Document:

exv10w10

 

Exhibit 10.10

Master
Lease Agreement

     THIS
MASTER LEASE AGREEMENT (“Agreement”)is effective as of the date executed by
Lessor (“Effective Date”) and is entered into by and between AVID FINANCIAL SERVICES having an
office at 10 Riverview Drive, Danbury, Connecticut 06810 (together with any successor or
assignee, “Lessor”), and NGTV, a Corporation with its principal place of business at 9944 Santa
Monica Blvd., Beverly Hills, California 90212 (together with any successor or permitted assignee,
“Lessee”).

LEASE TERMS AND CONDITIONS:

     1. LEASING.
(a) Subject to the terms of this Agreement, Lessor agrees to
lease to Lessee and
Lessee agrees to lease from Lessor the new or equivalent of new equipment
(the “Equipment”) described in any schedule (each, a
“Schedule”) signed by Lessee and
executed by Lessor. Each Schedule will incorporate all the terms of this Agreement and
will constitute a separate agreement (each, a
“Lease”) for lease of the Equipment and
license for any operating or application software (the 
“Software”). With respect to each
Lease, capitalized terms not defined in this Agreement will have the
meanings stated in the
applicable Schedule. Unless it purchases the Equipment under Section 14(b)
(“Options”), Lessee does not have any right or interest in the Equipment except as a lessee.
This Agreement is effective from the Effective Date, and will continue until all
Leases have terminated or expired.

     (b) If Software is included in the Description of Equipment, Lessee has entered into a
separate license for the Software with the licensor thereof. Lessee’s rights to the
Software are governed by its license agreement with the Software licensor. Lessee will have
a continuing right to use the Software with the Equipment in accordance with the terms
of such license upon payment of all amounts due under the Lease.

     (c) If this is a Lease with a $1.00 or other fixed price Purchase Option, Lessee agrees that
the cash price and the cost of financing the Equipment have been disclosed to its
satisfaction and Lessee has freely chosen not to purchase for cash but to lease the
Equipment and to finance any Software over time pursuant hereto.

     2. NET LEASE. EACH LEASE IS A NET LEASE. LESSEE IS UNCONDITIONALLY OBLIGATED TO PAY RENT AND
OTHER AMOUNTS DUE UNDER SUCH
LEASE REGARDLESS OF ANY DEFECT OR DAMAGE TO EQUIPMENT OR SOFTWARE, OR LOSS OF POSSESSION,
USE OR DESTRUCTION FROM ANY CAUSE
WHATSOEVER. LESSEE’S OBLIGATIONS CONTINUE UNTIL SPECIFICALLY TERMINATED AS PROVIDED IN SUCH
LEASE. LESSEE IS NOT ENTITLED TO
ANY ABATEMENT, REDUCTION, RECOUPMENT, DEFENSE, OR SET-OFF AGAINST RENT OR OTHER AMOUNTS DUE
TO LESSOR OR ITS ASSIGNEE,
WHETHER ARISING OUT OF SUCH LEASE OR OUT OF LESSOR’S STRICT LIABILITY OR NEGLIGENCE, FROM
ANY THIRD PARTY, OR OTHERWISE. EACH
LEASE IS A “FINANCE LEASE” AS DEFINED IN ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE.

     3. PURCHASE OF EQUIPMENT. (a) Lessor is not obligated to purchase or lease Equipment,
including the Software, unless before the Expiration Date on a Schedule: (i)
Lessor receives from Lessee a fully signed and completed Agreement, Schedule and such other
documents as Lessor may require; (ii) Lessor has confirmed to its satisfaction, either
in writing or pursuant to a telephone audit, that the Equipment and
any Software have been
delivered and irrevocably accepted by Lessee; (iii) Lessor has received from Supplier
clear and unencumbered title to the Equipment; and (iv) there is no Default (Section 13). If
Lessor has accepted assignment of or issued any purchase order, agreement or ancillary
documents (the “Purchase Agreement”) for Equipment
and/or Software but the Lease does not
commence, Lessor may reassign all rights under the Purchase Agreement to Lessee
without recourse or warranty and Lessee will reimburse Lessor for all expenses incurred,
plus interest at the Overdue Rate (Section 17). So long as no Default has occurred, Lessor
appoints Lessee its agent to inspect and accept the Equipment from Supplier simultaneously
with acceptance of the Equipment for lease. For each Lease, Lessee irrevocably
authorizes Lessor to adjust the Equipment Total Cost to account for change orders or
returns, invoicing errors and similar matters, any adjustments required by commencement of
any Lease after the Expiration Date or to make any Leases coterminous and agrees to any
resulting adjustments in the TRANSACTION TERMS stated in the applicable Schedule.
Lessor will send Lessee a written notice stating the final Equipment Total Cost and
TRANSACTION TERMS, if different from those stated in the applicable Schedule.

     (b) Lessee assigns to Lessor and Lessor accepts assignment of all rights in any Purchase
Agreement described in a Schedule and which has been previously approved by
Lessor. The rights assigned include: (i) the right to be the purchaser and owner of the
Equipment, and (ii) the right to take any action with respect to and to enforce the Purchase
Agreement and all warranty or other claims with respect to the
Equipment. Lessee represents that:
(1) the Purchase Agreement is enforceable by Lessor, is in effect, and has not been
terminated, changed, or broken by Lessee or Supplier, (2) no other person or entity has the
right to purchase the Equipment, (3) Lessor is not required to enforce payment of money due
to Lessee under the Purchase Agreement, (4) Lessor is not taking over Lessee’s obligations
under the Purchase Agreement (except the obligation to pay for the Equipment once it is
accepted by Lessee under the Lease), and Lessee remains liable to the Supplier thereunder and
(5) Lessee retains the right and obligation to reject any non-conforming goods. Lessee also
agrees that if a Default is declared or if Lessee fails to accept the Equipment or Software
for any reason Lessor automatically withdraws its acceptance of this assignment, and Lessee
will remain liable to Supplier to honor the purchaser’s obligations under the Purchase
Agreement. If Lessor has issued its own purchase order to the Supplier named in any Schedule,
it is at the express request and direction of Lessee, who has received a copy of or approved
such purchase order. Lessee acknowledges that it may have rights under such purchase order,
and that it may contact Supplier for a description of such rights or any warranties.

     4. TERM AND RENT. The Initial Term begins on the acceptance by the Lessee of the Equipment
and Software (a “Lease Commencement Date” ),and continues for the Initial Term stated in the
applicable Schedule. Rent accrues from the Lease Commencement Date.
Rent is payable either in
advance or arrears as indicated in the applicable Schedule. If any Rent (as hereinafter defined)
is not paid when due, Lessee agrees to pay a late charge of ten cents
($0.10) per dollar on, and
in addition to, such Rent, but not exceeding the lawful maximum, if any, to compensate Lessor for
additional collection costs not contemplated by the Lease. Advance Rent, if any, is payable upon
execution by Lessee of a Schedule and is applied to the first Rent due and then to the final
Rents or, at Lessor’s option, to the payment of any overdue obligation of Lessee. Lessor is not
required to: (i) refund any Advance Rent or Rent unless the Lease does not commence; (ii) pay any
interest on Advance Rent; or (iii) keep Advance Rent in a separate account. Lessee agrees that
Lessor may, at the request and on behalf of Supplier or other third
party, bill and collect any
amounts due for maintenance services provided by Supplier or such other third party.

     5. TAXES. Lessee agrees to pay promptly as additional Rent all license and registration fees
and all taxes (excluding taxes on Lessor’s net income) together with penalties
and interest (collectively, “Taxes”) assessed against Lessor, Lessee, any Lease, the
Equipment, the purchase (including purchase by Lessee), sale, ownership, delivery, leasing,
possession, use, operation or return of the Equipment or Software or its proceeds, Lessor
shall not be required to contest any Taxes. Where permitted by applicable law, Lessee will
report and pay all Taxes; provided that if they are reported by Lessor, Lessee will reimburse
Lessor on demand for any Taxes paid by Lessor, or at Lessor’s option, Lessee shall pay
a portion of estimated Taxes along with each payment of Rent.

     6. USE
MAINTENANCE AND REPAIR. (a) Lessee agrees at its own expense to: (i) maintain the Equipment and Software in good operating condition suitable for
certification by the manufacturer and in compliance with all applicable laws and manufacturer
requirements or recommendations; (ii) keep in place for the term of each Lease a
maintenance program covering the Equipment and Software which complies with manufacturer’s
requirements; (iii) use the Equipment and Software solely for business purposes, in
the manner for which it was intended; (iv) ensure that ail Equipment and equipment operations
conform to all applicable local, state and federal laws, health and safety guidelines;
(v) pay all expenses, fines, and penalties related to the use, operation, condition or
maintenance of the Equipment and Software; and (vi) comply with all license and copyright
requirements of any Software, whether or not included in a Lease. Lessee agrees to permit
periodic inspection of Equipment by Lessor upon reasonable written notice by Lessor to
Lessee.

     (b) Lessee agrees not to attach to the Equipment any accessory, equipment or device not leased
from Lessor unless it is easily removable without damaging the Equipment. Lessee agrees to pay
all costs for parts, alterations, and additions to the Equipment (including those required by
law), all of which will become the property of Lessor. Lessee agrees that it shall not under any
circumstances install any Equipment or Software inside any other
personal property. Lessor and
Lessee intend the Equipment to remain personal property of Lessor.

     (c) Provided that there is no Default, Lessee is authorized on behalf of Lessor to enforce in
its own name (and at its own expense) any warranty, indemnity or right to damages
related to the Equipment or Software which Lessor may have against the manufacturer.

 Lessee’s
Initials: /s/ J. V.

