Document:

Unassociated Document

    

    
      
        
          
            	
                    

                  	
                    General
      Terms &
Conditions

                  

          

        

      

    

     

    
      Effective
Date:  August 18, 2005

    

    

    
      Company:  Sonic
Solutions, 101 Rowland Way, Novato, CA 94945

    

     

      
        

      

       

    

    These
General Terms & Conditions are made and entered into on the Effective Date set forth
above, by and between Digital
River, Inc., a Delaware corporation with offices located at 9625 West
76th Street, Suite 150, Eden Prairie, MN 55344 (“DR”) and the entity or
organization named above (the “Company”) (each, a “Party”, and together, the
“Parties”).  The
Parties agree as follows:

    

    
      	
              1.

            	
              Intent.  The
      purpose and intent of these General Terms & Conditions is to establish
      terms and conditions that shall be incorporated by reference into any
      subsequent agreement specifically referencing these General Terms &
      Conditions that may be entered into between DR and Company (each, an
      “Agreement”).  These
      General Terms & Conditions shall be interpreted solely in the context
      of such an Agreement.  These General Terms & Conditions
      shall not bind either Party unless and until an Agreement is executed by
      the Parties in accordance with these General Terms & Conditions, at
      which time they will be automatically incorporated by reference into, and
      made a part of, that Agreement.  In no event, however, shall
      these General Terms & Conditions be construed as obligating DR or
      Company to enter into any particular Agreement with the
      other.  Appendix 1 to these General Terms & Conditions is
      hereby incorporated by reference.

            

    

    

    
      	
              2.

            	
              Ownership of Materials.
      DR acknowledges that any materials provided to it by or on behalf of
      Company pursuant to this Agreement are the property of Company or its
      licensors, and that DR has no rights in such materials.  Company
      acknowledges that any materials (other than those materials developed
      specifically for Company and for which Company makes payment to DR
      pursuant to a separate written agreement between DR and Company) provided
      by DR in the performance of its obligations under an Agreement (including
      without limitation DR
      Materials and Work Product) are the
      property of DR or its licensors, and that Company has no rights in such
      materials.  Neither Party shall disassemble, decompile, or
      otherwise reverse engineer (as applicable) any Software, DR Materials
      or Work
      Product, or otherwise attempt to learn the source code or
      algorithms underlying them.  Company grants to DR the right to
      use those of its Trademarks supplied by Company to DR solely for the
      purpose of DR’s performance of its obligations under Agreements and as
      otherwise permitted by written agreement between DR and Company (which, in
      the case of Company, must be executed by an officer of
      Company).  Each Party acknowledges that any of the other Party’s
      Trademarks are
      owned and licensed solely and exclusively by that Party, and agrees to use
      such Trademarks
      only in the form and with appropriate legends as prescribed by such other
      Party.  Neither Party will remove, cover, or modify any
      proprietary rights notice or legend placed by the other Party on materials
      used in connection with an
Agreement.

            

    

    

    
      	
              3.

            	
              Term &
      Termination.

            

    

     

    
      	
            	
              3.1.

            	
              Term.  The
      initial term of each Agreement will commence on the Effective Date
      specified in the Agreement and will continue for a period of one (1) year
      from the Effective
      Date, and will automatically renew thereafter for successive one
      (1) year renewal terms, except that an
      Agreement may be terminated by either Party (a) as of the end of the
      initial term or any renewal term by giving the other Party written notice
      of termination at least one hundred and twenty (120) calendar days prior
      to the end of such term; or (b) as otherwise provided in these General
      Terms & Conditions or an
Agreement.

            

    

     

    
      	
            	
              3.2.

            	
              Rights of
      Termination.  Either Party may terminate an Agreement
      (and/or any other Agreements then in effect at that Party’s discretion)
      upon written notice to the other Party in the event of (i) the other
      Party’s breach of a representation or warranty made hereunder or failure
      to substantially perform its obligations under these General Terms &
      Conditions or an Agreement, or (ii) the assertion against the other Party
      of a claim that all or part of any materials, items, products or
      information developed or used in connection with an Agreement infringes or
      otherwise violates the Rights of any other
      person, entity or organization, but in all such cases, only where written
      notice of such breach or failure is provided by the non-breaching Party,
      and such breach or failure to perform is not cured within thirty (30)
      calendar days of the breaching Party’s receipt of that
    notice.

            

    

     

      
        

      

    

    
      	
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                  General
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    Further, either Party may
immediately terminate an Agreement (and/or any other Agreements then in effect
at that Party’s discretion), without opportunity to cure, upon written notice to
the other Party in the event of (a) the assertion against either Party of claims
relating to product liability; or (b) the material violation of the privacy
policy of either Party; or (c) the commission of a fraudulent or criminal act by
either Party; or (d) either party substantially ceases to do business in the
manner in which it was conducted as of the Effective Date of these
General Terms & Conditions (for the avoidance of doubt, a sale of Company’s
business, transfer of stock or assets, or other like transaction between Company
and a third party shall not trigger either Party’s right to terminate under this
clause (d)); or (e) either Party initiates or has initiated against it,
voluntarily or involuntarily, any act, process or proceeding under the
provisions of any bankruptcy statute or law, or under any other insolvency law
or other statute or law providing for the modification or adjustment of the
rights of creditors.

     

    Further,
in the event any claims in connection with any Product sold, resold or
distributed by DR or a Related
Party pursuant to an Agreement are asserted against DR, a Related Party or Company (or
against the publisher of Products distributed but not
published by Company), DR will have the right to suspend or terminate
distribution of such Product, and may take such
other actions as it deems to be reasonably necessary to comply with or as
permitted under applicable law (including without limitation the “safe harbor”
provisions of the Digital Millennium Copyright Act).  Such actions may
include, but are not limited to, the suspension of DR’s performance hereunder
and/or termination of its Agreements with Company upon notice to
Company.

     

    
      	
            	
              3.3.

            	
              Events upon
      Termination.  Upon the later of (a) the date of
      termination of an Agreement or (b) the end of the Winding-Down Period for
      that Agreement if such a period is specified in that Agreement, each Party
      will cease performance of its obligations under that Agreement, and each
      Party will promptly return or destroy any of the other Party’s Confidential
      Information or other materials in its possession or
      control.  Termination will not affect each Party’s payment
      obligations to the other Party in connection with activities prior to
      termination of the Agreement.

            

    

     

    
      	
            	
              3.4.

            	
              Contract
      Review.  After the initial term, DR and Company agree
      that between the first and third months of every year of the renewal
      term(s), the parties shall review and (to the extent deemed necessary by
      both parties) renegotiate in good faith the current pricing for all
      services being provided to Company by DR, as well as any appropriate
      changes to risk allocation warranted by pricing
  changes.

            

    

     

    
      	
               
      

            	
              3.5

            	
              Survival.  The
      provisions of these General Terms & Conditions and any Agreement
      which, by their terms, require performance after the termination of these
      General Terms & Conditions or that Agreement, or have application to
      events that may occur after such termination, shall survive the
      termination of these General Terms & Conditions and that
      Agreement.

            

    

    

    
      	
              4.

            	
              Confidentiality.  All
      Confidential
      Information provided by a Party will be maintained in confidence by
      the other Party, and neither Party will, during the term of the Agreement
      pursuant to which such information was disclosed and or for a period of
      three (3) years following the termination of that Agreement, divulge to
      any person or organization, or use in any manner whatsoever, directly or
      indirectly, for any reason whatsoever, any of the Confidential
      Information of the other Party without receiving the prior written
      consent of the other Party.  The terms of these General Terms
      & Conditions and any Agreements (including pricing) shall be
      considered Confidential
      Information.  Each Party will take such actions as may be
      reasonably necessary to ensure that its employees and agents are bound by
      the provisions of this Section, which actions will, as may be reasonably
      requested by either Party, including the execution of written
      confidentiality agreements with the employees and agents of the other
      Party.  The provisions of this Section will not have application
      to any information that (i) becomes lawfully available to the public; (ii)
      is received without restriction from another person or organization
      lawfully in possession of such information; (iii) was rightfully in the
      possession of a Party without restriction prior to its disclosure; or (iv)
      is independently developed by a Party or its employees or agents without
      access to the other Party’s similar
information.

            

    

    

    
      	
              5.

            	
              Publicity.  Neither
      Party may publicly disclose any of the specific terms of these General
      Terms & Conditions or an Agreement, or issue any press release
      regarding the subject matter of these General Terms & Conditions or
      any Agreement, without the prior written consent of the other Party, which
      consent will not be unreasonably withheld (except consent will not be
      required for disclosures required by law or to comply with any state or
      federal reporting requirement, e.g., those of the Securities and Exchange
      Commission, or any Board of Exchange on which a Party’s stock is
      traded).   Company gives its approval and consent for DR
      (a) to include Company’s name and/or logo in its client list (provided
      that DR follows any reasonable trademark usage guidelines provided to it
      from time to time by Company in connection therewith) and refer to Company
      in marketing materials and business conversations as a client of DR, and
      (b) to disclose general information about the Parties’ relationship
      created by these General Terms & Conditions and any Agreements, and
      the general nature of the activities to be conducted under an
      Agreement.

            

    

     

    
      
        

      

    

    
      	
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              6.

            	
              Warranties.  Each
      Party represents and warrants to the other that: (i) it has full right,
      power and authority to enter into and fully perform its obligations under
      these General Terms & Conditions and any Agreements; (ii) the
      execution, delivery and performance of these General Terms &
      Conditions and any Agreements by that Party does not conflict with any
      other agreement to which it is a Party or by which it is bound; (iii) to
      its actual knowledge, any products, materials, or information provided by
      it will not, when used in accordance with the associated instructions and
      when standing alone (i.e., not combined with
      any items not provided by such Party), infringe or otherwise violate the
      Rights of any
      other person or organization; and (iv) it shall substantially comply with
      all material laws and regulations (including without limitation Export Control Laws)
      applicable to its activities in connection with these General Terms &
      Conditions and any Agreements.  Each party’s sole remedy for
      claims arising out of clause (iii) above shall be indemnification pursuant
      to Section 7.1 below.  Company further represents and warrants
      to DR that (a) Company is the owner or fully authorized licensee of all
      Rights to the
      Products provided
      to DR, and (b) any Software provided to
      DR, or other software used by Company in connection with an Agreement,
      shall not, as delivered by Company, contain any viruses, trojan horses,
      malware, spyware, adware or other disruptive software, or any software
      code which is designed to disrupt, damage, or perform unauthorized actions
      on a computer system, or which transmits data from a user’s computer
      without notice to and the express prior consent of the
      user.  Each party’s sole remedy for claims arising out of the
      immediately preceding sentence shall be indemnification pursuant to
      Section 7.1 below.  EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH
      PARTY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES WITH REGARDS TO THE
      MATERIALS AND SERVICES PROVIDED BY THAT PARTY, INCLUDING WITHOUT
      LIMITATION MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
      NON-INFRINGEMENT AND TITLE.

            

    

    

    
      	
              7.

            	
              Risk
      Allocation.  THE TERMS WITHIN THIS SECTION 7 REFLECT AN
      AGREED-UPON ALLOCATION OF RISK BETWEEN THE PARTIES SUPPORTED BY (AMONG
      OTHER THINGS) THE PRICING AGREED TO BETWEEN THE PARTIES, AND THIS
      ALLOCATION IS A FUNDAMENTAL PART OF THE BASIS OF THE BARGAIN BETWEEN
      THEM.

            

    

     

    
      	
            	
              7.1.

            	
              Indemnification.  Each
      Party and its successors and assigns will indemnify, defend, and hold
      harmless the other Party and its successors and assigns (and in the case
      of Company as the indemnifying Party, any Related Party) from and
      against any and all claims, demands, losses, costs, expenses (including,
      but not limited to, the reasonable cost of obtaining an opinion of counsel
      in response to a notice of potential infringement of the Rights of any other
      person or organization, unless the indemnifying Party has already obtained
      an applicable non-infringement opinion from counsel, and agrees to share
      that opinion with the indemnified Party), obligations, liabilities,
      damages, recoveries and deficiencies, including interest, penalties,
      reasonable attorneys’ fees and costs (collectively, “Losses”) brought by a
      third party other than an Affiliate, that the
      indemnified Party may incur or suffer, which arise, result from, or relate
      to (i) the breach by the indemnifying Party of any of its representations
      and warranties set forth in these General Terms & Conditions or any
      Agreement or a breach of Section 8.4 of these General Terms &
      Conditions, or (ii) the failure of the indemnifying Party to perform any
      of its obligations under these General Terms & Conditions or any
      Agreement, or (iii) the assertion of any infringement or other claims
      alleging that any of the materials provided by the indemnifying Party
      violate the Rights of any other
      person or organization, or (iv) damages to property or personal injury
      caused by the negligence or willful acts of the indemnifying Party or any
      of its employees or agents, or (v) the violation by the indemnifying Party
      of its privacy policy.  Further, Company and its successors and
      assigns will indemnify, defend, and hold harmless DR, DR Affiliates, Related Parties and
      their successors and assigns from and against and in respect of any and
      all third party Losses that any such
      indemnified party may incur or suffer, which arise, result from, or relate
      to (a) the distribution of Company’s Products by or through
      any such indemnified party, except to the extent caused by the negligence
      or willful misconduct of the indemnified party; or (b) the honoring of any
      warranty by DR, a DR Affiliate, or a Related Party as a
      seller based on the failure of a Product to function as
      advertised or any other reason beyond the control of the indemnified
      party, or (c) any tax liability on the sale of Products to End Users imposed on DR
      by a locality or jurisdiction resulting from Company’s (but not DR’s)
      nexus or contacts with that locality or
  jurisdiction.

            

    

     

    
      
        

      

    

    
      	
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              7.2.

            	
              Indemnification
      Procedure.  A Party seeking indemnification must promptly
      provide to the other written notice of the claim and tender the defense of
      that claim.  Upon receipt of such notice, the Party receiving
      notice will respond in writing to the tender of defense within twenty (20)
      business days of receipt notifying the indemnifying Party of any claim,
      demand, suit or proceeding for which the indemnifying Party has agreed to
      indemnify and hold the indemnified Party harmless, and the indemnifying
      Party, upon written request by the indemnified Party, will promptly defend
      and continue the defense of such claim, demand, suit or proceeding at the
      indemnifying Party’s expense.  A failure by the indemnifying
      Party to respond in writing to the tender of defense within the time
      specified in this paragraph will be deemed a waiver of any objection to
      its obligation to defend the indemnified Party, but a reservation of the
      indemnifying Party’s rights to object to any subsequent obligation to
      indemnify or to hold harmless the indemnified Party.  In the
      event the indemnifying Party accepts the tender of defense with a
      reservation of rights, rejects the tender of defense or fails to respond
      to a tender of defense, the indemnified Party shall thereafter have the
      right to control of the defense of such claim, including the right to
      select which firm defends the claim.  In the event the
      indemnifying Party rejects the tender of defense, the indemnifying Party
      will be liable for any legal fees and expenses incurred by the indemnified
      Party to compel the indemnifying Party to honor its obligations under this
      Section, and the indemnifying Party expressly waives any right it may have
      under statutory or common law which might operate to make the recovery of
      fees under this provision a mutual
right.

            

    

     

    The
indemnifying Party will obtain the indemnified Party’s express prior written
approval (such approval not to be unreasonably withheld, delayed or conditioned)
to settle any claim if such settlement (i) arises from or is part of any
criminal action, suit or proceeding, or (ii) contains a stipulation to or
admission or acknowledgment of any liability or wrongdoing on the part of the
indemnified Party, or (iii) requires any specific performance or non-pecuniary
remedy by the indemnified Party.

     

    If the
indemnifying Party fails to undertake and continue such defense or fails (in the
indemnified Party’s sole and reasonable opinion) to adequately pursue or conduct
such defense, the indemnified Party will have the right (but not the obligation)
to make and continue such defense as it considers appropriate, and the expenses
and costs thereof (including without limitation the amounts of any judgment
rendered against the indemnified Party) will be paid by the indemnifying
Party.

