Document:

EXHIBIT 10.03

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

The
agreement set forth herein (“Agreement”), is made and effective as of this 13th day of January, 2010, by and between MRG
Entertainment, Inc. (“the Company”), New Frontier Media, Inc. (“NFM”)
and Richard Bruce Goldberg (“Executive”).

 

Whereas,
Executive is employed by MRG, pursuant to an Employment Agreement dated February 10,
2006, as subsequently amended on August 25th, 2008 (“the MRG Employment Agreement”); and

 

Whereas,
Executive has entered into the Non-Competition, Non-Solicitation and Trade
Secrecy Agreement between and among NFM, MRG, and Executive, dated February 10,
2006 (the Non-Competition Agreement”); and

 

Now
Therefore, all parties desire to amend the terms of the MRG Employment Agreement
as specifically set forth herein.

 

A.                                   Unless
otherwise defined in this Agreement, all defined terms used herein shall have
the meaning as set forth in the MRG Employment Agreement.

 

B.                                     Except as
expressly modified hereby, the terms and conditions of the MRG Employment
Agreement remain in full force and effect.

 

C.                                     This Agreement
shall not alter or amend any of the non-competition or non-solicitation terms
(nor any other terms) set forth in the Non-Competition Agreement.

 

D.                                    The following
replaces Section 2B(ix) of the MRG Employment Agreement in its
entirety:

 

Section 2.
Terms of Employment, (B) Compensation, (ix) Stock
Options.  Executive shall receive an
option to purchase 75,000 shares of New Frontier Media common stock with a
strike price of $2.15 per option (“Option”). 
Unless the employment relationship has sooner terminated, the Option
will vest equally over a two (2) year period (50% vested after year one,
50% vested after year two).

 

Agreed
and Accepted:

 

	
  NEW FRONTIER
  MEDIA, INC.

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Weiner

  	
   

  	
  1/13/2010

  
	
   

  	
   

  	
   

  
	
  MRG
  ENTERTAINMENT, INC.

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Marc Greenberg

  	
   

  	
  1/13/2010

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  /s/ Rich Goldberg

  	
   

  	
  1/13/2010

  
	
  Richard Bruce GoldbergEXHIBIT 10.04

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”),
dated as of February 10, 2006 (the “Effective Date”),
is entered into by and between Marc Laurence Greenberg, an individual residing
at 4211 Roma Court, Marina del Rey, California 90292 (“Executive”), and MRG Entertainment, Inc.,
a California corporation, located at 301
Arizona Avenue, Santa Monica, California 90401 (“Company”).

 

WHEREAS,
Executive possesses valuable knowledge and skills which are relevant to the
operation of Company’s business; and

 

WHEREAS,
Company desires to provide for the employment of Executive, and Executive is
willing to serve as an executive of Company, on the terms and conditions herein
provided; and

 

WHEREAS,
New Frontier Media, Inc., a Colorado corporation (“New Frontier”),
Marc Lawrence Greenberg Trust dated May 11, 2001 (“Greenberg
Trust”), Goldberg Family Trust dated June 15, 2001 (“Goldberg Trust”), Richard Bruce Goldberg (“Goldberg”) and Executive are parties to that certain Stock
Purchase Agreement dated February 6, 2006 (the “Purchase
Agreement”); and

 

WHEREAS,
the Greenberg Trust and the Goldberg Trust collectively own one hundred percent
(100%) of the issued and outstanding common stock shares of Company and
Lifestyles Entertainment, Inc., a California corporation (collectively,
the “Businesses”); and

 

WHEREAS,
New Frontier is acquiring all of the stock and the goodwill of the Businesses,
which will continue to be engaged in (i) the entertainment, production,
marketing and distribution businesses, and (ii) producing, licensing and
selling motion pictures and television programs; and

 

WHEREAS,
pursuant to the Purchase Agreement, the Businesses shall become wholly owned
subsidiaries of New Frontier; and

 

WHEREAS,
Executive is a beneficiary of the Greenberg Trust and the Co-President and
Secretary of each of the Businesses and is benefiting financially from the
acquisition contemplated by the Purchase Agreement; and

 

WHEREAS,
Executive has had and will continue to have access to and possession of various
trade secrets and other proprietary and confidential information of the
Businesses which is material to the continued value of the Businesses; and

 

WHEREAS,
the entering into this Agreement by Company and Executive is a condition to the
consummation of the closing contemplated by the Purchase Agreement and a
material inducement of New Frontier to enter into the Purchase Agreement; and

 

WHEREAS,
Company desires to hire Executive, and Executive wishes to accept such
employment, upon the terms and conditions set forth in this Agreement.

