Document:

Exhibit 10.30

                              EMPLOYMENT AGREEMENT

      This EMPLOYMENT AGREEMENT (this "Agreement") is made as of the 20th day of
June, 2006, by and between Costar Video Systems, LLC, a Delaware limited
liability company (the "Company"), and James Pritchett (the "Executive").

                              W I T N E S S E T H :

      WHEREAS, Southern Imaging, Inc., a Texas corporation ("Southern Imaging"),
and its Affiliates (including Video Solutions Technology Center, Inc., a Nevada
corporation ("Video Solutions") are engaged in the business of designing,
developing, sourcing, selling and distributing, video and imaging products and
accessories (the "Business");

      WHEREAS, the Company intends to acquire substantially all of the assets
and certain of the liabilities of Southern Imaging and its Affiliates pursuant
to the Asset Purchase Agreement, dated as of the date hereof (the "Asset
Purchase Agreement"), by and among the Company, Video Solutions Technology
Center, LLC, Southern Imaging and Video Solutions;

      WHEREAS, Executive is currently employed as the Vice President, Sales of
Southern Imaging;

      WHEREAS, the Company wishes to ensure that it will continue to have the
benefits of Executive's services after the closing (the "Closing") of the
transactions contemplated by the Asset Purchase Agreement on the terms and
conditions hereinafter set forth, and therefore desires to enter into this
Agreement with Executive, to be effective upon the Closing;

      WHEREAS, the Company and Executive acknowledge and agree that the
retention of Executive's services and Executive's agreement to enter into and
adhere to the noncompetition, nonsolicitation and nondisclosure of proprietary
information provisions contained in this Agreement are material conditions to
the Company entering into the Asset Purchase Agreement and consummating the
transactions contemplated thereby; and

      WHEREAS, Executive desires to work for the Company on the terms and
conditions hereinafter set forth.

      NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound hereby, agree as follows:

      1. Employment; Term. The Company hereby employs Executive, and Executive
hereby accepts employment with the Company, in accordance with and subject to
the

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terms and conditions set forth herein. The term of this Agreement shall commence
upon the Closing (the "Effective Date") and shall continue for a period of
thirty-six (36) months (the "Initial Term"), unless earlier terminated in
accordance with Section 6 hereof. The Initial Term may be extended for
subsequent twelve (12) month periods upon mutual agreement of the Company and
Executive at any time prior to the end of the then-current term, it being
understood and agreed that the Company shall endeavor to provide the Executive
with at least six (6) months notice of its desire to extend the agreement and
that the Executive will endeavor to agree or disagree to extend the agreement
within 30 days thereafter. The Initial Term, as it may be adjusted or extended
pursuant to the terms and conditions hereof, may be referred to herein as the
"Term").

      2. Employment.

            (a) The Company hereby agrees to employ Executive as its President,
and Chief Operating Officer for Sales for the Term. Executive agrees to serve in
such capacity with the duties and responsibilities reasonably requested by the
Company consistent with such position in a company of the size and nature of the
Company. During the Term, Executive shall report to the Chief Executive Officer
of the Company, or his designee.

            (b) Executive shall perform his duties with diligence and
faithfulness to the best of his abilities and shall devote his full business
time (excluding periods of vacation and sick leave), attention and energy to
such duties.

      3. Compensation. The Company shall pay Executive a base salary (the "Base
Salary") of One Hundred Fifty Thousand Dollars ($150,000) per annum, payable at
least semi-monthly, in accordance with the Company's then existing payroll
practices and subject to all legally required or customary withholdings and
other applicable taxes.

      4. Incentive Payment.

            (a) Provided that the Executive's employment under this Agreement is
not terminated pursuant to the provisions of Section 6(a), (b), (d) or (e) prior
to the end of the calendar year for each of the Bonus Eligible Years (as
hereinafter defined), the Executive shall be eligible to receive from the
Company as additional compensation an incentive payment (the "Incentive
Payment") pursuant to and subject to the terms of this Section 4.