     

    
      	
            	
              7.3.

            	
              Limitation on
      Liability.  Except for each Party’s indemnification
      obligations relating to intellectual property infringement pursuant to
      Section 7.1(iii), the total liability of a Party under an Agreement for
      any cause will not exceed the net amount paid by Company to DR under that
      Agreement.

            

    

     

    
      	
            	
              7.4.

            	
              No Consequential
      Damages.  Except for damages resulting from a breach of
      confidentiality or privacy obligations hereunder, NEITHER DR NOR COMPANY
      WILL HAVE ANY LIABILITY TO EACH OTHER OR TO ANY OTHER PERSON OR
      ORGANIZATION FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY,
      PUNITIVE OR SPECIAL DAMAGES OF ANY DESCRIPTION (INCLUDING WITHOUT
      LIMITATION LOST PROFITS OR LOSS OR INTERRUPTION OF BUSINESS), WHETHER
      BASED ON CONTRACT, NEGLIGENCE, TORT, OR ANY OTHER LEGAL THEORY, REGARDLESS
      OF WHETHER ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND IRRESPECTIVE OF
      THE NUMBER OR NATURE OF CLAIMS.  THE LIMITATIONS UPON DAMAGES
      AND CLAIMS SET FORTH IN THIS SECTION 8  IS INTENDED TO APPLY
      WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN
      BREACHED OR HAVE BEEN HELD TO BE INVALID OR INEFFECTIVE AND
      NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY
      PROVIDED HEREIN.

            

    

    

    
      	
              8.

            	
              Miscellaneous.

            

    

     

    
      	
            	
              8.1.

            	
              Integration;
      Amendments.  These General Terms & Conditions and any
      Agreement(s) between the Parties set forth the entire understanding
      between the Parties with respect to the subject matter thereof, and
      supersedes any and all prior or contemporaneous proposals, communications,
      agreements, negotiations, and representations, whether written or oral,
      related thereto.  No amendment to these General Terms &
      Conditions or any Agreement will be valid unless made in writing and
      physically signed by the Parties.  In the event of any conflict
      or inconsistency between a term in these General Terms & Conditions
      and a corresponding term in any Agreement, the term in the Agreement will
      control.  In the event of a conflict between a term in these
      General Terms & Conditions and a corresponding term in any other
      instrument or understanding between the Parties, the term in these General
      Terms & Conditions will
control.

            

    

     

    
      
        

      

    

    
      	
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              8.2.

            	
              Inurement;
      Assignment.  Each Agreement will be binding upon and
      inure to the benefit of the Parties and their permitted successors and
      assigns.  Neither Party may assign its rights or delegate its
      duties under these General Terms & Conditions or any Agreement
      (whether directly or indirectly, by operation of law or otherwise) without
      the prior written consent of the other Party, which consent will not be
      unreasonably withheld or delayed.  In the event of a merger,
      acquisition, joint venture, or sale of substantially all of its assets or
      business of a Party (or any substantially similar transaction), and so
      long as the entity to which the contract is assigned is not a direct
      competitor of the other Party, that Party will be entitled (upon written
      notice to, but without the prior written consent of, the other Party) to
      assign this agreement to an affiliate, subsidiary or otherwise in
      connection with such transaction, so long as the assigning Party, at the
      option of the other Party, guarantees in writing the performance of the
      assignee.

            

    

     

    In order
to effectuate (a) the processing of payment for Transactions between DR and
End Users located
outside the United States (“Non-US Transactions”) and (b)
the payment of amounts to Company related to such Non-US Transactions ((a) and
(b) collectively, the “Non-US
Transaction Obligations”), DR may partially assign this Agreement to a
wholly-owned subsidiary of DR, and any such subsidiary to which this Agreement
is so assigned shall be considered an additional party to this Agreement with
respect to that subsidiary's performance of Non-US Transaction
Obligations.  For the avoidance of doubt, any such assignment
shall be effective upon written notice from DR to Company as required by these
General Terms & Conditions.  Nothing in the foregoing shall
relieve DR of its obligations under this Agreement, and DR shall remain the
guarantor of any such subsidiary's performance under this
Agreement.

     

    
      	
            	
              8.3.

            	
              Governing
      Law.  Each Agreement will be governed by the laws of the
      State of Delaware in the United States without reference to or use of any
      conflicts of laws provisions therein.  The Parties agree
      that:  (a) Hennepin County, Minnesota is the venue for any
      proceedings regarding an Agreement brought by Company and that any legal
      proceedings brought by Company arising out of or relating to an Agreement,
      including the negotiations or performance hereof, will be brought in the
      courts of Hennepin County, Minnesota, or the applicable United States
      District Court sitting in Hennepin County, Minnesota; and (b) Marin
      County, California is the venue for any proceedings regarding this
      Agreement brought by DR and that any legal proceedings brought by DR
      arising out of or relating to an Agreement, including the negotiations or
      performance hereof, will be brought in the courts of Marin County,
      California, or the United States District Court for the Northern District
      of California.  Notwithstanding the foregoing, either Party may,
      without the necessity of first posting a bond or other security or
      demonstrating any actual damages, seek and, if granted, obtain immediate
      equitable or injunctive relief under Section 8.7 from any court of
      competent jurisdiction.  The Parties specifically disclaim
      application of the United Nations Convention on the International Sale of
      Goods, 1980.

            

    

     

    
      	
            	
              8.4.

            	
              Export
      Compliance.  DR and Company shall comply with all
      relevant export control laws and regulations of any nation (collectively,
      “Export Control
      Laws”) that may apply to DR, Company, the Products or any End Users, as may be
      the case, including, without limitation, U.S. embargo laws administered by
      the Office of Foreign Assets Control and the U.S. Export Administration
      Regulations.  DR and Company shall not export or re-export any
      Products except
      as permitted by such applicable Export Control
      Laws.  If required by any applicable Export Control Laws,
      Company (and not DR) shall apply for and obtain any export license
      required from the relevant governmental authority as to any specific Product, End User or shipment
      destination and shall furnish a copy of such license to
      DR.   DR may suspend or stop delivery of any Products where DR
      reasonably believes any such delivery will violate any applicable Export Control Laws or
      where Company has failed to apply for and obtain any required export
      license(s).

            

    

     

    Company
shall advise DR of the specific codes and classifications under any Export Control Laws
applicable to any Products (including without
limitation provision of appropriate Export Control Classification Numbers
(“ECCNs”) and Schedule B
codes).  Company shall promptly notify DR of any changes to such codes
or classifications, or any modifications to the Products that may affect such
codes or classifications.  Any information provided pursuant to this
paragraph shall be provided to DR via email at orm@digitalriver.com.

     

    
      	
            	
              8.5.

            	
              Notices.  Notification
      of any event required pursuant to these General Terms & Conditions or
      an Agreement will be deemed provided if such notice references these
      General Terms & Conditions and this Section, is in writing, and is
      personally delivered or sent by nationally or internationally recognized
      express courier to the other Party at the address specified at the
      beginning of these General Terms & Conditions, ATTN: General
      Counsel.  Notice will be deemed effective upon
      delivery.

            

    

     

    
      
        

      

    

    
      	
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              8.6.

            	
              Force
      Majeure.  Neither Party will be in breach of these
      General Terms & Conditions or an Agreement in the event it is unable
      to perform its obligations as a result of natural disaster, war, emergency
      conditions, labor strike, acts of terrorism, the substantial inoperability
      of the Internet, the inability to obtain supplies, or any other reason or
      condition beyond its reasonable control; provided, however, if such
      reasons or conditions remain in effect for a period of more than sixty
      (60) calendar days, either Party may terminate these General Terms &
      Conditions and all Agreements without cause upon written notice to the
      other Party.

            

    

     

    
      	
            	
              8.7.

            	
              Irreparable
      Harm.  Each Party acknowledges that its breach of these
      General Terms & Conditions or an Agreement would cause irreparable
      injury to the other for which monetary damages are not an adequate
      remedy.  Accordingly, a Party will be entitled to injunctive
      relief and other equitable remedies in the event of a breach of the terms
      of these General Terms & Conditions or an Agreement.  The
      availability of injunctive relief will be a cumulative, and not an
      exclusive, remedy available to the
Parties.

            

    

     

    
      	
            	
              8.8.

            	
              Non-Solicitation.  Each
      Party (for the purposes of this Section, the “Hiring Party”) shall
      include as part of its interview process for employees and contractors an
      inquiry as to whether or not an applicant is or was an employee of the
      other Party (for the purposes of this Section, the “Non-Hiring
      Party”).  In the event a Hiring Party determines that an
      applicant is a current employee of the Non-Hiring Party (or has left the
      Non-Hiring Party’s employ within three (3) months of the date of inquiry),
      the Hiring Party will notify the candidate of its obligations to the
      Non-Hiring Party under this Section and provide the applicant with an
      option to withdraw her or his application. For applications not withdrawn,
      the executive of the appropriate division of the Hiring Party will notify
      the CFO and General Counsel of the Non-Hiring Party of the application
      pursuant to Section 8.5.  The notice will not identify the
      applicant by name, but will contain a description of the applicant's
      current (or, as applicable, final) functional position at the Non-Hiring
      Party.  Within three (3) business days of his/her receipt of
      notice, the Non-Hiring Party will provide to the Hiring Party either (i) a
      written waiver allowing the application process to continue, in which case
      the Hiring Party may continue the application process, or (ii) a request
      that the Hiring Party cease and desist in the hiring or employment of the
      applicant, in which case the Hiring Party shall immediately honor the
      request.  A failure to respond shall be construed as a waiver
      pursuant to clause (i) above.  Further, each Party will use
      commercially reasonable efforts to ask any applicant that is or was an
      employee of the other Party to obtain a waiver from the other Party
      pursuant to any non-compete agreement or other restriction on employment
      in effect with the other Party.

            

    

     

    
      	
            	
              8.9.

            	
              Other.  No
      waiver or breach of any provision of these General Terms & Conditions
      or an Agreement (a) will be effective unless made in writing, or (b) will
      operate as or be construed to be a continuing waiver of such provision or
      breach.  In the event any portion of these General Terms &
      Conditions or an Agreement is held to be invalid, the same will not affect
      in any respect whatsoever the remainder of these General Terms &
      Conditions or the Agreement, as appropriate.  Each Party is an
      independent contractor of, and is not an employee, agent or authorized
      representative of, the other Party.  The provisions of these
      General Terms & Conditions and any Agreements will not in any respect
      whatsoever be deemed to create a partnership, joint venture, or other
      business combination between DR and the Company.  Except as may
      be expressly provided in an Agreement, neither Party shall have the right,
      power or authority to act or create any obligation, express or implied, on
      behalf of each other.  Notwithstanding any applicable statute of
      limitations, the Parties agree that any claims for breach of these General
      Terms & Conditions or an Agreement will be brought by a Party within
      two (2) years of the date that Party first has notice of the existence of
      such breach.  No provisions in either Party’s purchase orders or
      other business forms will modify, supersede or otherwise alter the terms
      of these General Terms & Conditions or an Agreement.  The
      Parties acknowledge and agree that these General Terms & Conditions
      and any Agreements have been negotiated by the Parties and their
      respective counsel, and will be interpreted fairly in accordance with its
      terms and without any strict construction in favor of or against either
      Party based on draftsmanship of the General Terms & Conditions or an
      Agreement or otherwise. Headings are for reference purposes only and shall
      not affect the meaning or interpretation of these General Terms &
      Conditions or any Agreement.  DR may engage the services of
      subcontractors or agents to assist DR in the performance of its
      obligations and will be responsible for the acts and omissions of such
      subcontractors and agents.  Any reference to a section will
      refer to all subsections of that section.  These General Terms
      & Conditions and each Agreement may be executed in one or more
      counterparts, each of which will be deemed to be an original, but all of
      which will be one and the same document.  A copy (including PDF)
      or facsimile of a signature will be binding upon the signatory as if it
      were an original signature.  These General Terms &
      Conditions and each Agreement will not become binding on either Party
      until each Party has received a counterpart executed by the other
      Party.

            

    

    
       

      
        

      

    

    
      	
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                  General
      Terms & Conditions

                

        

      

    

    

    IN
WITNESS WHEREOF, the duly authorized representatives of the Parties have
executed these General Terms & Conditions as of the dates set forth below,
to be effective as of the Effective Date.

    

    
      
        	
                DR:
      Digital River, Inc.

              	 
      	
                Company:  Sonic
      Solutions

              
	 
      	 
      	 
      
	
                By:

              	/s/
      Kevin Crudden	 
      	
                By:

              	/s/
      Paul Norris
	 
      	 
      	 
      
	
                Name:

              	Kevin
      Crudden	 
      	
                Name:

              	Paul
      Norris
	 
      	 
      	 
      
	
                Title:

              	Vice
      President and General Counsel	 
      	
                Title:

              	Senior
      Vice President and General Counsel
	 
      	 
      	 
      
	
                Dated:

              	February
      28, 2006	
                  

              	
                Dated:

              	February
      21, 2006

      

    

    
       

      
        

      

    

    
      	
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                    General
      Terms &
Conditions

                  

          

        

      

    

    

    Appendix
1 to General Terms & Conditions

    Definitions

    

    The
following definitions will be applicable to the General Terms & Conditions
and any Agreement(s).  As a general rule, terms are defined in bold where used in the General
Terms & Conditions and Agreement(s) and appear within the text of the
General Terms & Conditions and any Agreement(s) in Initial Caps
Italics.  Any italicized terms not defined herein shall have
the meanings afforded to them in the Agreement in which such terms are
defined.

    

    Affiliate:  Any
entity which directly or indirectly owns or controls, is owned or controlled by,
or is under common ownership or common control with the Party in question, as
the case may be.

     

    Confidential
Information:  The inventions, trade secrets, computer software
in both object and source code, algorithms, documentation, know how, technology,
ideas, and all other business, customer, technical, and financial information
owned by DR or Company, which is designated as confidential, or communicated in
such a manner or under such circumstances as would reasonably enable a person or
organization to ascertain its confidential nature.

     

    Documentation:  All
computer readable and/or printed instructions, manuals and other materials
normally provided from time to time by Company to End Users for use of the
Products, and all
subsequent versions thereof provided to DR pursuant to these General Terms &
Conditions.

     

    DR
Materials:  Computer readable materials and/or encryption
software provided by DR for inclusion in an electronic package containing the
Software, Documentation, and EULA, all of which materials,
including all Rights,
will be exclusively owned by DR.

     

    End
Users:  Person(s) or organization(s) that acquire a Product for use rather than
resale or distribution.

     

    End User License Agreement
(EULA):  The computer readable and/or printed license agreement
provided by Company to End
Users that governs the use of the Products by End Users, and which is to be
included with each copy of the Product sold by DR
hereunder.

     

    Non-Software
Product:  Any Product provided by Company
for distribution by DR which is not Software.

     

    Product(s):  A copy
of the Software and/or
Non-Software Product, Documentation, and EULA, if any, packaged in
computer readable form together for electronic delivery on www.digitalriver.com
(or equivalent) and/or in tangible packaged form for delivery in accordance with
these General Terms & Conditions, as identified in an Exhibit which may from
time to time be modified in accordance with the provisions of these General
Terms & Conditions.

     

    Related Party:  Any
person, organization or entity distributing Company’s Products through an agreement
between that person, organization or entity and DR.

     

    Rights:  Any and all
rights of copyright, patent rights, trademark and service mark rights, trade
secret rights, trade dress rights, character rights, artistic and moral rights,
and any and all other proprietary rights of any kind whatsoever, together with
associated registration rights and rights to sue for and collect damages for any
infringement or violation of any of the foregoing.

     

    Software:  The
executable object code for Products, including all
subsequent versions thereof provided to DR pursuant to these General Terms &
Conditions.

     

    Trademarks:  The
trademarks, service marks, trade dress, trade names, and logos used by DR and/or
Company, as applicable, in connection with DR’s performance under these General
Terms & Conditions, Company’s website, or the Products.