 

1

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
herein contained, Company and Executive agree as follows:

 

1.                                       EMPLOYMENT
PERIOD.  Executive shall be employed by
Company, in accordance with the terms and provisions of this Agreement,
commencing on the Effective Date and ending at midnight on February 9,
2009, unless sooner terminated in accordance with the provisions of Sections 3
or 4 herein (the “Employment Period”).

 

2.               TERMS
OF EMPLOYMENT.

 

A.                                   Position
and Duties.  During the
Employment Period, Executive shall be employed by Company as President or a
Co-President (to the extent that Goldberg remains employed by Company as
Co-President), and Executive accepts and agrees to such employment.  During the Employment Period, Executive shall
perform all services and acts necessary and advisable to fulfill the duties and
responsibilities as are commensurate and consistent with Executive’s position
and shall render such services on the terms set forth herein.  During the Employment Period, Executive shall
report to the Chief Executive Officer (the “CEO”)
of New Frontier (or the CEO’s designee, so long as such designee is of equal or
greater rank than the CEO).  Executive
shall have such powers and duties with respect to his position as Co-President
as may reasonably be assigned to Executive by the CEO, to the extent consistent
with Executive’s position and status. 
Executive agrees to devote his full-time attention to the business and
affairs of Company.  During the
Employment Period, it shall not be a violation of this Agreement for Executive
to: (a) serve on corporate, civic, charitable, and professional
association boards or committees; (b) deliver lectures or fulfill speaking
engagements; and (c) manage personal investments, so long as such
activities do not result in more than de minimus interference with the
performance of Executive’s responsibilities as Co-President of Company in
accordance with this Agreement or do not create any perceived or actual
conflict of interest with Company or New Frontier.  The CEO reserves the right for legitimate
business reasons to require Executive to end or refrain from participating in
any such activities upon reasonable prior written notice to Executive.
Executive’s employment with Company under this Agreement shall be Executive’s
exclusive employment during the Employment Period.

 

B.                                     Compensation.

 

(i)                                     Base Salary.  During the Employment Period, Executive shall
receive a base salary (“Base Salary”),
which shall be paid in equal installments on a bi-weekly basis, at the rate of
Three Hundred Fifty Thousand Dollars ($350,000) per annum, less standard state
and federal tax-related deductions and withholdings.

 

(ii)                                  Discretionary
Bonus.  In addition to Executive’s
Base Salary, the Compensation Committee of the Board of Directors of New
Frontier (the “New Frontier Board”) may, in its
sole discretion, award cash bonuses annually to Executive, if at all, in an
aggregate amount of up to one hundred percent (100%) of Executive’s Base
Salary, less standard state and federal tax-related deductions and
withholdings.  Notwithstanding the
foregoing, Executive shall have the right, to be determined in his sole
discretion, to decline and waive any discretionary bonus amount approved by the
New Frontier Board and, in such event, such approved bonus amount shall not
count against the calculation of EBITDA under the Earnout Agreement entered
into as of even 

 

2

 

date
herewith by and among New Frontier, Executive, Goldberg, the Greenberg Trust
and the Goldberg Trust (the “Earnout Agreement”),
provided that Executive notifies the CEO in writing of such waiver by the later
of (i) September 30th of the year during which such
bonus is accrued, or (ii) within ten (10) business days after
Executive is advised in writing of the accrued bonus amount.  For purposes of this Agreement, the term “EBITDA”
shall have the meaning ascribed to it in the Earnout Agreement.

 

(iii)                               Expenses.  During the Employment Period, Company shall
reimburse Executive for all reasonable employment-related expenses incurred by
Executive in accordance with the policies, practices and procedures of Company
as in effect generally from time to time after the Effective Date.