            (b) Calculation of Incentive Payment.

                  (i) For each of the Bonus Eligible Years, the Incentive
Payment shall equal 40% of the Annual Available Bonus Pool calculated in
accordance with the provisions set forth on Schedule A hereto.

                  (ii) For the avoidance of doubt, the parties acknowledge that
the Incentive Payment shall never be less than zero.

            (c) Annual EBITDA Statement. The Company shall prepare or cause to
be prepared, (i) audited consolidated financial statements of the Company for
such Bonus Eligible Year, (ii) a statement which shall explain in reasonable
detail the calculations of Annual

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EBITDA and the Incentive Payment (the "Incentive Payment Statement") and (iii)
reasonable supporting documentation sufficiently detailed to enable Executive to
verify in all material respects the calculations of Annual EBITDA and the
Incentive Payment, and deliver or cause to be delivered each of the forgoing to
Executive promptly after the audited consolidated financial statements of the
Company for such Bonus Eligible Year have been completed.

            (d) Payment of Incentive Payment. The Incentive Payment shall be
paid by the Company to the Executive in cash no later than 35 days after the
issuance of the audited financial statements of the Company for each Bonus
Eligible Year.

            (e) Definitions. The following terms used in this Agreement shall
have the meanings indicated:

                  (i) "Affiliate" with respect to any Person shall mean any
other Person which, directly or indirectly, is in control of, is controlled by
or is under common control with such specified Person. For the purposes of this
definition, "control," when used with respect to any Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

                  (ii) "Annual EBITDA" shall mean the EBITDA of the Company
during each of the Bonus Eligible Years.

                  (iii) "Bonus Eligible Years" shall mean the 2006, 2007, 2008
and 2009 calendar years.

                  (iv) "EBITDA of the Company" shall mean the consolidated net
income of the Company before interest, income taxes, depreciation and
amortization. For purposes hereof the EBITDA for the year ended December 31,
2006, shall be equal to the sum of (i) the EBITDA of Southern Imaging and Video
Solutions for the period commencing on January 1, 2006 and ending on the Closing
and (ii) the EBITDA of the Company for the period from and after the Closing and
ending on December 31, 2006.

                  (v) "GAAP" shall mean United States generally accepted
accounting principles in effect on the date hereof applied on a consistent
basis.

                  (vi) "Person" shall mean an individual, partnership, venture,
unincorporated association, organization, syndicate, corporation, limited
liability company, or other entity, trust, trustee, executor, administrator or
other legal or personal representative or any government or any agency or
political subdivision thereof.

      5. Benefits.

            (a) The Company agrees to reimburse Executive for all reasonable and
necessary documented out-of-pocket travel and other business expenses incurred
by Executive in connection with the performance of his duties under this
Agreement in accordance with the Company's corporate policy regarding such
expenses as it may be amended from time to time. Such reimbursements shall be
made by the Company within a reasonable amount of time after

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submission by Executive of vouchers in accordance with the Company's then
applicable policies and procedures. It is understood and agreed between the
parties that (i) the Executive shall only be required to travel for reasonable
business purposes and (ii) the Executive shall only be entitled to reimbursement
of travel and business expenses incurred in connection with business activities
and prospects that are in accordance with the Company's business plan, as
approved by Dynabazaar, Inc., the Company's parent ("Dynabazaar").

            (b) Executive shall be entitled to participate in any and all
medical insurance, group health, dental and vision care programs, disability
insurance, pension, and other benefit plans which are made generally available
by the Company to its senior executives, as the same may be amended or modified
from time to time. The Company may at any time amend or terminate its benefit
plans or programs, subject to the written consent of Dynabazaar, provided,
however, that the Company shall not terminate any health plan or program
provided to the Executive during the Term unless it shall provide the Executive
with comparable benefits under a replacement plan or program.

