Document:

Unassociated Document

SEPARATION
AGREEMENT

This
Separation Agreement is made as of this1st day of June, 2005 by and among, on
the one hand, Logistical Support, Inc., a Utah corporation (the “Company”), Hill
Aerospace and Defense, LLC, a California limited liability company (“HAD”),
Logistical Support, LLC, a California limited liability company (“LS” and
together with the Company and HAD, “Logistical”), and on the other hand, Mr.
Harry Lebovitz (“Lebovitz”), Hill Industries, Inc., a California corporation
(“Hill Inc.”) and Hill Industries, LLC, a California limited liability company
(“Hill LLC” and together with Hill Inc, the “Hill Entities”) (collectively, the
“Parties” and each a “Party”).

WITNESSETH:

WHEREAS,
Lebovitz is a member of the Board of Directors of the Company and is a
significant shareholder of the Company; and

WHEREAS,
Lebovitz currently manages one or more of HAD or LS and has access to the
facility, books, records, and other properties of Logistical; and 

WHEREAS,
Lebovitz owns and/or controls each of the Hill Entities; and 

WHEREAS,
the Company and Lebovitz have determined to separate Lebovitz and the Hill
Entities from Logistical and the business and operations and properties of
Logistical; and 

WHEREAS,
the Company, Mr. Bruce Littell, a Member of the Board of Directors of the
Company and Lebovitz agree that this Separation Agreement and the actions
contemplated hereby and the terms hereof, and the results intended hereby, are
in the best interests of the Company and its shareholders.

NOW,
THEREFORE, the Company, Lebovitz and the Hill Entities intending to be legally
bound, and in consideration of the covenants and promises set forth herein, and
other good and valuable consideration, the receipt of which is hereby
acknowledged, hereby agree as follows:

1. Resignation
and Leave of Absence. Effective
immediately and without any further action on the part of Lebovitz or the
Company, Lebovitz hereby resigns from the Board of Directors of the Company (the
“Board Resignation”). Such Board Resignation is hereby accepted by the Company.
Effective immediately, Lebovitz shall be on a leave of absence from any and all
management and other employment positions he holds with HAD, LS or the Company
(the “LOA”). The Company hereby
approves of the LOA. The Company and Lebovitz hereby agree that such LOA shall
be unpaid and that no salary, sick days, vacation days or other benefits shall
accrue or be due or payable to Lebovitz during such LOA.

1

2. Stock
Purchase. 

(a)
 Purchases. The
Company hereby agrees, upon the terms and conditions set forth herein, to
purchase from Lebovitz and the Hill Entities $25,000.00 per month of the shares
of common stock of Logistical Support, Inc. (the “Common Stock”) owned by
Lebovitz and/or the Hill Entities, at a price per share of $0.25 (the “Purchase
Price”). Accordingly, commencing on June 15, 2005 and on each calendar month
thereafter for a period of 12 months in total (the “Purchase Period”), the
Company shall tender to Lebovitz and/or the Hill Entities, as applicable the
amount of $25,000, up to an aggregate during the Purchase Period of $300,000.00
(the “Purchase Amount”), provided the conditions of this Section 2 are
satisfied. Within five (5) business days of the date hereof, Lebovitz shall
deliver, or cause the Hill Entities to deliver, to the Company at the Company’s
principal office, stock certificates representing not less than 1,200,000 shares
of Common Stock (the “Purchased Shares”), with stock powers endorsed to the
Company, and with appropriate instructions to the Transfer Agent of the Company
to transfer such shares to the order of the Company, and a request from the
Transfer Agent for an opinion of counsel to remove any restrictive legends on
the certificates. Upon the payment by the Company of the monthly purchase amount
(the “Monthly Purchase Amount”) the Company shall be deemed to own (an
additional) 100,000 of the Purchase Shares. The balance of the Purchased Shares,
until the aggregate of the Monthly Purchase Amount of $300,000.00 has been
tendered, shall be held in trust under this Agreement by the Company. Should
this Agreement be terminated by the Company for any reason, the Company shall be
obligated to return any shares held by it that have not been purchased by
payment of the Monthly Purchase Amount to Lebovitz.

(b) Conditions. The
Company shall have no obligation to purchase the Purchased Shares, or tender
such Monthly Purchase Amount, or any portion thereof, if at the time the Monthly
Payment Amount is to be tendered (i) the certificates representing such shares
are not properly executed, (ii) the stock powers are not duly completed in
blank, (iii) the instructions to the Transfer Agent are incomplete or are
rejected by the Transfer Agent, (iv) an opinion of counsel cannot be obtained to
the satisfaction of the Transfer Agent with respect to the transfer and
re-issuance of the certificates, (v) there shall be, or there shall have been,
an Event of Default under Section 8 of this Agreement, or (vi) for any other
reason that prevents the legal transfer and conveyance of such shares to the
Company, or such conveyance cannot be made without restriction, lien, claim or
encumbrance upon such shares. In addition, each of the representations and
warranties set forth under Section 4 shall be true and correct in all material
respects as of the date of payment by the Company of each Monthly Payment
Amount. In the event any representation or warranty shall be untrue, false, or
misleading at such date, the Company shall have no obligation to tender the
Monthly Purchase Amount and may demand return and repayment of any portion of
the Purchase Amount discovered to have been made while a breach of the
representations and warranties existed or while an Event of Default
existed.

