Document:

INDEMNIFICATION
AGREEMENT

 

This Indemnification
Agreement (this “Agreement”), dated as of July ___, 2012, is made by and between The Digital Development Group Corp.,
a Nevada corporation (the “Company”), and the undersigned, who is either a director or an officer of the Company (the
“Indemnitee”), with this Agreement to be deemed effective as of the date that the Indemnitee first became a director
or an officer of the Company.

 

RECITALS

 

A.The Company is
aware that competent and experienced persons are reluctant to serve as directors or officers of corporations unless they are protected
by comprehensive liability insurance and indemnification, due to the exposure to litigation costs and risks resulting from their
service to such corporations, and due to the fact that the exposure frequently bears no reasonable relationship to the compensation
of such directors and officers;

 

B.The Board of
Directors of the Company (the “Board”) has concluded that, to retain and attract talented and experienced individuals
to serve as officers or directors of the Company, it is necessary for the Company contractually to indemnify certain of such persons
and to assume for itself maximum liability for expenses and damages in connection with claims against such persons in connection
with their service to the Company;

 

C.Section 7502
of Chapter 78 of the Nevada General Corporation Law, under which the Company is organized (“Section 7502”), empowers
the Company to indemnify by agreement its present and former officers and directors and persons who serve, at the request of the
Company, as directors or officers of other corporations, partnerships, joint ventures, trusts, or other enterprises and expressly
provides that the indemnification provided by Section 7502 is not exclusive; and

 

D.The Company desires
and has requested the Indemnitee to serve or continue to serve as a director or an officer of the Company free from undue concern
for claims for damages arising out of or related to such services to the Company.

 

NOW, THEREFORE, the
parties hereto, intending to be legally bound, hereby agree as follows:

 

1.Definitions

 

1.1Agent.
For the purposes of this Agreement, “agent” of the Company means any person who is or was a director or an officer
of the Company or a subsidiary of the Company; or is or was serving at the request of the Company or a subsidiary of the Company
as a director or an officer of another foreign or domestic corporation, partnership, joint venture, trust, or other enterprise
or an affiliate of the Company. The term “enterprise” includes any employee benefit plan of the Company, its subsidiaries,
affiliates, and predecessor corporations.

 

1.2Company.
For purposes of this Agreement, the “Company” includes, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger that, if its separate existence had continued,
would have had power and authority to indemnify its directors or officers so that any person who is or was a director or an officer
of such constituent corporation, or is or was serving at the request of such constituent corporation as a director or an officer
of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under this Agreement
with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if
its separate existence had continued.

 

    	 

    	 

    

1.3Expenses.
For the purposes of this Agreement, “expenses” includes all direct and indirect costs of any type or nature whatsoever
(including, without limitation, all attorneys’ fees and related disbursements and other out-of-pocket costs) actually and
reasonably incurred by the Indemnitee in connection with the investigation, defense, or appeal of a proceeding or establishing
or enforcing a right to indemnification or advancement of expenses under this Agreement, Section 7502 or otherwise; provided,
however, that expenses shall not include any judgments, fines, ERISA excise taxes or penalties, or amounts paid in settlement
of a proceeding.

 

1.4Fines.
For purposes of this Agreement, references to “fines” includes any excise taxes assessed on a person with respect to
any employee benefit plan.

 

1.5Liabilities.
For purposes of this Agreement, “liabilities” means judgments, fines, ERISA execute taxes or penalties, and amounts
paid in settlement in connection with a proceeding.

 

1.6Other Enterprises.
For purposes of this Agreement, “other enterprises” includes employee benefit plans.

 

1.7Proceeding.
For the purposes of this Agreement, “proceeding” means any threatened, pending, or completed action, suit, or other
proceeding, whether civil, criminal, administrative, or investigative.

 

1.8Subsidiary.
For purposes of this Agreement, “subsidiary” means any corporation of which more than 50% of the outstanding voting
securities is owned directly or indirectly by the Company, by the Company and one or more of its subsidiaries, or by one or more
of the Company’s subsidiaries.

 

1.9Serving at
the Request of the Company. For purposes of this Agreement, “serving at the request of the Company” includes any
service as a director or an officer of the Company that imposes duties on, or involves services by, such director or officer with
respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such
person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed
to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

2. Agreement
to Serve. The Indemnitee agrees to serve and/or continue to serve as an agent of the Company, at the will of the Company (or
under separate agreement, if such agreement exists), in the capacity the Indemnitee currently serves as an agent of the Company,
faithfully and to the best of his ability, so long as he is duly appointed or elected and qualified in accordance with the applicable
provisions of the charter documents of the Company or any subsidiary of the Company; provided, however, that the
Indemnitee may at any time and for any reason resign from such position (subject to any contractual obligation that the Indemnitee
may have assumed apart from this Agreement), and the Company and any subsidiary shall have no obligation under this Agreement
to continue the Indemnitee in any such position.

 

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3. Directors’
and Officers’ Insurance. The Company shall, to the extent that the Board determines it to be economically reasonable,
maintain a policy of directors’ and officers’ liability insurance (“D&O Insurance”), on such terms
and conditions as may be approved by the Board.