 

(iv)                              Vacation and
Sick Leave.  Executive
acknowledges that Company has no policy concerning vacation time or sick leave
applicable to its executive level employees and, by executing this Agreement,
Executive acknowledges and agrees that he shall not accrue any such vacation or
sick leave benefits during the Employment Period.  Executive is authorized to take paid time off
provided he meets his professional and productivity obligations to Company as
determined by the CEO.  Executive is to
coordinate time off with the CEO.

 

(v)                                 Car Allowance.  During the Employment Period, Executive shall
be entitled to a car allowance equal to Eight Hundred Fifty Dollars ($850) per
month (the “Car Allowance”), to be paid in accordance
with and subject to Company’s car allowance policy.  The Car Allowance shall be paid bi-weekly,
and shall be taxable to Executive whether or not Executive has an actual car
payment (including any car lease payment).

 

(vi)                              Savings and
Retirement Plans.  During the
Employment Period, Executive shall be entitled to participate in all savings
and retirement plans maintained by New Frontier, including any 401(k) plan,
on the same terms as executives of New Frontier or other subsidiaries of New
Frontier of similar rank to Executive are entitled to participate.

 

(vii)                           Key Man
Insurance.  During the
Employment Period, Company may at its election obtain and maintain in full
force and effect term life insurance in such amounts as Company may elect in
its sole discretion on the life of Executive naming Company or New Frontier as
beneficiary (the “Key Man Insurance”).  Executive shall cooperate with Company and
New Frontier with respect to any reasonable underwriting activities as may be
required by New Frontier’s insurer(s) in connection with obtaining the Key
Man Insurance, including, without limitation, undertaking such medical
examinations and providing such documents and information as New Frontier or
its insurer(s) may reasonably request.

 

(viii)        Welfare Benefit Plans.  During the Employment Period, Executive shall
be eligible to participate in all welfare benefit plans made available by New
Frontier to other executives of similar rank to Executive; provided, however,
nothing in this Section 2(B)(viii) shall operate to reduce or impair
New Frontier’s right to alter, amend, or cancel any such plans, programs or
benefits at any time, upon reasonable advance notice to Executive.

 

(ix)                                Stock Options.  Executive shall be eligible to participate in
such Stock Option Plans of New Frontier that may be made available from time to
time to New Frontier 

 

3

 

executives
of similar rank to Executive; provided, however,
the level, terms and conditions of such participation shall be determined by
and within the sole discretion of the New Frontier Board.

 

(x)                                   Withholdings.  All payments made to Executive hereunder
shall be subject to all applicable state and federal tax-related withholding
obligations, as required by applicable law.

 

3.                                       EARLY
TERMINATION OF EMPLOYMENT.

 

Executive
and Company each acknowledge that either party has the right to terminate
Executive’s employment with Company at any time for any lawful reason
whatsoever, with or without Cause (as defined herein) or advance notice,
pursuant to the following:

 

A.                                   For
Cause. Company may terminate Executive’s employment during the Employment
Period for Cause.  For purposes of this
Agreement, “Cause” shall mean (i) the
conviction of Executive for committing an act of fraud, embezzlement, theft or
other act constituting a crime or the guilty or nolo contendere plea of
Executive to any such crime; (ii) fraudulent conduct or an act of
dishonesty or breach of trust on the part of Executive in connection with the
business of Company or any of its affiliates or subsidiaries; (iii) violation
of any Company policy of which Executive is aware and is given a period of ten (10) days’
prior written notice and opportunity to cure during such period; (iv) failure,
neglect, or refusal by Executive to engage in diligent efforts to properly
discharge, perform or observe any or all of Executive’s job duties  for any reason other than Company’s material breach of this Agreement
or Executive’s Permanent Disability (as defined herein), which failure,
neglect, or refusal continues after Company provides ten (10) days’ prior
written notice to Executive; provided, however, Company shall not be required
to deliver any such notice under this subpart (iv) on more than one (1) occasion
for each year of the Employment Period; (v) breach of the Non-Competition,
Non-Solicitation and Trade Secret Agreement attached as Exhibit J to the
Purchase Agreement (the “Non-competition Agreement”);
(vi) any uncured breach of the Employee Proprietary Information and Inventions
Agreement which results in damage to the Company, attached as Exhibit A
to this Agreement (the “Proprietary Information
Agreement”); and (vii) any other breach or failure by Executive
to comply with any of the provisions of this Agreement applicable to him and
which is not remedied within ten (10) days after written notice thereof
from Company.  The parties acknowledge
that this definition of “Cause” is not
intended and does not apply to any aspect of the relationship between Company
and any of its employees, including Executive, beyond determining Executive’s
eligibility for the Without Cause Severance Payments (as defined herein).

