the Employer (or their actions), regardless of whether
      a
      lawsuit or other proceeding has then been filed against the Employer with
      respect to such investigation, and will not do so unless legally
      required.

     

    (g)
      Injunctive
      Relief. It
      is
      further expressly agreed that the Employer will or would suffer irreparable
      injury if you were to violate the provisions of this paragraph
      9 and that the Employer would by reason of such violation be entitled
to
      injunctive relief in a court of appropriate jurisdiction and you further consent
      and
      stipulate to the entry of such injunctive relief in such court prohibiting
      you
from
      violating the provisions of this paragraph 9.

     

    (h)
      Survival
      of Provisions. The
      obligations contained in this paragraph 9 will survive the termination of your
      employment with the Company and
      will
      be fully enforceable thereafter. If it is determined by a court of competent
      jurisdiction in any state that any restriction in this paragraph 9 is
excessive
      in duration or scope or extends for too long a period of time or over too great
      a range of activities or in too broad a geographic area or is unreasonable
      or
unenforceable
      under the laws of that state, it is the intention of the parties that
such
      restriction
      may be modified or amended by the court to render it enforceable to the maximum
      extent permitted by the law of that state or jurisdiction.

     

    10.
      Representations.
      You
      represent and warrant that your execution and delivery of
      this
      Letter Agreement and your performing the contemplated services does not and
      will
      not
      conflict with or result in any breach or default under any agreement, contract
      or arrangement
      which you are a party to or violate any other legal restriction. You
      further represent
      and warrant that you have been advised by the Company to consult independent
      legal
      counsel of your choice before signing this Letter Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Mr. Adi
      McAbian

    Page
      8

     

    11.
      Assignment. Notwithstanding
      anything else herein, this Letter Agreement is personal
      to you and neither the Letter Agreement nor any rights hereunder may be
assigned
      by you. The Company may assign the Letter Agreement to an affiliate or to any
      acquiror
      of all or substantially all of the assets of the Company. This
      Letter Agreement will inure to the benefit of and be binding upon the personal
      or legal representatives, executors,
      administrators, successors, heirs, distributees, devisees, legatees and
      permitted assignees of the parties.

     

    12.
      Arbitration. You
      agree
      that all disputes and controversies arising under or in connection
      with this Letter Agreement, other than seeking injunctive or other equitable
      relief under paragraph 9(g), will
      be
      settled by arbitration conducted before one (1) arbitrator
      mutually agreed to by the Company and you, sitting in Los Angeles, California
      or
      such
      other location agreed to by you and the Company, in accordance with the
National
      Rules for the Resolution of Employment Disputes of the American Arbitration
      Association
      then in effect; provided, however, that if the Company and you are unable to
      agree
      on
      a single arbitrator within 30 days of the demand by another party for
      arbitration, an arbitrator will be designated by the Los Angeles Office of
      the
      American Arbitration Association. The determination of the arbitrator will
      be
      final and binding on you and the Employer. Judgment may be entered on the award
      of the arbitrator in any court having proper
      jurisdiction. Each party will bear their own expenses of such
      arbitration.

     

    13.
      Indemnification.
      The
      Company hereby agrees to indemnify you and hold you harmless to the extent
      provided under the by-laws of the Company against and in respect to any and
      all
      actions, suits, proceedings, claims, demands, judgments, costs, expenses
      (including reasonable attorney’s fees), losses, and damages resulting from the
your
      good
      faith performance of his duties and obligations with the Company. This
      obligation
      shall survive the termination of your employment with the Company.

     

    14.
      Liability
      Insurance. The
      Company shall cover you under directors and officers liability
      insurance both during and, while potential liability exists, after the
Employment
      Term in the same amount and to the same extent as the Company covers its
other
      officers and directors. 

     

    15.
      Withholding
      Taxes.
      The
      Company may withhold from any and all amounts payable
      to you such federal, state and local taxes as may be required to be withheld
      pursuant
      to any applicable laws or regulations.