 

4. Mandatory
Indemnification. Subject to Section 9 below, the Company shall indemnify the Indemnitee:

 

4.1Third-Party
Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding (except
an action by or in the right of the Company) by reason of the fact that the Indemnitee is or was an agent of the Company, or by
reason of anything done or not done by the Indemnitee in any such capacity, against any and all expenses and liabilities of any
type whatsoever incurred by the Indemnitee in connection with such proceeding if (a) the Indemnitee acted in good faith and in
a manner the Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company and, with respect to
any criminal action or proceeding, had no reasonable cause to believe the Indemnitee’s conduct was unlawful, or (b) the Indemnitee,
if a director or an officer of the Company, did not act or fail to act in a manner that constituted a breach of the Indemnitee’s
fiduciary duties as a director or an officer or such Indemnitee’s breach of those duties did not involve intentional misconduct,
fraud, or a knowing violation of law; and

 

4.2Derivative
Actions. If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding by or in
the right of the Company to procure a judgment in its favor by reason of the fact that the Indemnitee is or was an agent of the
Company, or by reason of anything done or not done by the Indemnitee in any such capacity, against any and all expenses and liabilities
incurred by the Indemnitee in connection with such proceeding if (a) the Indemnitee acted in good faith and in a manner the Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the Company, or (b) the Indemnitee, if a director or an
officer of the Company, did not act or fail to act in a manner that constituted a breach of the Indemnitee’s fiduciary duties
as a director or an officer or such Indemnitee breach of those duties involved intentional misconduct, fraud, or a knowing violation
of law; except that no indemnification under this subsection shall be made in respect of any claim, issue, or matter as
to which the Indemnitee shall have been adjudged by a court of competent jurisdiction, after the exhaustion of all appeals therefrom,
to be liable to the Company or for amounts paid in settlement to the Company, unless and only to the extent that the court in which
such proceeding was brought or another court of competent jurisdiction determines upon application that, in view of all the circumstances
of the case, the Indemnitee is fairly and reasonable entitled to indemnity for such expenses as the court deems proper; and

 

4.3Exception for
Amounts Covered by Insurance. Notwithstanding the foregoing, the Company shall not be obligated to indemnify the Indemnitee
for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties,
and amounts paid in settlement) to the extent such have been paid to the Indemnitee by D&O Insurance.

 

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5.Partial
Indemnification and Contribution.

 

5.1Partial Indemnification.
If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of
any expenses or liabilities of any type whatsoever incurred by the Indemnitee in connection with a proceeding but is not entitled,
however, to indemnification for all of the total amount thereof, then the Company shall nevertheless indemnify the Indemnitee for
such total amount except as to the portion thereof to which the Indemnitee is not entitled to indemnification.

 

5.2Contribution.
If the Indemnitee is not entitled to the indemnification provided in Section 4 for any reason other than the statutory limitations
set forth in the Nevada General Corporation Law, then in respect of proceeding in which the Company is jointly liable with the
Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the amount of expenses and liabilities paid
or payable by the Indemnitee in such proportion as is appropriate to reflect (a) the relative benefits received by the Company
on the one hand and the Indemnitee on the other hand from the transaction from which such proceeding arose and (b) the relative
fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events that resulted in such
expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the
Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines, or
settlement amounts. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 5 were
determined by pro rata allocation or any other method of allocation which does not take account of the foregoing equitable considerations.

 

6.Mandatory
Advancement of Expenses.

 

6.1Advancement.
Subject to Section 9 below, the Company shall pay as incurred and in advance of the final disposition of a civil or criminal proceeding
all expenses incurred by the Indemnitee in connection with defending any such proceeding to which the Indemnitee is a party or
is threatened to be made a party by reason of the fact that the Indemnitee is or was an agent of the Company or by reason of anything
done or not done by the Indemnitee in any such capacity. The Indemnitee hereby undertakes to promptly repay such amounts advanced
only if, and to the extent that, it shall ultimately by determined that the Indemnitee is not entitled to be indemnified by the
Company under the provisions of this Agreement, the Articles of Incorporation or Bylaws of the Company, the Nevada General Corporation
Law, or otherwise. The advances to be made hereunder shall be paid by the Company to the Indemnitee within thirty (30) days following
delivery of a written request therefor by the Indemnitee to the Company.

 

6.2Exception.
Notwithstanding the foregoing provisions of this Section 6, the Company shall not be obligated to advance any expenses to the Indemnitee
arising from a lawsuit filed directly by the Company against the Indemnitee if an absolute majority of the members of the Board
reasonably determines in good faith, within thirty (30) days of the Indemnitee’s request to be advanced expenses, that the
facts known to them at the time such determination is made demonstrate clearly and convincingly that the Indemnitee acted in bad
faith. If such a determination is made, the Indemnitee may have such decision reviewed in the manner set forth in Section 8.5 hereof,
with all references therein to “indemnification” being deemed to refer to “advancement of expenses,” and
the burden of proof shall be on the Company to demonstrate clearly and convincingly that, based on the facts known at the time,
the Indemnitee acted in bad faith. The Company may not avail itself of this Section 6.2 as to a given lawsuit if, at any time after
the occurrence of the activities or omissions that are the primary focus of the lawsuit, the Company has undergone a change in
control. For this purpose, a “change in control” shall mean a given person of group of affiliated persons or groups
increasing their beneficial ownership interest in the Company by at least twenty (20) percentage points without advance Board approval.