(c)
 Assurances. Lebovitz
agrees, and agrees to cause each of the Hill Entities, to take all such steps
requested by the Company as may be necessary or desirable to effect the transfer
of the Purchased Shares as set forth in paragraph (a) above. 

2

4. Representations
of Lebovitz and the Hill Entities. Lebovitz
hereby represents and warrants for himself and on behalf of each of the Hill
Entities, as follows:

(a) All of
the Purchased Shares are owned free and clear of all claims, liens and
encumbrances. The Purchased Shares are not subject to any rights of first
refusal or other restrictions on transfer. Lebovitz and each of the Hill
Entities have the full power, right, authority and capacity to enter into this
Agreement and to transfer and sell the Purchased Shares in accordance with the
terms hereof.

(b) Except
for the Sun Aviation case, and except as reported in the Company’s filings with
the Securities and Exchange Commission, Lebovitz and the Hill Entities are not
parties to any lawsuit, investigation or proceeding, governmental or private,
and Lebovitz and the Hill Entities have not been notified of or threatened with
the commencement of such a proceeding.

(c) The Hill
Entities are owned and operated in compliance with all material laws and
regulations applicable to their business. The Hill Entities are operated in good
faith and not in a manner designed to circumvent law or general principals of
good faith and fair dealing. Hill Industries Inc. is not currently in good
standing.

(d) Lebovitz
has no knowledge of any circumstance that would give rise to a claim, proceeding
or investigation against the Company or the Board of the Company, arising from
his conduct as a member of the Board of Directors. 

(e) Hill Inc.
is wholly owned by Lebovitz. Lebovitz owns seventy percent of the membership
interests of Hill LLC, including Hill Inc.’s membership interests. All necessary
action on the part of Hill Inc. and Hill LLC has been taken in order for such
entities to enter into this Agreement.

 

5.  Release
and Indemnity. 

 

(a)  Release.
Lebovitz, Hill LLC, and Hill Inc. each irrevocably and unconditionally releases
all of the claims described in subsection (ii) of this section 5 that he or it
may now have against the following persons or entities (the “Releasees”): the
Company, HAD and LS, and all of their past and present employees, officers,
directors, stockholders, owners, representatives, assigns, attorneys, agents,
insurers, employee benefit programs (and the trustees, administrators,
fiduciaries and insurers of such programs) and any other persons acting by,
through, under or in concert with any of the persons or entities listed in this
subsection.

 

(b) Claims
Released. The
claims released include all claims, promises, debts, causes of action or similar
rights of any type or nature Lebovitz, Hill Inc. or Hill LLC has or had which in
any way relate to (i) Lebovitz’s employment with the Company, HAD or LS or the
termination of that employment, such as claims for compensation, bonuses,
commissions, lost wages or unused accrued vacation or sick pay, (ii) the design
or administration of any employee benefit program or Lebovitz’s entitlement to
benefits under any such program, (iii) any claims to attorneys’ fees and/or
other legal costs and (iv) any other claims or demands Lebovitz may, on any
basis, have. The claims released include, but are not limited to, claims arising
under any of the following statutes or common law doctrines:

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(i) Anti-Discrimination
Statutes, such as the Age Discrimination in Employment Act, which prohibits age
discrimination in employment; the Civil Rights Act of 1991, Title VII of the
Civil Rights Act of 1964, and §1981 of the Civil Rights Act of 1866, which
prohibit discrimination based on race, color, national origin, religion or sex;
the Equal Pay Act, which prohibits paying men and women unequal pay for equal
work; the Americans With Disabilities Act, which prohibits discrimination
against the disabled; the California Fair Employment and Housing Act, which
prohibits discrimination in employment based upon race, color, national origin,
ancestry, physical or mental disability, medical condition, martial status, sex,
or age; and any other federal, state or local laws or regulations prohibiting
employment discrimination.

(ii) Federal
Employment Statutes, such as the Employee Retirement Income Security Act of
1974, which, among other things, protects pension or health plan benefits; and
the Fair Labor Standards Act of 1938, which regulates wage and hour
matters.