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     7. DISCLAIMER
OF WARRANTIES. Lessor warrants that, so long as no Default has occurred and is
continuing, Lessor or its assignee will not interfere with
Lessee’s use and possession of the
Equipment and Software. LESSOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, DIRECT OR
INDIRECT, EXPRESS OR
IMPLIED, AS TO ANY MATTER WHATSOEVER INCLUDING, WITHOUT LIMITATION, THE DESIGN,
CAPACITY,
MATERIAL, WORKMANSHIP, OPERATION, CONDITION, CONFORMITY WITH ANY SPECIFICATIONS
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, HIDDEN OR
LATENT DEFECT, OR AS TO ANY PATENT,
COPYRIGHT OR TRADEMARK INFRINGEMENT WITH RESPECT TO THE EQUIPMENT OR SOFTWARE. LESSEE ACKNOWLEDGES
THAT (1) LESSEE SELECTED THE EQUIPMENT AND SOFTWARE WITHOUT
RELIANCE ON LESSOR, (2) THE
EQUIPMENT AND SOFTWARE ARE
LEASED FROM LESSOR “AS-IS, WHERE-IS”, (3) NEITHER LESSOR NOR
LESSOR’S ASSIGNEE IS THE MANUFACTURER OR SUPPLIER OF THE
EQUIPMENT OR SOFTWARE OR THE
REPRESENTATIVE OF EITHER, (4)  NEITHER LESSOR NOR LESSOR’S ASSIGNEE IS REQUIRED TO ENFORCE
ANY MANUFACTURER’S WARRANTIES ON BEHALF OF ITSELF OR OF LESSEE,
(5) NEITHER LESSOR NOR LESSOR’S
ASSIGNEE IS OBLIGATED TO INSPECT THE EQUIPMENT OR SOFTWARE, AND
(6) NO TERM OR CONDITION OF ANY
LEASE MAY BE ALTERED OR WAIVED BY ANY SALESMAN OR AGENT OF ANY SUPPLIER, NEITHER LESSOR NOR
LESSOR’S ASSIGNEE SHALL BE LIABLE FOR ANY LIABILITY, LOSS OR DAMAGE CAUSED DIRECTLY OR INDIRECTLY
BY THE EQUIPMENT OR SOFTWARE OR BY ITS INADEQUACY OR BY ANY EQUIPMENT OR SOFTWARE DEFECT, OR ANY
FAILURE TO PROVIDE MAINTENANCE SERVICES, WHETHER OR NOT LESSOR OR ITS ASSIGNEE HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH LIABILITY, LOSS OR DAMAGE. NEITHER LESSOR NOR LESSOR’S ASSIGNEE SHALL HAVE
ANY LIABILITY TO LESSEE OR ANY OTHER PERSON WITH RESPECT TO ANY OF
THE FOLLOWING, REGARDLESS OF
ANY NEGLIGENCE OF LESSOR: (1) THE USE, CONDITION, OPERATION OR PERFORMANCE OF THE EQUIPMENT OR
SOFTWARE; (2) ANY INTERRUPTION OF SERVICE, LOSS OF BUSINESS OR ANTICIPATED PROFITS OR LOSS OF
GOODWILL OR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OR ANY OTHER COMMERCIAL OR
ECONOMIC LOSSES OF ANY KIND WHICH ARE ATTRIBUTABLE TO THE EQUIPMENT
OR SOFTWARE; OR (3) THE
DELIVERY, SERVICING, MAINTENANCE, REPAIR, IMPROVEMENT OR REPLACEMENT OF THE EQUIPMENT OR
SOFTWARE.

     8. LOSS OR DAMAGE; CASUALTY VALUE. Lessee assumes the risk of any disappearance of or
damage to any part of the Equipment or Software from any cause
whatsoever. A casualty to any part of the Equipment or Software may,
at Lessor’s discretion, be
considered a casualty as to all the Equipment and Software. Within ten (10) days of learning of any condemnation or other circumstance where the Equipment or Software is, in
Lessee’s reasonable opinion, irreparably damaged or permanently
unfit for use (“Casualty”), Lessee will provide Lessor full details of the Casualty and will, at Lessor’s
option, promptly do one of the following:

(A) Repair the Equipment or Software so that it is in good condition and working order.

(B) Replace the Equipment or Software with like equipment or software of the same or later
model, in good condition and working order. Lessee must provide Lessor with
title to the replacement equipment free and clear of all liens and encumbrances.

(C) Prepay Lessee’s obligations under the applicable Lease with respect to the lost, stolen or
damaged Equipment or Software. The amount required to be prepaid under
option (C) shall be the sum of

(i) all
Rents due under such Lease but unpaid at the
time of prepayment, plus

(ii) all other amounts due
under the terms of such Lease but unpaid at the time of
prepayment, plus

(iii) that portion of all future Rents to become due under the Lease relating to the lease
of such Equipment, discounted to their present value at the agreed lease charge rate
applicable to the Lease or the lowest rate permitted by law, plus

(iv) if applicable, the Fair Market Value of such Equipment (determined in the manner
described in Section 14(b)) calculated as of the date of Such prepayment of Lessee’s
obligations, discounted to present value at the agreed lease charge rate applicable to the
Lease or the lowest rate permitted by law, plus

(v) if applicable, the stated amount or
percentage of the Fixed Purchase Option to be paid at the end of the Initial Term (plus any
applicable tax), discounted to present value at the agreed lease charge rate applicable to
the Lease or the lowest rate permitted by law, plus

(vi) interest on the sum of the amounts calculated pursuant to subsections (i) through
(v) above accruing to the date of payment at the Overdue Rate (Section 17(f)).

     The sum of the amounts calculated pursuant to subsections (i) through (vi) above is collectively referred
to as, the “Casualty value”.

     Lessor will forward to Lessee any insurance proceeds which Lessor may receive for lost,
damaged or destroyed Equipment or Software provided (a) Lessee has satisfied all of its
obligations to Lessor under this Section, and (b) Lessee is not otherwise in default under the
terms of this Agreement or any Lease.

     9. INSURANCE. Lessee agrees, at its own expense, to maintain primary insurance coverage
consisting of (i) actual cash value all risk insurance on the replacement value of
Equipment and Software, naming Lessor as loss payee and (ii) single limit public liability and
property damage insurance of not less than $500,000 per occurrence (or such other
amounts as Lessor may require by notice to Lessee) naming Lessee as insured and Lessor as
additional insured. All insurance policies shall be in such form, amount and
deductibles as are satisfactory to Lessor. All insurance policies must provide for not less
than thirty (30) days written notice to Lessor of material
changes in or cancellation of the
policy. Premiums for all such insurance will be prepaid. Lessee will deliver evidence of such
insurance to Lessor or its designee upon request and will promptly
provide to Lessor
all information pertinent to any occurrence which may become the basis of a claim. Lessee
will not make claim adjustments with insurers except with Lessor’s prior written
consent. If Lessee fails to provide the required insurance. Lessor may but is not obligated to
insure its interest in the Equipment and Software and Lessee agrees to pay the direct or
financed cost thereof (at a rate not to exceed the highest annual rate permitted by applicable
law) and a charge for costs incurred in connection therewith promptly upon receipt of
invoices.

     10. REPRESENTATIONS AND WARRANTIES OF LESSEE. Lessee represents and warrants to Lessor that
as of the date of each Lease and of each Lease Commencement Date:

     (a) Lessee has adequate power and capacity to enter into this Agreement, each Lease, any
documents relative to the purchase of the Equipment leased under such Lease and to
the license of all Software and any other documents required to be delivered in connection
with the Lease (collectively, the “Documents”); the
Documents have been duly authorized, executed and delivered by Lessee and constitute valid, legal and binding
agreements, enforceable in accordance with their terms; there arc no proceedings presently pending or
threatened against Lessee which will impair its ability to perform under the Documents; and all
information supplied to Lessor is accurate and complete.

     (b) Lessee’s entering into the Lease and leasing the Equipment and licensing any Software does
not and will not: (i) violate any judgment, order, or law applicable to the Lease, Lessee or Lessee’s certificate of incorporation or by-laws (if Lessee is a corporation)
or Lessee’s partnership agreement (if Lessee is a partnership); or (ii) result in the creation
of any lien, security interest or other encumbrance upon the Equipment or Software.

     (c) All financial data of Lessee or of any consolidated group of companies of which Lessee is
a member (“Lessee Group”), delivered to Lessor have been prepared in
accordance with generally accepted accounting principles, consistently applied, and fairly
present the financial position and results from operations of Lessee, or of the Lessee
Group, as of the stated date(s) and period(s). Since the date of the most recently delivered
financial data, there has been no material adverse change in the financial or operating
condition of Lessee or of the Lessee Group.

     (d) If Lessee is a corporation or partnership, it is and will be validty existing and in good
standing under laws of the state of its incorporation or organization; the persons
signing the Lease are acting with the full authority of its board of directors or partners (if
Lessee is a partnership) and hold the offices indicated below their signatures, which are
genuine.

     11. LESSEE’S
AGREEMENTS. (a) LESSEE AGREES THAT IT WILL KEEP THE EQUIPMENT AND SOFTWARE FREE
AND CLEAR FROM ALL CLAIMS, LIENS AND ENCUMBRANCES AND WILL NOT
ASSIGN, SUBLET, OR GRANT A SECURITY
INTEREST IN THE EQUIPMENT OR SOFTWARE OR IN ANY LEASE WITHOUT
LESSOR’S PRIOR WRITTEN CONSENT. If
and to the extent that any Lease is deemed a security agreement under the Uniform Commercial Code,
and otherwise for precautionary purposes only, Lessee grants Lessor a first priority security
interest in its interest in all Equipment and Software governed by any Lease. Such security
interest secures Lessee’s obligations with respect to each Lease. Lessee will notify Lessor in
writing with all details, within ten (10) days after it learns of the attachment of any lien on
any Equipment or Software.

     (b) Lessee will not relocate any unit of Equipment or Software from the Equipment Location
stated on a Schedule without the prior written approval of Lessor (which shall not
be unreasonably withheld). Lessee agrees to notify Lessor immediately in writing of any change
in the Equipment’s or Software’s location, in Lessee’s corporate or business name
or in the location of its executive offices.

     (c) This subparagraph (c) only applies to a Lease with a Fair Market Value Purchase Option.
Lessee will not take or fail to take any action which Lessor determines will result
in the disqualification of any Equipment leased for, or the recapture of all or any portion
of the accelerated cost recovery deductions permitted to Lessor by the Internal Revenue
Code of 1986, as amended. Lessee will indemnify Lessor for any loss in Lessor’s after tax
economic yields and cash flows caused by Lessee’s acts or
failures to act. Lessee agrees
that the Rent and Advance Rent have been calculated on Lessor’s
current effective corporate
income tax rate. If Lessor is not taxed at such tax rate during the Initial Term because
of Congressional enactment of any law, Lessor has the right to
increase the Rent and Advance Rent and adjust the Casualty Value (Section 8(C)) in such a manner as will both (i)
take into account that such assumption is no longer correct and (ii) preserve Lessor’s after
tax economic yields and cash flows A change in the Rent, Advance Rent, or Casualty
Value is effective on the effective date of such law.

(d) Lessor may inspect the Equipment and Software during normal business hours. At Lessor’s
request, Lessee will attach identifying labels supplied by Lessor showing Lessor’s
ownership in a prominent position on each unit of Equipment. Lessor shall have the right to
remove any Equipment or Software without notice and to declare the Lease in default if
Equipment or Software is determined to be improperly used,
maintained, operated or stored.

(c) Within
one hundred twenty (120) days of the close of each fiscal year of Lessee, Lessee will
deliver to Lessor Lessee’s balance sheet and profit and loss statement, certified by a recognized
firm of certified public accountants. Upon request, Lessee will deliver to Lessor duplicate copies
of Lessee’s most recent quarterly financial report.