 

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7.Notice
and Other Indemnification Procedures.

 

7.1Notification.
Promptly after receipt by the Indemnitee of notice of the commencement of or the threat of commencement of any proceeding,
the Indemnitee shall, if the Indemnitee believes that indemnification with respect thereto may be sought from the Company under
this Agreement, notify the Company of the commencement or threat of commencement thereof.

 

7.2Insurance.
If, at the time of the receipt of a notice of the commencement of a proceeding pursuant to Section 7.1 hereof, the Company has
D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with
the terms of such D&O Insurance policies.

 

7.3Defense.
In the event the Company shall be obligated to advance the expenses for any proceeding against the Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (which approval
shall not be unreasonably withheld), upon the delivery to the Indemnitee of written notice of its election to do so. After delivery
of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not
be liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to
the same proceeding, provided that (a) the Indemnitee shall have the right to employ the Indemnitee’s own counsel
in any such proceeding at the Indemnitee’s expense; (b) the Indemnitee shall have the right to employ the Indemnitee’s
own counsel in connection with any such proceeding, at the expense of the Company, if such counsel serves in a review, observer,
advice, and counseling capacity and does not otherwise materially control or participate in the defense of such proceeding; and
(c) if (i) the employment of counsel by the Indemnitee has been previously authorized by the Company, (ii) the Indemnitee shall
have reasonably concluded that there may be conflict of interest between the Company and the Indemnitee in the conduct of any such
defense, or (iii) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees
and expenses of the Indemnitee’s counsel shall be at the expense of the Company.

 

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8.Determination
of Right to Indemnification.

 

8.1Success on
Merits. To the extent the Indemnitee has been successful on the merits or otherwise in defense of any proceeding referred to
in Section 4.1 or 4.2 of this Agreement or in the defense of any claim, issue, or matter described therein, the Company shall indemnify
the Indemnitee against expenses actually and reasonably incurred by the Indemnitee in connection with the investigation, defense,
or appeal of such proceeding, or such claim, issue, or matter, as the case may be.

 

8.2Proof by Company.
In the event that Section 8.1 is inapplicable, or does not apply to the entire proceeding, the Company shall nonetheless indemnify
the Indemnitee unless the Company shall prove by clear and convincing evidence to a forum listed in Section 8.4 below that the
Indemnitee has not met the applicable standard of conduct required to entitle the Indemnitee to such indemnification.

 

8.3Termination
of Proceeding. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere
its equivalent, does not, of itself, create a presumption that a person (a) did not act in good faith and in a manner the person
reasonably believed to be in or not opposed to the best interests of the Company, (b) with respect to any criminal action or proceeding,
that the person had reasonable cause to believe that the person’s conduct was unlawful, or (c) the person’s act or
failure to act constituted a breach of the person’s fiduciary duties as a director or an officer or the person’s breach
of those duties involved intentional misconduct, fraud, or a knowing violation of law.

 

8.4Applicable
Forums. The Indemnitee shall be entitled to select the forum in which the validity of the Company’s claim under Section
8.2 hereof that the Indemnitee is not entitled to indemnification will be heard from among the following, except that the
Indemnitee can select a forum consisting of the stockholders of the Company only with the approval of the Company and, if the Indemnitee
is a director or an officer at the time of such determination, the determination shall be made in accordance with (a), (b), (c)
or (d) below at the election of the Company:

 

(a)A majority vote
of the directors who are not parties to the proceeding for which indemnification is being sought even though less than a quorum;

 

(b)By a committee
of directors who are not parties to the proceeding for which indemnification is being sought designated by a majority vote of such
directors, even though less than a quorum;

 

(c)If there are no
directors who are not parties to the proceeding for which indemnification is sought, or if such directors so direct, by independent
legal counsel in a written opinion;

 

(d)The stockholders
of the Company;

 

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(e)A panel of three
arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last of whom is selected
by the first two arbitrators so selected; or

 

(f)A court having
jurisdiction of subject matter and the parties.

 

8.5Submission.
As soon as practicable, and in no event later than thirty (30) days after the forum has been selected pursuant to Section 8.4 above,
the Company shall, at its own expense, submit to the selected forum its claim that the Indemnitee is not entitled to indemnification,
and the Company shall act in the utmost good faith to assure the Indemnitee a complete opportunity to defend against such claim.

 

8.6Appeals.
If the forum selected in accordance with Section 8.4 hereof is not a court, then after the final decision of such forum is rendered,
the Company or the Indemnitee shall have the right to apply to a court of Nevada, the court in which the proceeding giving rise
to the Indemnitee’s claim for indemnification is or was pending, or any other court of competent jurisdiction, for the purpose
of appealing the decision of such forum, provided that such right is executed within sixty (60) days after the final decision
of such forum is rendered. If the forum selected in accordance with Section 8.4 hereof is a court, then the rights of the Company
or the Indemnitee to appeal any decision of such court shall be governed by the applicable laws and rules governing appeals of
the decision of such court.

 

8.7Expenses for
Interpretation. Notwithstanding any other provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee
against all expenses incurred by the Indemnitee in connection with any hearing or proceeding under this Section 8 involving the
Indemnitee and against all expenses incurred by the Indemnitee in connection with any other proceeding between the Company and
the Indemnitee involving the interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court
of competent jurisdiction finds that each of the material claims and/or defenses of the Indemnitee in any such proceeding was frivolous
or not made in good faith.