            (c) Executive shall be entitled to an annual paid vacation in
accordance with the Company's vacation policy applicable to senior executives,
but in no event less than three (3) weeks per calendar year. Paid vacation may
not be accrued from year-to-year.

      6. Termination. Executive's employment hereunder may be terminated prior
to the end of the Term under the following circumstances:

            (a) Death. Executive's employment hereunder shall terminate upon
Executive's death.

            (b) Total Disability. The Company may terminate Executive's
employment hereunder at any time after Executive becomes "Totally Disabled." For
purposes of this Agreement, Executive shall be "Totally Disabled" upon the
earlier of (i) the date Executive becomes entitled to receive disability
benefits under the Company's long-term disability plan, if any, or (ii)
Executive's inability to perform the duties and responsibilities contemplated
under this Agreement for a period of more than 90 consecutive days, or 120 days
in any 365-day period, due to physical or mental incapacity or impairment. Such
termination shall become effective five days after the Company gives notice of
such termination to Executive, or to his spouse or legal representative, in
accordance with Section 10 hereof.

            (c) Termination by the Company without Cause. The Company may
terminate Executive's employment hereunder without Cause (as hereinafter
defined) at any time after providing written notice to Executive.

            (d) Termination by the Company for Cause. The Company may terminate
Executive's employment hereunder for Cause at any time after providing written
notice to Executive. For purposes of this Agreement, the term "Cause" shall mean
any of the following: (i) Executive's willful or intentional failure or refusal
to perform or observe any of his duties, responsibilities or obligations set
forth in, or as contemplated under, this Agreement, unless such failure or
refusal is susceptible to cure and is corrected within thirty (30) days
following written notice by the Company or Dynabazaar specifying the details
thereof; (ii) acts

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or omissions by Executive involving Executive's gross negligence related to the
discharge of his duties; (iii) any act or failure to act involving fraud, a
material, knowing or intentional misrepresentation, theft, embezzlement,
dishonesty or moral turpitude; (iv) conviction of (or a plea of nolo contendere
to) an offense which is a felony in the jurisdiction involved or which is a
misdemeanor in the jurisdiction involved but which involves an act set forth in
Section 6(d)(iii) above; (v) any willful or intentional act or omission which
could reasonably be expected to materially injure the reputation, business or
business relationships of the Company, or Executive's reputation or business
relationships; or (vi) Executive's willful or intentional failure to comply with
any reasonable request or direction of the Company not contrary to the
provisions of this Agreement, unless such failure to comply is susceptible to
cure and is corrected within thirty (30) days following written notice by the
Company or Dynabazaar specifying the details thereof.

            (e) Termination by Executive for Good Reason. Executive may
terminate his employment hereunder at any time if Executive has "Good Reason"
and gives written notice thereof to the Company within 30 days after the
occurrence of such Good Reason. For purposes of this Agreement, the term "Good
Reason" shall mean: (i) a material reduction in Executive's salary or other
benefits, except to the extent permitted pursuant to the terms of this
Agreement; or (ii) a material breach by the Company of any material provision of
this Agreement; which, in each case, is not cured by the Company within 30 days
after the Company receives written notice thereof from Executive.

      7. Compensation Following Termination Prior to the End of the Initial
Term. In the event that Executive's employment hereunder is terminated prior to
the end of the Initial Term, Executive shall be entitled only to the following
compensation and benefits upon such termination:

            (a) Termination by Reason of Death or Total Disability, by the
Company for Cause, or by Executive other than for Good Reason. In the event that
Executive's employment is terminated prior to the expiration of the Term by
reason of Executive's death or Total Disability, or termination by the Company
for Cause, or termination by Executive other than for Good Reason, respectively,
the Company shall pay the following amounts to Executive (or Executive's spouse
or estate, as the case may be):

      i.    any accrued but unpaid Base Salary (as determined pursuant to
            Section 3 hereof) for services rendered to the date of termination,
            which amount shall be paid to the Executive within thirty (30) days
            following the date of termination;

      ii.   any accrued but unpaid expenses required to be reimbursed pursuant
            to Section 5(a) hereof, which amount shall be paid to the Executive
            within thirty (30) days following the date of termination;

      iii.  any accrued but unpaid vacation time pursuant to Section 5(c)
            hereof, which amount shall be paid to the Executive within thirty
            (30) days following the date of termination; and

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      iv.   for each full Bonus Eligible Year worked by the Executive for the
            Company, any incentive payment due and payable pursuant to Section 4
            hereof in accordance with the provisions thereof.