     

    16.
      Governing
      Law. This
      Letter Agreement will be governed by, and construed under
      and
      in accordance with, the internal laws of the State of California, without
reference
      to rules relating to conflicts of laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Mr. Adi
      McAbian

    Page
      9

     

    17.
      Entire
      Agreement; Amendments. This
      Letter Agreement and the agreements
      referenced herein contain the entire agreement of the parties relating to the
      subject
      matter hereof, and supercede in their entirety any and all prior agreements,
      understandings
      or representations relating to the subject matter hereof. No amendments,
alterations
      or modifications of this Letter Agreement will be valid unless made in writing
      and
      signed by the parties hereto.

     

    18.
      Notice.
      Any
      notice or other communication required or permitted to be given under
      this Agreement (a
      “Notice”)
      shall
      be in writing and delivered in person, by facsimile
      transmission (with a Notice contemporaneously given by another method
specified
      in this paragraph 18), by overnight courier service or by postage prepaid mail
      with
      a
      return receipt requested, at the following locations (or to such other address
      as either
      party may have furnished to the other in writing by like Notice. All
      such
      Notices shall
      only be duly given and effective upon receipt (or refusal of
      receipt).

     

    If
      to the
      Executive:

     

    At
      the
      address (or to the facsimile number) shown

    on
      the
      records of the Company

     

    If
      to the
      Company:

     

    The
      WAAT
      Corp.

    14242
      Ventura Blvd, 3rd Floor

    Sherman
      Oaks, California 91423

    Attention:
      Chief Executive Officer

     

    We
      hope
      that you find the foregoing terms and conditions acceptable. You
      may
indicate
      your agreement with the terms and conditions set forth in this Letter Agreement
      by
      signing the enclosed duplicate original of this Letter Agreement and returning
      it to me.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Mr. Adi
      McAbian

    Page
      10

     

    We
      look
      forward to your continued employment with the Company. 

     

    
      	 	 	 	
              Very
                truly yours,

            
	 	 	 	 
	 	 	 	
              THE
                WAAT
                CORP.

            
	 	 	 	 	
              By: 

            	
               

              /s/
Ian
                Aaron

            
	 	 	 	 	
              Name: 

            	
              Ian
                Aaron

            
	 	 	 	 	
              Title: 

            	
              Chief
                Executive Officer

            

    

     

    Accepted
      and Agreed:

     

    
      	
               

            	 	
               

            	 
	/s/
              Adi McAbian	 	 	 
	Adi
              McAbian	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Form
      of Release

     

    To:   
        The
      WAAT
      Corp.

        14242
      Ventura
      Blvd, 3rd Floor

        Sherman
      Oaks,
      California 91423

        Attention:
      Chief Executive Officer

     

    1.
      Termination. (a)
      I
      hereby acknowledge that my employment with The WAAT
      Corp. (“WAAT”)
      will
      terminate on
      ____________,
      ____(the
      “Termination
      Date”)
      pursuant
      to provisions of paragraph 6 of my employment letter agreement dated
as
      of May
      __,
      2006
      with
      WAAT (the “Letter
      Agreement”),
      that
      WAAT
      will not have an obligation
      to rehire me or to consider me for reemployment after the Termination Date
      and
      that my employment with WAAT is permanently and irrevocably
      severed.

     

    (b)
      I
      hereby
      confirm my resignation from my position as Chief Executive
      Officer of WAAT and that I will not be eligible for any benefits or compensation
      after the Termination Date, other than as specifically provided hereunder and
      in
      paragraph 7 of the Letter Agreement. In
      addition, effective as of the Termination Date, I hereby resign from all
      offices, directorships, trusteeships, committee
      memberships and fiduciary capacities held with, or on behalf of, WAAT
      or
      any of its affiliates or any benefit plans of WAAT or any of its affiliates.
      These resignations will become irrevocable on the Effective Date of this
      Agreement, as defined in paragraph 7 below.

     

    (c)
      I
      further
      acknowledge and agree that, after the Termination Date, I will
      not
      represent myself as being a director, employee, officer, trustee, agent or
      representative
      of WAAT for any purpose and will not make any public statements relating
      to WAAT and in no event will I make any statements as an agent or representative
      of WAAT.