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     12. INDEMNIFICATION.
Lessee agrees to indemnify, defend and keep harmless Lessor, its
agents, successors and assigns, from and against any and all losses, damages,
penalties, claims and actions, including reasonable attorney’s fees and expenses, arising out
of or in any way related to the Equipment or the Software including, without limitation,
(l) the selection, manufacture, purchase, ownership, possession, lease, acceptance or
rejection, delivery, maintenance, operation or use of the Equipment or Software; or (ii) the
violation of any software license; or (iii) the condition of Equipment or Software sold or
disposed of after or as a result of use by Lessee excluding, however, any of the foregoing to
the extent attributable to Lessor’s gross negligence or willful misconduct. Lessee shall give
Lessor prompt notice of any such claim or liability received by Lessee. The provisions
of this Section shall survive the termination of any Lease or the applicable statute of
limitations period.

     13. DEFAULT; REMEDIES. (a) Lessee shall be in default (a “Default”) if, with respect to a
Lease: (i) Lessor has not received Advance Rent or any other Rent within ten
(10) days after its due date; or (ii) Lessee or any guarantor violates any other term of a
Lease or any term of a guaranty and fails to correct such violation within ten (10) days after
written notice from Lessor; or (iii) Lessee violates the terms of any license or agreement for
Software; or (iv) Lessee or any guarantor becomes insolvent, is liquidated or dissolved,
merges, transfers substantially all of its assets or stock, stops doing business or assigns
its rights or property for the benefit of creditors; or (v) a petition is filed by or against
Lessee
or any guarantor under Title 11 of the United States Code or any successor or similar law; or
(vi) (for individuals) Lessee or any guarantor dies or a guardian is appointed for
Lessee’s or guarantor’s person; or (vii) Lessee (or any affiliate) is in default of or fails
to fulfill the terms of any other agreement between Lessee and Lessor or any affiliate of either:
or (viii) without Lessor’s prior written consent, Lessee attempts to remove, sell, transfer,
encumber, part with possession, or sublet any Equipment or Software.

     (b) At any time after a Default, Lessor may in its sole discretion declare a default under
this Agreement, any Lease and any other agreement between Lessee (or any affiliate) and Lessor or
its affiliate and may exercise any or all of the following remedies: (i) provide written notice to
Lessee of default; (ii) as liquidated damages for loss of a bargain and not as a penalty, declare
due and payable (A) the entire balance of future Rent for the full term of the Lease, discounted to
present value at the agreed lease charge rate applicable to the Lease or the lowest rate permitted
by law, plus (B) if applicable, an amount equal to the Fixed Purchase Option amount set forth in
the Lease, discounted to present value at the agreed lease charge rate applicable to the Lease or
the lowest rate permitted by law, plus (C) if applicable, Lessor’s reasonable estimate of the fair
market value of like equipment, determined as of the date of such Default, discounted to present
value at the agreed lease charge rate applicable to the Lease or the lowest rate permitted by law,
plus (D) any Rent or other amounts then due and payable under the Lease, plus (E) interest on such
sum accruing to the date of payment at the Overdue Rate (Section 17(f)). Lessee waives notice of intention
to accelerate and notice of acceleration. Lessor has the right to require Lessee to make the
Equipment and Software available to Lessor or its agents during reasonable
business hours or to return it to Lessor as required by Section 14(a), or Lessor may repossess the Equipment and Software, with or without legal process,
provided that Lessor shall not breach the peace in so doing. Lessor may, but is not required to, sell or lease the Equipment in bulk or in individual pieces. If Lessor
intends to sell the Equipment, if may do so in a public or private sale and is not required to give notice of such sale
or of any  advertising. The Equipment need not be displayed at the sale. Lessee waives its right to object to
the notice of the time or place of sale or lease and to the manner and place of any advertising.
Lessor may, without paying rent or providing insurance, use the Equipment Location to store the
Equipment or conduct any sale. The proceeds of any sale or lease will be applied in the following
order of priorities: (1) to pay all of Lessor’s expenses in taking, moving holding, repairing and
disposing of the Equipment and Software, if applicable; then, (2) to pay any late charges and
accrued interest; then, (3) to pay accrued and unpaid Rent together with the net present value of
any future Rent, any unpaid Casualty Value, and all other due and unpaid sums. Any remaining
proceeds will be used to reimburse Lessee for payments which it made to reduce the amounts owed to
Lessor in the preceding sentence. If the Lease has a Fair Market Value Purchase Option, Lessor may
keep any excess. If the proceeds of any sale or lease are not enough to pay the amounts owed to
Lessor under this Section, Lessee will promptly pay the deficiency.

     (c) Lessor’s remedies for Default may be exercised instead of or in addition to each other or
any other legal or equitable remedies. Lessor has the right to set-off any sums received
from any source (including insurance proceeds) against Lessee’s obligations under each Lease.
Lessee waives any defense based on statutes of limitations or waiver of rights in actions for
damages. Lessor’s waiver of any Default is not a waiver of its rights with respect to a different
or later Default.

     14. OPTIONS. (a) At least ninety (90) days prior to the end of the term of a Lease, or in the
event of a Default, Lessee agrees, at its own expense and risk, (i) to make the Equipment
available for operational inspection by potential purchasers, (ii) to have the manufacturer or an
independent expert selected by Lessor inspect, examine and certify that the Equipment is operating
within the manufacturer’s specifications; and (iii) to provide that all Equipment is cleaned and
cosmetically acceptable (free from all Lessee installed markings), and in such condition so that
it may be immediately installed and placed into use in a similar operating environment.

     (b) At the end of the term of a Lease, or in the event of a Default, Lessee agrees, at its own expense and risk, (i) to immediately
cease using the Equipment and Software; (ii) to provide to
Lessor one set of operating manuals detailing Equipment
configuration, operating requirements and other technical data concerning the set-up and
operation of the Equipment including replacement and additions
thereto, such that all documentation is completely up to date; (iii) to pay for any repairs necessary to place the Equipment or
Software in the same condition as when received by Lessee, reasonable wear and tear
excepted; (iv) without unreasonable delay, to provide for the disassembly, deinstallation, packing
and transporting of the Equipment which shall include: (i) deinstallation by the manufacturer’s
representative (including all wire, cable and mounting hardware), (2) dismantling and handling in
accordance with the manufacturer’s specifications or normal industry accepted practices for new
systems and (3) providing that all keys belonging to the Equipment are wired together and secured to
a major component of the system; and (v) to deliver the Equipment and all copies of the Software,
freight prepaid, to a carrier selected by Lessor for shipment to a location selected by Lessor.

     (c) At the end of the term of a Lease, Lessor has the right to attempt resale of the
Equipment from Lessee’s facility with the Lessee’s full cooperation and assistance. Lessee agrees
to provide to Lessor, at no expense to Lessor, one hundred twenty (120) days of free storage.
During this period the Equipment must remain operational, provided with adequate electrical power,
lighting, heat or air conditioning necessary to maintain and demonstrate the Equipment to any
potential buyer.

     (d) So long as no Default has occurred. Lessee has the option (i) to purchase all and not
less than all Equipment under a Lease at the end of the Initial Term or any renewal term on an
“AS-IS, WHERE-IS” BASIS WITHOUT REPRESENTATION OR WARRANTY, for a cash purchase price as stated
on the Schedule equal to (A) if applicable, the Equipment’s Fair Market Value (plus any applicable
sales taxes) determined as of the end of such Initial Term or such renewal term, or (B) if
applicable, any other stated Fixed Purchase Option amount (plus any applicable sales tax) or (ii)
to extend the Initial Term or any renewal term of a Lease for the then Fair Market Rental of the
Equipment. Unless the Fixed Purchase Option price is $1.00. Lessee must give irrevocable written
notice at least thirty (30) days before the end of the Initial Term to Lessor that it will
purchase the Equipment or extend the Initial Term. If a Lease is renewed, Lessee’s obligations
(other than the amount of Rent to be paid) will remain unchanged. For the purposes of this
Section, “Fair Market Value” or “Fair Market Rental” means the price or rental which Lessee and
Lessor agree to which shall not be less than the price or rental which a willing buyer or lessee
(who is not a used equipment dealer) would pay for the Equipment in an arm’s-length transaction
to a willing seller or lessor who is under no compulsion to sell or lease the Equipment. In
determining “Fair Market Value” or “Fair Market
Rental”: (i) the Equipment is assumed to have been
maintained and returned as required by the Lease; (ii) in the case of any installed Equipment, the
Equipment will be valued on an installed basis, and (iii) costs of removal from the Equipment’s
current location will not be included.

     (e) At the end of the term of a Lease, or in the event of a Default, until Lessee has
complied with Sections 14 (a), and (b), or has purchased the Equipment pursuant to Section 14(d),
Lessee shall pay Lessor Rent, as liquidated damages for lost rentals and not as a penalty, such
payment to be computed on a daily basis (with one day’s rent being 1/30th of the Rent) until the
Equipment is returned or purchased. Lessee’s obligations and all other provisions of the Lease
continue until such time.

     15. ASSIGNMENT. LESSOR MAY, WITHOUT NOTICE TO LESSEE, ASSIGN ITS INTEREST IN A LEASE, ITS
RIGHTS TO RECEIVE RENT AND
OTHER SUMS DUE HEREUNDER AND ITS RIGHTS IN THE EQUIPMENT. IF REQUESTED, LESSEE AGREES TO
ACKNOWLEDGE, IN WRITING, ANY
ASSIGNMENT. LESSEE AGREES TO SUCH ASSIGNMENT, AND FURTHER AGREES THAT, BY SUCH ASSIGNMENT: (I)
THE ASSIGNEE SHALL NOT
BE CHARGEABLE WITH OR ASSUME ANY OF THE OBLIGATIONS OR LIABILITIES OF LESSOR, AND (2) THE
ASSIGNEE SHALL HAVE ALL THE
RIGHTS OF LESSOR UNDER THE LEASE, INCLUDING BUT NOT LIMITED TO THE RIGHT TO GIVE ALL CONSENTS,
TO RECEIVE TITLE TO THE
EQUIPMENT AND TO EXERCISE ALL REMEDIES THEREUNDER, AND (3) LESSEE SHALL, IN ACCORDANCE WITH
THE TERMS OF SUCH LEASE AND
ON INSTRUCTION FROM LESSOR, PAY ASSIGNEE ALL RENTS AND OTHER AMOUNTS DUE UNDER SUCH LEASE AS
AND WHEN DUE, WITHOUT
DEDUCTION OR OFFSET; NOTWITHSTANDING ANY CLAIM LESSEE MAY HAVE AGAINST LESSOR, OR RELATIVE TO
THE EQUIPMENT OR
SOFTWARE, OR ANY OTHER CLAIMS OF LESSEE ARISING PRIOR TO THE ASSIGNMENT, AND (4) LESSEE WILL
NOT ASSERT AGAINST THE
ASSIGNEE ANY DEFENSE, CLAIM, COUNTERCLAIM, OR SET-OFF ON ACCOUNT OF BREACH OF WARRANTY, BREACH
OF SERVICE AGREEMENT.