Except as otherwise specifically provided herein, in the event Executive's
employment is terminated pursuant to this Section 7(a), the benefits to which
Executive and/or his family may be entitled upon such termination pursuant to
the plans, programs and arrangements referred to in Section 5(b) hereof shall be
determined and paid in accordance with the terms of such plans, programs and
arrangements.

            (b) Termination by the Company Without Cause. In the event that
Executive's employment is terminated by the Company without Cause, the Company
shall pay the following amounts to Executive:

      i.    any accrued but unpaid Base Salary (as determined pursuant to
            Section 3 hereof) for services rendered to the date of termination,
            which amount shall be paid to the Executive within thirty (30) days
            following the date of termination;

      ii.   any accrued but unpaid expenses required to be reimbursed pursuant
            to Section 5(a) hereof, which amount shall be paid to the Executive
            within thirty (30) days following the date of termination;

      iii.  any accrued but unpaid vacation time pursuant to Section 5(c)
            hereof, which amount shall be paid to the Executive within thirty
            (30) days following the date of termination;

      iv.   the Executive's Base Salary (as determined pursuant to Section 3(a)
            hereof) for a period of six (6) months following the termination of
            Executive's employment, to be paid in accordance with the Company's
            standard payroll practices then in effect; and

      v.    for each full Bonus Eligible Year worked by the Executive for the
            Company, any incentive payment due and payable pursuant to Section 4
            hereof in accordance with the provisions thereof, and for each
            partial Bonus Eligible Year worked by the Executive for the Company,
            a pro-rate portion of any incentive payment that would be due and
            payable pursuant to Section 4 in accordance with the provisions
            thereof assuming that the Executive worked for the Company for the
            full Bonus Eligible Year.

In the event Executive's employment is terminated pursuant to this Section 7(b),
Executive and/or his family shall continue to be entitled to coverage under the
plans, programs and arrangements referred to in Section 4(b) hereof for so long
as Executive continues to receive payments from the Company pursuant to clause
(iv) of this Section 7(b).

            (c) Termination by the Executive for Good Reason. In the event that
Executive's employment is terminated by the Executive for Good Reason, the
Company shall pay the following amounts to Executive:

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      i.    any accrued but unpaid Base Salary (as determined pursuant to
            Section 3 hereof) for services rendered to the date of termination,
            which amount shall be paid to the Executive within thirty (30) days
            following the date of termination;

      ii.   any accrued but unpaid expenses required to be reimbursed pursuant
            to Section 5(a) hereof, which amount shall be paid to the Executive
            within thirty (30) days following the date of termination;

      iii.  any accrued but unpaid vacation time pursuant to Section 5(c)
            hereof, which amount shall be paid to the Executive within thirty
            (30) days following the date of termination;

      iv.   the Executive's Base Salary (as determined pursuant to Section 3(a)
            hereof) for a period of six (6) months following the termination of
            Executive's employment, to be paid in accordance with the Company's
            standard payroll practices then in effect; and

      v.    for each full Bonus Eligible Year worked by the Executive for the
            Company, any incentive payment due and payable pursuant to Section 4
            hereof in accordance with the provisions thereof.

In the event Executive's employment is terminated pursuant to this Section 7(c),
Executive and/or his family shall continue to be entitled to coverage under the
plans, programs and arrangements referred to in Section 4(b) hereof for so long
as Executive continues to receive payments from the Company pursuant to clause
(iv) of this Section 7(c).