 

B.                                     Without
Cause. Company may terminate Executive’s employment without Cause by
providing Executive ten (10) business days advance notice of such
termination.

 

C.                                     Upon
Executive’s Death or Permanent Disability. Subject to applicable
state or federal law, Executive’s employment shall terminate automatically upon
Executive’s death or upon Executive’s permanent disability (“Permanently Disabled” or “Permanent
Disability”), meaning that Executive is unable to perform the
essential functions of his job, with or without reasonable accommodation, for a
total of ninety (90) days out of any six (6) month period.

 

4

 

4.                                       TERMINATION
BY EXECUTIVE FOR GOOD REASON. Executive may terminate
his employment with Company for Good Reason. For purposes of this Agreement, “Good Reason” shall mean, in the absence of the advance
written consent of Executive, a reasonable determination by Executive that any
of the following has occurred:

 

A.           The assignment
to Executive of any duties inconsistent in any material respect with Executive’s
position (including titles and reporting requirements, authority, duties or
responsibilities as contemplated by Section 2(A) of this Agreement),
or any other action by Company which results in a material diminution in such
position, authority, duties or responsibilities, excluding for this purpose an
isolated and insubstantial action not taken in bad faith and which is remedied
by Company within ten (10) days after receipt of written notice thereof
given by Executive; or

 

B.             Any failure by
Company to comply with any of the provisions of this Agreement applicable to
it, other than any isolated and insubstantial failure not occurring in bad
faith and which is remedied within ten (10) days after receipt of written
notice thereof given by Executive.

 

C.             Company’s
failure to obtain a written agreement from any successor of Company to assume
and perform Company’s obligations under this Agreement.

 

Upon
the occurrence of any of the events described in Sections 4(A), 4(B), or 4(C) above,
Executive shall be deemed to have waived any right to receive post termination
benefits if he does not notify Company of his intention to resign within ninety
(90) days after the occurrence of such event.

 

5.                                       OBLIGATIONS
OF COMPANY UPON EARLY TERMINATION.

 

A.           Termination
for Cause.  In the
event Executive is terminated by Company for Cause, Company’s obligation to
make payments hereunder shall cease as of the Date of Termination, as defined
in Section 6, except Company shall pay to Executive, on the Date of
Termination, any accrued Base Salary and bonuses that have been earned through
the Date of Termination (the sum of these amounts shall hereinafter be referred
to as the “Accrued Obligations”).  Business expenses reimbursable under Company
policy will be paid within thirty (30) days after the final submittal of
outstanding business expenses, provided that Executive submit any outstanding
business expenses within thirty (30) days after the Date of Termination.  Vesting of any stock option under any
applicable Stock Option Plan shall cease vesting as of the Date of Termination.

 

B.             Termination
by Company Without Cause.  In
the event Executive is terminated without Cause and upon the execution of a
full general release by Executive (“Release”),
releasing all claims known or unknown that Executive may have under this
Agreement against Company or New Frontier as of the date Executive signs such
Release, and upon the written acknowledgement of his continuing obligations
under the Proprietary Information Agreement and the Non-competition Agreement,
Company shall pay Executive associated termination payments  equal to Base Salary continuation through February 9,
2009, or six (6) months of Base Salary, whichever is greater (the “Without Cause Severance Payments”), plus
the Accrued Obligations; provided, however, the Without Cause Severance
Payments shall be reduced in accordance with Section 5(G) (Mitigation
of Damages).  The Without Cause Severance
Payments will be paid in Company’s regular payroll cycle; provided, the Accrued
Obligations shall be paid to Executive on the Date of Termination.  

 

5

 

Business
expenses reimbursable under Company policy will be paid within ten (10) days
after the final submittal of outstanding business expenses, provided that
Executive submits any outstanding business expenses within ten (10) days
after the Date of Termination.  Vesting
of any stock options under any applicable Stock Option Plan shall cease vesting
as of the Date of Termination without Cause.