     

    2.
      Consideration.
      I
      acknowledge that this General Release is being executed in accordance
      with paragraph 8 of the Letter Agreement.

     

    3.
      General
      Release.
      (a)
      For
      and in consideration of the payments to be made and
      the
      promises set forth in the Letter Agreement, I, for myself and for my heirs,
      dependents,
      executors, administrators, trustees, legal representatives and assigns
(collectively
      referred to as “Releasors”),
      hereby
      forever release, waive and discharge WAAT and its shareholders, representatives,
      affiliates and subsidiaries, employee benefit and/or pension plans or funds,
      insurers, successors and assigns, and all of its or their past, present and/or
      future officers, trustees, agents, attorneys, employees, fiduciaries, trustees,
      administrators and assigns when acting as agents for WAAT (collectively referred
      to as “Releasees”),
      from
      any
      and all claims, demands, causes of action, fees and liabilities of any
      kind
      whatsoever, whether known or unknown, which Releasors ever had, now have, or
      hereafter may have against Releasees by reason of any actual or alleged act,
      omission, transaction, practice, policy, procedure, conduct, occurrence, or
      other matter up to and including
      the date of my execution of this General Release, including without limitation,
      those
      in
      connection with, or in any way related to or arising out of, my employment,
      service
      as a director, service as a trustee, service as a fiduciary or termination
      of
      any of the
      foregoing with WAAT or any other agreement, understanding, relationship,
arrangement,
      act, omission or occurrence, with WAAT or other claims.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Without
      limiting the generality of the foregoing, this General Release
      is intended and will release the Releasees from any and all claims, whether
      known or unknown, which Releasors ever had, now have, or may hereafter
      have against the Releasees including, but not limited to, (i) any claim of
      discrimination
      or retaliation under the Age Discrimination in Employment Act (“ADEA”)
      29
      U.S.C. Section 621 et seq., Title VII of the Civil Rights Act, the Americans
      with Disabilities Act, the Employee Retirement Income Security Act of
      1974,
      as amended (“ERISA”)
      or the
      Family and Medical Leave Act; (ii) any claim
      under the California Fair Employment Act, the California Labor Code, the
California
      Family Rights Act, the California Pregnancy Disability Leave Law or the
      California Continuation Benefits Replacement Act; (iii) any other claim
(whether
      based on federal, state or local law or ordinance statutory or decisional)
      relating to or arising out of my employment, the terms and conditions of such
      employment,
      the termination of such employment and/or any of the events relating
      directly or indirectly to or surrounding the termination of such employment,
      and/or any of the events relating directly or indirectly to or surrounding
      the termination of that employment, including, but not limited to, breach
      of
      contract (express or implied), tort, wrongful discharge, detrimental reliance,
      defamation, emotional distress or compensatory or punitive damages; and
      (iv)
      any claim for attorney’s fees, costs, disbursements and the like.

     

    (c)
      I
      agree
      that I will not, from any source or proceeding, seek or accept any award or
      settlement with respect to any claim or right covered by paragraph 3(a) or
      (b)
      above, including, without limitation, any source or proceeding
      involving any person or entity, the United States Equal Employment Opportunity
      Commission or other similar federal or state agency. Except as otherwise
      required by law, I further agree that I will not, at any time hereafter,
      commence, maintain, prosecute, participate in as a party, permit to be filed
      by
      any other
      person on my behalf (to the extent it is within my control or permitted by
      law),
      or
      assist in the commencement or prosecution of as an advisor, witness (unless
      compelled by legal process or court order) or otherwise, any action or
      proceeding of any kind, judicial or administrative (on my own behalf, on behalf
      of any
      other
      person and/or on behalf of or as a member of any alleged class of persons)
      in any court, agency, investigative or administrative body against any
Releasee
      with respect to any actual or alleged act, omission, transaction, practice,
      conduct,
      occurrence or any other matter up to and including the date of my execution
      of this General Release which I released pursuant to paragraph 3(a) or
(b)
      above. I further represent that, as of the date I sign this General Release,
      I
have
      not
      taken any action encompassed by this paragraph 3(c).
      If,
      notwithstanding
      the foregoing promises, I violate this paragraph 3(c),
      I
      will
indemnify
      and hold harmless Releasees from and against any and all demands, assessments,
      judgments, costs, damages, losses and liabilities and attorneys’ fees
and
      other
      expenses which result from, or are incidents to, such violation. Notwithstanding
      anything herein to the contrary, this paragraph 3(c) will not apply to any
      claims that I may have under the ADEA and will not apply to the portion of
      the
      release provided for in paragraph 3(a) or (b) relating to the
      ADEA.