(iii) Other
laws, such as any federal, state or local laws restricting an employer’s right
to terminate employees or otherwise regulating employment; any federal, state or
local law enforcing express or implied employment contracts or requiring an
employer to deal with employees fairly or in good faith; and any other federal,
state or local laws providing recourse for alleged wrongful discharge, physical
or personal injury, emotional distress, fraud, negligent misrepresentation,
libel, slander, defamation and similar or related claims. The laws referred to
in this paragraph include statutes, regulations, other administrative guidance
and common law doctrines.

(c) Release
Extends to Both Known and Unknown Claims. This
release covers both claims that Lebovitz, Hill Inc. and Hill LLC knows about and
those Lebovitz, Hill Inc. and Hill LLC do not know about. Lebovitz understands
the significance of this release of unknown claims and his waiver of any
statutory protection against a release of unknown claims. Lebovitz expressly
waives the protection of any such governmental statutes or
regulations.

More
particularly, and without limitation, Lebovitz acknowledges that he has read and
is familiar with and understands the provisions of Section 1542 of the
California Civil Code, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF
KNOWN TO HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

4

LEBOVITZ
EXPRESSLY WAIVES ANY RIGHT OR CLAIM OF RIGHT HE MAY HAVE UNDER SECTION 1542 OF
THE CALIFORNIA CIVIL CODE.

(d) Ownership
of Claims. Lebovitz
represents that he has not assigned or transferred, or purported to assign or
transfer, all or any part of any claim released by this Agreement for himself or
for any of Hill Inc. or Hill LLC.

(e) Lebovitz’s
Promises. In
addition to the release of claims provided for in this section 5, Lebovitz for
himself and for Hill Inc. and Hill LLC promises never to file or prosecute a
lawsuit, administrative complaint or charge, or other complaint or charge
asserting any claims that are released by this Agreement. Lebovitz represents
that he has not filed or caused to be filed any lawsuit, complaint or charge
with respect to any claim this Agreement releases. Lebovitz further agrees to
request any government agency or other body assuming jurisdiction of any
complaint or charge relating to a released claim to withdraw from the matter or
dismiss the matter with prejudice.

(f) Consequences
of Lebovitz’s Violation of Promises. If
Lebovtiz breaks any of the promises in this Agreement, such as, by way of
example and not by way of limitation, by filing or prosecuting a lawsuit or
charge based on claims that Lebovtiz has released, or if any representation made
by Lebovitz in this Agreement was false when made, Lebovitz will pay reasonable
attorneys’ fees and all other costs incurred as a result of such breach or false
representation, such as, by way of example and not by way of limitation, the
Company’s, HAD’s or LS’ cost of defending any suit brought with respect to a
claim released by him.

 

(g) Indemnity. Each of
Lebovitz, Hill Inc. and Hill LLC do hereby agree to indemnify and hold harmless
each of the Company, HAD, LS and their respective officers,
directors, employees, agents, representative, attorneys from any all damages,
costs, claims and expenses arising from or related to Lebovitz’s service on the
Company’s Board of Directors, his employment at Logistical, his or the Hill
Entities’ business operations or course of conduct, his shareholding of the
Company, any breach of this Agreement or any of the terms hereof, any Event of
Default as set forth in Section 8 of this Agreement, any misconduct or other
activity which predates the closing of the merger between the Company and Bikini
Team International, Inc. that might call into question any aspect of such
merger, or any other undertaking, activity, omission or action made by or on
behalf or at the direction of Lebovtiz, Hill Inc. or Hill LLC, whenever done,
made or initiated.

 

(h) Waiver.
The
Company, HAD and LS, and Lebovitz, acknowledge and agree each of them has
determined to waive the statutory 21 day waiting period, and 7 day revocation
period, in order to expedite the effectiveness of this Agreement and the Company
further acknowledges that such waiver creates a risk to the Company of claims by
Lebovitz in the future.

 

5

6. Voting
Agreement. Lebovitz
hereby agrees to, and shall cause the Hill Entities to, vote any and all shares
of Common Stock of the Company owned by him or the Hill Entities (including any
shares held by the Company under this Agreement as Purchased Shares, not yet
owned by the Company) (i) in favor of Mr. Bruce Littell’s nomination and
election to the Board of Directors of the Company, and (ii) in favor of any
proposals presented to the shareholders for voting or consent that have been
approved by Mr. Littell in his capacity as a director of the Company, whether
such voting or consent is conducted by written consent, special meeting or
annual meeting of shareholders.

 

7. Business
Covenants. 

 

(a)
 Lebovitz
hereby agrees that he shall, during the Purchase Period and for a period of one
year thereafter, maintain in confidence and not utilize the confidential or
proprietary information or other intellectual property of Logistical.
Maintaining such confidential or proprietary information and intellectual
property in confidence shall include refraining from disclosing such proprietary
information or intellectual property to any third party and refraining from
using such proprietary or confidential information or intellectual property for
his own account or the account of the Hill Entities or for any other person or
business entity. The Employee agrees to destroy any copies of the proprietary or
confidential information or intellectual property of Logistical in his
possession 

(b) Lebovitz
hereby agrees that he shall not, during the Purchase Period solicit any person
who is employed by or a consultant to the Company or any affiliate or subsidiary
of the Company to terminate such person’s employment by or consultancy to the
Company, such affiliate or subsidiary. 