 

C.             Termination
by Executive for Good Reason.  In the event Executive resigns his employment
with Company for Good Reason and upon the execution of a Release against
Company and New Frontier, releasing all claims known or unknown that Executive
may have under this Agreement against Company or New Frontier as of the date
Executive signs such Release, and upon the written acknowledgement of his
continuing obligations under the Proprietary Information Agreement and the
Non-competition Agreement, Company shall pay Executive associated termination
payments  equal
to Base Salary continuation through February 9, 2009, or six (6) months
of Base Salary, whichever is greater (“Good
Reason Severance Payments”), plus the Accrued Obligations; provided,
however, the Good Reason Severance Payments shall be reduced in accordance with
Section 5(G) (Mitigation of Damages). 
The Good Reason Severance Payments will be paid in Company’s regular
payroll cycle; provided, the Accrued Obligations shall be paid to Executive on
the Date of Termination.  Business
expenses reimbursable under Company policy will be paid within ten (10) days
after the final submittal of outstanding business expenses, provided that
Executive submits any outstanding business expenses within ten (10) days
after the Date of Termination.  Vesting
of any stock options under any applicable Stock Option Plan shall cease vesting
as of the Date of Termination for Good Reason.

 

D.            Upon
Death.  If Executive’s employment is
terminated by reason of Executive’s death during the Employment Period, this
Agreement shall terminate without further obligation to Executive’s legal
representatives under this Agreement. 
Upon notice of Executive’s death, Company shall pay to Executive’s
estate all Accrued Obligations.  Business
expenses reimbursable under Company policy will be paid with thirty (30) days
after the final submittal of outstanding business expenses, provided that
Executive’s estate submit any outstanding business expenses within thirty (30)
days after Executive’s death.  Vesting of
any stock options under any applicable Stock Option Plan shall be governed by
the terms of the Stock Option Plan and applicable Stock Option grant.

 

E.              Upon
Permanent Disability.  If
Executive’s employment is terminated by reason of Executive’s Permanent
Disability (as determined pursuant to Section 3(C) of this Agreement)
during the Employment Period, this Agreement shall terminate without further
obligation to Company.  Company shall pay
to Executive, on the Date of Termination, all Accrued Obligations.  Business expenses reimbursable under Company
policy will be paid within thirty (30) days after the final submittal of
outstanding business expenses, provided Executive submit any outstanding
business expenses within thirty (30) days after the Date of Termination.  Vesting of any stock options under any
applicable Stock Option Plan shall be governed by the terms of the Stock Option
Plan and applicable Stock Option grant.

 

F.              Application of Section 409A of Internal Revenue Code.  Notwithstanding anything
contained in Section 5(B) or 5(C) to the contrary, to the extent
that (i) the parties’ agreement regarding the Cause Severance Payments or
Good Reason Severance Payments, as applicable, to be made by Company in
accordance with this Agreement is treated as a “nonqualified deferred
compensation plan” within the meaning of Section 409A(d)(1) of the
Internal Revenue 

 

6

 

Code
of 1986 (the “Code”), (ii) the Executive is
a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, and (iii) Section 409A(a)(1)(A) of the Code would
apply to any Cause Severance Payments or Good Reason Severance Payments, as
applicable, but for the application of Section 409A(a)(2)(A)(i) of
the Code required to avoid the tax consequences of Section 409A of the
Code, the first such severance payment under either scenario shall cover all
payments scheduled to be made to Executive during the first six (6) months
after the Date of Termination and such first payment shall be delayed until the
day after the six (6) month anniversary of the Date of Termination.

 

G.             Parachute Tax Gross Up.  Executive acknowledges that neither the
Company nor New Frontier presently has, nor shall it have any obligation to
consider or institute, a policy or procedure (a “Gross Up Policy”) that requires the Company/New Frontier to
pay any of its employees (including senior officers) a “gross-up amount”
providing employees entitled to any acceleration payments with a “net” (or
increased) payment amount that takes into account any associated golden
parachute excise tax (“Parachute Tax”)
under Section 4999(a) of the Code. Notwithstanding the foregoing, in
the event New Frontier or the Company during the Employment Period institutes a
Gross Up Policy applicable to one or more executives similarly situated to
Executive in connection with any acceleration payments owing or which could be
owing to such executive(s), Executive shall thereafter be entitled to
participate in such Gross Up Policy.