 

9.  Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this
Agreement in the following circumstances:

 

9.1Claims Initiated
by Indemnitee. To indemnify or advance expenses to the Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by the Indemnitee and not by way of defense, except with respect to proceedings specifically authorized by the
Board or brought to establish or enforce a right to indemnification and/or advancement of expenses arising under this Agreement,
the charter documents of the Company or any subsidiary, or any statute or law or otherwise, but such indemnification or advancement
of expenses may be provided by the Company in specific cases if the Board finds it to be appropriate; or

 

9.2Unauthorized
Settlements. To indemnify the Indemnitee hereunder for any amounts paid in settlement of a proceeding unless the Company consents
in advance in writing to such settlement, which consent shall not be unreasonably withheld; or

 

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9.3Securities
Law Actions. To indemnify the Indemnitee on account of any suit in which judgment is rendered against the Indemnitee for an
accounting of profits made from the purchase or sale by the Indemnitee of securities of the company pursuant to the provisions
of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state, or
local statutory law; or

 

9.4Unlawful Indemnification.
To indemnify the Indemnitee if a final decision by a court having jurisdiction in the mater shall determine that such indemnification
is not lawful. In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange Commission takes
the position that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore,
unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication.

 

10.  Non-Exclusivity.
The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of
any other rights that the Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or
Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements, or otherwise, both as to action
in the Indemnitee’s official capacity and to action in another capacity while occupying the Indemnitee’s position
as an agent of the Company, and the Indemnitee’s rights hereunder shall continue after the Indemnitee has ceased acting
as an agent of the Company and shall inure to the benefit of the heirs, executors, and administrators of the Indemnitee.

 

11.General
Provisions.

 

11.1Interpretation
of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification and advancement of expenses to the Indemnitee to the fullest extent now or hereafter permitted by law, except as
expressly limited herein.

 

11.2Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever,
then: (a) the validity, legality, and enforceability of the remaining provisions of this Agreement (including, without limitation,
all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal, or unenforceable that
are not themselves invalid, illegal, or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest
extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement
containing any such provision held to be invalid, illegal, or unenforceable, that are not themselves invalid, illegal, or unenforceable)
shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal, or unenforceable and to
give effect to Section 11.1 hereof.

 

11.3Modification
and Waiver. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

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11.4Subrogation.
In the event of full payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary or desirable
to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

11.5Counterparts.
This Agreement may be executed in one or more counterparts, which shall together constitute one agreement.

 

11.6Successors
and Assigns. The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties
hereto. The indemnification and advancement of expenses provided by, or granted pursuant to, this section shall, unless otherwise
provided when authorized or ratified, continue as to a person who has ceased to be a director or an officer and shall inure to
the benefit of the heirs, executors, and administrators of such a person.

 

11.7Notice.
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed duly given
if (a) delivered by hand and receipted for by the party addressee, or (b) mailed by certified or registered mail, with postage
prepaid, on the third business day after the mailing date. Addresses for notice to either party are as shown on the signature page
of this Agreement or as subsequently modified by written notice.

 

11.8Governing
Law. This Agreement shall be governed exclusively by and construed according to the laws of the state of Nevada, as applied
to contracts between Nevada residents entered into and to be performed entirely within Nevada .

 

11.9Consent to
Jurisdiction. The Company and the Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the state
of Nevada for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

 

11.10Attorneys’
Fees. In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including, without limitation,
the expenses of any proceeding described in Section 4), the Indemnitee shall be entitled to all reasonable fees and expenses in
bringing and pursuing such action, unless a court of competent jurisdiction finds each of the material claims of the Indemnitee
in any such action was frivolous and not made in good faith.

 

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IN WITNESS WHEREOF,
the parties hereto have entered into this Indemnification Agreement effective as of the date first written above.

 

	THE DIGITAL DEVELOPMENT	 	INDEMNITEE:	 
	GROUP CORP.	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Name: 	 	 	 	 
	 	 	 	(Print Name)	 
	Title: 	 	 	 	 

 

    	10SERVICE LEVEL AGREEMENT

 

This Service Level Agreement is dated effective
as of 07.01.12 (“the Effective Date”) and constitutes an acceptance of the terms and conditions by and between The
Digital Development Group Corp., a Nevada corporation (hereinafter referred as CLIENT), and PowerHouse Creative, LLC,
a California limited liability company (hereinafter referred as PHC).

 

	1. SCOPE OF SERVICES & Design Phases	______ (initial)

 

PHC shall provide the CLIENT
with certain creative services in connection with enabling the functionality of the Client’s website, www.digidevgroup.com
and any affiliated websites, to provide streaming of digitized entertainment content (“the Services”) for the following
(i) design and deployment of a Front-end Player for streaming of video content and (ii) a content management system or platform
for the Client’s website (collectively “the Deliverables”).

 

		·	In addition, PHC shall provide the Client
with website management services, creation of advertising modules, monetization, export and provision of software development kit
services for developers of content or applications to be deployed on the Client’s website.
	 	 	 

		·	PHC and Client will collaborate and mutually
agreed upon wireframes and scope for website within 20 days after the Effective Date.
	 	 	 