(c) Lebovitz
recognizes and acknowledges the competitive and proprietary nature of the
Company’s business operations. Lebovitz acknowledges and agrees that a business
will be deemed competitive with the Company if it engages in a line of business
in which it performs any of the principal services provided or offered by the
Company or any services designed or marketed primarily to fulfill the same
function, whether or not similar. Lebovitz hereby agrees in consideration of the
Company’s payments for the Purchased Shares, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, as
follows: except with respect to the Hill Entities as currently owned and
operated, Lebovitz for his own account or on behalf of any other, directly or
indirectly, either as principal, agent, stockholder, employee, consultant,
representative or in any other capacity, own, manage, operate or control, or be
concerned, connected or employed by, or otherwise associate in any manner with,
engage in or have a financial interest in any business whose primary line of
business is substantially similar to the Company, specifically in the areas of
aerospace and defense and federal government contracting. Nothing herein shall
prohibit Lebovitz’s continued ownership of his shares of the Company not
purchased hereunder.

6

(d) If any
part of this section should be determined by a court of competent jurisdiction
to be unreasonable in duration, geographic area, or scope, then this section is
intended to and shall extend only for such period of time, in such area and with
respect to such activity as is determined to be reasonable.

8.
 Events
of Default. The
occurrence or continuance of any of the following events shall be an Event of
Default hereunder: (i) Lebovitz’s breach of this Agreement, or any covenant,
undertaking or agreement that he or the Hill Entities are obligated to perform
hereunder; (ii) the willful malfeasance or misconduct by Lebovitz in connection
with misappropriating any funds or property of the Company, HAD or LS, whether
now existing or hereafter discovered or arising, or attempting willfully to
obtain any personal profit from any transaction in which Lebovitz has an
interest which is adverse to the interests of the Company, HAD or LS or any
other willful misconduct that discredits or damages the Company, HAD or LS;
(iii) any representation or warranty hereunder shall be discovered to be false
or misleading when made, or at the time of any payment of monies by the Company
hereunder. 

9. Company
Undertakings. The
Company agrees to use reasonable efforts during the LOA period to assist
Lebovitz in pursuing any benefits claims he may have with respect to health or
disability insurance coverage provided by the Company during his employment with
the Company. In addition, the Company shall during the LOA period pay for and
provide Lebovitz with health, disability and other insurance benefits available
to employees of the Company on such terms and in such amounts as are available
to other employees of the Company. Nothing herein shall obligate the Company to
provide health or other insurance benefits to Lebovitz as currently provided to
him should the terms of availability of such insurance change after the date
hereof.

10. Legal
Counsel Lebovitz
acknowledges that the Company, HAD and LS has advised him to obtain the services
of an attorney to review this Agreement and to advise him regarding it. Lebovitz
acknowledges he has had an opportunity to consult with an attorney prior to
executing this Agreement. 

 

11. Miscellaneous. 

 

(a) Any
notice, demand, or communication required or permitted under this Agreement
shall be deemed to have been duly given if delivered personally to the party to
whom directed or, if mailed by registered or certified mail, postage and charges
prepaid.

 

(b) This
Agreement shall be construed and enforced in accordance with the internal laws
of the State of California.

 

(c) This
Agreement may not be amended except by the prior written agreement of all
Parties.

 

(d) The
failure of any Party to seek redress for violation of or to insist upon the
strict performance of any covenant or condition of this Agreement shall not
prevent a subsequent act, which would have originally constituted a violation,
from having the effect of an original violation.

 

7

(e) If any
provision of this Agreement or the application thereof to any Party or
circumstance shall be invalid, illegal or unenforceable to any extent, the
remainder of this Agreement and the application thereof shall not be affected
and shall be enforceable to the fullest extent permitted by law.

 

(f) The
terms, provisions and agreements herein contained shall be binding upon and
inure to the benefit of the Parties hereto, and their respective spouses, legal
representatives, heirs, successors and assigns.

 

(g) In the
event of any legal action between the Parties hereto, declaratory or otherwise,
in connection with or arising out of this Agreement or the enforcement hereof,
the most prevailing Party shall be entitled to recover from the less prevailing
Party all actual costs, actual damages and actual expenses, including attorneys’
fees, paralegals’ fees and other professional or consultants’ fees expended of
incurred in connection therewith.

 

(h) This
Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which shall constitute one and the same instrument.
Signatures on this Agreement that are provided by facsimile transmission shall
be deemed to be the same as original signatures.