 

H.            Mitigation of Damages.  Executive shall not be obligated to seek other employment to mitigate the
amount of Without Cause Severance Payments or the Good Reason Severance
Payments payable to Executive hereunder; provided, however, the amount of any
Without Cause Severance Payments or Good Reason Severance Payments shall be
reduced, dollar for dollar, by an amount equal to the gross amount that
Executive earns (whether as an employee, contractor, or director of any other
business, trade, profession or occupation, and irrespective of whether such
form of compensation constitutes salary, bonus or compensation) following (i) the
termination of Executive without Cause, or (ii) Executive’s resignation
for Good Reason, as applicable. 
Executive shall for so long as any severance payments are due and owing
to Executive, provide the Company with contact information of any new employer
of Executive (or such other person or entity to whom Executive acts as a
consultant or contractor) (each referred to as a “Third Party Employer”) following termination; Executive hereby
further authorizes Company to provide a copy of this Agreement to such Third
Party Employer and to obtain from such Third Party Employer, without Executive’s
consent, all such information as may be reasonably requested by the Company to
ascertain the amount of compensation received by Executive from such Third
Party Employer, including without limitation, pay stubs, W-2’s and/or Form 1099’s
issued to Executive but only to the extent Executive does not first provide
such information to the Company within ten (10) days of written request.

 

6.                                       NOTICE
AND DATE OF TERMINATION.  Any
termination (whether based on Permanent Disability, Good Reason, with Cause or
without Cause) shall be communicated by a written “Notice of
Termination” to the other party, and may be sent via registered or
certified mail, return receipt requested, postage prepaid or by facsimile
transmission, or by electronic mail or by hand delivery. “Date of
Termination” shall mean: (i) the date of transmission of the
Notice of Termination by facsimile, e-mail or personal delivery; (ii) three
(3) calendar days after the date of mailing by first class mail; or (iii) if
Executive’s employment is terminated by reason of Executive’s death, the Date
of Termination shall be the date of Executive’s death.

 

7

 

7.                                       PROPRIETARY
AND OTHER OBLIGATIONS.

 

A.                                   Proprietary
Information Agreement. 
Executive acknowledges that signing and complying with the Proprietary
Information Agreement  is a condition
of his employment by Company.  Executive
therefore agrees to sign and comply with the Proprietary Information Agreement
and acknowledges that by beginning employment with Company, he will be deemed
to have signed and agreed to the provision of the Proprietary Information
Agreement.

 

B.                                     Exceptions.  Notwithstanding any contrary provisions in
the Proprietary Information Agreement to the contrary the parties agree as
follows:  (i) the term “Proprietary
Information”, as defined in Section 1.2 of the Proprietary Information
Agreement, shall not include Executive’s personal address book; (ii) to
the extent of any conflict between Section 2(A) of this Agreement and
the first sentence of paragraph 4 of the Proprietary Information Agreement, Section 2(A) of
this Agreement shall govern and control; (iii) the last sentence of
paragraph 7 of the Proprietary Information Agreement shall not apply to
Executive; (iv) a copy of all notices to be provided to Executive under
paragraph 9 of the Proprietary Information Agreement shall be delivered to
Michael Wolf, Esq., Wolf, Rifkin, Shapiro & Schulman, LLP, 11400
W. Olympic Blvd., Ninth Floor, Los Angeles, California 90064; (v) promptly
after providing a notification described in paragraph 10 of the Proprietary
Information Agreement to any new employer of Executive, the Company will
provide Executive with a copy of the notice given to such new employer; and (vi) to
the extent of any conflict between any Section(s) of this Agreement and
paragraph 11.5 of the Proprietary Information Agreement, the Section(s) of
this Agreement shall govern and control.

 

8.                                       NON-COMPETITION; NON-SOLICITATION.  This Agreement
shall not alter or amend any of the non-competition or non-solicitation terms
(nor any other terms) set forth in the Non-competition Agreement or the
Proprietary Information Agreement.