     

    Transaction:  The sale of one or more Product(s) and/or other products or services
offered by DR under an Agreement to an End
User through a single
order.

     

    Work Product:  All
HTML files, Java files, graphics files, animation files, data files, technology
scripts and programs, both in object code and source code form, all technology,
methods, processes, documentation, and any and all other materials or
information prepared by, provided by, or used by DR in the course of performing
its obligations under these General Terms & Conditions or any Agreement or
Exhibit, including any modifications to any materials, and any other development
tools customarily used by DR in connection with its performance of its
obligations for its other customers and clients; together with any modifications
or improvements to any of the foregoing, any of which may be made at any time by
DR in its sole discretion; and all of which, including all Rights will be
exclusively owned by DR.  Nothing in the foregoing provision is
intended to convert into Work
Product Company’s EULA, Products, Documentation or other
materials prepared or provided by Company (or Rights therein).

     

      
        

      

    

    
      	
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                                  Reseller
  Agreement

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
              Effective Date:   

            	
              August
      18, 2005

            

    

    

    
      	
              Company:     

            	
              Sonic
      Solutions (a California corporation), 101 Rowland Way, Novato, CA
      94945

            
	 
      	 
      
	
              Site:

            	
              http://www.sonicsolutions.com,
      http://www.sonic.com, http://www.roxio.com

            
	 
      	 
      
	
              Store:

            	
              http://www.digitalriver.com

            

    

    
      
         

        
          

        

    

    As of the
Effective Date, DR will
resell Company’s products as the merchant of record through a Store created, owned, hosted
and maintained by DR in accordance with the terms of this Agreement and all
Appendices attached hereto, and the General Terms & Conditions between the
Parties dated effective as of August 18, 2005 which are incorporated by
reference into this Agreement.  This Agreement shall be void and of no
force or effect if the Parties have not executed the General Terms &
Conditions as of the date of execution of this Agreement.  The Parties
may enter into one or more Exhibit(s) to this Agreement setting forth additional
obligations between the Parties, provided such Exhibit(s) specifically reference
this Agreement.  The Parties agree as follows:

    

    Product and Pricing
Information

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Product

                              	 	
                                Suggested

                                Retail Price

                              	 	
                                Margin

                                Percentage

                              	 	
                                Responsible for

                                Delivery:

                                DR or Company

                                (C)

                              	 	
                                Method of Delivery:

                                Digital (D),

                                Physical (P), or Both (B)

                              
	
                                [As
      previously provided]

                              	 	
                                [As
      
previously 
provided]

                              	 	
                                [***]

                              	 	
                                [As
      
previously 

                                provided]

                              	 	
                                [As
      previously

provided]

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    DR's
Margin Percentage will
apply for all products sold via digital delivery and will not be less than [***]
Dollars USD ($[***]) for physical delivery, as long as Company maintains an
Average Order Value
greater than [***] Dollars USD ($[***]) on the Store(s) for the month. In
the event that Company's Average Order Value for a
given calendar month drops below [***] Dollars USD ($[***]), then (a) DR will
notify Company of such decrease within five (5) days after the end of such
month, and (b) in the event that, for the immediately following month, Company’s
Average Order Value
remains below [***] Dollars USD ($[***]), then the DR Discount will be no less
than [***] Dollars ($[***]) per Product sold via digital
delivery or physical delivery during that second month, and the Margin Percentage on such
Products shall
automatically be adjusted accordingly. For the avoidance of doubt, “Average Order Value” will
calculated as aggregate Sales
Price for Products purchased by End Users during a given
calendar month through all of Company’s Store(s) divided by total
Transactions through
Company’s Store(s) for
that calendar month.

     

    Notwithstanding
the Margin Percentage
set forth above, DR agrees that the purchase price of a Product by DR from Company
shall (subject to any additional discounts or amounts set forth in the any
Exhibit to this agreement and other amounts earned by DR as set forth in this
Agreement) in all circumstances be the greater of: (i) the Net Purchase Price for that
Product; and (ii) the
Base Price for that
Product.

    

    
      
        
          
            	
                    Set-Up Costs

                  	 
      	 
      
	
                    ·      
      Set Up Cost (Original Stores):

                  	
                    $[***]
      (the “Original
      Stores” consist of the following seven (7) Stores, with the
      language to be enabled on each such Store listed in
      (parenthesis):  (1) North America (English); (2) England
      (English); (3) France (French); (4) Italy (Italian); (5) Germany (German);
      (6) Spain (Spanish); (7) Taiwan (Chinese – either Mandarin or
      Cantonese))

                  	 
      
	
                    ·      
      Set-Up Cost (each additional Stores):

                  	
                    $[***] (estimated; to be
      approved by DR and Company in writing prior to inception of
      work)

                  	 
      
	 
      	 
      	 
      
	
                    Costs of Services

                  	 
      	 
      
	
                    ·      
      Monthly Hosting Cost:

                  	
                    [***]

                  	 
      
	
                    ·      
      Free Order Processing Cost:

                  	
                    $[***]
      per digital order/$[***] per physical order

                  	 
      

          

        

      

    

    
       

      
        

      

    

    
      	
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      Confidential — Subject to NDA

            	
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    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      	
              

            	
              Reseller
  Agreement

            

    

     

    
      	
              ·      
      Domestic Customer Service:

            	
              $[***]
      per minute utilization; $[***] per email

            	 
      
	
              ·      
      International Customer Service:

            	
              $[***]
      per minute utilization; $[***] per email

            	 
      

    

    

    Optional Services
(Initial on Line to Accept)

    
      	                      
      	
              Money
      Order/Check/Wire Transfer Acceptance Cost – Included

            
	                      
      	
              Electronic
      Payment – ACH/Wire Transfer - $25.00 per U.S. payment/$50.00 per
      International payment

              (attach
      banking info)

            

    

     

      
        

      

    

     

    Reseller
Agreement Additional Terms & Conditions

    

    DR’s Rights and
Obligations

     

    
      	
              ·

            	
              Notwithstanding
      anything to the contrary, DR will be the seller and merchant of record for
      all Product sales
      to End Users
      through the Store
      maintained by DR for Company.  DR may, in its sole discretion,
      set the price or license fee at which Products will be
      offered to End
      Users for sale.  Title to all Products will remain
      with Company until DR processes a Transaction by an End User, at which time
      DR purchases the applicable Product(s) from
      Company, and title to those Products will pass to
      DR for immediate subsequent passage to the End User. Transactions will be
      processed, and payments will be made in accordance with the provisions of
      Appendix 2 to this Reseller
Agreement.

            

    

     

    
      
        	
                ·

              	
                DR
      will establish and maintain Store and the Cart to Company’s
      reasonable specifications.  Those portions of the Store other than the
      Cart will include
      agreed-upon DR marketing and promotional literature but will not include
      DR’s name, logo or other identifying mark without Company’s prior
      consent.  In connection with checkout pages of the Store and the Cart, DR shall place
      links to its (a) privacy policy, (b) terms and conditions of sale, (c)
      disclosure of DR as the seller to End Users and (d) the
      text of pages which are utilized in connection with the Cart, provided that,
      and subject to DR’s right to make the final decision as to such matters,
      DR will collaborate with Company, seek Company’s input, and otherwise
      involve Company in any decisions regarding such matters.  Each
      party agrees to act in good faith and to cooperate in order to reach
      agreement regarding the privacy policy, terms and conditions of sale, and
      disclosure of DR as the seller, as well as the text of any other required
      disclosures to End Users
      included on the pages which are utilized in connection with the
      Cart.  Notwithstanding
      such good faith efforts, in the event that the parties are unable to agree
      as to any such matters and DR includes disclosures in the Cart or on the checkout
      pages of the Store that are
      unacceptable to Company, Company may, as its sole remedy, terminate this
      Agreement, provided that (a) Company shall ensure that any decision by
      Company to terminate has been made by a Company executive at least at the
      Senior Vice President level after an escalation procedure that includes
      face-to-face executive level consultation between the parties, and (b) DR
      shall have no less than ten (10) business days after such face-to-face
      meeting within which to reverse any action that caused the Company to seek
      to terminate under this provision or make any changes to the disclosures
      in the Store or
      Cart agreed upon
      by the executives at that meeting.  For the avoidance of doubt,
      Company shall be permitted to include a link to its own privacy policy in
      the Store,
      notwithstanding any link to DR’s privacy policy that may be included
      within the Store
      as described above.  Subject to Company’s ownership of all
      content and other materials provided by or on behalf of Company and
      included in the Store, DR will retain
      ownership of the Store.

              

      

    

     

    
      
        
          
            ·     DR will
post “opt-in” or “opt-out” language (at Company’s election) on the checkout page
of the Store, providing
each End User with an opportunity to elect to receive solicitations from
Company.  DR will provide a copy of all customer information, except
DR will not provide any End
Users’ credit card-specific information to Company (such as credit card
number or expiration date, but not, for the avoidance of doubt, name or address)
(all such information provided, “End User
Data”).  Company represents, warrants and covenants that it
shall not use any End User
Data to solicit any End
User who has not opted in to receive, or opted out of receiving (as
appropriate), such solicitations from Company.  DR will not provide
any of End User Data to any person, or use
the End User Data for any purpose (other
than for DR’s legitimate internal business purposes in connection with this
Agreement at any time during the term or after the termination of this
Agreement, specifically including ongoing fraud control for all DR clients
generally, customer service, and optimizing marketing best practices for DR
clients by using information in an aggregate, anonymous form only, but
specifically excluding marketing to such End Users using the End User Data provided
through the Store)
without Company’s advance consent, except if Company’s Products are distributed by
Channel Partners
pursuant to another Agreement between the Parties, Channel Partners may have
rights of use of End
User Data
relating to Transactions through such
Channel
Partners.

          

           

        

      

    

    
      

    

    
      	
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    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              

            	
              Reseller
  Agreement

            

    

     

    
      	
              ·

            	
              DR
      will provide Company with the Digital River Command Console and associated
      remote control tools; email marketing campaigns to Company’s user base as
      mutually agreed upon by the Parties in writing; and online reporting via
      the DR administrative interface.  DR will screen all Transactions processed
      through the Store using its fraud screening
  system.

            

    

     

    
      	
              ·

            	
              DR
      will assign an Account Development Manager (“ADM”) to serve as
      Company’s primary point of contact for the Store, accounting, marketing,
      and other administrative issues related to this Agreement.  DR
      will provide account management services by ADMs to assist Company
      in the normal maintenance of the Store at a rate of One
      Hundred and Eighty-Five Dollars ($185.00) per hour.  Any and all
      expenses incurred by DR in connection with the provision of the
      maintenance services specified in this Agreement will be deducted from the
      Sales Price of
      Products to
      reflect an additional portion of the DR
      Discount.  The performance of the maintenance services
      will be scheduled in such manner and at such times as may be mutually
      agreed upon by DR and the Company.

            

    

     

    
      	
              ·

            	
              DR's
      policy is to provide End Users with a thirty (30) day right to return
      Products for a
      refund of the purchase price paid by the End User.  DR
      shall process returns and refunds initiated by Company’s support
      team.  This policy with respect to Company’s Stores is subject to
      modification from time to time by the mutual agreement of DR and
      Company.  DR will cooperate and assist Company and End Users with respect
      to Product
      returns.  DR and Company shall discuss in good faith additional
      steps which may be taken to reduce
returns.

            

    

     

    
      	
              ·

            	
              All
      requested and mutually agreed upon web site programming, design, and
      changes made after the initial Store setup, excluding
      changes to make normal price changes, product additions, and version
      updates, account maintenance services, and any services not specifically
      set forth in this Agreement or any other Agreement between the Parties,
      will be agreed upon in writing via DR’s Change Order Form available from
      DR upon request, and will be charged to Company on a time and materials
      basis at DR’s then-current rate.

            

    

     

    
      	
              ·

            	
              In
      the event of a conflict between any Product-specific
      information in this Agreement and information subsequently provided by
      Company via the DR administrative interface, the information provided via
      the DR administrative interface will
control.

            

    

    

    
      	
              ·

            	
              Through
      August 18, 2006 (the “Exclusivity Period”), DR
      will be the exclusive provider of online commerce services through which
      Company sells its products directly to end-users.  For the
      avoidance of doubt, this exclusivity does not apply to other sales
      channels (for example, OEM and other non-direct-to-consumer sales such as
      VLP) or to brick & mortar sales or sales of non-Company
      products.  Furthermore, during the Exclusivity Period,
      Company will make good faith efforts to involve DR in additional business
      opportunities that may arise.

            

    

     

    
      	
              ·

            	
              For
      a period a three (3) months from the date of termination of this Agreement
      (the “Winding-Down
      Period”), DR and Company shall continue to perform their respective
      obligations under this Agreement in order for Company to effectuate a
      transition from DR to an alternative commerce service
      provider.  DR shall provide reasonable assistance to Company in
      transitioning its business from DR to an alternative provider during the
      Winding-Down
      Period.   Company may end the Winding-Down Period at
      any time upon notice to DR.  DR is under no obligation to extend
      the Winding-Down
      Period.

            

    

     

    
      	
               ·

            	
              DR
      shall provide to Company a SAS-70 Type II report produced on an annual
      basis, to be delivered to Company in each year promptly following DR’s
      receipt of the final report for that year, covering the internal controls
      related to measurement/valuation, completeness, timeliness, and
      occurrence/existence of sales through DR’s systems, as well as the
      safeguarding of Company’s software/intellectual
  property.

            

    

     

    
      	
              ·

            	
              DR
      shall provide the Store in connection with the terms set forth in the
      Service Level Agreement attached hereto as Appendix
  3.

            

    

    

    Company’s Rights and
Obligations

     

    
      	
              ·

            	
              Company
      grants DR a right and license to: (i) package, reproduce and distribute
      within the Territory, the Products to the End Users as specified
      in this Agreement; and (ii) use the Company’s Trademarks solely in
      connection with the reproduction, packaging, promotion, and distribution
      of the Products,
      in a manner reasonably specified by Company and as otherwise permitted by
      written agreement between DR and Company (which, in the case of Company,
      must be executed by an officer of
Company).

            

    

     

    
      	
              ·

            	
              Company
      will deliver the current versions of the Products to DR
      immediately following execution of this Agreement.  Accordingly,
      Company will provide DR with (i) for Products delivered
      electronically, copies of the Software on a gold
      master and the EULA for each such
      Product in
      computer readable form; (ii) for Products delivered
      physically, an inventory of Product prepackaged and
      ready for shipment, appropriately labeled for use in the Territory and with all
      certifications, approvals and authorizations needed for use in the Territory, to be held
      by DR to fulfill orders for such Product; (iii)
      additional inventory as needed by DR from time to time; (iv) Product specification
      information in a single file, self extracting archive format, or in
      another mutually agreeable computer readable form that can be accurately
      reproduced by DR; (v) Documentation in a
      computer readable form mutually agreeable to the Parties that can be
      accurately reproduced by DR; and (vi) any other information, items and
      materials reasonably required by DR to enable it to distribute the Products.  Company
      will be responsible for the expense associated with, and will bear the
      risk of loss for, all shipments of tangible Products to
      DR.

            

    

    

      

    

    
      	
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              Reseller
  Agreement

            

    

     

    
      	
              ·

            	
              Company
      will provide to DR copies of all new releases, updates, or revisions to
      Software and
      Documentation
      within a commercially reasonable period of time prior to general release
      and on or before the date the improved versions are offered to any other
      distributor or reseller.  All shipments of tangible Products to DR will be
      clearly labeled with DR’s purchase order number on the outside of the
      box.  DR will have no liability of any kind whatsoever as a
      result of any delay in the delivery of Products by Company, or
      the delivery of non-conforming tangible Product.