 

REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

 

8

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Separation Agreement as
of the date above first written.

 

	 	HARRY LEBOVITZ:
	 	 
	 	/s/ Harry Lebovitz
	 	Harry Lebovitz
	 	 
	 	 
	 	HILL INDUSTRIES,
    INC.:
	 	 
	 	By: Harry Lebovitz
	 	Name: Harry Lebovitz
	 	Title: President
	 	 
	 	 
	 	HILL INDUSTRIES
    LLC:
	 	 
	 	By: Harry Lebovitz
	 	Name: Harry Lebovitz
	 	Title: Managing Member
	 	 
	 	 
	 	LOGISITICAL SUPPORT,
      INC.:
	 	 
	 	By: Bruce Littell
	 	Name:
      Bruce Littell
	 	Title: CEO

 

9

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Separation Agreement as
of the date above first written.

 

	 	HILL AEROSPACE AND DEFENSE,
      LLC:
	 	 
	 	By: Harry Lebovitz
	 	Name: Harry Lebovitz
	 	Title: Managing Member
	 	 
	 	 
	 	LOGISTICAL SUPPORT,
      LLC:
	 	 
	 	By: Bruce Littell
	 	Name: Bruce Littell
	 	Title: Managing Member
	 	 
	 	 

10Unassociated Document

NAPSTER,
INC.

2001
STOCK PLAN

RESTRICTED
STOCK AWARD AGREEMENT

 

THIS
RESTRICTED STOCK AWARD AGREEMENT (this
“Agreement”) is
dated as of [____________,
2005] (the
“Award
Date”) by and
between Napster, Inc., a Delaware corporation (the “Corporation”), and
[______________] (the
“Participant”).

 

W
I T N E S S E T H

 

WHEREAS,
pursuant to the Napster, Inc. 2001 Stock Plan, as amended and restated August
15, 2003 (the “Plan”), the
Corporation hereby grants to the Participant, effective as of the date hereof, a
restricted stock award (the “Award”), upon
the terms and conditions set forth herein and in the Plan.

 

NOW
THEREFORE, in
consideration of services rendered and to be rendered by the Participant, and
the mutual promises made herein and the mutual benefits to be derived therefrom,
the parties agree as follows:

 

1.  Defined
Terms.
Capitalized terms used herein and not otherwise defined herein shall have the
meaning assigned to such terms in the Plan.

 

2.  Grant. Subject
to the terms of this Agreement, the Corporation hereby grants to the Participant
an Award with respect to an aggregate of [________]
restricted shares of Common Stock of the Corporation (the “Restricted
Stock”).

 

3.  Vesting.
[Subject to Section 8 below, the Award shall vest, and restrictions (other than
those set forth in Section 16 of the Plan) shall lapse, with respect to
one-fourth of the total number of shares of Restricted Stock (subject to
adjustment under Section 13 of the Plan) on each of the first, second,
third and fourth anniversaries of the Award Date.] 

 

4.  Continuance
of Employment. The
vesting schedule requires continued employment or service through each
applicable vesting date as a condition to the vesting of the applicable
installment of the Award and the rights and benefits under this Agreement.
Partial employment or service, even if substantial, during any vesting period
will not entitle the Participant to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of
employment or services as provided in Section 8(a) below or under the
Plan.

 

Nothing
contained in this Agreement or the Plan constitutes an employment or service
commitment by the Corporation, affects the Participant’s status as an employee
at will who is subject to termination without cause, confers upon the
Participant any right to remain employed by or in service to the Corporation or
any of its Subsidiaries, interferes in any way with the right of the Corporation
or any of its Subsidiaries at any time to terminate such employment or services,
or affects the right of the Corporation or any of its Subsidiaries to increase
or decrease the Participant’s other compensation or benefits. Nothing in this
paragraph, however, is intended to adversely affect any independent contractual
right of the Participant without his or her consent thereto.

 

1

5.  Dividend
and Voting Rights. After
the Award Date, the Participant shall be entitled to cash dividends and voting
rights with respect to the shares of Restricted Stock subject to the Award even
though such shares are not vested, provided that such rights shall terminate
immediately as to any shares of Restricted Stock that are forfeited pursuant to
Section 8(a) below.

 

6.  Restrictions
on Transfer. Prior
to the time that they have become vested pursuant to Section 13 of the Plan,
Section 3, Section 8(b), or Section 8(c), neither the Restricted Stock, nor any
interest therein, amount payable in respect thereof, or Restricted Property (as
defined in Section 9 hereof) may be sold, assigned, transferred, pledged or
otherwise disposed of, alienated or encumbered, either voluntarily or
involuntarily. The transfer restrictions in the preceding sentence shall not
apply to transfers to the Corporation.