            (d) No Other Benefits or Compensation. Except as may be provided
under this Agreement or under the terms of any incentive compensation, employee
benefit or fringe benefit plan applicable to Executive at the time of the
termination of Executive's employment prior to the end of the Term, Executive
shall have no right to receive any other compensation, or to participate in any
other plan, arrangement or benefit, with respect to any future period after such
termination.

            (e) General. (i) In the event that Executive's employment is
terminated for any reason, the Company's payment of salary and other amounts
specifically provided for in the applicable previous paragraph of this Section 7
shall constitute complete satisfaction of all payment obligations of the Company
to Executive pursuant to this Agreement. Upon any such termination, Executive
shall cease to be an employee of the Company for all purposes and (except as
otherwise expressly set forth in this Agreement) the Company shall have no
obligation to Executive to provide Executive with any employee benefits or
perquisites hereunder.

                  (ii) Executive's rights set out in this Agreement shall
constitute Executive's sole and exclusive rights and remedies as a result of
Executive's actual or constructive termination of employment.

      8. Noncompetition and Nonsolicitation; Nondisclosure of Proprietary
Information; Surrender of Records.

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            (a) Noncompetition; Nonsolicitation.

                  (i) Executive acknowledges and recognizes the highly
competitive nature of the Company's business and that his position with the
Company and access to the Company's confidential records and proprietary
information renders him special and unique. In consideration of payments made
and to be made by the Company to Executive pursuant to this Agreement
(including, without limitation, pursuant to Section 3 hereof), Executive agrees
not to, directly or indirectly, by ownership of securities or otherwise (other
than as a stockholder of not more than five percent (5%) of any class of
securities of any other corporation, which class of securities shall have been
registered under Section 12 of the Securities Exchange Act of 1934, as amended),
for a period equal to the later of (A) five (5) years after the Closing Date (as
defined in the Asset Purchase Agreement) and (B) three (3) years after the
termination or expiration of this Agreement, engage in any business competitive
with the business of the Company located in North America (the "Geographic
Region") or become associated with or render services in connection therewith to
any person, firm, corporation, association or other entity so engaged (other
than Dynabazar and its Affiliates and their respective successors and assigns)
in such Geographic Region.

                  (ii) In further consideration of the payments made and to be
made by the Company to Executive pursuant to this Agreement (including, without
limitation, pursuant to Section 3 hereof), Executive agrees that during the Term
of this Agreement and for a period of two (2) years thereafter, he shall not,
directly or indirectly, (A) advise or encourage any employee, agent, consultant,
representative or customer of, or vendor or supplier to, the Company to
terminate his, her, or its relationship with the Company or to reduce the amount
of business customarily done with the Company, or (B) solicit or attempt to
solicit or participate in the solicitation of or employ or otherwise engage any
employee of the Company, or otherwise advise or encourage any employee to become
an employee, agent, representative or consultant of or to any other Person.

                  (iii) Executive understands that the provisions of this
Section 8(a) may limit his ability to earn a livelihood in a business similar to
the business of the Company but nevertheless agrees and hereby acknowledges that
the consideration provided under this Agreement, including any amounts provided
under Section 3 hereof, are sufficient to justify the restrictions contained in
such provisions. In consideration thereof and in light of Executive's education,
skills and abilities, Executive agrees that he will not assert in any forum that
such provisions prevent him from earning a living or otherwise are void or
unenforceable or should be held void or unenforceable.

                  (iv) For purposes of any provision of Section 8 hereof,
"directly or indirectly" means in Executive's individual capacity for his own
benefit or for the benefit of a third party, or as a shareholder, partner,
member, principal, officer, director, trustee, employee, representative, agent
or consultant of or to any Person whatsoever.