            

    

     

    
      	
              ·

            	
              If
      Company wishes to have DR distribute a new product, Company shall provide
      an operational sample for evaluation.  If Company wishes to have
      DR distribute an existing product not currently
      listed as a Product
      in this Agreement, Company will provide DR with the requested
      information via the “Digital River Online Company Services Page” at http://www.digitalriver.com
      (or equivalent), at which time such products will be deemed to be added to
      this Agreement and will be construed as a Product.  Notwithstanding
      the foregoing, DR may elect not to distribute any Product which DR
      reasonably believes represents a business or legal risk to DR, or is not
      consistent with DR’s criteria for products distributed by DR.

            

    

     

    
      	
              ·

            	
              Company
      will establish and maintain a privacy policy for the Site which advises
      End Users that
      their personal information (including credit card information) may be
      provided to Company’s subcontractors and agents in connection with the
      processing and fulfillment of orders through the Site, and will ensure
      that it complies with any data privacy or other applicable laws or
      regulations regarding the transfer of information relating to End Users to DR (and to
      Channel Partners
      if so allowed by Company in an separate
  Agreement).

            

    

     

    
      	
              ·

            	
              Company
      will be solely responsible for providing all support relating to the
      purchase and download of Products by End
      Users.  DR shall forward any support requests it may
      receive by email to Company at an email address to be provided by Company,
      and shall provide any End Users contacting DR
      customer support via telephone with Company’s customer telephone support
      contact information to be provided by Company.  DR shall charge
      Company for any calls and emails so handled by DR at the rates set forth
      above, except as set forth below.

            

    

     

    DR shall
not charge Company any fees for customer support for a certain period following
the execution of this Agreement, such period to end at such time as all Original Stores have been
fully transitioned and are made generally available for use to End Users exclusively via
DR’s Pacific platform (such period, the “Transition
Period”).

     

    
      	
              ·

            	
              Company
      will be solely responsible for (a) the terms and conditions of any and all
      EULAs, their
      compliance with applicable laws and regulations within the Territory, (b)
      Company’s performance of its obligations under any and all EULAs, and (c) the
      provision of support and responsibility for warranty obligations relating
      to Products in
      accordance with Company’s support policy but in no event inconsistent with
      the terms and conditions of the applicable EULA.

            

    

    

    
      
        	
                AGREED
      TO AND ACCEPTED BY:

              	 
      	 
      
	
                SONIC
      SOLUTIONS

              	 
      	
                DIGITAL
      RIVER, INC.

              
	 
      	 
      	 
      
	
                /s/ Paul Norris

              	 
      	
                /s/ Kevin Crudden

              
	
                Signature

              	 
      	
                Signature

              
	 
      	 
      	 
      
	
                Paul Norris, Senior Vice President and General
      Counsel

              	 
      	
                Kevin Crudden, Vice President and General
      Counsel

              
	
                Printed
      Name & Title

              	 
      	
                Printed
      Name & Title

              
	 
      	 
      	 
      
	
                February 21, 2006

              	 
      	
                February 28, 2006

              
	
                Date

              	 
      	
                Date

              

      

    

    

      

    

    
      	
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              Reseller
  Agreement

            

    

     

    Appendix 1 to Reseller
Agreement

    Definitions

    

    The
definitions in this Agreement and the General Terms & Conditions will be
applicable to this Agreement and any Exhibits to this Agreement entered into by
the Parties.  As a general rule, terms are defined in bold in the Agreement and
General Terms & Conditions and appear within the text of the General Terms
& Conditions, the Agreement and any Exhibits in Initial Caps
Italics.

    

    Base Price:  For
each Product, the
amount equal to the Suggested
Retail Price for that Product less the applicable
Margin
Percentage.

     

    Cart:  Those
portions of the Store
forming the purchase process for Products, including without
limitation the “shopping cart” identifying the products to be purchased, the
Transaction, and the
confirmation of the Transaction. The Cart shall not include those
portions of the Store
providing information and pricing on Products which are not part
of the purchase process.

     

    Channel
Partner:  Any person, organization or entity engaged by DR to
facilitate or make sales of the Products, where Company has
agreed to allow for distribution of its Products through Channel Partners pursuant to
a separate Agreement.

     

    DR Discount:  The
total amount payable to DR associated with Product sales, and marketing,
customer support and other services provided to Company in relation to the Product sales, under DR’s
general obligations as set out in this Agreement, including without limitation
Account Management
Costs, Costs of
Services, Optional
Services, and the
Margin Percentage.

     

    Margin
Percentage:  The percentage of the Sales Price which is earned
by DR on Host Sales, as
determined on a monthly basis as set forth in Appendix 2.

     

    Host Sales:  Sales
of the Products
originating from the Site.

     

    Net Purchase
Price:  The purchase price of the Products as between Company
and DR being the Sales
Price less the DR
Discount and other associated costs or amounts earned by DR.

     

    Sales Price:  The
gross dollar amount received by DR for a Host Sale, less any amounts
received for shipping and handling, sales or use taxes, valued added or other
Transaction-based
taxes, import or export duties or fees, all of which will be retained by
DR.

     

    Site:  Company’s
world wide web site, as identified on the first page of this
Agreement.

     

    Store:  The DR owned
and constructed World Wide Web site from which Company’s Products may be purchased by
End Users from DR as
the merchant of record.  The proposed URL for the Store is shown on
the first page of this Agreement.

     

    Store Live
Date:  The date on which Company’s Products are first made
available for sale to End
Users in the Store to be made available to
the public over the Internet under this Agreement.

     

    Suggested Retail
Price:  The amount Company publishes as the stated price for
End User purchases of
Products.  If
Company specifies one or more promotional price(s) for a Product in connection with a
sales promotion of that Product, for the duration of
such sales promotion the Suggested Retail Price shall
be the promotional price(s).

     

    Territory:  All
countries in the world except (i) countries to which export or re-export of any
Product, or the direct
products of any Product, is prohibited by
applicable law without first obtaining the permission of the applicable export
authorities or their successor, and (ii) countries that may be hereafter
explicitly excluded pursuant to the terms of this Agreement.

    

      

    

    
      	
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              Reseller
  Agreement

            

    

     

    Appendix
2 to Reseller Agreement

    Processing
and Payments

    

    For each
copy of a Product sold
and delivered to an End
User, DR will be responsible for the processing of payments made by End Users. Amounts collected
by DR will be deposited in an account established, owned, and maintained by DR.
DR will be solely responsible for the payment of any and all credit or other
payment card interchange, discount, processing, transaction and similar
fees.

     

    With
respect to Transactions, in states
within the United States where DR has nexus for sales or use tax purposes, DR
will be solely responsible for the preparation and filing of any and all sales
or use tax return, and the payment of any and all sales or use taxes, together
with any and all related interest and penalties.  In any non-US
jurisdiction where DR is subject to value added tax, goods and services tax or
any similar taxes, DR will be solely responsible for the preparation and filing
of any and all tax returns related to such tax collected, and the payment of any
and all such VAT, GST or similar taxes, together with any and all related
interest and penalties.  DR will not be liable for any sales, use,
VAT, GST or similar taxes in any state within the United States (or applicable
foreign jurisdiction) where DR does not have nexus, a fixed establishment, or is
otherwise not subject to tax.

     

    Except as
set forth above, Company shall be responsible for any taxes imposed on DR’s
performance of its obligations hereunder (excluding taxes based on the gross or
net income of DR), and for any taxes imposed on the sale or licensing of Products from Company to DR
(or Company’s income derived therefrom). In no event shall DR be responsible for
any tax based on Company’s net income or similar basis, or the preparation of
any tax return related thereto.  In the event DR is required to make
payment of any such taxes on Company’s behalf, DR will deduct the amount of such
taxes from any amounts due Company, or invoice Company for such taxes paid, at
its option.

     

    Within
five (5) business days after the end of each calendar month, by electronic
and/or facsimile transmission, DR will notify Company about Transactions for which
payment by DR is processed during the previous calendar month (the “Processing Report”). With
respect to Host Sales,
the Processing
Report will
contain the names and delivery addresses of the End Users, and the names,
Product numbers, and quantity of
the Products sold by DR to particular
End Users. Within
thirty (30) days after the end of each calendar month, DR will pay to Company
the Net Purchase Price
for Products which DR sold during
such immediately preceding calendar month net of Products returned during such
immediately preceding calendar month.  DR shall be entitled to include
as additional portion of the DR Discount, any out-of pocket fees
or costs incurred by DR necessary in order to permit or allow the delivery of
Company’s Products
(e.g., import fees).  DR will also be permitted to deduct any and all
other fees, charges, or expense amounts due (or reimbursable to) DR as described
in this Agreement from the amount due to Company.

     

    Under no
circumstances will DR be obligated to pay any amount to
Company in connection with (a) any chargebacks or (b) any activities that are
deemed to be fraudulent or criminal, provided however, DR agrees to pay to
Company the Net Purchase Price for fraudulent transactions in each calendar
month in excess of a [***] percent ([***]%) fraud rate, calculated as fraudulent
and other charge backs processed in that calendar month divided by the aggregate
Sales Price of Host Sales for that calendar
month. DR will use commercially reasonable efforts to screen for, detect,
prevent, and take such other actions as it deems reasonably necessary to prevent
any fraudulent activity. The existence of fraud, or the possibility of the
existence of fraud, will be determined in the sole discretion of DR, and DR may,
in its sole discretion, make such inquiries and investigations as it deems
appropriate under the circumstances. Pending such inquiries and investigations,
DR will have no obligation to make payment to Company of any amount associated
with such inquiries and investigations.

     

    Any
amounts invoiced to Company by DR which are not subject to a bona fide dispute
shall be due and payable by Company thirty (30) calendar days from the date of
invoice, in a manner reasonably acceptable to DR. Undisputed late payments will
bear interest at the rate of one and one half percent (1.5%) per month, or the
maximum amount permitted by law, whichever is less.  Company shall be
liable for all collection expenses incurred by DR, including reasonable
attorneys’ fees.  Company’s dispute as to a portion of any invoice or
amount owed shall not give Company the right to withhold or delay payment of the
whole invoice or amount owed.  Under no circumstances will the
provisions of this Agreement be deemed to require DR to distribute any Products that could, in the
reasonable discretion of DR, result in no, or an unacceptably small level of,
profitability for DR.

     

    
      

    

    
      	
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    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the
SEC.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              

            	
              Reseller
  Agreement

            

    

     

    Appendix
3 to Reseller Agreement

    Service
Level Agreement

    

    DR shall
provide the Store with
at least [***] percent ([***]%) up time measured over each fiscal quarter
(“Uptime”).

    

    For
purposes of calculating Uptime, “Downtime” shall be defined as
a lapse in availability that commences as of the time the service interruption
first occurs and ends when the service is fully restored or a workaround
identified and implemented.  Downtime shall not include
any period of unavailability due to either (1) scheduled maintenance and/or
upgrades (provided that any scheduled maintenance or upgrade event that may
result in a loss of Uptime must meet the following requirements in order to be
excluded from Downtime:  (a) DR must first have taken all
commercially reasonable efforts to avoid the interruption to Uptime (e.g., by
utilizing redundancy to maintain Uptime), and (b) DR must have provided
Company with as much advance notice of the time and date of the event as was
commercially feasible under the circumstances, or (2) any other event beyond the
control of DR which includes without limitation any external interruption of
major telecommunications (other than as a result of a failure to pay required
fees or other amounts by DR); the failure or substantial failure of the
Internet; or force majeure (including without limitation acts of God, terrorism,
natural disaster, war, riots, and labor strife). DR shall support the current
release of Internet Explorer (IE) for access to DR’s commerce
system.

     

    DR agrees
to take reasonable industry standard precautions to mitigate the risk of Downtime, including but not
limited to using anti-virus and anti-trojan software; installing available
hardware and software patches; maintaining a firewall; backing up files
including off site backups, data and software regularly; implementing security
systems including intrusion protection systems and fire protection
systems; and maintaining redundant internet providers.  DR will
maintain at minimum two (2) DS3 lines from separate vendors to handle traffic
from DR’s facility to the Internet.

    

    Uptime for a fiscal quarter
is calculated in accordance with the following formula:

    

    Uptime = (Total minutes per fiscal
quarter – Total minutes Downtime per fiscal
quarter)

    (Total minutes per fiscal
quarter)

    

    In the
event that DR’s Uptime
fails to meet the required percentage in any given quarter, DR will credit
Company the lost sales by calculating the average hourly sales rate during such
quarter and multiply this times the number of hours that are represented by the
Uptime shortfall. DR
will credit this amount to the Company’s account.

    

    Exclusive
Remedy for Failure to Perform

    Should DR
fail to meet its Uptime
commitment set forth herein in any two (2) fiscal quarters, Company’s sole and
exclusive remedy in addition to the credit set forth above shall be to terminate
this Agreement upon thirty (30) calendar days prior written notice to
DR.   In the event Company fails to provide DR with notice of
such termination within forty-five (45) calendar days of the end of the fiscal
quarter giving rise to such termination right, Company shall be deemed to have
waived its right to terminate this Agreement for such failure (but shall have
the right to so terminate if the terms of this paragraph are met in any
subsequent fiscal quarter).

    

      

    

    
      	
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    [***]
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confidential portion has been filed separately with the SEC.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Amendment
No. 2 To

    Digital
River Reseller Agreement

    

    THIS
AMENDMENT NO. 2 (the “Amendment”) is made this 1st  day
of January, 2007 (the “Amendment Effective Date”), to that certain Digital River
Reseller Agreement dated August 18, 2005 (the “Agreement”), by and between Sonic
Solutions (“Company”) and Digital River, Inc. (“DR”).  Unless
specified otherwise within this Amendment, all capitalized terms used in this
Amendment shall have the same meaning as they do in the Agreement.

    

    Background

    

    WHEREAS, pursuant to the terms
of the Agreement, DR operates certain Stores as a reseller of
Company’s Products (some
of which are electronically delivered to End Users and downloaded by
such End Users for their
use) and as merchant of record for Transactions; and

    

    WHEREAS, the parties wish to
revise and add to the terms of the Agreement.

    

    NOW,
THEREFORE, in consideration of the mutual promises, representations and
covenants set forth herein, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

    

    
      	
              1.

            	
              Backup CD
      Exhibit.  Company may (at its sole discretion) suspend
      DR’s ability to offer DR’s Backup CD solution on a particular Store or Stores, upon fifteen
      (15) business days written notice to DR.  Following its receipt
      of such notice, DR shall remove the offering of its Backup CD solution on
      the affected Store(s) as soon as
      commercially feasible.  For those Stores for which
      Company has suspended DR’s ability to offer DR’s Backup CD solution, Sonic
      may provide backup CDs either directly or through a subcontractor of
      Company, and may offer such backup CDs through such Store(s).  Each
      such Sonic-provided or Sonic subcontractor-provided backup CD offered for
      a particular Company Product shall be
      considered a separate Product for the
      purposes of the Agreement.

            

    

     

    In the
event Sonic elects (in its sole discretion) to rescind its suspension for a
particular Store, Sonic
may provide DR with fifteen (15) business days notice of such election, in which
event (a) DR shall re-enable the offering of its Backup CD solution on the
affected Store(s) as
soon as commercially feasible following its receipt of such notice on the same
terms and conditions as such Backup CD solution is currently provided (all time
spent by DR personnel re-enabling the Backup CD solution shall be billed to
Company as maintenance services in accordance with the terms of the Agreement);
and (b) on or prior to the date DR recommences offering the Backup CD Solution
on the affected Store(s), Sonic shall cease
offering an alternative backup CD solution through the affected Store(s).

    

    
      	
              2.

            	
              SAS-70.  The
      second-to-last bullet under “DR’s Rights and Obligations (“•  DR
      shall provide to Company a SAS-70 Type II report....”) is hereby deleted in
      its entirety and shall be of no further force and
  effect.

            

    

    

    
      	
              3.