 

7.  Stock
Certificates.

 

(a)  Book
Entry Form. The
Corporation shall issue the shares of Restricted Stock subject to the Award
either: (a) in certificate form as provided in Section 7(b) below; or (b) in
book entry form, registered in the name of the Participant with notations
regarding the applicable restrictions on transfer imposed under this
Agreement.

 

(b)  Certificates
to be Held by Corporation; Legend. Any
certificates representing shares of Restricted Stock that may be delivered to
the Participant by the Corporation prior to vesting shall be redelivered to the
Corporation to be held by the Corporation until the restrictions on such shares
shall have lapsed and the shares shall thereby have become vested or the shares
represented thereby have been forfeited hereunder. Such certificates shall bear
the following legend:

 

“The
ownership of this certificate and the shares of stock evidenced hereby and any
interest therein are subject to substantial restrictions on transfer under an
Agreement entered into between the registered owner and Napster, Inc. A copy of
such Agreement is on file in the office of the Secretary of Napster,
Inc.”

 

(c)  Delivery
of Certificates Upon Vesting.
Promptly after the vesting of any shares of Restricted Stock pursuant to Section
13 of the Plan, Section 3, Section 8(b), or Section 8(c), the Corporation shall,
as applicable, either remove the notations on any shares of Restricted Stock
issued in book entry form which have vested or deliver to the Participant a
certificate or certificates evidencing the number of shares of Restricted Stock
which have vested, in either case, less the number of shares required to be
withheld pursuant to Section 10 hereof. The Participant (or the beneficiary or
personal representative of the Participant in the event of the Participant’s
death or disability, as the case may be) shall deliver to the Corporation any
representations or other documents or assurances as the Corporation may
determine to be necessary or reasonably advisable in order to ensure compliance
with all Applicable Laws with respect to the grant of the Award and deliver of
shares of Common Stock in respect thereof. The shares so delivered shall no
longer be restricted shares hereunder.

 

(d)  Stock
Power; Power of Attorney.
Concurrently with the execution and delivery of this Agreement, the Participant
shall deliver to the Corporation an executed stock power in the form attached
hereto as Exhibit
A, in
blank, with respect to such shares. The Corporation shall not deliver any share
certificates in accordance with this Agreement unless and until the Corporation
shall have received such stock power executed by the Participant. The
Participant, by acceptance of the Award, shall be deemed to appoint, and does so
appoint by execution of this Agreement, the Corporation and each of its
authorized representatives as the Participant’s attorney(s)-in-fact to effect
any transfer of unvested forfeited shares (or shares otherwise reacquired by the
Corporation hereunder) to the Corporation as may be required pursuant to the
Plan or this Agreement and to execute such documents as the Corporation or such
representatives deem necessary or advisable in connection with any such
transfer.

 

2

8.  Effect
of Termination of Employment or Services or Change of
Control.

 

(a)  Termination
of Employment or Services. Subject
to earlier vesting as provided in Section 13 of the Plan, Section 8(b), or
Section 8(c), and except as provided in Section 8(b) or Section 8(c), if the
Participant’s Continuous Status as an Employee or Consultant terminates, the
Participant’s shares of Restricted Stock (and related Restricted Property as
defined in Section 9 hereof) shall be forfeited to the Corporation to the extent
such shares have not become vested upon the date the Participant’s Continuous
Status as an Employee or Consultant terminates (regardless of the reason for
such termination, whether with or without cause, voluntarily or involuntarily,
or due to death or disability). Upon the occurrence of any forfeiture of shares
of Restricted Stock hereunder, such unvested, forfeited shares and related
Restricted Property shall be automatically transferred to the Corporation,
without any other action by the Participant (or the Participant’s beneficiary or
personal representative in the event of the Participant’s death or disability,
as applicable). No consideration shall be paid by the Corporation with respect
to such transfer. The Corporation may exercise its powers under Section 7(d)
hereof and take any other action necessary or advisable to evidence such
transfer. The Participant (or the Participant’s beneficiary or personal
representative in the event of the Participant’s death or disability, as
applicable) shall deliver any additional documents of transfer that the
Corporation may request to confirm the transfer of such unvested, forfeited
shares and related Restricted Property to the Corporation. 

 