            (b) Proprietary Information. Executive acknowledges that during the
course of his employment with the Company he will necessarily have access to and
make use of proprietary information and confidential records of the Company and
its affiliates. Executive covenants that he shall not, during the Term or at any
time thereafter (irrespective of the

<PAGE>

circumstances under which Executive's employment with the Company terminates),
directly or indirectly, use for his own purpose or for the benefit of any Person
other than the Company and its affiliates, nor otherwise disclose, any
proprietary information of which he has knowledge to any Person, unless such
disclosure has been authorized in writing by the Company or such affiliates or
is otherwise required by law. Executive acknowledges and understands that the
term "proprietary information" includes, but is not limited to, patents,
copyrights and trade secrets such as: (i) designs, drawings, sketches, fabrics,
accessories and ornaments utilized or incorporated in or proposed to be utilized
or incorporated in any product of the Company or its affiliates; (ii) the
software products, programs, applications and processes utilized by or on behalf
of the Company and its affiliates (other than off-the-shelf software programs);
(iii) the name and/or address of any customer or vendor of the Company and its
affiliates or any information concerning the transactions or relations of any
customer or vendor of the Company and its affiliates with the Company or any of
its shareholders, principals, directors, officers, employees or agents; (iv) any
information concerning any product, technology or procedure employed by or on
behalf of the Company and its affiliates but not generally known to its
customers, vendors or competitors, or under development by or being tested by or
on behalf of the Company and its affiliates but not at the time offered
generally to customers or vendors; (v) any information relating to the Company's
computer software, computer systems, pricing or marketing methods, sales
margins, cost or source of raw materials, supplies or goods, capital structure,
operating results, borrowing arrangements or business plans; (vi) any
information which is generally regarded as confidential or proprietary in any
line of business engaged in by or on behalf of the Company and its affiliates;
(vii) any business plans, budgets, advertising or marketing plans of the Company
or its affiliates; (viii) any information contained in any of the written or
oral policies and procedures or manuals of the Company or its affiliates; (ix)
any information belonging to customers, vendors or affiliates of the Company and
its affiliates or any other individual or entity which the Company and its
affiliates has agreed to hold in confidence; and (x) all written, graphic and
other material (whether in writing on magnetic tape or in electronic or other
form) relating to or containing any of the foregoing. Executive acknowledges and
understands that information that is not novel or copyrighted or trademarked or
patented may nonetheless be proprietary information. The term "proprietary
information" shall not include information generally available to and known by
the public or information that is or becomes available to Executive on a
non-confidential basis from a source other than the Company (or any of its
affiliates) or the Company's shareholders, principals, directors, officers,
employees or agents (other than as a result of a breach of any obligation of
confidentiality).

            (c) Confidentiality and Surrender of Records. Following the
expiration or termination of this Agreement, Executive shall not retain, and
will deliver promptly to the Company, all confidential records. The term
"confidential records" means all correspondence, memoranda, files, manuals,
books, designs, sketches, lists, financial, operating, or marketing records,
magnetic tape, or electronic or other media or equipment or records of any kind
which may be in Executive's possession or under his control or accessible to him
which contain any proprietary information. All confidential records shall be and
remain the sole property of the Company during the Term and thereafter.

            (d) Disclosure Required by Law. In the event Executive is required
by law or court order to disclose any proprietary information or confidential
records of the Company, Executive shall provide the Company with prompt written
notice so that the Company

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may seek a protective order or other appropriate remedy, and if such protective
order or other remedy is not obtained, Executive shall furnish only that portion
of the proprietary information or confidential records that is legally required
and, upon request, shall assist the Company (at the Company's expense) in
obtaining assurance that confidential treatment will be accorded such
information or records.

            (e) No Other Obligations. Executive represents and warrants to the
Company that he is not precluded or limited in his ability to undertake or
perform the duties described herein by any contract, agreement or restrictive
covenant. Executive covenants that he shall not employ the trade secrets or
proprietary information of any other person in connection with his employment by
the Company.