            	
              Development Partner
      Credit.  For the term of the Agreement, Company shall
      serve as a DR Development Partner, which shall include the following
      additional responsibilities: (a) the Parties shall meet regularly (but in
      no event less than once per calendar quarter) to discuss mutual objectives
      and initiatives, including without limitation review of test results,
      Cart design, and
      checkout process; and (b) Company shall allow DR to perform
      champion/challenger testing of various Store and Cart designs suggested
      by DR if both parties mutually agree via email that the test is warranted,
      approvals shall not be unreasonably withheld, delayed or conditioned (DR
      shall provide up to [***] ([***]) hours of engineering development time
      per [***] at no additional cost to Company for new cart designs, layout,
      and customer integration directly related to champion/challenger testing
      performed pursuant to this clause (ii)).  As consideration for
      being a DR Development Partner, at the end of each calendar quarter DR
      shall provide a credit to Company of One Hundred Thousand Dollars
      ($100,000) (the “Development Partner
      Credit”), which shall be applied against amounts owed to DR for the
      last month of that calendar quarter. For the avoidance of doubt, Company
      is not entitled to direct payment or reimbursement for the Development Partner
      Credit.

            

    

     

    
      
        	 
      	
                1

              	
                CONFIDENTIAL

              

      

    

     

    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    In the
event Company fails to perform any of its obligations under this Section 3
during a calendar quarter and fails to cure such nonperformance within
twenty-one (21) calendar days of receipt of written notice from DR of such
failure, the Development
Partner Credit for such calendar quarter shall be waived.

    

    
      	
              4.

            	
              Construction.
      Notwithstanding that this Amendment has been prepared by DR, Company and
      DR confirm that this Amendment constitutes the understanding of the
      parties and is intended to be construed in a manner that is consistent
      with the subject matter and activities contemplated by the Agreement, and
      the terms and conditions of the Agreement.  No rule of strict
      construction with respect to this Amendment shall be applied against
      either DR or Company.

            

    

    

    
      	
              5.

            	
              Counterparts. This Amendment and
      any subsequent amendment to the Agreement may be executed in several
      counterparts and by each party on a separate counterpart, each of which,
      when so executed and delivered shall be an original, but all of which
      together shall constitute but one and the same instrument.  A
      fax signature or signature delivered as an imaged attachment to an e-mail
      message shall be deemed equivalent to an original ink
      signature.  This Amendment (and any subsequent amendment) shall
      not become binding on any party until all parties to the Agreement have
      transmitted to the other party(ies) a counterpart executed by the
      transmitting party.

            

    

    

    Other
than the changes set forth in the preceding paragraphs, all other terms and
conditions of the Agreement shall remain unchanged and in full force and
effect.

    

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

    

    
      
        
          	
                  COMPANY:

                	 
      	
                  DR:

                
	 	 	 
	
                  SONIC
      SOLUTIONS

                	 
      	
                  DIGITAL
      RIVER, INC.

                
	 
      	 
      	 
      
	
                  /s/ A. Clay Leighton

                	 
      	
                  /s/ Tom Donnelly

                
	
                  Signature

                	 
      	
                  Signature

                
	 
      	 
      	 
      
	
                  A. Clay Leighton, Executive Vice President and
      Chief Financial Officer

                	 
      	
                  Tom Donnelly, Chief Financial
      Officer

                
	
                  Printed
      Name & Title

                	 
      	
                  Printed
      Name & Title

                
	 
      	 
      	 
      
	
                  March 1, 2007

                	 
      	
                  March 13, 2007

                
	
                  Date

                	
                    

                	
                  Date

                

        

      

    

    

    [The
remainder of this page is intentionally blank]

    

    
      
        	 
      	
                2

              	
                CONFIDENTIALDISTRIBUTION
AGREEMENT

    

    THIS
AGREEMENT is made and entered into on March 28, 2002,
by and between Roxio Inc., a Delaware corporation (“Roxio”), and Navarre, Inc.,
a Minnesota corporation (“Distributor”).

     

    IN
CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES AGREE AS
FOLLOWS:

     

    1.           DEFINITIONS

     

    1.1         “Like Distributor”
shall mean a distributor that sells the same Products to the same customer base
in the Territory.

     

    1.2         “Price List” shall
mean the Roxio Distribution Authorized Products and Price List, as amended from
time to time by Roxio, prevailing at the time Roxio accepts a Purchase Order
from Distributor.

     

    1.3         “Products” shall mean
those products and services listed on Exhibit A
hereto.  Products may be changed, deleted or added by Roxio, at its
sole discretion.  Roxio shall be under no obligation to continue the
production of any Product.

     

    1.4         “Purchase Order” shall
mean the written purchase orders by which Distributor orders the Products, as
more particularly described in Section 4 below.

     

    1.5         “Term” shall mean the
term of this Agreement, which shall commence on the Effective Date and continue
for one (1) year thereafter, unless earlier terminated under the provisions of
Section 14 of this Agreement.  This Agreement shall automatically
renew for additional one (1) year periods, unless either party provides notice
of termination sixty (60) days prior to the expiration of the then-current
term.

     

    1.6         “Territory” shall mean
the Territory set forth on Exhibit
B.

     

    2.           APPOINTMENT
AND AUTHORITY

     

    2.1         Appointment.  Roxio
hereby appoints Distributor as Roxio’s non-exclusive distributor for the
Products to the Distribution Accounts in the Territory, subject to the terms and
conditions contained in this Agreement, and Distributor hereby accepts such
appointment.  Distributor shall have the right to license Products
from Roxio for distribution to the Distribution Accounts in the Territory,
subject to the terms of this Agreement, including but not limited to, the
restrictions specified in Section 11.2.  Roxio reserves the right to
appoint other distributors and representatives and/or to market Products
directly to the Distribution Accounts and in the Territory.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.2         Independent
Contractors.  The parties shall act as independent contractors
in the performance of this Agreement, and nothing contained in this Agreement
shall be construed to (i) give either party the power to direct and control the
day-to-day activities of the other; (ii) constitute the parties as partners,
joint venturers, co-owners, agents or otherwise as participants in a joint or
common undertaking; or (iii) allow Distributor to create or assume any
obligation on behalf of Roxio for any purpose
whatsoever.  Specifically, without limitation, neither party will
enter into any Agreement, contract, or arrangement with any government or
government representative or with any person, firm, corporation or other
enterprise imposing any legal obligations or liability of any kind whatsoever on
the other and, without limiting the generality of the foregoing, neither party
will sign the other’s name to any commercial paper, contract or other instrument
and will not contract any debt or enter into any Agreement, either expressed or
implied, binding the other to the payment of money and/or in any other
regard.  All financial obligations associated with Distributor’s
business are the sole responsibility of Distributor.  All sales and
other agreements between Distributor and its customers are Distributor’s
exclusive responsibility and shall have no effect on Distributor’s obligations
under this Agreement.

     

    3.           DISTRIBUTOR
GENERAL OBLIGATIONS

     

    3.1         Promotion of
Products.  Distributor shall, at its own expense, vigorously
promote the sale of the Products to all Distribution Accounts, to Distributor’s
maximum capacity.

     

    3.2         Market
Assistance.  Distributor shall, at it own expense and
consistent with the sales policies of Roxio, (i) assist Roxio in assessing
customer requirements for the Product, including modifications and improvements
thereto, in terms of quality, design, functional capability, and other features;
and (ii) submit market research information, as reasonably requested by Roxio,
regarding competition and changes in the market in the Territory.

     

    3.3         General
Conduct.  Distributor agrees:  (i) to conduct
business in a manner that reflects favorably at all times on the Products and
the good name, goodwill and reputation of Roxio; (ii) to avoid deception,
misleading or unethical practices that are or might be detrimental to Roxio or
the public, including but not limited to, disparagement of Roxio or its
Products; (iii) not to publish or employ or cooperate in the publication or
employment of, any misleading or deceptive advertising material; (iv) to make no
representations, warranties or guarantees to customers or to the trade with
respect to the specifications, features or capabilities of Products that are
inconsistent with the literature distributed by Roxio; and (v) not to engage in
any acts prohibited by local, state, federal or national law, including
antitrust or unfair trade practice laws, which prohibit various forms of
predatory, discriminatory or below-cost pricing.

     

    3.4         Export
Requirements.  Distributor shall, at its own expense, pay for
all export licenses and permits, pay customs charges and duty fees, and take all
other actions required to accomplish to export of the Products purchased by
Distributor.  Distributor warrants that it shall comply in all
respects with the export and re-export restrictions applicable to the Products,
including those set forth in the export license for every Product shipped to
Distributor, and shall indemnify Roxio for any losses resulting from
Distributor’s noncompliance.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.5         Reports.  Distributor
agrees to prepare and forward to Roxio, reports as may be reasonably requested
by Roxio, including, without limitation, monthly reports of inventory on hand,
intra-location transfers and sales data relating to the
Products.  Within ten (10) days after the close of each month,
Distributor shall submit sales data which shall include, without limitation:
Distributor shipping location; customer account number; customer name, address,
city, state, zip code, phone number; Distributor part number; Roxio part number;
quantity of Products sold (either sold or RMA issued); and customer price using
cost of goods sold.

     

    3.6         Audit
Rights.  Roxio reserves the right to have an authorized Roxio
representative, at Roxio’s cost, audit Distributor’s records relating to sales
and inventories of Products, including, without limitation, records pertaining
to any claims submitted by Distributor for sales and inventories of Products
(including claims for price protection, stock rotation, returned products, ship
from stock and debit, and other transactions) or otherwise as necessary to
verify Distributor’s compliance with this Agreement.  Upon prior
written notice, Distributor shall provide access to such records during normal
business hours at Distributor’s locations(s).  Distributor agrees to
maintain all such records by location for a minimum of three (3) years after the
date of the transaction.  If an audit indicates an underpayment of
five percent (5%) or more of any amounts due hereunder or other non-monetary
noncompliance, Distributor will promptly reimburse Roxio for the reasonable cost
of the audit.  Such rights will remain in effect through a period
ending one year from the termination of this Agreement.

     

    4.           PURCHASE
TERMS

     

    4.1         Purchase
Orders.  All orders for Products submitted by Distributor shall
be initiated by a written purchase order (“Purchase Order”) in accordance with
this Section 4 provided, however, Distributor may place an order verbally, by
fax if a confirmational Purchase Order is received by Roxio within five (5) days
thereafter.  All orders shall be for at least the Minimum Shipment
Quantity as defined in Section 5.4.  No Purchase Order shall be
binding until accepted by Roxio in writing.  Roxio shall have no
liability to Distributor with respect to Purchase Orders that are not accepted
in writing.  Any additional or inconsistent terms in Distributor’s
Purchase Order or acknowledgment are considered deleted and of no force or
effect.

     

    4.2         Purchase Order
Terms.  All Purchase Orders shall state:  (i) the type,
model and quantity of the Products ordered, using Roxio part numbers; (ii) the
“billable” purchase order number; (iii) the requested delivery date; (iv) the
requested location for shipment and (if different) the “bill to”
address.  All Purchase Orders must be signed by an authorized
purchasing agent of Distributor; provided, however, that absent express
instructions from Distributor to the contrary, Roxio shall be entitled to assume
that any signed Purchase Orders are duly authorized.  Standard
lead-time for Purchase Orders of standard Products initially is four (4) weeks,
although Roxio may modify such lead-time from time to time.  Roxio
shall use its reasonable commercial efforts to deliver Products as soon as is
reasonably practical.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.3         Change
Orders/Cancellations.  Distributor may cancel a Purchase Order
or reschedule delivery under a Purchase Order within forty-eight (48) hours of
Roxio’s receipt of the Purchase Order.  Outside of this forty-eight
hour period, Distributor may only cancel a Purchase Order or reschedule delivery
under a Purchase Order fifteen (15) days or more in advance of the scheduled
delivery date for such Purchase Order; provided, however, that in the case of
rescheduling by the Distributor, the rescheduled date for shipment must be
within sixty (60) days of the originally scheduled shipping
date.  Roxio reserves the right to request non-cancelable orders for
specific circumstances, at Roxio’s sole option.

     

    4.4         Distributor
Breach.  Notwithstanding any prior acceptance by Roxio of a
Purchase Order, Roxio shall not be obligated to ship Products if Distributor is
in breach of this Agreement at the time of the scheduled shipment.

     

    4.5         Delivery.  All
Products shall be packed for shipment in Roxio’s standard shipping cartons,
marked for shipment to Distributor’s address requested in the Purchase Order,
and delivered to Distributor or its carrier EXW (per Incoterms 2000), at Roxio’s
shipping dock at the location stated on the Roxio Purchase Order (or if not
stated, Roxio’s then-current headquarters in California, USA) Title to Products
and risk of loss shall pass to Distributor when such Products leave the
applicable Roxio shipping dock in the U.S. Roxio will select the ground shipment
carrier and pay ground freight charges.  Drop shipments to
Distributor’s customers shall be permitted on a case-by-case basis, with Roxio’s
written approval.  If Distributor requests a method of shipment other
than ground shipment, Distributor may select the method of shipment, carrier and
type of conveyance, at Distributor’s expense (subject to Section
5.4).  Roxio may make partial shipments of Products, which shall be
separately invoiced.  Partial shipments shall not affect Distributor’s
obligation relating to the balance of the Purchase Order.

     

    4.6         Inspection/Acceptance.  Distributor
shall inspect all Products promptly following receipt and, within thirty (30)
days following receipt, shall notify the freight forwarder and Roxio of any
claim for damages or shortages.  Within thirty (30) days after receipt
(the “Inspection Period”), Distributor shall give Roxio notice of any claim that
a Product does not conform with Roxio’s published specifications in effect at
the time of Distributor’s order.  To reject a Product, Distributor
shall notify Roxio in writing or by fax of its rejection and request a Return
Material Authorization (“RMA”) number.  Roxio shall issue RMA numbers
in accordance with its then current standard procedures.  Within ten
(10) days of receipt of the RMA number, Distributor shall return the rejected
Product to Roxio (i) in accordance with Roxio’s RMA policies, procedures and
instructions; (ii) freight prepaid; and (iii) in its original shipping carton
with the RMA number prominently displayed on the outside of the
carton.  Roxio reserves the right to refuse to accept any rejected
Products that do not bear an RMA number on the outside of the carton or which
otherwise do not comply with Roxio’s RMA policies, procedures and
instructions.  Any Product not properly rejected by Distributor within
the Inspection Period shall be deemed accepted.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           DISTRIBUTOR
PRICE; PAYMENT

     

    5.1         Price.  Distributor’s
purchase price (the “Price”) for each of the Products purchased by Distributor
for resale to the Distribution Accounts shall be as set forth in the Price List
in effect at the time of Roxio’s acceptance of a Purchase Order from
Distributor, except as otherwise set forth in this Section 5.  Prices
are stated and shall be paid in United States currency.  Distributor
shall be free to establish its selling price for sale of the Products to
Distributor’s customers in the Distribution Accounts.

     

    5.2         Price
Modifications.  Roxio reserves the right to revise the Price
for any Product at any time upon Roxio’s publishing revisions to the Price List
and providing written notice to Distributor of such changes.  Such
revised Prices shall apply to all Purchase Orders accepted after the date of
such revision, except as provided below.

     

    (a)           In
the event of a Price increase, Distributor may order any quantity of Products
during the thirty (30) day period after Distributor receives notice of change of
Price for such Product, for requested delivery within sixty (60) days of the
date of notification at the non-revised (lower) Price.  Any Products
which are scheduled for delivery more than sixty (60) days from the date of such
notification shall be invoiced at the revised (increased) Price.

     

    (b)           [***]

     

    5.3         Taxes.  The
Price does not include any federal, state or local taxes, duties or assessments
that may be applicable to the sale of the Products, and which taxes, duties or
assessments shall be paid by Distributor.  When Roxio has the legal
obligation to collect such taxes, duties or assessments, the appropriate amount
shall be added to Distributor’s invoice and paid by Distributor, in accordance
with the payment terms set forth in Section 5.5 below, unless Distributor
provides Roxio with a valid tax exemption certificate authorized by the
appropriate taxing authority.