(b)  Change
of Control. Subject
to Section 4 hereof and to earlier vesting as provided in Section 13 of the
Plan, in the event of a Change of Control of the Corporation, one-fourth of the
total number of shares of Restricted Stock that are unvested at the time of the
Change of Control of the Corporation (and related Restricted Property) and not
forfeited pursuant to Section 8(a) prior to the date of the Change of Control,
if any, shall become immediately vested and restrictions on such shares (other
than those set forth in Section 16 of the Plan) shall immediately lapse upon the
Change of Control. For example, if fifty percent (50%) of the initial number of
shares of Restricted Stock vest prior to the date of a Change of Control of the
Corporation and the balance of the shares of Restricted Stock remain outstanding
and otherwise unvested on the date of the Change of Control, upon the date of
the Change of Control an additional twelve and one-half percent (12.5%) of the
initial number of shares of Restricted Stock (that is, twenty-five percent (25%)
of the fifty percent (50%) that remained unvested as of the date of the Change
of Control) shall vest. In such circumstances, on the twelve month anniversary
date (the “Anniversary Date”) following the date of the Change of Control of the
Corporation, one-fourth of the total number of shares of Restricted Stock that
are unvested at the time of such Anniversary Date (and related Restricted
Property) and not forfeited pursuant to Section 8(a) prior to the date of the
Change of Control, if any, shall become immediately vested and restrictions on
such shares (other than those set forth in Section 16 of the Plan) shall
immediately lapse upon such Anniversary Date. In the event of any accelerated
vesting pursuant to the foregoing provisions of this Section 8(b), any shares of
Restricted Stock (and related Restricted Property) that remain outstanding and
not vested following such acceleration shall otherwise continue to vest over the
remaining vesting schedule set forth in Section 3 (subject to (i) the
Participant remaining in Continuous Status as an Employee or Consultant, and
(ii) accelerated vesting as provided for in Section 13(c) of the Plan or Section
8(c)), with any accelerated vesting being deemed to have occurred pro-rata from
each remaining vesting date. The numbers of shares referred to in this Section
8(b) are subject to adjustment under Section 13 of the Plan.

 

3

(c)  Notwithstanding
Section 8(a), if the Participant’s Continuous Status as an Employee or
Consultant is involuntarily terminated by the Corporation without Cause upon or
within twelve (12) months following a Change of Control of the Corporation, any
shares of Restricted Stock that are then-unvested (and related Restricted
Property) and not forfeited pursuant to Section 8(a) prior to the date of the
Change of Control shall immediately become fully vested and restrictions on such
shares (other than those set forth in Section 16 of the Plan) shall immediately
lapse upon such termination.

 

(d)  The
acceleration provisions of Sections 8(b) and 8(c) are subject to the limitations
of Section 13(e) of the Plan. 

 

9.  Adjustments
Upon Specified Events. Upon
the occurrence of certain events relating to the Corporation’s stock
contemplated by Section 13(a) of the Plan, the Administrator shall make
adjustments if appropriate in the number and kind of securities that may become
vested under the Award. If any adjustment shall be made under Section 13(a) of
the Plan or an event described in Section 13(f)(i) of the Plan shall occur, or
if the Corporation makes an extraordinary distribution in respect of its Common
Stock (other than ordinary cash dividends provided for in Section 5 hereof), and
the shares of Restricted Stock are not fully vested upon such event or prior
thereto, the restrictions applicable to such shares of Restricted Stock shall
continue in effect with respect to any consideration or other securities or
other amount distributed by the Corporation (the “Restricted
Property” and,
for the purposes of this Agreement, “Restricted Stock” shall include “Restricted
Property”, unless the context otherwise requires) received in respect of such
Restricted Stock. Such Restricted Property shall vest at such times and in such
proportion as the shares of Restricted Stock to which the Restricted Property is
attributable vest, or would have vested pursuant to the terms hereof if such
shares of Restricted Stock had remained outstanding. To the extent that the
Restricted Property includes any cash, such cash shall be invested, pursuant to
policies established by the Administrator, in interest bearing, FDIC-insured
(subject to applicable insurance limits) deposits of a depository institution
selected by the Administrator, the earnings on which shall be added to and
become a part of the Restricted Property. The Board reserves the right to
accelerate the vesting of the Restricted Stock in such circumstances as it, in
its sole discretion, deems appropriate and any such acceleration shall be
effective only when set forth in a written instrument executed by an officer of
the Corporation.

 

4

10.  Tax
Withholding. The
Corporation shall reasonably determine the amount of any federal, state, local
or other income, employment, or other taxes which the Corporation or any of its
Subsidiaries may reasonably be obligated to withhold with respect to the grant,
vesting, making of an election under Section 83(b) of the Code or other event
with respect to the Restricted Stock. The Corporation shall, to the extent the
Corporation reasonably determines is permitted by all Applicable Laws, withhold
and/or reacquire a sufficient number of shares of Restricted Stock that vest
pursuant to this Agreement, valued at their Fair Market Value on the applicable
vesting date, to satisfy the minimum amount of any such withholding obligations
that arise with respect to the vesting of such shares. The Corporation may take
such action(s) without notice to the Participant and shall remit to the
Participant in cash the balance of any proceeds from withholding and/or
reacquiring such shares in excess of the amount reasonably determined to be
necessary to satisfy such withholding obligations. The Participant shall have no
discretion as to the Corporation’s satisfaction of tax withholding obligations
in such manner. If, however, the Participant makes an election under Section
83(b) of the Code with respect to the Restricted Stock, if any other withholding
event occurs with respect to the Restricted Stock other than the vesting of such
shares, or if the Corporation is otherwise reasonably not able to satisfy the
withholding obligations with respect to the vesting of the Restricted Stock as
provided above in this Section 10, the Corporation (or any subsidiary of the
Corporation that employs the Participant, as applicable) shall be entitled to
require a cash payment by or on behalf of the Participant and/or to deduct from
other compensation payable to the Participant the amount of any such withholding
obligations. 