     16. LESSEE’S WAIVERS. LESSEE AND LESSOR EACH WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY
LITIGATION ARISING FROM OR
RELATED TO A LEASE. To the extent permitted by applicable law. lessee hereby waives all rights
and remedies conferred upon a Lessee by Article 2A (Sections 508-522) of
the Uniform Commercial Code, including but not limited to Lessee’s rights to: (i) cancel or
repudiate a Lease; (ii) reject, revoke acceptance or accept partial delivery of the
Equipment or Software; (iii) recover damages from Lessor for any breach of warranty or for
any other reason; and (iv) grant a security interest in any Equipment or Software in
Lessee’s possession. To the extent permitted by applicable law, Lessee also hereby waives any
rights now or hereafter conferred by statute or otherwise (a) which may require
Lessor to sell, lease or otherwise use any Equipment or Software in mitigation of Lessor’s
damages hereunder, or (b) which may otherwise limit or modify any of Lessor’s rights or
remedies hereunder, or (c) which may require Lessor to provide Lessee with notice of default
or intent to accelerate amounts becoming due.

          ANY ACTION BY LESSEE AGAINST LESSOR FOR ANY DEFAULT UNDER ANY LEASE, INCLUDING BREACH OF
WARRANTY OR INDEMNITY, SHALL BE COMMENCED WITHIN ONE (1) YEAR AFTER ANY SUCH CAUSE OF ACTION
ACCRUES. Lessor shall not be liable to Lessee or any other party for specific performance of
any Lease or for any damages, losses, delays or failure to deliver the Equipment or Software.

- 3 -

 

     17. MISCELLANEOUS. (a) Lessee agrees that (i) for income tax purposes only, Lessor is
treating Lessee as owner of any Equipment unless leased pursuant to a Lease with a Fair Market
Value Purchase Option and (ii) Lessee has not received tax advice from Lessor. By signing a Lease
with a Fixed Purchase Option, Lessee agrees to pay Rent (consisting of an Equipment payment and, if
applicable, a Software payment) which includes a principal amount based on the cost of the
Equipment and the Software and a lease charge derived from a lease charge (interest) rate. The
lease charge portion of the monthly Equipment payment and Software payment may be determined by
applying to the Equipment Total Cost the rate which will amortize such Equipment Total Cost
(adjusting for any Advance Rent) down to the amount of the Fixed Purchase Option at a constant rate
over the Initial Term by payment of the monthly Rent. The lease charge (interest) rate is the
constant rate referred to in the preceding sentence. The lease charge (interest) rate can also be
calculated using the Equipment Total Cost as the present value, the Purchase Option as the future
value, the Rent as the payment and the stated Term. The lease charge (interest) rate may be higher
than the actual annual interest rate because of the amortization of certain payments made to the
Supplier, if applicable. LESSOR AND LESSEE EACH AGREE THAT IT INTENDS
TO COMPLY WITH ALL,
APPLICABLE LAWS, INCLUDING THOSE CONCERNING THE REGULATION OF INTEREST. If this transaction were
re-characterized as a financing, no lease charge, late charge, of post maturity interest charge is
intended to exceed the maximum amount of time price differential or interest, as applicable,
permitted to be charged or collected by applicable law. If this transaction were re-characterized
as a financing and one or more of such charges exceeded such maximum, then such charges will be
reduced to the legally permitted maximum charge and any excess charge will be used to reduce the
initial value of the Equipment or refunded. In no event shall Lessor charge or receive nor shall
Lessee pay any amounts in excess of those permitted by law.

     (b) Time is of the essence of each Lease. Lessor’s failure at any time to require that Lessee
strictly perform its obligations under any Lease will not prevent Lessor from later requiring such
performance. Lessee agrees, upon Lessor’s request, to sign any document presented by Lessor from
time to time to protect Lessor’s rights in the Equipment. LESSEE AND LESSOR EACH WAIVE ALL RIGHTS TO
TRIAL BY JURY IN ANY LITIGATION ARISING FROM OR RELATED TO THIS AGREEMENT OR A LEASE. Lessee agrees
to pay Lessor a separately invoiced fee that shall cover Lessor’s documentation and credit approval
costs incurred in connection with each Lease. Lessee also agrees to pay Lessor’s attorneys’ fees
and out-of-pocket expenses in protecting or enforcing its rights under a Lease. Lessee will pay
attorney’s fees and costs of collection, up to the amount permitted by law. Lessor and Lessee agree
that legal fees and costs up to twenty percent (20%) of the amount then due under this Lease are
reasonable.

     (c) All required notices will be considered to have been given if sent by registered or
certified mail or recognized overnight courier service to Lessor at its address stated above
and to Lessee at its address stated in the Lease or to such other
Place as such addressee may have designated in writing.

     (d) Each Lease constitutes the entire agreement of the parties with respect to the lease of the
Equipment and financing of the Software and supersedes all prior oral or written agreements or
statements. So long as there is no Default, Lessor shall not interfere with Lessee’s quiet
enjoyment of the Equipment or Software. If a provision of a Lease is declared invalid under law,
the affected provision will be considered omitted or modified to conform to applicable law. All
other provisions will remain in full force and effect.

     (e) If Lessee fails to comply with any provision of a Lease, Lessor has the right, but is not
obligated, to have such provision brought into compliance. This right is in addition to Lessor’s
right to declare a Default. All expenses incurred by Lessor in bringing about such compliance will
be considered additional Rent which is due to Lessor within five (5) days after the date Lessor
sends to Lessee a written request for payment.

     (f) In the event of any Default, all overdue payments will bear interest at the Overdue Rate,
which is the lower of twenty percent (20%) per annum or the maximum rate allowed by law. Interest
will accrue daily until payment in full is received.

     (g) If at Lessee’s request, Lessor agrees in its sole discretion to permit the early
termination of any Lease, Lessee agrees to pay Lessor a fee to compensate Lessor for its expenses
and for the privilege of so doing.

     (h) All of Lessor’s rights (including indemnity rights) under a Lease survive the Lease’s
expiration or termination, and are enforceable by Lessor, its successor and assigns.

     (i) Lessee hereby grants to Lessor the power to sign Lessee’s name and generally act on
behalf of Lessee to execute and file financing statements, notices of lien and other documents
pertaining to any or all of the Equipment (including the Software).

     THIS
AGREEMENT IS BINDING UPON LESSEE AND UPON EXECUTION, BY LESSOR AND IS
FOR THE BENEFIT OF
THE PARTIES HERETO, AND THEIR PERMITTED SUCCESSORS AND ASSIGNS. THIS AGREEMENT SHALL BE EFFECTIVE
ONLY WHEN APPROVED AND EXECUTED BY LESSOR AT ITS OFFICES IN CONNECTICUT, SHALL BE DEEMED TO BE
MADE IN CONNECTICUT AND SHALL BE GOVERNED BY CONNECTICUT LAW, LESSEE AGREES THAT ALL LEGAL ACTIONS
IN CONNECTION WITH THIS AGREEMENT MAY, AT LESSOR’S OPTION, TAKE PLACE IN CONNECTICUT. THE TERMS
OF EACH LEASE SHOULD BE READ CAREFULLY, BECAUSE ONLY THOSE TERMS INCLUDED HEREIN AND THEREIN AND
NOT ANY ORAL PROMISES OR TERMS NOT INCLUDED IN A WRITTEN LEASE ARE
ENFORCEABLE. A LEASE MAY NOT
BE CHANGED EXCEPT BY WRITTEN AGREEMENT SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE PARTY AGAINST
WHOM IT IS TO BE ENFORCED. LESSEE IRREVOCABLY GRANTS TO LESSOR THE POWER TO PREPARE, SIGN ON
LESSEE’S BEHALF (IF APPLICABLE) AND FILE, ELECTRONICALLY OR OTHERWISE, A FINANCING STATEMENT AND
ANY AMENDMENT THERETO OR CONTINUATION THEREOF RELATING TO LESSOR’S INTEREST IN EACH LEASE
EXECUTED PURSUANT TO THIS AGREEMENT, THE EQUIPMENT AND SOFTWARE DESCRIBED THEREIN AND THE PROCEEDS
THEREOF, ADDING ANY OTHER ITEMS DESCRIBED IN SUCH LEASE, AND CONTAINING ANY OTHER INFORMATION
REQUIRED BY THE APPLICABLE UNIFORM COMMERCIAL CODE. THE AUTHORITY GRANTED HEREIN SHALL BE
RETROACTIVE TO THE DATE OF ANY FILING MADE BY LESSOR UNDER THE APPLICABLE UNIFORM COMMERCIAL CODE
TO EVIDENCE ITS INTEREST IN A LEASE, THE RELATED EQUIPMENT AND SOFTWARE AND THE PROCEEDS THEREOF.
LESSEE FURTHER AGREES, UPON LESSOR’S REQUEST, TO EXECUTE OR OTHERWISE AUTHENTICATE ANY DOCUMENT,
RECORD OR INSTRUMENT NECESSARY OR EXPEDIENT FOR FILING, RECORDING OR PERFECTING THE INTEREST OF
LESSOR IN EACH LEASE EXECUTED PURSUANT TO THIS AGREEMENT, THE EQUIPMENT AND SOFTWARE DESCRIBED
THEREIN AND THE PROCEEDS THEREOF.

     NO LEASE ENTERED INTO IN CONNECTION WITH THIS AGREEMENT MAY BE CANCELED PRIOR TO THE
EXPIRATION OF THE INITIAL TERM WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR. LESSEE WARRANTS TO
LESSOR THAT THE EQUIPMENT AND SOFTWARE WILL BE USED FOR BUSINESS OR COMMERCIAL PURPOSES ONLY.

	 	 	 	 	 	 	 
	Lessor: AVID FINANCIAL SERVICES	 	Lessee: NGTV
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:
	/s/ Jay Vir
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	JAY VIR

	 	 	 	 
	(Print or Type Name)	 	 	(Print or Type Name)
	 
	 	 	 	 	 	 
	 	 	 	 	 	President
	 	 	 	 
	(Print or Type Title)	 	 	(Print or Type Title)
	 
	 	 	 	 	 	 
	Date:
 	 	 	Date: 6/23/2005
	 
	 	 	 	 	 	 
	 	 	 	 	 	Social Security or Taxpayer I.D. No.:  

- 4 -

 

Schedule No. 4295303 003

THIS SCHEDULE to Master Lease Agreement dated                                         , 2005 (“Schedule”)
incorporates all of the terms of the referenced Master Lease
Agreement (“Agreement”). This Schedule and the Agreement as it relates to this Schedule
constitutes a lease (“Lease”) for the equipment including the applicable software (collectively
referred to as the “Equipment”) described below between AVID FINANCIAL SERVICES (“Lessor”) and the
Lessee indicated below. All terms used and not defined in this Schedule have the definitions stated
in the Agreement.