 

9.                                       ARBITRATION.  To the fullest extent permitted by law, any
controversy or claim past, present, or future, arising out of or relating to
the hiring of Executive, Executive’s employment, the termination of Executive’s
employment, this Agreement and/or the breach or termination of this Agreement
that Company may have against Executive or that Executive may have against
Company or against its officers, directors, employees or agents in their
capacity as such or the breach hereof, shall be settled by a single arbitrator
in arbitration conducted in Los Angeles County, California, in accordance with
the National Employment Arbitration Rules of the American Arbitration
Association (“AAA”).  These rules are posted on the AAA’s
website, www.adr.org. The arbitrators shall prepare a written award and
judgment upon the award may be entered in any court having jurisdiction
thereof.  The arbitrator’s decision shall
be final and binding. The arbitrator shall have the authority to settle such
controversy or claim by finding that a party should be enjoined from certain
actions or be compelled to undertake certain actions, and in such event such
court may enter an order enjoining and/or compelling such actions as found by
that arbitrator.  Each party shall pay
its own legal and other professional fees and costs in connection with the
arbitration and Company shall pay the arbitrator’s fees; however, to the extent
permitted by law, the arbitrator may require the other party to pay the costs
of the arbitration and/or the legal and other professional fees and costs
incurred by the prevailing party in connection with such arbitration proceeding
and any necessary court action.

 

The claims covered by this
arbitration provision include, but are not limited to, claims arising out of contract
law, tort law, common law, defamation law, fraud law (including, without 

 

8

 

limitation, fraud in the
inducement of contract), wrongful discharge law, privacy rights, statutory
protections, constitutional protections, wage and hour law, California Labor
Code protections, the California Fair Employment and Housing Act (which
includes claims for discrimination or harassment on the basis of age, race,
color, ancestry, national origin, disability, medical condition, marital
status, religious creed, sexual orientation, pregnancy, and sex), any similar
state discrimination law, the Federal Civil Rights Act of 1964 and 1991, as
amended, the Age Discrimination in Employment Act, the Older Workers’ Benefit
Protection Act, the Americans With Disabilities Act; claims for benefits
(except claims under an employee benefit plan that either (1) specifies
that its claims procedure shall culminate in an arbitration procedure different
from this one, or (2) is underwritten by a commercial insurer which
decides claims); and claims for violation of any federal, state, or other
governmental law, statute, regulation, or ordinance, except claims excluded in
the following section.

 

Notwithstanding
the foregoing, the parties expressly agree that claims Executive may have for
workers’ compensation, state unemployment compensation benefits, and state
disability insurance are not covered by this Agreement.  The parties also agree that a court of
competent jurisdiction may enter a temporary restraining order or an order
enjoining a breach of this Agreement, including Exhibit A (Confidentiality
Agreement) hereto, pending a final award or further order by the
arbitrator.  Such remedy, however, shall
be cumulative and nonexclusive, and shall be in addition to any other remedy to
which the parties may be entitled.  The
parties further expressly agree that this provision does not apply to any
matter in which the amount in controversy falls within the jurisdiction of the
Small Claims Division of the Municipal Courts of the State of California.  Should such matter fall within the
jurisdiction of the Small Claims Division of the Municipal Court of the State
of California, then such matter shall be, and may only be, submitted to a Small
Claims Division of the Courts of the State of California for Los Angeles County
for determination.

 

This
Section 9 shall apply notwithstanding any provision to the contrary which
is set forth in the Purchase Agreement; provided however,
Company shall, in the event of any arbitration under this Section 9,
continue to have (and the arbitrator shall take into account in rendering any
award hereunder) all of its offset rights contained in applicable provisions of
the Purchase Agreement.

 

10.                                 NO
CONFLICTING OBLIGATIONS OF EXECUTIVE.  Executive represents and warrants that he is
not subject to any duties or restrictions under any prior agreement with any
previous employer or other person or entity other than Company, and that he has
no rights or obligations which may conflict with the interests of Company or
with the performance of Executive’s duties and obligations under this
Agreement.  Executive agrees to notify
Company immediately if any such conflicts occur in the future.