    

    

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    (d)
      The
      sole
      matters to which the release and covenants in this paragraph
      3 do not apply are: (i) my rights of indemnification and coverage under
directors
      and officers liability insurance to which I was entitled immediately prior
      to
      the
      Termination Date under the Company’s certificate of incorporation, bylaws
or
      other
      corporate governance documents or paragraphs 13 and 14 of the Letter
Agreement;
      or (ii) my rights under any tax-qualified pension plan maintained by WAAT or
      claims for accrued, vested benefits under any other employee benefit
plan
      or
      under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended,
      (iii) my rights as a stockholder of the Company; and (iv)
      my
      rights under
      the
      Letter Agreement.

     

    (e)
      I
      hereby
      expressly and knowingly waive application of Section 1542
      of
      the California Civil Code and all comparable, equivalent or similar provisions
      of state or federal law. I further certify that I have read and understand
      the
      provisions of Section 1542 of
      the
      California Civil Code, which reads as follows:

     

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

     

    4.
      Restrictive
      Covenants; Survival. I
      hereby
      acknowledge the existence and applicability
      of the restrictions set forth in paragraph 9 of the Letter Agreement, as well
      as
      the
      other provisions of the Letter Agreement which are intended to survive
      termination of
      employment. All such provisions shall remain in full force and effect following
      the Termination
      Date.

     

    5.
      Governing
      Law; Enforceability.
      The
      interpretation of this General Release will be governed and construed in
      accordance with the laws of the State of California, without
      reference to principles of conflict of laws. If any provisions of this General
      Release
      will be declared to be invalid or unenforceable, in whole or in part, such
      invalidity
      or unenforceability will not affect the remaining provisions hereof which will
      remain
      in
full
      force
      and
      effect.

     

    6.
      Acknowledgement. I
      acknowledge that I have been advised by WAAT in writing
      to consult independent legal counsel of my choice before signing this General
      Release.
      I further acknowledge that I have had the opportunity to consult, and I have
      consulted with, independent legal counsel and to consider the terms of this
      General Release
      for a period of at least 21 days.

    

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    7.
      Effective
      Date.
      I
      further
      acknowledge that this General Release will not become
      effective until the eighth day following my execution of this General Release
      (the
      “Effective Date”), and that I may at any time prior to the
      Effective Date revoke this General
      Release by delivering written notice of revocation to: The WAAT Corp. at 14242
      Ventura
      Blvd, 3rd Floor, Sherman Oaks, California 91423, to the attention of the
      [________] In
      the
      event that I revoke this General Release prior to the eighth day after its
      execution, this General Release and the promises contained in the Letter
      Agreement, will automatically be null and void.

     

    8.
      Entire
      Agreement. I
      understand that this General Release and the Letter Agreement
      constitute the complete understanding between WAAT and me and that no
other
      promises or agreements will be binding unless in writing and signed by me and
      WAAT
      after the date hereof.

     

    9.
      Counterparts. This
      General Release may be executed in several counterparts,
      each of which will be deemed to be an original but all of which together
will
      constitute one and the same instrument.