	 	 	 	 	 
	A. LESSEE:

	 	LEGAL NAME:

TRADE NAME (if any):
	 	NGTV
	 

	 	ADDRESS:
	 	9944 Santa Monica Blvd.

Beverly Hills, California 90212
	 
	B. SUPPLIER:

	 	NAME:
	 	Avid Technology

One Park West

Tewksbury, Massachusetts 08176
	C. EQUIPMENT LOCATION:
	 

	 	Street Address:

County:

City, State Zip:
	 	9944 Santa Monica Blvd.

Los Angeles

Beverly Hills, California 90212

D. DESCRIPTION OF EQUIPMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment Type/Model & Serial/ID Numbers	 	Number of Units
	Avid Storage Tek

Attached hereto and made a

	 	SGL/Flashnet

part hereof.
	 	Avid Unity as more fully described on Exhibit A 1
	 
	 	 	 	 

	 	 	 	 	 
	Equipment Price:
	 	$	315,776.00	 
	 
	 	 	 	 
	Sales Tax:
	 	$	0.00	 
	 
	 	 	 	 
	Freight:
	 	$	0.00	 
	 
	 	 	 	 
	Delivery and installation:
	 	$	0.00	 
	 
	 	 	 
	 
	Equipment Total Cost:
	 	$	315,776.00	 
	 
	 	 	 

E. TRANSACTION TERMS:

	 	 	 	 	 	 	 
	Advance Rent:

	 	 	$20.311.97	 	 	Purchase Option (Equipment Only)
	Sales Tax:

	 	 	3.25	%	 	Fair Market Value
	Total Advance Rent:

	 	 	$21,987.70	x	 	Fixed 0% or Fixed $150.00
	Initial Term (# of Months): 36(in Advance) 	 	 	 	 	 	 Fixed Purchase Option in
GA, MD, NM, TX, or WI: % Rate
	 

	 	 	 	 	 	Casualty Value Percentage                     0
	Monthly
Rent:
	 	 	 	 	 	 
	 

	 	1 
at $20,311.97 
	 	 
	 

	 	34 
at $10,155.99    
	 	 
	 

	 	1 at $0.00     	 
	(plus any applicable taxes)

Commitment to Lease expires on 9/23/2005 (“Expiration Date”).

F. ADDITIONAL TERMS (if any):

The fourth sentence of Section 4 (TERM AND RENT) is hereby amended in its entirety to read as
follows: “If any Rent (as hereinafter defined) is not paid when due, Lessee agrees to pay a Late
charge of ten cents ($0. 10) per dollar on, and in addition to, such Rent, but not exceeding the
lawful maximum, if any.”

Lessee’s
periodic lease payments are calculated using a lease rate factor (the “Lease Rate
Factor”). The Lease Rate Factor is calculated, in part, using an
interest rate based on the interest
rate for swaps (the “Swap Rate”) that most closely approximates the initial term of the Lease as
published in the Federal Reserve Statistical Release H.15 available
at http://www,federalreserve,gov/releases/hl5/update/ on 6/23/2005 (the “Initial Rate Date”). The Lease Rate Factor will
be held until 7/23/2005 (the “Rate Expiration Date”). If Lessee does not accept the Equipment on or
before the Rate Expiration Date, the Lease Rate Factor and Lessee’s periodic lease payment may be
adjusted if the Swap Rate as reported four (4) business days prior to acceptance of the Equipment
is different than the Swap Rate as reported on the Initial Rate Date. Lessor will notify
Lessee if the Lease Rate Factor changes.

 

 

If the Lease Commencement Date is not the first or the fifteenth day of any calendar month (a
“Payment Date”), the Initial Term shall be extended by the number of days between the Lease
Commencement Date and the Payment Date which first occurs after the Lease Commencement Date and
Lessee’s first payment will be increased by 1/30th of the Monthly Rent multiplied by the
number of days elapsed from the Lease Commencement Date to the day immediately preceding the
Payment Date which first occurs after the Lease Commencement Date.

If this is
a Type A Lease and the Initial Rate Date occurs on or before December 31st of any
calendar year, but the Lease Commencement Date is on or after January 1st of the following calendar
year, the Lease Rate Factor and Lessee’s periodic lease payments will be adjusted to preserve
Lessor’s after tax economic yields. Lessor will notify Lessee if the Lease Rate Factor changes.

X                    . Payments in Advance — If payments are in advance and the Lease Commencement Date is a Payment
Date, the first payment is due on the Lease Commencement Date. If the
Lease Commencement Date is after
the first but before the fifteenth day of the month, the first payment is due on the
fifteenth day of the month of the Lease Commencement Date. If the Lease Commencement Date is after
the fifteenth day of the month, the first payment is due on the first
day of the month following
the Lease Commencement Date.

                    . Payments in Arrears — If payments are in arrears and the Lease Commencement Date is the first day
of the month, the first payment is due on the first day of the month following the month of the
Lease Commencement Date. If payments are in arrears and the Lease Commencement Date is after the
first but before (or on) the fifteenth day of the month, the first payment is due on the fifteenth
day of the month following the month of the Lease Commencement Date. If the Lease Commencement Date
is after the fifteenth day of the month, the first payment is due on the first day of the second
month following the month of the Lease Commencement Date.

If the Total Price of the Equipment described above is $150,000 or less, the following additional
terms shall apply to this Lease:

Execution and Delivery of Lease: This Lease will be created and evidenced as follows: (i) Lessor
will deliver to Lessee (at the e-mail, facsimile or business address Lessee provides to Lessor) an
electronic (e-mail or facsimile) or paper version of each document to be signed by Lessee,
including this Lease and any exhibits, addenda, supplements, certificates and any other documents
related to this Lease (each, a “Lease Document”); (ii) Lessee will print (if applicable) and manually sign the signature page of each such Lease Document and deliver to Lessor by facsimile or
other means the signed signature page; (iii) Lessor will manually sign each signature page so
delivered by Lessee (if the Lease Document requires its signature); and (iv) Lessor will attach
each fully signed signature page to a printed paper copy of the applicable Lease Document. By so
signing and transmitting a Lease Document to Lessor, Lessee confirms its intent to sign such Lease
Document and accept its terms. Lessee acknowledges that Lessor is relying upon Lessee’s promise
that it has not modified the Lease Document sent to it for signature.
Lessor and Lessee intend that
each Lease Document produced by this process which contains Lessor’s original manual signature
shall be for all purposes (including perfection of security interests and admissibility of
evidence) the sole original authenticated Lease Document. Lessor will promptly send Lessee a copy
of each fully signed Lease Document and will retain each original authenticated Lease Document,
which will be conclusively presumed to be identical to the version signed by Lessee unless Lessee
delivers specific written objections thereto within three (3) business days after receipt of such
copy.

THIS IS A NON-CANCELABLE LEASE FOR THE TERM INDICATED ABOVE.

The undersigned affirms that he/she is a duly authorized Corporate Officer, Partner or Proprietor
of the above named Lessee and has the authority to execute this Lease on its behalf.

	 	 	 	 	 	 	 
	LESSOR:  AVID FINANCIAL SERVICES	 	LESSEE:	 	NGTV
	 
	By:

	 	 	 	By:
	 	/s/ Jay Vir
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	JAY VIR
	 	 	 
	(Print or Type Name)	 	(Print or Type Name)
	 

	 	 	 	 	 	President
	 	 	 
	(Print or Type Title)	 	(Print or Type Title)
	 
	Date of Approval:                                        	 	Date of Execution: 6-23-2005
	 
	 	 	 	 	Social Security Or
Taxpayer ID No.: 

 

 

EXHIBIT A

NGTV

4295303-003

	 	 	 	 	 	 	 	 	 
	Part Number	 	QTY	 	Description	 	 
	 
	 

	 	 	 	 	 	Storage Tek
	 	 
	SL85002-0000

	 	 	1	 	 	SL8500 STARTER SYSTEM	 	 
	SL85002-1RAC

	 	 	1	 	 	1 STD 19IN 6U RACK	 	 
	SL85002-TSOP

	 	 	1	 	 	TOUCH SCREEN OP PANEL	 	 
	SL85002-4ROB

	 	 	1	 	 	4 HANDBOT HI PERF ROBOTS	 	 
	44SB150-0000

	 	 	1	 	 	ACSLS-SUNBLADE 150 WRKSTN	 	 
	LTO3S85-0000

	 	 	4	 	 	LTO GEN3 DRV FOR SL8500	 	 
	LTO3S85-HPFC

	 	 	4	 	 	HP LTO FIBRE INTERFACE	 	 
	     10800221

	 	 	4	 	 	LC TO LC DUPLEX 10MTR50/125ASS	 	 
	ACSLS02-Q010

	 	 	1	 	 	UP TO 1000 SLOTS	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	SGL / Flashnet for STK SL8500 Library w/ 4 x LTO3 Drives	 	 
	 
	 	 	 	 	 	 	 	 
	0500-03734-01

	 	 	1	 	 	SGL, FLASHNET SERVER SYSTEM IDENTIFIER	 	 
	“6208

	 	 	1	 	 	LIBRARY MODULE UP TO 250 TAPE CARTRIDGE SLOTS, INCLUDES	 	 
	6209

	 	 	 	 	 	SUPPORT FOR 2 TAPE DRIVES	 	 
	 

	 	 	2	 	 	ADDITIONAL DRIVE SUPPORT	 	 
	9002

	 	 	1	 	 	SGL Server, HP Prollant DL380 G4 Rack Mount Server, Dual 3.0 GHz, 2GB RAM,	 	 
	 

	 	 	 	 	 	DVD/CDRW Floppy, Dual 72GB 10K, Redundant PS, Windows 2000 Server + 5 CAL	 	 
	9004

	 	 	2	 	 	DUAL PORT FIBRE-CHANNEL ADAPTER, EMULEX 9002DC	 	 
	9008

	 	 	1	 	 	INTEL PRO/1000 MF 1000BASE-SX GIGE ADAPTER, LC CONNECTOR	 	 
	6224

	 	 	1	 	 	AVID PLUG-IN MODULE	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Avid Transfer Manager Server	 	 
	 
	 	 	 	 	 	 	 	 
	0500-03471-03

	 	 	1	 	 	Avid Unity TransferManager	 	 
	0010-06320-01

	 	 	1	 	 	Atto 2Gb Optical Card	 	 
	0010-06567-01

	 	 	1	 	 	Redundant Power Supply Option for SR2200 Server	 	 
	0010-04437-02

	 	 	1	 	 	Gigabit Ethernet Kit (Optical GigE card with SC connection and SC-SC cable)	 	 
	0500-03671-04

	 	 	1	 	 	Transfer Manager (B Stock Demo
Gear) J.V.	 	 

Does not include fax, installation or shipping

			
	Page _1 _ of _1_
	 	Initialsx  /s/ J. V.          Date  6/23/2005

 

	 	 	 	 	 	 	 
	Lessor

	 	Avid Financial Services
	 	 
	 	Incumbency Certificate

	 	 	 	 	 	 	 	 	 
	Lessee

	 	NGTV
	 	 
	 	Agreement No.
	 	 