 

11.                                 DIRECTOR
AND OFFICER INSURANCE AND INDEMNITY.  To the extent that New Frontier maintains
Director and Office Insurance on similarly situated executives of other
subsidiaries, New Frontier shall obtain and pay the premiums upon director and
officer insurance and shall name Executive as an insured under such
policies.  Company shall further
indemnify and hold harmless Executive as required under Company’s articles of
incorporation or bylaws and, without limiting the generality of the foregoing,
Company shall indemnify and hold harmless Executive to the maximum extent
required by California law.

 

9

 

12.                                 SUCCESSORS.  This Agreement is personal to Executive and
shall not be assignable by Executive. 
This Agreement shall inure to the benefit of Company and its successors
and assigns.  Upon written approval by
Executive, Company may assign this Agreement to any successor or affiliated
entity, subsidiary or parent company, but no such assignment shall relieve
Company of its obligations under this Agreement.

 

13.                                 MISCELLANEOUS.

 

A.                                   Modification/Waiver.  This Agreement may not be amended, modified,
superseded, canceled, renewed or expanded, or any terms or covenants hereof
waived, except by a writing executed by each of the parties hereto or, in the
case of a waiver, by the party waiving compliance.  Failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect his or
its right at a later time to enforce the same. 
No waiver by a party of a breach of any term or covenant contained in
this Agreement, whether by conduct or otherwise, in any one or more instances
shall be deemed to be or construed as a further or continuing waiver of
agreement contained in the Agreement.

 

B.                                     Taxes.  Executive agrees to be responsible for the
payment of any taxes due on any and all compensation, stock option, or benefit
provided by Company pursuant to this Agreement. 
Executive agrees to indemnify Company and hold Company harmless from any
and all claims or penalties asserted against Company for any failure by
Executive to pay taxes due on any compensation, stock option, or benefit
provided by Company pursuant to this Agreement. Executive expressly
acknowledges that Company has not made, nor herein makes, any representation
about the tax consequences of any consideration provided by Company to
Executive pursuant to this Agreement.

 

C.                                     Governing
Law; Personal Jurisdiction.  This Agreement and all disputes
relating to this Agreement shall be governed in all respects by the laws of the
State of California as such laws are applied to agreements between California
residents entered into and performed entirely in California. The parties
acknowledge that this Agreement constitutes the minimum contacts to establish
personal jurisdiction in California. The captions of this Agreement are not
part of the provisions hereof and shall have no force or effect.

 

D.                                    Notices.  All notices and other communications
hereunder (including any notices pursuant to Section 6) shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, or by facsimile,
or by email, or by hand delivery to such address as either party shall have
furnished to the other in writing in accordance herewith.  Copies of all notices sent hereunder shall be
forwarded to Michael Wolf, Esq., Wolf, Rifkin, Shapiro &
Schulman, LLP, 11400 West Olympic Boulevard, Ninth Floor, Los Angeles,
California 90064 and to E. Lee Reichert, Esq., Kamlet Shepherd &
Reichert, LLP, 1515 Arapahoe Street, Ste. 1600, Denver, Colorado 80202.

 

E.                                      Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

 

F.                                      Withholdings.  Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

 

10

 

G.                                     Entire Agreement.  This Agreement, together with Exhibit A
attached hereto, set forth the entire agreement and understanding of the
parties hereto with regard to the employment of the Executive by Company and
supersede any and all prior agreements, arrangements and understandings,
written or oral, pertaining to the subject matter hereof.  No representation, promise or inducement
relating to the subject matter hereof has been made to a party that is not
embodied in these Agreements, and no party shall be bound by or liable for any
alleged representation, promise or inducement not so set forth.  Notwithstanding this Section 13(G),
nothing contained in this Agreement shall alter, amend or effect in any way the
terms and conditions of the Purchase Agreement or the Non-competition
Agreement.

 

H.                                    Waiver.  The failure of either party to insist upon
strict compliance with any provision of this Agreement, or the failure to
assert any right either party may have hereunder, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

 

IN
WITNESS WHEREOF, Executive has hereunto set Executive’s hand, and Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

 

 

	
  COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
  MRG
  Entertainment, Inc.,

  	
   

  	
   

  
	
  a
  California corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Rich Goldberg

  	
   

  	
  /s/
  Marc Greenberg

  
	
  Name:

  	
   

  	
   

  	
  Marc
  Laurence Greenberg

  
	
  Its:

  	
   

  	
   

  	
   

  

 

11

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