     

    5.4         Delivery
Costs.  The Price does not include any insurance or expedited
shipping expenses, special packing expenses, or similar charges associated with
delivery of the Products to Distributor (the “Delivery Costs”), which shall be
paid by Distributor, in accordance with the payment terms, provided that
Distributor orders and accepts delivery of the minimum per shipment quantity
(the “Minimum Shipment Quantity”) for a Product specified in the Price List or
as otherwise specified by Roxio.  Shipments of smaller quantities of a
Product requested by Distributor shall be shipped freight collect by
Distributor’s designated freight carrier.  Notwithstanding anything
else herein, freight charges for ground shipments only shall be paid by
Roxio.  If Distributor requests an alternative shipment method,
Distributor shall pay the difference between the charges for ground shipment and
such alternative shipment method.

     

    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.5         Payment.  Distributor’s
credit terms shall be subject to review and approval of Roxio’s credit
department from time to time.  Standard terms for payment of Products
are as follows:  (i) Distributor will receive a 2% discount off the
invoice if Distributor pays such invoice within 20 days from the date of Roxio’s
invoice, (ii) Distributor will receive a 1% discount off the invoice if
Distributor pays such invoice within 30 days from the date of Roxio’s invoice,
and (iii) payment due in full within forty-five (45) days from the date of
Roxio’s invoice, all subject to credit approval.  Invoices shall not
be dated earlier than the date of shipment.

     

    5.6         Late
Payment.  Roxio may impose a late charge on all overdue amounts
at a rate equal to the lesser of (i) one and one-half percent (1-1/2%) per
month; or (ii) the maximum rate permitted by applicable law, until such amount,
and all accrued late charges, is paid in full to Roxio.

     

    6.           INVENTORY

     

    6.1         Inventory.  Subject
to any applicable government restrictions and availability of Products to
Distributor by Roxio, Distributor shall maintain sufficient on-hand inventory of
Roxio’s Products to supply anticipated customer requirements.

     

    6.2         Product
Discontinuance.  Roxio reserves the right to obsolete or
discontinue any of its Products, upon thirty (30) days advance notice, and
Distributor shall have the right to place end-of-life orders for delivery within
such thirty (30) day period.  Distributor and those customers listed
on Exhibit C may return all inventory of any Products that Roxio discontinues or
makes obsolete for the 180 day period following the date on which Roxio provides
such notice to Distributor.  Roxio shall have the right to modify its
product discontinuance program and notification period in its sole discretion,
effective upon written notice to Distributor.

     

    6.3         Quarterly
Adjustment.  Within the first forty-five (45) days of each
fiscal quarter of every year during the term of this Agreement, slow moving
inventory may be returned by Distributor to Roxio for credit against the
simultaneous purchase of new Products of equal or greater aggregate value,
subject to the following limitations set forth below.  Notwithstanding
anything else herein, (i) all purchase orders for such new Products are
non-cancellable and must be received by Roxio by the time Roxio issues a return
RMA and (ii) all such new Products must be shipped within ninety (90) days of
the date of such purchase order.

     

    (a)           Distributor
may return up to [***] ([***]%) of the amount of the previous [***] purchases by
Distributor of all Products; provided, however, that Distributor will notify
Roxio in writing if it wishes to discuss the disposition of additional Products
and Roxio agree to discuss such disposition within ten (10) days of receiving a
request from Distributor.

     

    (b)           Products
must be returned in factory-shipped condition in the original and undamaged
Roxio -supplied package;

     

    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Distributor
must obtain an RMA from Roxio prior to any return and all returns must comply
with Roxio’s policies, procedures and instructions;

     

    (d)           All
freight charges for returns shall be paid by Distributor; and

     

    (e)           All
Products authorized for return shall be subject to inspection by Roxio to
confirm that Products meet Roxio’s product and packaging quality
standards.

     

    7.           ROXIO
OBLIGATIONS

     

    7.1         Promotional and Technical
Materials.  Roxio agrees to supply Distributor with its usual
sales promotion and advertising material without cost to Distributor, and to
support the efforts of Distributor with its usual advertising and other sales
promotion efforts.  Roxio agrees to furnish Distributor, without
charge, except as may be otherwise agreed upon, reasonable quantities of
technical, advertising and selling data and literature concerning the Products,
which Roxio may from time to time produce or have available for trade
circulation.  All such material (other than that which was distributed
to others by Distributor) shall be returned to Roxio in good condition, other
than reasonable wear, immediately upon demand by Roxio.

     

    7.2         Cooperative
Advertising.

     

    (a)           Roxio
shall, to the extent it deems necessary and reasonable, (and consistent with
it’s policies in effect) support Distributor in its efforts regarding the supply
of advertising material (and equipment and personnel when possible) for trade
shows.  To assist Distributor in advertising, promotion and training
for the sale of the Products, Roxio agrees to reimburse certain qualified
expenses incurred by Distributor for advertising, promotion and trade shows, all
subject to the terms and conditions determined by Roxio from time to time, in
its sole discretion.

     

    (b)           Prior
to implementing any advertising program for which Distributor seeks approval and
contribution, Distributor shall submit a written request to Roxio in a form
reasonably acceptable to Roxio, together with a copy of the proposed
advertisement.  Roxio shall, in its sole discretion, approve or reject
the proposal within fifteen (15) working days after receipt
thereof.  Any proposal not expressly approved by Roxio shall be deemed
rejected.

     

    (c)           Upon
completion of an approved advertising program, Distributor shall submit the
notices provided by Distributor and Roxio pursuant to Section 7.2(b) above; (ii)
a copy of the original advertisement; and (iii) a copy of all invoices verifying
the expenses.  Within thirty (30) days after receipt of the claim
package, Roxio shall pay any authorized amounts to Distributor for all
advertisements which meet all qualifications reasonably required by Roxio
(including the requirement that the accounts be current in
payment).  Roxio shall reimburse up to one hundred percent (100%) of
the actual, certifiable, pre-authorized expenses (design, production, printing,
medial charges, postage and the like) devoted to the Products, not to exceed the
amount of available co-op advertising funds earned by and available to
Distributor.  Reimbursement by Roxio is contingent upon Distributor’s
compliance with (i) Roxio’s reasonable requirements; (ii) guidelines regarding
use of Roxio’s Products and applications; and (iii) any other then current
guidelines specifically intended to ensure that the Products are represented in
the proper light.  Roxio shall not unreasonably withhold reimbursement
from Distributor if Distributor complies with all the above
requirements.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           Co-funding
by Roxio of trade shows and any other non-print advertising must be approved by
Roxio prior to commitment of funds by Distributor.

     

    8.           WARRANTY

     

    8.1         [***]

     

    8.2         [***]

     

    8.3         Warranty
Disclaimer.  EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE,
ALL PRODUCTS PROVIDED HEREUNDER ARE PROVIDED “AS IS” AND ROXIO MAKES NO OTHER
WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, REGARDING THE PRODUCTS,
AND EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY, OR NONINFRINGEMENT.  FURTHER, ROXIO DOES NOT WARRANT
RESULTS OF USE OR THAT ANY SOFTWARE PRODUCT IS BUG FREE OR THAT ITS USE WILL BE
UNINTERRUPTED.

     

    9.           LIMITATION
OF LIABILITY

     

    9.1         [***]

     

    9.2         Force
Majeure.  Except for the payment of any monies due under this
Agreement, nonperformance of either party shall be excused, and any performance
date shall be extended, to the extent that performance is rendered impossible by
strike, fire, flood, governmental acts or orders or restriction, breakdown of
machinery, failure or delay of suppliers, or any other reason where failure to
perform is beyond the control and not caused by the negligence of the
nonperforming party.

     

    9.3         Termination.  In
the event termination by either party in accordance with any of the provisions
of the Agreement, except as specified in this Agreement, neither party shall be
liable to the other, because of such termination, for compensation,
reimbursement or damages on account of the loss of prospective profits or
anticipated sales or on account of expenditures, inventory, investments, leases
or commitments in connection with the business or goodwill of Roxio or
Distributor.

     

    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.         INDEMNITY

     

    10.1       Distributor.  Distributor
shall be solely responsible for, and shall indemnify, defend and hold Roxio free
and harmless from, any and all claims, damages or lawsuits (including Roxio’s
attorneys’ fees) arising out of Distributor’s breach of Sections 8.2 or
11.2.

     

    10.2       Patent and Copyright
Indemnity.

     

    (a)           Roxio
agrees to defend, or at Roxio’s option settle, at Roxio’s own expense and under
Roxio’s sole control, any claim, suit or proceeding brought against Distributor
on the issue of infringement of any United States patent, copyright or
trademark, or the misappropriation of a trade secret, by a Product purchased by
Distributor hereunder, subject to the limitations herein.  Roxio shall
pay any final judgment entered in such action.  Roxio shall be
relieved of the foregoing obligations unless Distributor (i) notifies Roxio
promptly in writing of such claim, suit or proceeding; and (ii) gives Roxio
information and assistance to settle or defend any such claim.  If a
Product, or any part thereof, are finally adjudicatively determined to be, or in
Roxio’s sole opinion may become, the subject of any claim, suit or proceeding
for infringement of any United States patent, copyright, trademark, or
misappropriation of a trade secret, or if the sale or use of the Product, or any
part thereof, is enjoined, then Roxio may, at Roxio’s option and
expense:  (i) procure for Distributor and its customers the right to
sell or use the Product, or such part thereof, under such patent, copyright,
trademark or the misappropriation of a trade secret; or (ii) replace the
Product, or part thereof, with other suitable Product or part; or (iii) suitably
modify the Product, or part thereof; or (iv) if the use of the Product, or part
thereof, is prevented by injunction, accept the return of the Product, or part
thereof, and refund the Price paid therefor by Distributor, less a reasonable
sum for use and damage Roxio shall not be liable for any costs or expenses
incurred without its prior written authorization.

     

    (b)           Notwithstanding
the provisions of Section 10.2 above, Roxio assumes no liability for (i)
infringement of patent claims covering completed equipment or any assembly,
circuit, combination, method or process in which any of the Products may be used
but not covering a Product standing alone; (ii) any trademark infringements
involving any marking or branding not applied by Roxio, or involving any marking
or branding applied at the request of Distributor; or (iii) the modification of
a Product, or any part thereof, unless such modification was made by
Roxio.

     

    (c)           The
foregoing provisions of this Section 10 state the entire liability and
obligations of Roxio and the exclusive remedy of Distributor with respect to any
alleged patent, copyright, trademark infringement or misappropriation of a trade
secret by the Products or any part thereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.         PROPRIETARY
OWNERSHIP RIGHTS

     

    11.1       Property
Rights.  Distributor agrees that Roxio owns all right, title,
and interest in the intellectual property rights related to the Products,
including, without limitation, all patents, trademarks, trade names, inventions,
copyrights, know-how, and trade secrets relating to the design, manufacture,
operation or service of the Products.  The use by Distributor of any
of these property rights is authorized only for the purposes and to the extent
expressly set forth in this Agreement, and upon termination of this Agreement
for any reason such authorization shall cease.

     

    11.2       Sale Conveys no Right to
Manufacture or Copy.  The Products are licensed by Roxio
subject in each case to the condition that such license does not convey a
license, expressly or by implication, to manufacture, duplicate or otherwise
reproduce any of the Products.  To the maximum extent permitted by
applicable law, Distributor agrees that it shall not: (i) alter, reverse
engineer, decompile or disassemble the Products or otherwise attempt to discover
any source code or underlying ideas or algorithms of any Products; (ii)
reproduce any components of the Products without Roxio’s prior written consent,
(iii) modify, translate, or otherwise create derivative works of any Product or
Product packaging, (iv) distribute any Product without Roxio’s end-user license
agreement included by Roxio with such Product, or (v) remove, alter, cover,
or obscure any notice or mark that appears on a Product or Product
packaging.  Distributor may only distribute Products to customers that
it has entered into written agreement with, which contain restrictions
substantially similar to terms set forth in this Section 11.2 and shall take
appropriate steps to assure compliance with the restrictions contained in this
Section 11.2.

     

    11.3       Software
License.  The software Products, or software (if any) provided
with a Product, are not sold, but are licensed to Distributor for redistribution
and are subject to a license on the terms included with such
Product.  Specifically, Products are subject to a break-the-seal
(“shrinkwrap”) or downloadable (“click-thru”) end user license
agreement.  By their terms, such end-user license agreements prohibit
unauthorized copying.  Distributor agrees to abide by these license
agreements, to inform its customers of them, and to actively pursue correction
of known breaches by any of its customers.  Violation of Roxio’s
license agreements by Distributor or Distributor’s customers may result in
termination of this Agreement.  All references to sales or purchases
of the software Products herein shall mean a license.

     

    11.4       OEM
Agreements.  Distributor is not authorized to enter into or
negotiate OEM license agreements on behalf of Roxio.

     

    12.         TRADEMARKS
AND TRADE NAMES

     

    12.1       Use.  During
the term of this Agreement, Distributor shall have the right to indicate to the
public that it is an Authorized Distributor of Roxio Products, as and to the
extent set forth in this Agreement and to advertise such Products under the
trademarks, service marks, and trade names that Roxio may adopt from time to
time which are owned exclusively by Roxio (“Roxio Trademarks”).  Roxio
Trademarks are not deemed to include any third party marks, regardless of
whether used by Roxio in connection with the Products.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.2       Limitations.  Distributor
shall not alter or remove any Roxio Trademarks applied to the Products by
Roxio.  Nothing herein shall grant to Distributor any right, title or
interest in Roxio Trademarks.  At no time during or after the term of
this Agreement shall Distributor challenge or assist others to challenge Roxio
Trademarks or the registration thereof, or attempt to register any trademarks,
service marks or trade names confusingly similar to the Roxio Trademarks, in any
language.

     

    12.3       Approval of
Representations.  All representation of Roxio Trademarks that
Distributor intends to use shall first be submitted to Roxio for approval (which
shall not be unreasonably withheld) of design, color, and other details which
are not exact copies of those used by Roxio.  If any Roxio Trademarks
is to be used in conjunction with another trademark on or in relation to the
Products, then the Roxio Trademark shall be presented equally legibly, equally
prominently, and/or of greater size than the other but nevertheless separated
from the other so that each appears to be a mark in its own right, distinct from
the other mark.

     

    13.         CONFIDENTIALITY

     

    13.1       Confidential
Information.  The software (if any) provided with the Product,
in object code form is not considered Confidential
Information.  Roxio’s proprietary information in it’s products,
technical data, or know-how relating to the software, shall be considered
Confidential Information of Roxio and shall be governed by that certain Mutual
Non-Disclosure Agreement signed by the parties on March 22, 2002, and attached
hereto as Exhibit
D.

     

    14.         TERMINATION

     

    14.1       Termination for
Convenience.  This Agreement may be terminated by either party
for any or no reason by giving the other party written notice ninety (90) days
in advance.

     

    14.2       Termination for
Cause.  If either party defaults in the performance of any
material provision of this Agreement, then the nondefaulting party may give
notice to the defaulting party that if the default is not cured within thirty
(30) days the Agreement shall be terminated.  If the nondefaulting
party gives such notice and the default is not cured, then the Agreement
automatically shall terminate at the end of that period.

     

    14.3       Termination for
Insolvency.  This Agreement shall terminate, without notice,
(i) upon the institution by or against Distributor of insolvency, receivership
or bankruptcy proceedings or any other proceedings for the settlement of
Distributor’s debts; (ii) upon Distributor’s making a general assignment for the
benefit of creditors; or (iii) upon Distributor’s dissolution.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14.4       Orders for Distributor
Accounts; Termination Effect.  In the event of the termination
of this Agreement, all orders received and accepted by Roxio as of the effective
date of such termination shall be reviewed for cancellation or confirmation by
Distributor, which action must be communicated in writing to Roxio within ten
(10) days of the effective date of termination.  Unless this Agreement
is terminated by Roxio under Section 14.2, Roxio shall accept orders from
Distributor for additional Products which Distributor is contractually obligated
to furnish to its customers and does not have in its inventory, provided
Distributor notifies Roxio of any and all such transactions in writing within
thirty (30) days after the termination date.  Not withstanding the
foregoing, Roxio shall not be required to deliver further Product to Distributor
if this Agreement is terminated by Roxio under Section 14.2 or 14.3

     

    14.5       Inventory; Termination
Effect.  Unless this Agreement is terminated by Roxio under
Section 14.2, at Distributor’s option, exercised in writing within thirty (30)
days after such termination date, Roxio shall repurchase Products remaining in
Distributor’s inventory in excess of that required to meet Distributor’s
contractual obligations existing at the time of the termination.