	 

	 	 	 	 	 	4295303-003
	 	 

The
Officer who will execute the Lease Documents must sign under Section 2 of the
Certificate.

The Secretary or Assistant Secretary certifying to that signature must complete the remaining
information (by the  red checks) and sign at the bottom of the Certificate.

	1.	 	I am the duly elected, qualified and acting Secretary or Assistant Secretary of
NGTV, a California corporation (“Corporation”); and I am charged with maintaining records, minutes,
and seal, if applicable, of the Corporation.
	 
	2.	 	I hereby certify that as of the date hereof, the following named person is and at all
[ILLEGIBLE] June 2000 has been properly designated and appointed
to the office [ILLEGIBLE] below, that person
continues to hold the office at this time and that the signature set forth opposite his or her name
is a genuine and accurate specimen of his or her signature.

	 	 	 	 	 
	        Print Name of Officer	 	 	 	 
	        Executing Lease Documents	 	Title	 	Signature of Officer
	 
	 	 	 	 
	      JAY VIR

	 	President
	 	/s/ JAY VIR

	3.	 	I have the power and authority to execute this Certificate on behalf of the Corporation,
and I have so executed this Certificate and set the seal of the Corporation, if applicable, on
the 23rd day of June, 2005.

	 	 	 	 	 	 	 	 	 
	               (SEAL)

	 	 	 	BY
	 	     /s/  Jay
Vir	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PRINT NAME    Jay Vir	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	CHECK ONE      þSecretary     or     o Assistant Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	DATE June 23,
2005.	 	 

 

B
— Certificate of Acceptance

Annex B to Schedule No. 0.03

Effective Date: (“Schedule”)

Master Lease Agreement Effective Date:

To: AVID FINANCIAL SERVICES (LESSOR):

	 	 	 	 	 
	A. LESSEE

	 	LEGAL NAME:
	 	NGTV
	 

	 	TRADE NAME (if any):	 	 
	 

	 	ADDRESS:
	 	9944 Santa Monica Blvd.
	 

	 	 	 	Beverly Hills, California 90212
	 
	 	 	 	 
	B. SUPPLIER:

	 	NAME:
	 	Avid Technology
	 

	 	STREET ADDRESS:
	 	One Park West
	 

	 	CITY, STATE ZIP:
	 	Tewksbury, Massachusetts 08176
	 
	 	 	 	 
	C. EQUIPMENT LOCATION:

	 	STREET ADDRESS:
	 	9944 Santa Monica Blvd.
	 

	 	COUNTY:
	 	Los Angeles
	 

	 	CITY, STATE ZIP:
	 	Beverly Hills, California 90212
	 
	 	 	 	 
	D. DESCRIPTION OF EQUIPMENT:
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Equipment
Type/Model/Serial/ID Numbers	 	 	 	 	Number
of Units
	Avid Storage Tek

	 	SGL/Flashnet
	 	Avid Unity as more fully described on Exhibit A
	 	 	1	 
	Attached hereto and made a

	 	part hereof.	 	 	 	 	 	 

LESSEE, THROUGH ITS AUTHORIZED REPRESENTATIVE, CERTIFIES TO LESSOR THAT:

	 	(a)	 	All the Equipment has been delivered to and inspected by Lessee on the Lease Commencement
Date specified below pursuant to the above Schedule and Master Lease Agreement as it relates to such Schedule (the “Lease”);
	 
	 	(b)	 	Lessee irrevocably accepts the Equipment for lease under the Lease as of the Lease
Commencement Date; and
	 
	 	(c)	 	No event which would allow the Lessor to declare a Default (Section 13 of the
Master Lease Agreement) has occurred, and all of the
representations and warranties made in the Lease are true as of the Lease Commencement
Date.
	 
	 	(d)	 	Lessee hereby expressly authorizes AVID FINANCIAL SERVICES to Insert the Date of
Acceptance/Lease Commencement Date in the space
below upon the verbal Instruction of Lessee.

	 	 	 	 	 	 	 
	 	 	LESSEE;       NGTV	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Jay Vir	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 JAY VIR	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Print or Type Name)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 President	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Print or Type Title)	 	 

	 	 	 	 	 	 	 
	 

	 	Date of Acceptance/
	 	 	 	 
	 

	 	Lease Commencement Date:	 	 	 	 
	 

	 	 	 	 	 	 

UPON EXECUTION, PLEASE MAIL TO:

AVID FINANCIAL SERVICES

Danbury Operations Center

ATTN: Doreen Pennelia

10 Riverview Drive

Danbury, CT 06810exv10w11

 

Exhibit 10.11

NETGROUPIE
 2000 EQUITY INCENTIVE PLAN

Adopted: September_____, 2000

Approved by Stockholders: September ______, 2000

Termination Date: September _____, 2010

     1. PURPOSES OF THE PLAN. The purposes of this Plan are to:

          (a) Attract and retain the best available personnel for positions of substantial responsibility;

          (b) Provide additional incentives to Employees, Outside Directors and Consultants; and

          (c) Promote the success of the Company’s business.

          Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as
determined by the Board at the time of grant. Stock Purchase Rights may also be granted under the Plan.

     2. DEFINITIONS. As used herein, the following definitions shall apply:

          (a) “Applicable Laws” means the legal requirements relating to the administration of stock
option plans under federal and state corporate and securities laws and the Code.

          (b) “Board” means the Board of Directors of the Company.

          (c) “Cause” means the commission of an act of theft, embezzlement, fraud, dishonesty or a breach of
fiduciary duty to the Company or a Parent or Subsidiary of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as amended.

          (e) “Committee” means any committee appointed by the Board in accordance with Section 4(c) of this Plan.

          (f) “Common Stock” means the Common Stock of the Company.

          (g) “Company” means Netgroupie, a California corporation.

          (h) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or
Subsidiary to render services in a non-employee capacity and who is compensated for such services.

          (i) “Continuous Status as an Employee, Consultant or Outside Director” means that the employment,
consulting or director relationship with the Company, any Parent, or Subsidiary, is not interrupted or
terminated. Continuous Status as an Employee, Consultant or Outside Director shall not be considered interrupted
in the case of (i) any leave of absence

 

 

approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. A leave of absence approved by the Company shall include sick leave,
military leave, or any other personal leave approved by an authorized representative of the Company. If
reemployment upon expiration of a leave of absence approved by the Company is not guaranteed by statute or
contract, at the end of the three (3)-month period measured from the ninety-first (91st) day of such leave any
Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and
shall be treated for tax purposes as a Nonstatutory Stock Option.

          (j) “Director” means a member of the Board.

          (k) “Disability” means total and permanent disability as defined in Code Section 22(e)(3).

          (l) “Employee” means any person, including Officers and Directors, employed by the Company or
any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the
Company shall be sufficient to constitute “employment” by the Company.

          (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (n) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

               (i) If the Common Stock is admitted to trading or listed on a national securities
exchange, Fair Market Value shall be the last reported sale price, or if no such reported sale takes place on
that day, the average of the last reported bid and ask prices, in either case on the principal national
securities exchange on which the Common Stock is admitted to trading or listed.

               (ii) If not admitted to trading or listed on any national securities exchange, Fair Market
Value shall be the last sale price on that day of the Common Stock reported on the Nasdaq National Market or
the Nasdaq SmallCap Market (“Nasdaq Stock Market”) or, if no such reported sale takes place on that day, the
average of the closing bid and ask prices on that day.

               (iii) If not included on the Nasdaq Stock Market, Fair Market Value shall be the average
of the closing bid and ask prices of the Common Stock on that day reported by the Nasdaq Electronic Bulletin
Board, or any comparable system on that day.

               (iv) If the Common Stock is not included on the Nasdaq Electronic Bulletin Board or a
comparable system, Fair Market Value shall be determined in good faith by the Board after taking into account
such factors as the Board shall deem appropriate.

          (o) “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code.

          (p) “Nonstatutory Stock Option” means an Option that is not intended to qualify as an
Incentive Stock Option.

2

 

          (q) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder.

          (r) “Option” means a stock option granted pursuant to the Plan.

          (s) “Option Agreement” means a written agreement between the Company and an Optionee evidencing
the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and
conditions of this Plan.

          (t) “Optioned Stock” means the Common Stock subject to an Option or Stock Purchase Right.

          (u) “Optionee” means an Employee, Consultant or Outside Director who holds an outstanding Option
or Stock Purchase Right.

          (v) “Outside Director” means a Director who is not an Employee.

          (w) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code.

          (x) “Plan” means this Netgroupie 2000 Equity Incentive Plan.

          (y) “Restricted Stock” means shares of Common Stock acquired pursuant to a grant of Stock
Purchase Rights under Section 11 of this Plan.

          (z) “Restricted Stock Purchase Agreement” means a written agreement between the Company and the
Optionee evidencing the terms and restrictions applying to Common Stock purchased under a Stock Purchase Right.
The Restricted Stock Purchase Agreement is subject to the terms and conditions of this Plan.

          (aa) “Share” means a share of the Common Stock.

          (bb) “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of
this Plan, as evidenced by a Restricted Stock Purchase Agreement.

          (cc) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

          (dd) “Termination” or “Terminated” means, for purposes of this Plan with respect to an Optionee,
that the Optionee has for any reason ceased to provide services as an employee, officer, director, consultant,
independent contractor or advisor to the Company or a Parent or Subsidiary of the Company. An employee will not
be deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any
other leave of absence approved by the Board, provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract or statute or unless provided
otherwise pursuant to formal policy adopted from time to time by the Company and issued and promulgated to
employees in writing. In the case of any employee on an approved leave of absence, the Board may make such
provisions respecting suspension of vesting of an

3

 

Option or Stock Purchase Right while on leave from the employ of the Company or a Subsidiary as it may deem
appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in
the Option agreement. The Board will have sole discretion to determine whether an Optionee has ceased to
provide services.

          (ee) “Termination Date” means the effective date of the Termination of an Optionee, as
determined by the Board in its sole discretion.

     3. STOCK SUBJECT TO THE PLAN.

          (a) Subject to the provisions of Section 13 of this Plan, the maximum aggregate number that may be issued
under the Plan is three million nine hundred thirteen thousand seventy three (3,913,073) Shares. The Shares
may be authorized but unissued, or reacquired Common Stock.

          (b) If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in
full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under
the Plan (unless the Plan has terminated).