		·	PHC shall commence providing the Services
upon the Effective Date

 

	2. PROFESSIONAL FEES	______ (initial)

 

Professional fee refers to the fee charged
by PHC in providing the Services.

 

The CLIENT agrees to pay
the following fees for PHC’s performance of the Services: (i) $15,000 upon execution of this Agreement; (ii) $15,000 on
or about August 1, 2012; (iii) $30,000 shall be payable by the end of the 6th week of development based upon
PHC’s delivery of (A) the full functioning web server hosted on Amazon and (B) Player; and (iv) $25,000 – upon
delivery of the fully functioning CMS component and integration with the Player’s billing/credit card processing
functionality.

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3.
Client’s Approval. Once made, Client’s payments made
to PHC are not refundable for any reason. Receipt of payment by PHC from the CLIENT is considered full approval of work completed.

 

4.
Other Agreements of the Parties. Except as otherwise set forth in this Agreement, CLIENT will own exclusively
all right, title, and interest in and to all items that are conceived, made, discovered, written, or created by PHC personnel alone
or jointly with third parties under this Agreement, including the Deliverables, whether completed or works-in-progress. Without
limiting the previous sentence, all Deliverables, in whole and in part, will be deemed “works made for hire” of CLIENT
for all purposes of copyright law, and the copyright will belong solely to CLIENT. To the extent that any such Deliverables do
not fall within the specifically enumerated works that constitute “works made for hire” under the United States
copyright laws, and to the extent that any Deliverables include materials subject to copyright, patent, trade secret, or other
proprietary right protection, PHC hereby irrevocably assigns to CLIENT all its right, title, and interest that it may be deemed
to have in and to any and all inventions, copyrights, patents, trade secrets, and other proprietary rights (including renewals).
PHC agrees to maintain adequate and current records of all Deliverables, which records will be and remain the property of CLIENT.
PHC agrees to promptly disclose and describe to CLIENT all Deliverables.

 

5. Summary of Anticipated Timeline.
Based upon the GANTT chart attached hereto as Exhibit “A” (“the GANTT Chart”), the anticipated timeline
for performance of the Services is summarized as follows:

 

Web Framework for the player platform and for the CMS

 

7/16 - 7/27 - Fully functional web server hosted on amazon with
basic server functionality.

 

7/30 - 8/24 - Player platform development including, FB login,
player functionality, video streaming, basic browsing, basic search, media center

 

8/27 - 10/5 - CMS development (upload, channel management, analytics,
subscriptions, billing plus credit system)

 

9/10 - 10/5 - Player (billing plus credit system, social sharing,
media center refinements, refined search)

 

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User Interface

 

7/16 - 8/10 - Player/platform design based of Alex's design

 

7/30 - 8/24 - CMS design (upload, channel management, subscriptions,
billing plus credit system)

 

8/27 - 10/5 - CMS and player updates and
enhancements

 

6. Project Notes, and Timeline for
performance of the Services. Client acknowledges that the timeline set forth on the GANTT Chart, and PHC’s performance
of the Services, are predicated on timely delivery of website content and creative elements from the Client and the Client’s
approval of design elements and functionality of the website at various stages of development. Alongside UI development, PHC will
build out a framework to develop the product on top of web services. It will be a Java/JSP stack utilizing MySQL, Hibernate, Spring
and a custom front-end stack of JSP/JS/CSS/JSTL. PHC will add on independent modules as needed/determined during the development
phase. PHC will host everything on AWS so that the Client will have access to live progress as PHC does drops. PHC will also be
setting up an account on Assembla for source control, wiki, ticketing and timeline. Within thirty (30) days after final delivery
of the fully functioning, bug-free website, PHC shall create Assembla accounts for the Client which will allow the Client to log
bug or issues with the product that PHC can turn around and resolve within not greater than five (5) business days after final
delivery of the website. PHC requires the following to start the development process:

 

- 1 week to setup the initial framework
and support systems (all of the components and technologies mentioned above). This includes a fully-functioning server on AWS which
will initially respond with a very simple introductory page.

 

- 1 week for user management; registration,
basic profile modification, forgot password/username, administrative user. This will also include an e-mail system for generating
and sending HTML-enhanced e-mail, required for the “I forgot login” area.

 

From there, PHC will build out the site
and aim to complete the project before 9/10/12 (“Target Completion Date”).

 

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7. PHC’s Representations, Warranties
and Covenants. PHC represents and warrants to CLIENT that:

 

7.1PHC is duly
organized, validly existing, has full and adequate power to own its property and conduct its business as now conducted, is in good
standing and duly licensed, and has procured all necessary licenses, registrations, approvals, consents, and any other communications
in each jurisdiction as required to enable PHC to perform its obligations under this Agreement;

 

7.2The execution,
delivery, and performance of this Agreement by PHC and the performance by PHC of the transactions contemplated in this Agreement
have been duly and validly authorized by all necessary action, corporate or otherwise, on its part, and this Agreement and each
Scope Of Work document signed by the parties (“SOW”) shall constitute the valid, legal, and binding obligation of PHC;

 

7.3PHC is not and
will not be subject to any agreement or other constraint that does, would, or with the passage of time would prohibit or restrict
PHC’s right or ability to enter into, or carry out, its obligations hereunder;

 