            (f) Confidentiality. Executive agrees to keep confidential the terms
of this Agreement. This provision does not prohibit Executive from providing
this information to his attorneys or accountants for purposes of obtaining legal
or tax advice or as otherwise required by law; provided, however, the Executive
shall be responsible for breaches of the confidentiality restrictions contained
herein by such people as if Executive herself had breached such restrictions.
The Company shall not disclose the terms of this Agreement except as necessary
in the ordinary course of its business, as required by law or as required by any
governmental or quasi-governmental entity or any self regulatory organization.

            (g) Developments the Property of the Company. All discoveries,
inventions, designs, drawings, sketches, products, processes, methods and
improvements conceived, developed or otherwise made by Executive at any time,
alone or with others, and in any way relating to the present or future business
or products of the Company and its Affiliates, including fabric or other
designs, whether or not subject to copyright protection and whether or not
reduced to tangible form during the period of Executive's employment with the
Company (collectively referred to as "Developments"), shall be the sole property
of the Company. Executive agrees to, and hereby does, assign to the Company all
of Executive's right, title and interest throughout the world in and to all
Developments. Executive agrees that all such Developments that are copyrightable
shall constitute works made for hire under the copyright laws of the United
States and Executive hereby assigns to the Company all copyrights and other
proprietary rights Executive may have in any such Developments to the extent
that they might not be considered works made for hire. There shall be excluded
from this Section 8(g) any Development made by Executive (i) which is developed
by Executive without the use of the Company's property or facilities, (ii) which
does not make use of any confidential or proprietary information of the Company
or any of its Affiliates and (iii) which does not relate to the Company's
business or to the ongoing or planned product development efforts of the Company
and its affiliates. Executive shall make and maintain adequate and current
written records of all Developments, and shall disclose all Developments fully
and in writing to the Company promptly after development of the same, and at any
time upon request; provided, however, that Developments excluded under the
preceding sentence shall be received by the Company in confidence.

            (h) Enforcement. Executive acknowledges and agrees that, by virtue
of his position, his services, and access to and use of confidential records and
proprietary information, any violation by his of any of the undertakings
contained in this Section 8 would

<PAGE>

cause the Company or its Affiliates immediate, substantial and irreparable
injury for which it or any of them has no adequate remedy at law. Accordingly,
Executive agrees that in the event of a breach by him of any said undertakings,
the Company will be entitled to temporary and permanent injunctive relief in any
court of competent jurisdiction (without the need to post any bond and without
proving that damages would be inadequate). Rights and remedies provided for in
this Section 8 are cumulative and shall be in addition to rights and remedies
otherwise available to the parties hereunder or under any other agreement or
applicable law.

      9. No Third Party Rights. Except as set forth in Section 7(a), the parties
do not intend the benefits of this Agreement to inure to any person or entity
not a party to this Agreement and notwithstanding anything contained in this
Agreement, or any conduct or course of conduct by either party before or after
signing this Agreement, this Agreement shall not be construed as creating any
right, claim or cause of action against either party by any person or entity not
a party to this Agreement.

      10. Notices. Any notice, consent, request or other communication made or
given in accordance with this Agreement shall be in writing and shall be deemed
to have been duly given when actually received if delivered in person, sent by
Federal Express or equivalent courier service, or if mailed, three (3) business
days after mailing by registered or certified mail, return receipt requested, to
those listed below at their following respective addresses, or at such other
address as each may specify by notice to the others:

                  To the Company:

                           Costar Video Systems, LLC
                           2720 Commodore Drive
                           Suite 150
                           Carrollton, Texas 75007

                  With copies to:

                           Barington Capital Group, L.P.
                           888 Seventh Avenue, 17th Floor
                           New York, New York 10019
                           Attention:  General Counsel

                  To Executive:

                           James Pritchett
                           5136 Briargrove Lane
                           Dallas, Texas 75287

      11. Assignability; Binding Effect. This Agreement is a personal contract
calling for the provision of unique services by Executive, and Executive's
rights and obligations hereunder may not be sold, transferred, assigned, pledged
or hypothecated. In the event of any attempted assignment or transfer of rights
hereunder by Executive contrary to the provisions hereof, the Company will have
no further liability for payments hereunder. The rights and

<PAGE>

obligations of the Company hereunder will be binding upon and run in favor of
the successors and assigns of the Company.