     

    14.6       Return of
Materials.  Within thirty (30) days after termination of this
Agreement, Distributor shall prepare all items in its possession which were
provided by Roxio for shipment to Roxio, as Roxio may direct, at Roxio’s
expense.  Distributor shall not make or retain any copies of any
Confidential Information which may have been entrusted to
it.  Effective upon the termination of this Agreement, Distributor
shall cease to use all trademarks, service marks, and trade names of
Roxio.

     

    14.7       Survival of Certain
Terms.  The provisions of Sections 2.2, 3.4, 3.5, 3.6, 4.3,
4.5, 4.6, 5.3, 5.4, 5.5, 5.6, 8, 9, 10, 11, 12.2, 13, and the relevant portions
of Sections 14 and 15 shall survive the termination of this Agreement for any
reason.  Any payment obligations of the parties shall cease upon
termination of this Agreement.

     

    14.8       Remedies.  Neither
party shall be liable to the other in any manner on account of the termination
of this Agreement.  Both Distributor and Roxio are aware of the
possibility of expenditures necessary in preparing for performance hereunder and
the possible losses and damages which may occur to each in the event of
termination.  Violation of obligations under this Agreement may cause
irreparable harm and damage which may not be recovered at law, and remedies for
breach of this Agreement may be in equity through injunctive
relief.

     

    15.         MISCELLANEOUS

     

    15.1       Governing
Law.  This Agreement shall be governed in all respects by the
substantive laws of the State of California, The parties agree that the United
Nations Convention on Contracts for the International Sale of Goods (1980) is
specifically excluded from application to this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.2       Attorneys’
Fees.  In the event of any litigation or arbitration by the
parties under this Agreement, the prevailing party shall be entitled to costs
and reasonable attorneys’ fees.

     

    15.3       Assignment.  Distributor
shall not assign or otherwise transfer any of its rights, obligations or
licenses hereunder without the prior written consent of Roxio, including any
assignment by operation of law as a result of the merger or acquisition of
Distributor.  Distributor will not transfer, pledge, or assign this
Agreement, or any part thereof or interest therein, or any commissions or
compensation due to it hereunder, without first obtaining in each instance the
written consent of Roxio.  Roxio may assign this Agreement to any
successor, in interest to its business and goodwill as they relate to the
Products covered hereby.  Subject to the foregoing, the provisions of
this Agreement shall apply to and bind the successors and permitted assigns of
the parties.

     

    15.4       Waiver.  Failure
by any party to enforce any of its rights under this Agreement shall not be
deemed a waiver of any right which that party has under this
Agreement.

     

    15.5       Amendment.  This
Agreement shall not be amended, altered or changed except by written agreement
signed by authorized representatives of both parties.

     

    15.6       Allocation of
Risk.  The parties acknowledge and affirm that the provisions
in this Agreement regarding warranties, indemnity, disclaimer, limitation of
liability and damage limitation allocate risk between the
parties.  This allocation is reflected in the terms hereof, including
pricing, and is an essential element of the basis of the bargain between the
parties.

     

    15.7       Export
Control.

     

    (a)           Representations.  Distributor
agrees to comply strictly and fully with all export controls imposed on the
Products by any country or organization in whose jurisdiction Distributor
operates or does business.  Distributor shall not knowingly, export or
reexport any Product to any country prohibited under United States Export
Administration Regulations, without first obtaining a valid license to so export
or reexport the Products.

     

    (b)           Responsibility.  All
export permits, import certificates, insurance, duty, customers clearance
charges and/or licenses and related costs shall be Distributor’s
responsibility.

     

    (c)           Regulations.  Because
Roxio is subject to the United States Foreign Assets Control Regulations,
Transaction Control Regulations and other United States export regulations,
specifically without limitation to the above, Distributor will not directly or
indirectly initiate or take part in any act which may constitute a violation of
such laws or regulations.  Distributor also agrees to assist Roxio in
every way in assuring compliance with such laws or regulations.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.8       Foreign Corrupt Practices
Act.  Roxio is subject to the Foreign Corrupt Practices Act
(Public Law 95 213), which among other things, generally makes it illegal for
Roxio, or any agent of Roxio, to pay, promise to pay or authorize the payment of
any money or offer, gift, or promise to give or authorize the giving of anything
of value to any foreign political candidate, or to any person while knowing or
having reason to know that all or a portion of such money or thing of value will
be offered, given or promised directly or indirectly to any foreign official, to
any foreign political party, or to any candidate for foreign political office
for any of the purposes described in the act.  Distributor shall not
do any act or thing which shall be a violation of said law and further agrees to
cooperate with Roxio in assuring that Roxio and Distributor are in full
compliance with such law and regulations issued thereunder including any and all
reporting requirements.

     

    15.9       Controlling
Document.  All purchase orders for the Products shall be
governed by this Agreement.  Any additional, inconsistent or
conflicting clauses in any order, release, acceptance or other written
correspondence between the parties shall be considered null and void, unless
expressly executed by duly authorized representatives of both
parties.

     

    15.10     Notices.  All
notices, requests, consents and other communications hereunder shall be in
writing and delivered personally, by a recognized international courier (e.g.,
Federal Express, DHL) or by facsimile (with facsimiles to be promptly confirmed
in writing).  All such written communications delivered by mail shall
be forwarded to the parties hereto at their respective addresses as set forth on
the first page of this Agreement, subject to the right of either party to change
its address by delivering written notice to the other.  Notices shall
be deemed to be effective upon receipt.

     

    15.11     Severability.  Should
any provisions of the Agreement contravene any law or valid regulation of any
government jurisdiction over the parties, then such provisions shall be
automatically terminated and performance thereof by the parties waived, and all
other provisions of this Agreement shall continue in full force an
effect.

     

    15.12     Entire
Agreement.  This Agreement (including the exhibits attached
hereto) reflects the entire agreement of the parties regarding the subject
matter hereof, and supersedes all prior agreements between the parties, whether
written or oral.  This Agreement is executed in the English
language.

     

    15.13     Counterparts.  This
Agreement may be executed in counterparts, each of which constitutes an
original, and together which constitute the Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly
authorized representatives, effective as of the date first set forth
above.

     

    
      
        
          
            
              
                	
                        ROXIO,
      INC.

                      	 
      	
                        NAVARRE,
      INC.

                      
	 
      	 
      	 
      	 
      	 
      
	
                        By: 

                      	
                        /s/ Elliot
      Carpenter                                           

                      	 
      	
                        By: 

                      	
                        /s/ James Gilbertson

                      
	 
      	 
      	 
      	 
      	 
      
	Title:  Chief
      Financial Officer	 
      	Title:  Chief
      Financial Officer
	 
      	 
      	 
      	 
      	 
      
	Effective
      Date:  April 4, 2002	 
      	Effective
      Date:  March 28,
2002

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    PRODUCTS
AND SERVICES

    

    All
standard Roxio products included on monthly distributor price
list.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    TERRITORY

    

    The
Americas to include the United States, Canada and Latin America.

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
C

     

    DISTRIBUTOR’S
CUSTOMERS

    

    
      [***]

    

    

    [***]
Omitted pursuant to a confidential treatment request.  The
confidential portion has been filed separately with the SEC.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    MUTUAL
NONDISCLOSURE AGREEMENT

     

    (to be
attached)

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    MUTUAL
NONDISCLOSURE AGREEMENT

    

    Each
undersigned party (the “Receiving Party”) understands that the other party (the
“Disclosing Party”) has disclosed or may disclose information relating to Roxio
Products and business or to the Disclosing Party’s business (including, without
limitation, computer programs, technical drawings, algorithms, know-how,
formulas, processes, ideas, inventions (whether patentable or not), schematics
and other technical, business, financial, customer and product development
plans, forecasts, strategies and information), which to the extent previously,
presently, or subsequently disclosed to the Receiving Party is hereinafter
referred to as “Proprietary Information” of the Disclosing Party.

     

    In
consideration of the parties’ discussions and any access of the Receiving Party
to Proprietary Information of the Disclosing Party, the Receiving Party hereby
agrees as follows:

     

    1.           The
Receiving Party agrees (i) to hold the Disclosing Party’s Proprietary
Information in confidence and to take reasonable precautions to protect such
Proprietary Information (including, without limitation, all precautions the
Receiving Party employs with respect to its confidential materials), (ii) not to
divulge any such Proprietary Information or any information derived therefrom to
any third person, (iii) not to make any use whatsoever at any time of such
Proprietary Information except to evaluate internally its relationship with the
Disclosing Party, (iv) not to copy or reverse engineer any such Proprietary
Information and (v) not to export or reexport (within the meaning of U.S.
or other export control laws or regulations) any such Proprietary Information or
product thereof. Without granting any right or license, the Disclosing Party
agrees that the foregoing shall not apply with respect to any information after
five years following the disclosure thereof or any information that the
Receiving Party can document (i) is or becomes (through no improper action or
inaction by the Receiving Party or any affiliate, agent, consultant or employee)
generally available to the public, or (ii) was in its possession or known by it
without restriction prior to receipt from the Disclosing Party, or (iii) was
rightfully disclosed to it by a third party without restriction, or (iv) was
independently developed without use of any Proprietary Information of the
Disclosing Party by employees of the Receiving Party who have had no access to
such information. The Receiving Party may make disclosures required by law or
court order provided the Receiving Party uses diligent reasonable efforts to
limit disclosure and to obtain confidential treatment or a protective order and
has allowed the Disclosing Party to participate in the proceeding.

     

    2.           Immediately
upon a request by the Disclosing Party at any time the Receiving Party will turn
over to the Disclosing Party all Proprietary Information of the Disclosing Party
and all documents or media containing any such Proprietary Information and any
and all copies or extracts thereof. The Receiving Party understands that nothing
herein (i) requires the disclosure of any Proprietary Information of the
Disclosing Party or (ii) requires the Disclosing Party to proceed with any
transaction or relationship.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           This
Agreement applies only to disclosures made before the first anniversary of this
Agreement. The Receiving Party acknowledges and agrees that due to the unique
nature of the Disclosing Party’s Proprietary Information, there can be no
adequate remedy at law for any breach of its obligations hereunder, which breach
may result in irreparable harm to the Disclosing Party, and therefore, that upon
any such breach or any threat thereof, the Disclosing Party shall be entitled to
appropriate equitable relief, without the requirement of posting a bond, in
addition to whatever remedies it might have at law. In the event that any of the
provisions of this Agreement shall be held by a court or other tribunal of
competent jurisdiction to be illegal, invalid or unenforceable, such provisions
shall be limited or eliminated to the minimum extent necessary so that this
Agreement shall otherwise remain in full force and effect. This Agreement shall
be governed by the law of the State of California without regard to the
conflicts of law provisions thereof. This Agreement supersedes all prior
discussions and writings and constitutes the entire agreement between the
parties with respect to the subject matter hereof. The prevailing party in any
action to enforce this Agreement shall be entitled to costs and attorneys’ fees.
No waiver or modification of this Agreement will be binding upon a party unless
made in writing and signed by a duly authorized representative of such party and
no failure or delay in enforcing any right will be deemed a waiver.

    

    March 28,
2002

     

    
      
        
          
            	
                    ROXIO,
      INC.

                  
	 
      	 
      
	
                    By:  

                  	
                    /s/ Elliot Carpenter

                  
	 
      	 
      
	
                    NAVARRE,
      INC.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Richard
Vick

                  

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    [Roxio
Logo]

     

    Roxio,
Inc.

    455 El
Camino Real

    Santa
Clara, CA 95050

    phone
408.367.3100

    fax
408.367.3101

    NASDAQ:
ROXI

    

    www.roxio.com

     

    December
17, 2004

     

    Via
Facsimile (763-535-2156) and Overnight Courier

     

    Mr. Rick
Vick

    Director
of Merchandising

    Navarre
Corporation

    7400
49th
Avenue North

    New Hope,
MN 55428

     

    
      	
              Re:

            	
              Assignment
      of Agreement between Roxio Inc. (“Roxio”) and Navarre
      
Corporation

            

    

     

    Dear Mr.
Vick:

     

    Roxio
plans to sell certain assets (namely its software division) to Sonic in
connection with the terms of the Asst Purchase Agreement by and between Sonic
and Roxio dated August 9, 2004.  Roxio and Navarre Corporation have
executed that certain Distribution Agreement dated as of March 28, 2002 (the
“Agreement”).  Roxio hereby informs you that the Agreement and any
related agreements or amendments will be assigned to Sonic effective upon the
close of the transaction.  Such close is expected to be on or about
December 17, 2004.

     

    This
notice of assignment letter is not intended to modify any term or provision of
the Agreement and does not apply to any transaction other than the proposed
transaction with Sonic.  Any changes to your current processes will be
communicated to you shortly.

     

    Should
you have any questions in connection with the above assignment or the proposed
transaction with Sonic, feel free to contact me.

     

    
      
        	
                Sincerely,

              
	 
      
	
                /s/ Josh Engel

              
	
                Josh
      Engel

              
	
                Director,
      Legal Affairs

              
	
                Roxio,
      Inc.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      
        [Navarre
Corporation Logo]

         

        
          	
                  December
      7, 2006

                	
                  VIA
      Overnight Courier

                

        

        

        Sonic
Solutions

        Attn:  Legal
Department

        455 El
Camino Real

        Santa
Clara, CA  95050

         

        
          	
                  Re:

                	
                  Navarre
      Restructuring and Consent to Assignment
of:

                

        

        
          Distribution
Agreement dated March 28, 2002, assigned to

        

        
          Sonic
Solutions (“Sonic) as of December 17, 2004 (the
“Agreement(s)”)

        

         

        To Whom
It May Concern:

         

        You
currently have a business relationship with Navarre Distribution Services
(“NDS”), a division of Navarre Corporation (“Navarre”).  This letter
is to inform you that, effective January 1, 2007, the activities carried out by
NDS are being transferred to Navarre Distribution Services, Inc., a Minnesota
corporation and wholly-owned subsidiary of Navarre.

         

        This
transfer is being done within the context of a corporate restructuring of
Navarre that is intended to result in each of its significant operating units
being housed in its own legal entity. Navarre’s significant growth over the past
few years has necessitated this realignment of its operations.  It is
anticipated that Navarre and its new wholly-owned subsidiary companies will
continue to operate in substantially the same manner as Navarre does
today.

         

        In
connection with this transfer, Navarre is assigning all of the assets and
contracts that relate to the business activities of NDS to Navarre Distribution
Services, Inc.  This assignment includes the Agreement(s) between your
company and Navarre.  Navarre Distribution Services, Inc. is at the
same address as Navarre.

         

        Accordingly,
we request that an authorized officer of your company sign below indicating
consent to the assignment of the Agreement(s) to Navarre Distribution Services,
Inc.  Please feel free to contact me with any questions that you might
have.  Please fax to 763-504-1107 and return an original in the
enclosed envelope.