7.4PHC has the
qualifications and the ability to perform the Services in a professional manner without the advice, control or supervision of CLIENT.
PHC will provide consultants, technicians and/or technical personnel trained to perform the Services in the applicable SOW. All
workmanship, materials or documentation provided by PHC will be of the highest quality in every respect and according to the Specifications
and any mutually agreed to schedule set forth in the applicable SOW;

 

7.5PHC possesses
all legal right, title, or interest in or to any intellectual property (such as software, designs, copyrights, patents, trademarks
and trade secrets) that have been or will be used to create or be a part of the Deliverables;

 

7.6Neither the
Services nor the Deliverables, nor any part, product or software sold, distributed, licensed or supplied by PHC in connection with
the Services or Deliverables, do or will infringe any patent, copyright, trademark or other proprietary right of any third party
or misappropriate any trade secret of any third party;

 

7.7PHC’s
performance of the Services called for by this Agreement does not and will not violate any applicable law, rule or regulation;

 

7.8The Deliverables
will perform according to the Specifications;

 

7.9To the extent
the Deliverables include software, the software, including updates, upgrades, and new versions, does not and will not contain any
viruses, malicious code, Trojan horse, worm, time bomb, self-help code, back door or other software code or routine designed
to: (i) damage, destroy or alter any software or hardware; (ii) reveal, damage, destroy or alter any data; (iii) disable
any computer program automatically; or (iv) permit unauthorized access to any software or hardware;

 

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7.10Time is of
the essence in connection with PHC’s performance of the Services and delivery of the Deliverables;

 

7.11Any software
provided as part of the Deliverables or the Services does not contain Open Source Software.

 

7.12Except for
restrictions on trade with countries against which the United States government has imposed a general embargo, there is no
restriction on the export of any of the Deliverables or any software contained therein, other than as described in the materials
delivered to CLIENT by PHC pursuant to Section 22 (Export Controls); and

 

7.13With respect
to CLIENT Confidential Information that PHC has in its possession, PHC will maintain, at a minimum, reasonable and customary security
measures applicable to the manner in which PHC possesses such information (e.g., physically, electronically, or otherwise) to protect
the CLIENT Confidential Information from disclosure or breach;

 

8.Confidentiality.

 

8.1Definition.
“Confidential Information” of a Party means all confidential or proprietary information, including all information
not generally known to the public, trade secrets, the terms of this Agreement, and CLIENT Data. “CLIENT Data” will
mean all data and information that is submitted, directly or indirectly, to PHC by CLIENT or obtained or learned by PHC in connection
with the Services provided by PHC under this Agreement and any SOW, including information relating to CLIENT’s customers,
technology, operations, facilities, consumer markets, products, capacities, systems, procedures, security practices, research,
development, business affairs, ideas, concepts, innovations, inventions, designs, business methodologies, improvements, trade secrets,
copyrightable subject matter, and other proprietary information. All CLIENT Data is and will remain the property of CLIENT and
will be protected as described in this Section 8. Without limiting the foregoing, Confidential Information will include all
such information provided to each Party by the other Party both before and after the date of this Agreement. Any personal information
of CLIENT’s customers which PHC obtains or learns in connection with the Services will be the confidential information of
such individuals (“Consumer Information”). PHC will treat Consumer Information as Confidential Information in accordance
with the terms and conditions of this Agreement.

 

8.2Use and Disclosure.
Parties will take any and all necessary measures to prevent disclosure, dissemination or unauthorized use of Confidential Information
relating to a Party or Personal Information , including, at a minimum, those measures it takes to protect its own confidential
information of a similar nature. As a condition to CLIENT’s obligations under this Agreement, PHC agrees to enter into, and
to require all subcontractors to enter into and abide by all the terms and conditions of the PHC Nondisclosure Agreement,
dated as of the execution of this Agreement, the form of which is attached as Exhibit A. In addition to the foregoing, PHC shall
cause each person that provides Services to CLIENT pursuant to this Agreement to execute the Individual Nondisclosure Agreement,
the form of which is attached hereto as Exhibit B, and shall deliver each such validly executed agreement to CLIENT prior to, and
as a condition precedent to, (a) such person providing Services hereunder and (b) CLIENT’s obligations to pay PHC for Services
rendered pursuant hereto. Neither Party will disclose, duplicate, publish, release, transfer, or otherwise make available Confidential
Information of the other Party in any form to, or for the use or benefit of, any person or entity without the other Party’s
prior written consent. PHC will segregate Confidential Information from the confidential materials of third parties to prevent
commingling. Each Party will, however, be permitted to disclose relevant aspects of the other Party’s Confidential Information
to its officers, directors, employees, agents and subcontractors to the extent that such disclosure is reasonably necessary for
the performance of its duties and obligations under this Agreement and such disclosure is not prohibited by applicable laws and
regulations. Each Party will establish commercially reasonable controls to ensure the confidentiality of the Confidential Information
and to ensure that the Confidential Information is not disclosed contrary to the provisions of this Agreement and applicable privacy
laws and regulations. Without limiting the foregoing, each Party will, at a minimum, implement such technical, administrative and
physical measures as are necessary to: (i) ensure the security and confidentiality of the Confidential Information; (ii) protect
against any threats or hazards to the security and integrity of the Confidential Information; and (iii) protect against any
unauthorized access to or use of the Confidential Information.