     

    
      	 	 
	
               

            	 

    

     

    Dated:
      

     

    
      
        
        

      

      
        A-4AMENDMENT
      TO EMPLOYMENT AGREEMENT

    

    This
      amendment ("Amendment") is
      effective as of December 31,
      2007
("Amendment
      Date") by and between Twistbox Entertainment, Inc. (as successor-in-interest
      to The WAAT Corporation) ("Twistbox") and Adi McAbian ("Founder"), and
      amends
      that certain Employment Agreement dated as of May 16, 2006 by and between
      Twistbox and Founder ("Agreement"). Unless
      otherwise defined herein, defined terms shall
      have their meanings as set forth in the Agreement.

    

    RECITALS

    

    WHEREAS,
      Twistbox
      and Ian Aaron, Adi McAbian, Tal Dean McAbian and Camill
      Sayadeh (the "Founders"), and owners of a significant percentage of the common
      stock
      of
      Twistbox, have instituted a company wide cost reduction plan;

    

    WHEREAS,
      Founder
      deems it to be in the best interest of Twistbox to agree to a voluntary
      reduction in his Base Salary; and

    

    WHEREAS,
      the
      parties hereto desire to memorialize their prior oral agreements and
      mutual understandings as contained herein.

    

    AMENDMENT

    

    NOW
      THEREFORE, in
      consideration of the foregoing, Twistbox and Founder desire
      to
      amend and/or modify the Agreement and enter into this Amendment on
      the
terms
      and
      conditions provided below:

    

    
      	
            	1.	
              Commencing
                with the payroll paid on August 3, 2007 through November 9, 2007,
                Founder
                has agreed to reduce his Base Salary to One Hundred Fifty Thousand
                Dollars
                ($150,000).

            

    

    

    
      	
            	2.	
              Commencing
                with the payroll paid on November 23, 2007, Founder agreed to reduce
                his Base Salary
                to zero (subject to California
                minimum wage
                requirements);
                provided that, Employee's Base Salary
                shall be reset to One Hundred Fifty Thousand Dollars ($150,000) (the
                "Reset
                Base Salary") upon Twistbox
                achieving cash flow break-even, as that term is customarily understood
                and
                applied under GAAP, with such cash flow break-even calculation to
                include
                Founder's
                Reset Base Salary, interest payments to ValueAct SmallCap Master
                Fund,
                L.P for a period of three (3) months and such other ordinary and
                usual
                amounts,
                including earned interest income; provided further, however,
                in the event
                the Company achieves cash flow break-even ninety (90) days following
                the
                Amendment
                Date, Twistbox shall cause the Board of Directors to convene
                a subcommittee
                of independent directors to consider awarding bonuses to Founder,
                so
                long as any such award does not result in the Company no longer being
                cash
                flow break-even in any given calendar
                month.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
            	3.	
              Twistbox
                hereby agrees and acknowledges that nothing contained herein shall
                serve
                as a waiver of any other rights or remedies, in law or equity,
                which Employee
                may have by virtue of his Agreement and/or any statutes, laws
                or regulations
                governing employer/employee
                matters.

            

    

    

    
      	
            	4.	
              All
                terms and conditions of the Agreement not specifically and expressly
                modified
                or amended herein are hereby ratified and confirmed in all respects
                and
                shall
                remain in full force and effect.

            

    

    

    
      	
            	5.	
              Each
                person who executes this Amendment represents and warrants to each
                party
                hereto that he has the authority to do so and to bind each entity
                as
                contemplated hereby, and agrees to hold harmless each other party
                from any
                claim that such authority
                did not exist. This
                Amendment will inure to the benefit of and be binding
                upon the parties and their respective shareholders,
                successors and permitted
                assigns.

            

    

     

    IN
      WITNESS WHEREOF, the
      parties hereto have executed this Amendment as of the Amendment
      Date set forth above.

     

    
       

      
        	TWISTBOX ENTERTAINMENT, INC. FOUNDER
                (AS
                SUCCESSOR-IN-INTEREST TO THE
                WAAT CORPORATION)	 	FOUNDER
	 	 	 
	 	 	 
	By: /s/ David
                Mandell	 	By: /s/ Adi McAbian
	
                Name:
                  David Mandell

              	 	Name: Adi McAbian
	Title:
                EVP/General Counsel	 	Title: Managing
                Director

      

       

    

    
      
        
        

      

      
        2

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