         

        Sincerely,

        

        NAVARRE
CORPORATION

        

        
          
            
              	
                      /s/ Linda Alsid Ruehle

                    
	
                      Linda
      Alsid Ruehle

                    
	
                      Assistant
      General Counsel

                    

            

          

        

        

        
          
            
              
                
                  	
                          Agreed
      and accepted as of January 1, 2007

                        	 
	 
      	 
      	 
	
                          Sonic
      Solutions

                        	 
	 
      	 
      	 
	
                          By: 

                        	
                          /s/ Joshua Engel

                        	 
	
                          Name:
      Joshua Engel

                        	 
	
                          Its: 
      Associate General Counsel
Sonic
      Solutions

                        	 

                

              

            

          

        

        

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

    

    RIDER

    to

    COMPUTER
SOFTWARE DISTRIBUTION AGREEMENT

    Dated:  September
11, 2007 (the “Agreement”)

    Between
NAVARRE CORPORATION and Sonic Solutions (assigned by Roxio, Inc. to

    Sonic
Solutions effective December 17, 2004)

    (Vendor)

     

    GENERAL
TERMS AND CONDITIONS FOR CONSIGNMENT PROGRAMS:  10/2006

     

    Navarre
has developed consignment programs with certain major retailers (the
“Retailer(s)”).  Vendor may elect to participate in the consignment
programs with respect to all or a portion of the Products and with respect to
any or all such Retailers by executing the applicable Retailer Addendum attached
hereto.  The purpose of this Rider is to set forth the general terms
and conditions applicable to all consignment programs and the terms specific to
each Retailer are contained in the applicable Retailer Addendum.

     

    
      	
              1.

            	
              Modification of the
      Agreement.   This Rider supersedes the payment and
      other terms of the Agreement as necessary to effectuate the consignment
      programs.  All other provisions and definitions in the Agreement
      remain applicable but should be read and interpreted to be
      consistent with the delivery of Products on a consignment basis rather
      than as a sale (the “Consigned Products”).  The order of
      precedence in the event of a conflict of terms.  among the
      Agreement, the Rider, and each Retailer Addendum, shall
  be:

            

    

     

    
      	
               
      

            	
              a)

            	
              The applicable
      Retailer Addendum

            

    

    
      	
               
      

            	
              b)

            	
              The
      Rider

            

    

    
      	
               
      

            	
              c)

            	
              The
      Agreement

            

    

     

    
      	
              2.

            	
              Title of Consigned
      Products.  Vendor remains vested with all right, title
      and interest in each item of Consigned Product until sale by Retailer to
      an End User.  Upon sale by Retailer to an End User, title passes
      from Vendor to Navarre, then from Navarre to the
      Retailer.  Until such time, Navarre will not in any way acquire
      any right, title or interest in any Consigned Product and will not
      represent itself to third parties as being the owner of any such item,
      claim any rights of ownership therein, nor encumber any such item, Each
      Retailer has agreed to the same with respect to Consigned Products in its
      possession. Vendor is responsible for availing itself of the protections
      afforded consignors under the applicable sections of the Uniform
      Commercial Cade (“UCC”) and for filing UCC financing statements on the
      Consigned Products in the possession of Navarre and the Retailer. Navarre
      and each Retailer agree to cooperate with Vendor where necessary for
      Vendor to make such filings.

            

    

     

    
      	
              3.

            	
              Risk of
      Loss.  Navarre has responsibility for the care and
      condition of the Consigned Products in its possession following delivery
      by Vendor, and Navarre assumes liability for any loss or damage to the
      Consigned Products, including but not limited to breakage, theft, and
      damage by water, fire or extraordinary conditions of a similar
      nature.  Navarre will maintain all-risk property insurance
      covering the Consigned Products in its possession in an amount at least
      equal to the aggregate cost value.  Each Retailer has agreed to
      the same with respect to Consigned Products in its
    possession.

            

    

     

    
      	
              4.

            	
              Identification.  Vendor
      must provide a unique UPC code for each title of Consigned
      Product.  Navarre will set up in its system a unique SKU for
      each title which is specific for the Vendor and Retailer.  Such
      unique SKU’s are required to keep consignment inventory separate from
      Vendor’s non-consignment Products for proper payment and
      accounting.

            

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    
      	
              5.

            	
              Invoicing and
      Payment.

            

    

     

    
      	
               
      

            	
              a.

            	
              Tracking
      Invoice.  Upon shipment of Consigned Products, Vendor
      will issue an invoice, for tracking purposes and not to indicate a sale,
      including a description of the Consigned Products by SKU, quantities,
      delivery location, the Vendor’s published price and a cost of either $.01
      or $.00 (to be determined by Navarre) per item shipped.  These
      tracking invoices are necessary in order for Vendor to maintain an
      accounting for Consigned Product and for reconciliation of shipping
      shortages and discrepancies.

            

    

     

    
      	
               
      

            	
              b.

            	
              Sales
      Reports.  Navarre will obtain from each Retailer
      electronic reports of weekly point of sales data showing sales of
      Consigned Products to End Users by SKU net of any returns from End
      Users.  Consigned Product sold but returned by an End User
      pursuant to the Retailer’s return policy will not be counted as a
      sale.  Navarre will also be able to account for inventory on
      hand on a weekly basis including inventory at Navarre’s distribution
      center, inventory at Retailer’s distribution and retail locations, and
      returns in route to Vendor.

            

    

     

    
      	
               
      

            	
              c.

            	
              Payment.  At
      the end of each Retailer’s reporting period (the “Sales Reporting Period”)
      as specified in the Retailer Addendum, Navarre will report net sales to
      Vendor for the Retailer aggregating the Consigned Products sold to End
      Users during that reporting period.  Navarre will pay Vendor for
      such sales at Vendor’s published purchase prices on the payment date (the
      “Payment Date”) indicated in the Retailer Addendum.  Credits or
      chargebacks authorized in accordance with the Agreement, this Rider and
      each Retailer Addendum may be deducted prior to
  payment.

            

    

     

    
      	
              6.

            	
              Shrinkage
      Reconciliation.  Each Retailer will audit the shrink or
      loss of Consigned Products periodically and report such losses to
      Navarre.  Audit periods vary by Retailer as indicated in the
      Retailer Addendum.  The Retailer will report and pay for shrink
      losses within sixty (60) days after the end of the audit
      period.  Navarre will then promptly report to Vendor and pay for
      such losses.

            

    

     

    
      	
              7.

            	
              Returns.  Navarre
      and the Retailer(s) will have one hundred percent (100%) return rights on
      all Consigned Products which are unsold to End Users for any reason,
      including obsolete, delisted, defective or slow-moving goods, termination
      of this Agreement, or otherwise.  Returns will be handled
      pursuant to the provisions of the Agreement, except that Consigned
      Products which become delisted may be returned at any time while this
      Rider is in effect.  Procedures for handling returns that vary
      by Retailer are indicated in the Retailer
  Addendum.

            

    

     

    
      	
              8.

            	
              Destruction of
      Defectives.  To eliminate return freight expense, Navarre
      and the Retailers prefer to destroy defective and damaged items on
      site.  Navarre will request approval from Vendor in each case,
      and if received, will provide Vendor with proof of destruction in order to
      delete the destroyed items from the Consigned Product
      inventory.  If Vendor does not approve any such request for
      destruction and demands return, Retailer shall request a return material
      authorization (“RMA”) from Navarre in accordance with Navarre’s returns
      policy.

            

    

     

    
      	
              9.

            	
              Property Tax
      Reports.  Navarre and the Retailers will report Consigned
      Products in their possession to the appropriate taxing authorities if
      required by the particular authority.  They will be reported as
      consigned property owned by the Vendor.  Navarre will provide
      Vendor with the inventory amounts and locations of the property so
      reported on a quarterly basis along with applicable supporting
      documentation.  Vendor will be responsible for any property tax
      payable on the Consigned Products, and Navarre will chargeback all such
      property tax amounts paid to a taxing authority.  The foregoing
      applies only to valid property tax assessments and does not apply to sales
      and income taxes which are the responsibility of Navarre and the
      Retailer(s).  In the event a Retailer determines not to report
      and pay property tax on Vendor’s behalf, Vendor will be solely responsible
      for reporting and paying property tax on Consigned
    Products.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              10.

            	
              Termination.  This
      Rider will terminate upon expiration or earlier termination of the
      Agreement.  In addition, this Rider will terminate with respect
      to any Retailer if, and at the time that, such Retailer terminates its
      participation in the consignment program.  Vendor may terminate
      this Rider or any individual Retail Addendum at any time upon thirty (30)
      days written notice.  Upon termination, Navarre may, at its
      option, return all or some or the inventory of Consigned Products, or
      purchase all or some of the inventory of Consigned Products.  If
      Navarre desires to purchase any of the inventory, Vendor agrees to
      negotiate in good faith for appropriate price protection for such
      inventory.

            

    

     

    Vendor Initials: 
/s/ ACL             

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    DIGITAL
DISTRIBUTION RIDER

    to

    DISTRIBUTION
AGREEMENT

    Dated:
March 28, 2002 (the “Agreement”)

    Between
NAVARRE CORPORATION and Roxio, Inc., subsequently assigned by Roxio, Inc. to
Sonic Solutions (“Vendor”) effective December 17, 2004

    subsequently
assigned by Navarre Corporation to Navarre Distribution

    Services,
Inc. effective April 1, 2007.

    

    GENERAL
TERMS AND CONDITIONS FOR DIGITAL DISTRIBUTION

     

    Navarre
has developed digital distribution programs with certain major retailers (the
“Retailer(s)”). Vendor is the owner of or fully authorized licensee of the
Digital Rights (as defined below) to the Products and desires to participate in
the digital distribution program with respect to all or a portion of the
Products and with respect to any or all such Retailers by executing the
applicable Retailer Addendum attached hereto.  The purpose of this
Rider is to set forth the general terms and conditions applicable to all digital
distribution programs and the terms specific to each Retailer are contained in
the applicable Retailer Addendum.

     

    
      	
              1.

            	
              Modification of the
      Agreement.  This Rider supersedes the payment and other
      terms of the Agreement as necessary to effectuate the digital distribution
      programs.  All other provisions and definitions in the Agreement
      remain applicable but should be read and interpreted to be consistent with
      the electronic delivery of Products to End
  Users.

            

    

     

    
      	
              2.

            	
              Termination.  This
      Rider will terminate upon expiration or earlier termination of the
      Agreement.  In addition, this Rider will terminate, with respect
      to any Retailer, if, and at the time that, such Retailer terminates its
      participation in the digital distribution program and, with respect to the
      entire program, if Navarre’s agreement with ASKNET, Inc., its third party
      digital delivery partner, terminates and Navarre provides notice to Vendor
      that it is unable to find a replacement provider.  Vendor may
      terminate this Rider at any time without cause upon no less than ninety
      (90) days prior written notice to
Navarre.

            

    

     

    
      	
              3.

            	
              Grant of Digital
      Rights.  Digital delivery is the method by which an End
      User receives a copy of the Product in computer readable form from a
      Retailer via a secure digital download provided by Navarre directly or
      through ASKNET, Inc., or a successor Navarre digital delivery partner, and
      the End User pays the Retailer for the Product prior to the download of
      the Product.  Vendor will provide a “digital key code” unique to
      each transaction that will allow the End User to download the Product up a
      specified number of times in a specified period of time (the “Digital Key
      Code”).  Vendor hereby grants to Navarre a non-exclusive license
      in and to all digital delivery rights in the Products, including, but not
      limited to, (i) all rights under the Digital Millennium Copyright Act, and
      any and all future pertinent legislation; (ii) the right to use all of
      Vendor’s trade name and any trademarks, service marks and other artwork
      associated with the Products; (iii) the right at no further cost to
      reproduce and deliver all instructions, manuals, end user license and
      other materials normally provided to End Users with the Products; (iv) the
      right at no further cost to reproduce and deliver to End Users a back-up
      physical CD (with no serial number printed on such physical CD, though the
      End User will receive a CD Key electronically) of the Products
      (collectively, the “Digital Rights”); and (v) the right to sublicense the
      Digital Rights granted herein to the Retailers, provided that Navarre
      shall be responsible for the compliance by the Retailers with all relevant
      terms and conditions of the Agreement and this Rider.  Subject
      to the terms and conditions of this Rider, Navarre shall have the right to
      sell, price, distribute, advertise, license, market and promote all rights
      licensed hereunder, and may use facilities and technology it owns or
      controls in connection therewith or those of a third party digital
      delivery partner.

            

    

     

    
      	
              4.

            	
              Navarre
      shall advise Vendor of the names of all Retailers that are available to
      distribute Products.  Vendor shall advise Navarre which
      Retailers are authorized to distribute Vendor Product(s).  If
      Navarre enters into an agreement with a new Retailer, Navarre will advise
      Vendor and Vendor shall advise Navarre whether or not Vendor wishes to
      have Navarre offer Vendor’s Product(s) to such Retailer in order that it
      may offer Vendor’s Product(s) on its online storefront.  Navarre
      shall only offer Vendor Products for distribution to those Retailers that
      Vendor has expressly authorized.  Vendor shall further have the
      right, with respect to each individual Retailer, to withhold or grant
      authorization for any particular Product offering(s) to be marketed and
      distributed by such Retailer.

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              Territory.  The
      grant of Digital Rights applies to the territory of the United States
      (including territories and possessions) and Canada and distribution
      through the United States military exchange world-wide retail
      system.

            

    

     

    
      	
              6.

            	
              Identification.  Navarre
      will set up in its system a unique SKU for each Product to be digitally
      delivered which is specific for the Vendor and Retailer.  Such
      unique SKU’s are required to keep the Digital Key Code inventory separate
      from Vendor’s physical Products for proper payment and
      accounting.

            

    

     

    
      	
              7.

            	
              Invoicing and
      Payment.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tracking
      Invoice.  Navarre will issue a PO to Vendor for a
      specified quantity of Digital Key Codes with respect to one or more
      Products.  Vendor will provide the number of Digital Key Codes
      ordered and issue an invoice, for tracking purposes and not to indicate a
      sale, including a description of the Products by SKU, quantities, the
      Vendor’s published price and a cost of $.01 per Digital Key Code
      delivered.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Sales
      Reports.  Navarre will obtain from each Retailer
      electronic reports of weekly point of sales data showing sales of Digital
      Key Codes to End Users by SKU.  Navarre will also be able to
      account for inventory of Digital Key Codes on hand on a weekly
      basis.  If available from the Retailer, such reporting may be
      available electronically on a more frequent
  basis.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Payment.  Within
      twenty (20) days after the end of each calendar month, Navarre will issue
      Vendor a report for each Retailer aggregating the Digital Key Codes sold
      to End Users during that month.  Payment to Vendor for all such
      sales shall accompany each report.  Any credits or chargebacks
      authorized by this Rider and each Retailer Addendum may be deducted prior
      to payment.  All sums payable by Navarre to Vendor for Navarre’s
      commercial exploitation of the Digital Rights shall comprise a single,
      integrated, cross-collateralized accounting unit with all sums due or
      payable from or to Navarre on account of Navarre’s distribution of Product
      under the Distribution Agreement.

            

    

     

    
      	
              8.

            	
              Provision of Required
      Materials by Label to Navarre.  Vendor will promptly
      supply to Navarre, or to a third-party designated by Navarre for such
      purpose, all required information and materials requested by Navarre to
      allow Navarre to fully exercise the Digital Rights.  Vendor will
      advise Navarre of the specific codes and classifications under any
      relevant export control laws and regulations of any nation (collectively,
      “Export Control Laws”) that are applicable to the products (including,
      without limitation, provision of appropriate Export Control Classification
      Numbers and Schedule B codes).  Vendor will promptly notify
      Navarre of any changes to such codes or
  classifications.

            

    

     

    
      
        
          
            
              
                
                  	
                          SONIC
      SOLUTIONS

                        	 
      	
                          NAVARRE
      DISTRIBUTION SERVICES, INC.

                        
	 
      	 
      	 
      	 
      	 
      
	
                          By:

                        	
                          /s/ A. Clay Leighton

                        	 
      	
                          By:

                        	
                           /s/ Richard Vick

                        
	
                          Name: 

                        	
                          A. Clay Leighton

                        	 
      	
                          Name: 

                        	
                           Richard Vick

                        
	
                          Title:

                        	
                          Executive Vice President and Chief Financial
      Officer

                        	 
      	
                          Title:
      

                        	 
      Vice President Merchandise
	 	 	 	 	 
	
                          Date:

                        	
                          February 2, 2007

                        	 
      	
                          Date:

                        	
                            May 9,
2007

                        

                

              

            

          

        

      

    

    
      
         

      

      
        2

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