 

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If a Party delegates any duties and responsibilities
under this Agreement to an agent or other subcontractor in accordance with the terms of this Agreement, such Party will ensure
that such agents and subcontractors will adhere to the same requirements with which such Party is required to comply under this
Agreement. PHC’s obligations with respect to Confidential Information will survive for five (5) years following the termination
of this Agreement or for as long as Confidential Information remains confidential.

 

8.3Exceptions.
The obligations in Section 8.2 will not restrict any disclosure by either Party (a) pursuant to any applicable law or
by order of any court or government agency (provided that the disclosing Party will give prompt notice to the non-disclosing Party
of such order and will cooperate at the disclosing Party’s expense in any effort to comply with or to contest the order),
or (b) to either Party’s accountants, legal advisors, auditors and financial advisors. Further, the obligations in Section 8.2
will not apply with respect to information that: (i) is developed by the other Party without violating the disclosing Party’s
proprietary rights, (ii) is or becomes publicly known (other than through unauthorized disclosure), (iii) is disclosed
to, or learned by, the recipient from a third party free of any obligation of confidentiality, and/or (iv) is already known
by such Party without an obligation of confidentiality other than pursuant to this Agreement or any confidentiality agreements
entered into before the Effective Date between CLIENT and PHC.

 

8.4Disclosure
of Confidential Information. In the event of a breach of this Section 8 or other compromise of CLIENT Confidential Information,
including Financial Information, or Consumer Information of which PHC is or should be aware (whether or not resulting from a breach),
PHC will immediately notify CLIENT in a writing detailing all information known to PHC about the compromise, the CLIENT Confidential
Information and/or Consumer Information affected, and the steps taken by PHC to prevent the recurrence of such breach and to mitigate
the risk to CLIENT. Such notice will be sent to the address indicated in the Notice section of this Agreement, including a copy
to the Executive Director of Legal Affairs. PHC will provide CLIENT with access to all information related to the security breach
as reasonably requested by CLIENT.

 

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8.5Return
of Materials. Upon request and/or upon termination of this Agreement for any reason, PHC will return, destroy, or cause the
destruction of any and all records or copies of records relating to CLIENT or its business, including Confidential Information
(except for Confidential Information of CLIENT that is rightfully contained in PHC’s work papers, provided that PHC maintains
the confidentiality of such Confidential Information as required herein), according to CLIENT’s instructions or relevant
industry best practices if no instructions are provided. Upon request, PHC will certify in writing that all such Confidential Information
has been so returned or destroyed. 

 

9.Independent Contractor.

 

9.1Independent
Contractor. PHC is an independent contractor of CLIENT and not an employee, agent, partner, joint venturer, representative,
broker or principal of CLIENT for any purpose. Neither PHC nor any employee of PHC will acquire any of the rights, privileges,
powers or advantages of an employee of CLIENT, including disability insurance, vacation or sick pay, or any other benefits available
to CLIENT employees. PHC will be solely responsible for all wages, benefits, taxes, withholdings, training and expenses of its
employees, including the employees assigned to perform Services under this Agreement. PHC is solely responsible for, and must maintain
adequate records of, expenses incurred in the course of performing services under this Agreement. No part of PHC’s compensation
will be subject to withholding by CLIENT for the payment of any social security, federal, state or any other employee payroll taxes.
CLIENT will regularly report amounts paid to PHC by filing Form 1099 MISC with the Internal Revenue Service as required by law.

 

9.2Tools and
Supplies. PHC will be solely responsible for providing any tools, supplies (except office supplies used on CLIENT’s premises),
or other goods that PHC may need or choose to use in order to perform the Services, except as specifically listed in the Agreement
or in a Statement of Work.

 

		10.	No Publicity. Neither Party will use the other Party’s name or mark in any advertising,
written sales promotion, press releases, and/or other publicity matters relating to this Agreement without the other Party’s
written consent. PHC acknowledges that CLIENT has a no publicity policy regarding its vendor relationships.

 

		11.	Legal Compliance; Applicable Law. Each Party will at all times comply with all applicable
laws and government rules, regulations, and guidelines pertaining to its business, products or services, employment obligations,
and the subject matter of this Agreement. This Agreement will not be governed by the United Nations Convention on Contracts for
the International Sale of Goods, the application of which is expressly disclaimed. This Agreement will be governed by and construed
under the laws of the State of California, without giving effect to its choice of law rules. Exclusive jurisdiction and venue for
any claims related to or arising under this Agreement will be in state or federal court located in Los Angeles County, California.

 

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		12.	Assignment. PHC will not assign, transfer, or subcontract this Agreement or all or any portion
of the Services or delegate any of its duties hereunder without CLIENT’s express, prior written consent. Any assignment in
contravention of this provision will be null and void. This Agreement will be binding on all permitted assignees and successors
in interest.

 

		13.	Entire Agreement/Amendments. This Agreement, including all schedules and exhibits that are
incorporated herein by reference, contains the entire agreement of the Parties regarding the subject matter described herein, and
all other promises, representations, understandings, arrangements, and prior agreements related thereto are merged herein and superseded
hereby. The provisions of this Agreement may not be amended, except by an agreement in writing signed by authorized representatives
of both Parties.