     4. ADMINISTRATION.

          (a) Administration
By Board. The Board shall administer the Plan unless and until the Board delegates
administration to a Committee, as provided in subsection 4(c).

          (b) Powers
Of Board. The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan to:

               (i) Determine the Fair Market Value of the Common Stock in accordance with Section
2(n) of this Plan;

               (ii) Select the Employees, Consultants and Outside Directors to whom Options and
Stock Purchase Rights may be granted hereunder in its sole discretion;

               (iii) Determine whether and to what extent Options and Stock Purchase Rights or any
combination thereof, are granted hereunder;

               (iv) Determine the number of shares of Common Stock to be covered by each Option and Stock
Purchase Right granted hereunder;

               (v) Approve forms of agreement for use under the Plan;

               (vi) Determine the terms and conditions, not inconsistent with the terms of the Plan, of
any award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the
time or times when Options or Stock Purchase Rights may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Option or Stock Purchase Right or the shares of Common Stock relating thereto, based in each case
on such factors as the Board, in its sole discretion, shall determine;

4

 

               (vii) Construe and interpret the terms of the Plan and awards granted pursuant to the
Plan;

               (viii) Prescribe, amend and rescind rules and procedures relating to the Plan;

               (ix) Modify or amend each Option or Stock Purchase Right (subject to the limits of
Section 16 of this Plan), including the discretionary authority to extend the post-termination exercisability
period of Options longer than is otherwise provided for in the Plan;

               (x) Authorize any person to execute on behalf of the Company the Option Agreement or
Restricted Stock Purchase Agreement, as applicable;

               (xi) Determine the terms and restrictions applicable to Options and Stock Purchase Rights
and any Restricted Stock; and

               (xii) Generally, to exercise such powers and to perform such acts as the Board deems
necessary or expedient to promote the best interests of the Company that are not in conflict with the
provisions of the Plan.

          (c)  Delegation to Committee. The Board may delegate the administration of the Plan to a Committee or
committees of one or more members of the Board, and the term “Committee” shall apply to any person or persons
to whom such authority has been delegated. If administration has delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore possessed by the Board,
including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized
to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee),
subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from
time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

          (d)  Effect of Board’s Decision. The Board’s (and, if applicable, the Committee’s) decisions,
determinations and interpretations shall be final and binding on all Optionees ‘and any other holders of
Options or Stock Purchase Rights.

          (e) Liability. No member of the Board, no member of the Committee and no employee of the Company shall be
liable for any act or failure to act hereunder, except in circumstances involving his or her bad faith, gross
negligence or willful misconduct, or for any act or failure to act hereunder by any other member or employee or
by any agent to whom duties in connection with the administration of the Plan have been delegated.

          (f) Indemnification. The Company shall indemnify members of the Board, the Committee and any agent
of such persons who is an employee of the Company, against any and all liabilities or expenses to which they may
be subjected by reason of any act or failure to act with respect to their duties on behalf of the Plan, except
in circumstances involving such person’s bad faith, gross negligence or willful misconduct.

     5. ELIGIBILITY. Nonstatutory Stock Options and Stock Purchase Rights may be granted to Employees,
Consultants and Outside Directors. Incentive Stock Options may be

5

 

granted only to Employees. If otherwise eligible, an Employee, Consultant or Outside Director who has been
granted an Option or Stock Purchase Right may be granted additional Options or Stock Purchase Rights.

     6. LIMITATIONS.

          (a) Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a
Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by
the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one
hundred thousand dollars ($100,000), such Options shall be treated as Nonstatutory Stock Options. For purposes
of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were
granted, and the Fair Market Value of the Shares shall be determined as of the time the Option with respect to
such Shares is granted.

          (b) Neither the Plan nor any Option or Stock Purchase Right shall confer upon an Optionee any right with
respect to continuing the Optionee’s employment, consulting or director relationship with the Company, nor shall
they interfere in any way with the Optionee’s right or the Company’s right to terminate such employment,
consulting or director relationship at any time, with or without cause.

          (c) The following limitations shall apply to grants of Options and Stock Purchase Rights to participants:

             (i) no participant shall be granted in any fiscal year of the Company, commencing in the
first fiscal year of the Plan, Options and Stock Purchase Rights to purchase more than one million (1,000,000)
Shares.

             (ii) in connection with his or her initial employment by the Company or a Parent or
Subsidiary, a participant may be granted Options and Stock Purchase Rights to purchase up to an additional five
hundred thousand (500,000) Shares which shall not count against the limit set forth in subsection (i)
immediately above.

             (iii) the foregoing limitations shall be adjusted proportionately in connection with any
change in the Company’s capitalization as described in Section 13 of this Plan.

          (d) In the event that the date of grant of an Option is not a trading day, the exercise price
per Share shall be the Fair Market Value on the next trading day immediately following the date of grant of the
Option.

     7. TERM OF PLAN. The Plan became effective on September ___, 2000. It shall continue in effect for a term
of ten (10) years (September ___, 2010) unless terminated earlier under Section 16 of this Plan. If the number of
shares that can be issued under the Plan and/or the class of individuals eligible to receive Incentive Stock
Options is changed, stockholder approval must again be obtained.

6

 

     8. TERM OF OPTION. The term of each Option shall be stated in the Option Agreement, but not longer than
ten (10) years from the date of grant. Moreover, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary (determined using
the constructive ownership rules of Section 424(d) of the Code), the term of the Incentive Stock Option shall
be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

     9. OPTION EXERCISE PRICE AND CONSIDERATION.

          (a) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to
exercise of an Option shall be determined by the Board, subject to the following limits:

               (i) In the case of an Incentive-Stock Option:

                    (A) Granted to an Employee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes
of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one
hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; and

                    (B) Granted to any Employee other than an Employee
described in subsection (i)(A) immediately above, the per Share exercise price shall be no less than one hundred
percent (100%) of the Fair Market Value per Share on the date of grant.

               (ii) In the case of a Nonstatutory Stock Option:

                    (A) Granted to a person who, at the time the Nonstatutory
Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes
of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one
hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; and

                    (B) Granted to a person other than a person described in
subsection (ii)(A) immediately above, the per Share exercise price shall be no less than eighty five percent
(85%) of the Fair Market Value per Share on the date of grant.

          (b) Waiting Period and Exercise Dates. At the time an Option is granted, the Board shall fix
the period within which the Option may be exercised and shall determine any conditions which must be satisfied
before the Option may be exercised. In so doing, the Board may specify that an Option may not be exercised until
the completion of a service period. Subject to these limitations, Options shall be exercisable at the rate of at
least 20% per year over five years from the date the Option is granted, except that Options granted to Officers,
Directors and Consultants may become fully exercisable as specified in the Option Agreement. The Option
Agreement may permit an Optionee to exercise an option before it is vested, subject to the Company’s right of
repurchase over any shares acquired under the unvested portion of the

7

 

Option (“early exercise”) which right of repurchase shall lapse at the same rate the Option would have vested
had there be no early exercise.

          (c) Form
of Consideration. The Board shall determine the acceptable form of consideration for
exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Board
shall determine the acceptable form of consideration at the time of grant. Such consideration may consist of:

               (i) Cash;

               (ii) Check;

               (iii) Promissory note;

               (iv) Other Shares which (A) have been owned by the Optionee for more than six months on
the date of surrender and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise
price of the Shares as to which said Option shall be exercised;

               (v) Delivery of a properly executed exercise notice together with such other documentation
as the Board and the broker, if applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or the loan proceeds required to pay the exercise price;

               (vi) Any combination of the foregoing methods of payment; or

               (vii) Such other consideration and method of payment for the issuance of Shares selected
by the Board that is permissible under Applicable Law.

     10.  EXERCISE OF OPTION.

          (a) Procedure for Exercise. Any Option granted hereunder shall be exercisable according to the terms of
the Plan and at such times and under such conditions as determined by the Board and set forth in the Option
Agreement. An Option may not be exercised for a fraction of a Share. An Option shall be deemed exercised when
the Company receives (i) written notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is
exercised. Full payment may consist of any consideration and method of payment authorized by the Board and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the
name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse.
Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes
of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

          (b) Rights as a Stockholder. Until the stock certificate evidencing such Shares is issued (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no
right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock
certificate

8

 

promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued.

          (c) Termination of Employment, Consulting or Outside Director Relationship. Upon Termination
of an Optionee’s Continuous Status as an Employee, Consultant or Outside Director, other than upon the
Optionee’s death, Disability, or for Cause, the Optionee may exercise his or her Option, but only within such
period of time as is specified in the Option Agreement, and only to the extent that the Optionee was entitled to
exercise it at the date of termination (but in no event later than the expiration date of such Option as set
forth in the Option Agreement). The Option Agreement shall specify at least thirty (30) days from such
termination for the Option to remain exercisable. In the absence of a specified time in the Option Agreement,
Option shall remain exercisable for ninety (90) days following the Optionee’s Termination. In the case of an
Incentive Stock Option, such period of time for exercise shall not exceed ninety (90) days from the date of
Termination. If, on the Termination Date, the Optionee is not entitled to exercise the Option for all the
Shares, then the Option shall immediately terminate with respect to the Shares covered by the unexercisable
portion of such Option, and those Shares shall immediately revert to the Plan. If, after the Termination Date,
the Optionee does not, within the time specified in the Option, exercise his or her Option for all the Shares
for which that Option is exercisable on the Termination Date, then the Option shall terminate with respect to
those remaining Shares, and such Shares shall revert to the Plan. Notwithstanding the above, in the event of an
Optionee’s change in status from Consultant, Employee or Outside Director to another classification, an
Optionee’s Continuous Status as an Employee, Consultant or Outside Director shall not automatically terminate
solely as a result of such change in status. However, in such event, an Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option at the end of the ninety (90) days period measured from the day of such change in
status.

          (d) Disability of Optionee. In the event that an Optionee’s Continuous Status as an Employee, Consultant or
Outside Director Terminates as a result of the Optionee’s Disability, the Optionee may exercise his or her
Option at any time within twelve (12) months from the date of such Termination, but only to the extent that the
Optionee was entitled to exercise it at the date of such Termination (but in no event later than the expiration
date of such Option as set forth in the Option Agreement). If, at the Termination Date, the Optionee is not
entitled to exercise the Option for all the Shares, then the Option shall immediately terminate with respect to
the Shares covered by the unexercisable portion of such Option, and those Shares shall immediately revert to the
Plan. If, after the Termination Date, the Optionee does not, within the time specified in the Option, exercise
his or her Option for all the Shares for which that Option is exercisable on such Termination Date, then the
Option shall terminate with respect to those remaining Shares, and such Shares shall revert to the Plan.