 

11.  Notices. Any
notice to be given under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal office to the attention of the
Secretary, and to the Participant at the Participant’s last address reflected on
the Corporation’s payroll records. Any notice shall be delivered in person or
shall be enclosed in a properly sealed envelope, addressed as aforesaid,
registered or certified, and deposited (postage and registry or certification
fee prepaid) in a post office or branch post office regularly maintained by the
United States Government. Any such notice shall be given only when received, but
if the Participant is no longer a Service Provider, shall be deemed to have been
duly given five business days after the date mailed in accordance with the
foregoing provisions of this Section 11.

 

12.  Plan. The
Award and all rights of the Participant under this Agreement are subject to the
terms and conditions of the provisions of the Plan, incorporated herein by
reference. The Participant agrees to be bound by the terms of the Plan and this
Agreement. The Participant acknowledges having read and understanding the Plan,
the Prospectus for the Plan, and this Agreement. Unless otherwise expressly
provided in other sections of this Agreement, provisions of the Plan that confer
discretionary authority on the Board or the Administrator do not (and shall not
be deemed to) create any rights in the Participant unless such rights are
expressly set forth herein or are otherwise in the sole discretion of the Board
or the Administrator so conferred by appropriate action of the Board or the
Administrator under the Plan after the date
hereof.

 

13.  Entire
Agreement. This
Agreement and the Plan together constitute the entire agreement and supersede
all prior understandings and agreements, written or oral, of the parties hereto
with respect to the subject matter hereof. The Plan may be amended pursuant to
Section 15 of the Plan. This Agreement may be amended by the Board from
time to time. Any such amendment must be in writing and signed by the
Corporation. Any such amendment that materially and adversely affects the
Participant’s rights under this Agreement requires the consent of the
Participant in order to be effective with respect to the Award. The Corporation
may, however, unilaterally waive any provision hereof in writing to the extent
such waiver does not adversely affect the interests of the Participant
hereunder, but no such waiver shall operate as or be construed to be a
subsequent waiver of the same provision or a waiver of any other provision
hereof.

 

5

14.  Counterparts. This
Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument. 

 

15.  Section
Headings. The
section headings of this Agreement are for convenience of reference only and
shall not be deemed to alter or affect any provision hereof.

 

16.  Governing
Law. This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware without regard to conflict of law principles
thereunder.

 

6

IN
WITNESS WHEREOF, the
Corporation has caused this Agreement to be executed on its behalf by a duly
authorized officer and the Participant has hereunto set his or her hand as of
the date and year first above written.

 

 

NAPSTER,
INC.,

a
Delaware corporation

 

 

By:
_____________________________

 

Print
Name: _______________________

 

Its:
_____________________________

 

 

PARTICIPANT

 

________________________________

Signature

 

________________________________

Print
Name

7

CONSENT
OF SPOUSE

 

In
consideration of the execution of the foregoing Restricted Stock Award Agreement
by Napster, Inc., I, _____________________________, the spouse of the
Participant therein named, do hereby join with my spouse in executing the
foregoing Restricted Stock Award Agreement and do hereby agree to be bound by
all of the terms and provisions thereof and of the Plan.

 

Dated: _____________,
2005

 

______________________________________________

Signature
of Spouse

 

______________________________________________

Print
Name

8

EXHIBIT
A

 

STOCK
POWER

 

FOR VALUE
RECEIVED and pursuant to that certain Restricted Stock Award Agreement between
Napster, Inc., a Delaware corporation (the “Corporation”), and the individual
named below (the “Individual”) dated as of _____________, 2005, the Individual,
hereby sells, assigns and transfers to the Corporation, an aggregate ________
shares of Common Stock of the Corporation, standing in the Individual’s name on
the books of the Corporation and represented by stock certificate number(s)
_____________________________________________ to which this instrument is
attached, and hereby irrevocably constitutes and appoints _________________
____________________________________ as his or her attorney in fact and agent to
transfer such shares on the books of the Corporation, with full power of
substitution in the premises.

 

Dated
_____________, ________

 

______________________________________________

Signature
of Spouse

 

______________________________________________

Print
Name

 

(Instruction:
Please do not fill in any blanks other than the signature line. The purpose of
the assignment is to enable the Corporation to exercise its sale/purchase option
set forth in the Restricted Stock Award Agreement without requiring additional
signatures on the part of the Individual.)

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