 

		14.	Force Majeure. Notwithstanding any other provision of this Agreement, no Party to the Agreement
will be deemed in default or breach of this Agreement or liable for any loss or damages or for any delay or inability to perform
its obligations under this Agreement or any SOW if the delay or inability arises from any cause beyond the reasonable control of
that Party (each, a “Force Majeure Event”); provided that the impacted Party will make reasonable efforts to mitigate
the effect and duration of such Force Majeure Event. The Parties will promptly resume performance after the Force Majeure Event
has passed. If, however, a delay continues for ten (10) days or more, the Party not experiencing the Force Majeure Event may terminate
this Agreement without penalty upon written notice to the other Party.

 

		15.	Notices. All notices, requests, demands, and other communications hereunder will be in writing
and will be deemed to have been duly given: (i) on the next day if delivered personally to such Party, (ii) on the date
three (3) days after mailing if mailed by registered or certified mail, or (iii) on the next day if delivered by courier.
All notices will be sent to the following address:

 

If to CLIENT: 6630 Sunset Blvd.,
Los Angeles, Calif. 90028

 

With a copy as follows: David
R. Altshuler, Esq., 15332 Antioch St. #840, Pacific Palisades, CA. 90272 – fax: 310-454-9759

 

If to PHC: 1870 El Cerrito Place,
Hollywood, California 90068

 

 

Such addresses may be changed by notice
given by one Party to the other pursuant to this Section or by other form of notice agreed to by the Parties.

 

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		16.	Remedies. Except as otherwise provided for herein, no remedy conferred by any of the specific
provisions of this Agreement or available to a Party is intended to be exclusive of any other remedy, and each and every remedy
will be cumulative and will be in addition to every other remedy given hereunder, now or hereafter existing at law or in equity
or by statute or otherwise. The election of one or more remedies by either Party will not constitute a waiver of the right to pursue
other available remedies.

 

		17.	Severability. If any provision of this Agreement is invalid or unenforceable in any jurisdiction,
the other provisions of this Agreement will remain in full force and effect in such jurisdiction and will be liberally construed
in order to effectuate the purpose and intent of this Agreement, and the invalidity or unenforceability of any provision of this
Agreement in any jurisdiction will not affect the validity or enforceability of any such provision in any other jurisdiction.

 

		18.	Waiver of Breach. Except as otherwise may be provided herein, the waiver of any breach of
any provision of this Agreement will only be effective if in writing. No such waiver will operate or be construed as a waiver of
any subsequent breach. A Party’s failure to respond or act will not be considered a waiver.

 

		19.	Export Controls. Each Party will use reasonable efforts to comply with all relevant United States
export laws and regulations (collectively, “Export Controls”). If applicable, PHC will provide CLIENT with all applicable
ECCNs for the Deliverables, a description of the technology contained within the Deliverables that is subject to Export Controls,
and copies of relevant export licenses obtained by PHC or information reasonably sufficient to substantiate that no license is
required. In addition, upon CLIENT’s written request, PHC will use commercially reasonable efforts to assist CLIENT with
obtaining any United States export license required.

 

		20.	Order of Precedence. To the extent the terms and conditions of this Agreement conflict with
the terms and conditions of an applicable SOW, the terms and conditions of this Agreement will control.

 

21.Audits.

 

21.1CLIENT’s Audits.
During the Term of this Agreement, and for as long as PHC retains CLIENT Confidential Information, CLIENT, and CLIENT’s agents
and representatives may conduct onsite and/or offsite inspections and audits of PHC’s business, operations, systems, procedures
and practices that relate to PHC’s Agreement-required functions and services to determine whether PHC meets the terms and
conditions of this Agreement and its confidentiality requirements. Each such inspection and audit will be conducted during reasonable
business hours, for a reasonable duration, and upon reasonable advance written notice to PHC, and at CLIENT’s expense, no
more than once per year, unless otherwise provided in this Agreement.

 

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21.2Books and Records.
During the Term of this Agreement, PHC will maintain complete and accurate books and records of the fees and expenses, including
documentation supporting all expenses, charged to CLIENT in connection with the Services and Deliverables. PHC will retain such
records for three (3) years after termination of this Agreement and will make such records, and any additional records to
ensure PHC’s compliance with pricing and fee requirements under this Agreement, available to CLIENT or its third-party auditor
in accordance with Section 24.1. If any audit under this Section 24.2 determines that PHC has overcharged CLIENT, CLIENT
will notify PHC of the amount of such overcharge and PHC will promptly pay such amount to CLIENT. If any such overcharge exceeds
three percent (3%) of the total amount charged to CLIENT by PHC for the Services and Deliverables subject to the audit, then PHC
will reimburse CLIENT for the reasonable cost of such audit. Upon request, PHC will provide audited fiscal year-end financial statements.

 

		22.	Counterparts. This Agreement may be executed in any number of counterparts, each of which
will be deemed an original and all of which taken together will constitute one signed agreement between the Parties. For purposes
hereof, a facsimile or scanned copy of this Agreement, including the signature pages hereto, shall be deemed to be an original.

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the Effective Date.

 

The Digital Development Group Corp.

 

 

By ........./s/..........................................................

Joe Q. Bretz, Its President

 

By ........./s/..........................................................

Richard W. Verdoni, Chief Technology Officer

 

PowerHouse Creative, LLC

 

 

By.........../s/........................................................

JESSE DAVIS, Its CEO

 

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