          (e) Death of Optionee. In the event of the death of an Optionee, the Option may be exercised at any time
within twelve (12) months following the date of death (but in no event later than the expiration date of such
Option as set forth in the Option Agreement), by the Optionee’s estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but only to the extent that the Optionee was entitled to exercise
the Option at the date of death. If, at the time of death, the Optionee was not entitled to exercise the Option
for all the Shares, then the Option shall immediately terminate with respect to the Shares covered by the
unexercisable portion of such Option, and those Shares shall
immediately revert to the Plan. If,

9

 

after Optionee’s death, the Optionee’s estate or a person who acquired the right to exercise the Option by
bequest or inheritance does not, within the time specified in the Option, exercise the Option for all the
Shares for which that Option is exercisable on the date of Optionee’ death, then the Option shall terminate
with respect to those remaining Shares, and such Shares shall revert to the Plan.

          (f) Termination for Cause. In the event that an Optionee’s Continuous Status as an Employee,
Consultant or Outside Director Terminates for Cause, neither the Optionee, the Optionee’s estate nor such other
person who may then hold the Option shall be entitled to exercise any Option with respect to any Shares
whatsoever after Termination, whether or not after Termination the Optionee may receive payment from the
Company or any Parent or Subsidiary for vacation pay, for services rendered prior to Termination, for services
rendered on the Termination Date, for salary in lieu of notice or for any other benefits. Notwithstanding the
foregoing, the Board may, in its sole discretion, provide in any Option Agreement that such Option can be
exercised to the extent it was exercisable on the Termination Date, for a period of up to 30 days from the
Termination Date (but in no event later than the expiration date of such Option as set forth in the Option
Agreement).

     11. STOCK
PURCHASE RIGHTS.

          (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or
in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan. After the Board
determines that it will offer a Stock Purchase Right under the Plan, it shall advise the Optionee in writing, by
means of a Restricted Stock Purchase Agreement in a form determined by the Board, of the terms, conditions and
restrictions related to the offer, including the number of Shares that the Optionee shall be entitled to
purchase, the price to be paid, and the time within which the Optionee must accept such offer. The offer shall
be accepted by execution of said Restricted Stock Purchase Agreement.

               (i) Stock Purchase Rights granted to a person, who, at the time the Stock Purchase Right
is purchased, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of
the Company or any Parent or Subsidiary shall have a purchase price of no less than one hundred percent (100%)
of the Fair Market Value per Share on the date of grant;

               (ii) Stock Purchase Rights granted to a person other than a person described in Section
(a)(i) immediately above shall have a purchase price of no less than eighty-five percent (85%) of the Fair
Market Value per Share on the date of grant.

          (b) Repurchase Option. Unless the Board determines otherwise, the Restricted Stock
Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary
termination of the Optionee’s employment with the Company for any reason (including death or Disability). The
purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original
price paid by the Optionee and shall be paid in cash or by cancellation of any purchase money indebtedness of
the Optionee for the Shares held by the Company, within ninety (90) days of Termination of employment, or in
the case of Shares exercised after the date of Termination, within ninety (90) days of the date of exercise.
The repurchase option shall lapse at the rate set forth in the

10

 

Restricted Stock Purchase Agreement, which shall be at least 20% of the Shares per year over five (5) years
from the date the Stock Purchase Rights were granted.

          (c) Other Provisions. The Restricted Stock Purchase Agreement shall contain such other terms, provisions
and conditions not inconsistent with the Plan as may be determined by the Board in its sole discretion. In
addition, the provisions of Restricted Stock Purchase Agreements need not be the same with respect to each
Optionee.

          (d) Rights as a Stockholder. Once the Stock Purchase Right is exercised, the Optionee shall have the rights
equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the
records of the duly authorized transfer agent of the Company. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Stock Purchase Right is exercised.

     12. LIMITED TRANSFERABILITY OF OPTIONS. During the lifetime of the Optionee, Options shall be
exercisable only by the Optionee and shall not be assignable or transferable other than by will or by the laws
of descent and distribution following the Optionee’s death.

     13. ADJUSTMENTS. If there is any change in the Common Stock of the Company, through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, split-off,
spin-off, combination of shares, exchange of shares, dividend in kind or other like change in capital structure
or distribution (other than normal cash dividends) to stockholders of the Company, an adjustment shall be made
to each outstanding Option so that each such Option shall thereafter be with respect to or exercisable for such
securities, cash and/or other property as would have been received in respect of the Common Stock subject to
such Option had such Option been paid, distributed or exercised in full immediately prior to such change or
distribution. Such adjustment shall be made successively each time any such change shall occur. In addition, in
the event of any such change or distribution, to prevent dilution or enlargement of Optionees’ rights under the
Plan, the Board shall have the authority to adjust, in an equitable manner, the number and kind of shares that
may be issued under the Plan, the number and kind of shares subject to outstanding Option, the Exercise Price
applicable to outstanding Options, and the Fair Market Value of the Common Stock and other value determinations
applicable to outstanding Options. Appropriate adjustments may also be made by the Board in the terms of any
Options granted under the Plan to reflect such changes or distributions and to modify any other terras of any
Options on an equitable basis, including, without limitation, modifications or performance goals and changes in
the length of performance periods. In addition, the Board is authorized to make adjustments to the terms and
conditions of, and the criteria included in, Options in recognition of unusual or nonrecurring events affecting
the Company or the financial statements of the Company, or in response to changes in applicable laws,
regulations, or accounting principles. Notwithstanding anything contained in the Plan, any adjustment with
respect to an Incentive Stock Option due to a change or distribution described in this Section 13 shall comply
with the rules of Code Section 424(a), and in no event shall any adjustment be made which would render any
Incentive Stock Option granted hereunder other than an “incentive stock option” for purposes of Code Section 422.

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     14. EXTRAORDINARY EVENTS.

          In addition to its other powers, the Board (or the Committee), in its discretion, has the right
to accelerate unvested Options and to terminate all limitations, restrictions and repurchase rights applicable
to any outstanding Restricted Stock, in connection with (a) any tender offer for a majority of the outstanding
 shares of Common Stock by any person or entity; (b) any proposed sale or conveyance of all or substantially all
of the property and assets of the Company; or (c) any proposed consolidation or merger of the Company with or
into any other corporation, unless the Company is the surviving corporation, provided, however, that in a
reverse merger in which the Company is the surviving corporation but the shares of the Company’s stock are
converted by virtue of the merger into other property or the voting securities of the Company outstanding
immediately prior to such merger represent less than fifty percent (50%) of the voting securities of the
Company after such merger, the Board (or the Committee) shall have the right to accelerate unvested Options and
to terminate all limitations, restrictions and repurchase rights applicable to any outstanding Restricted
Stock. In the case of such accelerated vesting or termination of restriction, limitation or repurchase right,
the Company shall give written notice to the holder of any Option or Restricted Stock that such Option may be
exercised even though the Option or portion thereof would not otherwise have been exercisable had the foregoing
event not occurred or that such Restricted Stock will no longer be subject to any restriction, limitation or
repurchase right. In such event, the Company shall permit the holder of any Option to exercise during the time
period specified in the Company’s notice, which period shall not be less than ten days following the date of
notice. Upon consummation of a tender offer or proposed sale, conveyance, consolidation or merger to which such
notice shall relate, all rights under said Option which shall not have been so exercised shall terminate unless
the agreement governing the transaction shall provide otherwise.

     15. DATE OF GRANT. The date of grant of an Option or Stock Purchase Right shall be, for all purposes, the
date on which the Board makes the determination granting such Option or Stock Purchase Right, or such other
later date as is determined by the Board.

     16. AMENDMENT AND TERMINATION. The Board may at any time amend, alter, suspend or terminate the Plan. No
amendment, alteration, suspension or termination of the Plan, Option, or Stock Purchase Right shall impair the
rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Board.

     17. CONDITIONS UPON ISSUANCE OF SHARES.

          (a)  Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or Stock Purchase
Right unless the exercise of such Option or Stock Purchase Right and the issuance and delivery of such Shares
shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act as well as the rules and regulations promulgated thereunder, Applicable Laws, and the
requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and
shall be further subject to the approval of counsel for the Company with respect to such compliance.

          (b) Investment
Representations. As a condition to the exercise of an Option or Stock Purchase Right, the
Company may require the person exercising such Option or Stock

12

 

Purchase Right to represent and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required.

     18. LIABILITY OF COMPANY.

          (a) Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Snares hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not have been obtained.

          (b) Grants
Exceeding Allotted Shares. If the Optioned Stock covered by an Option or Stock Purchase Right
exceeds, as of the date of grant, the number of Shares which may be issued under the Plan without additional
stockholder approval, such Option or Stock Purchase Right shall be void with respect to such excess Optioned
Stock, unless stockholder approval of an amendment sufficiently increasing the number of Shares subject to the
Plan is timely obtained.

     19. RESERVATION OF SHARES. The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

     20. STOCKHOLDER APPROVAL. The Plan shall be approved by the Company’s stockholders within twelve (12)
months before or after its adoption. Any Option exercised before such stockholder approval is obtained shall
be rescinded if the stockholders do not approve the Plan within such time. Such Shares shall not be counted in
determining whether or not such approval is obtained.

     21. FINANCIAL INFORMATION. To the extent applicable, the Company shall provide the financial information
required by Section 260.140.41 of Title 10 of the California Code of Regulations and that information required
by Section 6039 of the Code.

     22. INDEMNIFICATION OF BOARD (OR COMMITTEE, IF APPLICABLE).
In addition to such other rights of indemnification as they may have as directors or as members of the Committee,
the members of the Board (or the Committee, if applicable) shall be indemnified by the Company against the
reasonable expenses, including attorneys, fees, actually and necessarily incurred in connection with the defense
of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be
a party by reason of any action taken or failure to act under or in connection with the Plan or any Option or
Restricted Stock granted thereunder, and against all amounts paid by them in settlement thereof (provided such
settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a
judgment in any such action, suit or proceeding except in relation to matters as of which it shall be adjudged in
such action, suit or proceeding that such Board (or Committee, if applicable) member did not act in good faith
and in a manner the member reasonably believed to be in the best interests of the Company; provided that within
sixty days after institution of any such action, suit or proceeding a Board (or Committee, if applicable)

13

 

member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.

14

 

NGTV

Certificate of Secretary

AMENDMENT TO

2000 EQUITY INCENTIVE PLAN

     I, the undersigned, do hereby certify:

     1. that I am the duly elected and acting Secretary of NGTV, a California corporation (the
“Corporation”); and

     2. that the following Amendment to Section 3 of the Corporation’s 2000 Equity Incentive Plan
was duly adopted by Written Consent to Action of the Board of Directors and Majority Shareholders:

*          *          *          

     “3(a) Subject to the provisions of Section 13 of this Plan, the maximum
aggregate number that may be issued under the Plan is 10,913,073 Shares. The Shares
may be authorized but unissued, or reacquired Common Stock.”

*          *          *          

     IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said
Corporation on this 25th day of October, 2005.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Jay Vir, Secretary

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