      12. Complete Understanding; Amendment; Waiver. This Agreement constitutes
the complete understanding between the parties with respect to the employment of
Executive and supersedes all other prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter hereof,
and no statement, representation, warranty or covenant has been made by either
party with respect thereto except as expressly set forth herein. All prior
employment, consulting or other agreements between the Company and Executive
with respect to the performance of any services by Executive to the Company or
any of its Affiliates (including, without limitation, Video Solutions) or the
payment of any royalties, license fees or other similar fees to Executive, are
terminated as of the Effective Date. This Agreement shall not be altered,
modified, amended or terminated except by a written instrument signed by each of
the parties hereto. Any waiver of any term or provision hereof, or of the
application of any such term or provision to any circumstances, shall be in
writing signed by the party charged with giving such waiver. Waiver by either
party hereto of any breach hereunder by the other party shall not operate as a
waiver of any other breach, whether similar to or different from the breach
waived. No delay on the part of the Company or Executive in the exercise of any
of their respective rights or remedies shall operate as a waiver thereof, and no
single or partial exercise by the Company or Executive of any such right or
remedy shall preclude other or further exercise thereof.

      13. Severability. If any provision of this Agreement or the application of
any such provision to any party or circumstances shall be determined by any
court of competent jurisdiction to be invalid or unenforceable to any extent,
the remainder of this Agreement, or the application of such provision to such
person or circumstances other than those to which it is so determined to be
invalid or unenforceable, shall not be affected thereby, and each provision
hereof shall be enforced to the fullest extent permitted by law. To the extent
that a court of competent jurisdiction determines that Executive breached any
undertaking in Section 8 hereof, any and all of the Company's obligations to
make payments hereunder shall immediately cease, provided that the Company shall
be liable for such payments in the event that the determination of such court is
overturned or reversed by any higher court. If the final judgment of a court of
competent jurisdiction declares that any item or provision hereof is invalid or
unenforceable, the parties hereto agree that the court making the determination
of invalidity or unenforceability shall have the power, and is hereby directed,
to reduce the scope, duration or area of the term or provision, to delete
specific words or phrases and to replace any invalid or unenforceable term or
provision with a term or provision that is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or
provision, and this Agreement shall be enforceable as so modified.

      14. Survivability. The provisions of this Agreement which by their terms
call for performance subsequent to termination of Executive's employment
hereunder, or of this Agreement, shall so survive such termination.

      15. Governing Law; Consent to Jurisdiction. This Agreement shall be
governed by, and construed and enforced in accordance with, the internal laws of
the State of New York applicable to contracts made and to be entirely performed
therein, without regard to

<PAGE>

principles of conflicts of laws. In the event of any controversy or claim
arising out of or relating to this Agreement or the breach or alleged breach
hereof, each of the parties hereto irrevocably (a) submits to the exclusive
jurisdiction of any New York state court sitting in the County of New York or
any federal court sitting in U.S. District Court for the Southern District of
the State of New York, (b) waives any objection which it may have at any time to
the laying of venue of any action or proceeding brought in any such court, (c)
waives any claim that such action or proceeding has been brought in an
inconvenient forum, and (d) agrees that service of process or of any other
papers upon such party by registered mail at the address to which notices are
required to be sent to such party under Section 10 shall be deemed good, proper
and effective service upon such party.

      16. Counterparts; Facsimile. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Each counterpart may
consist of a number of copies hereof each signed by less than all, but together
signed by all of the parties hereto. Facsimile transmission of any signed
original counterpart and/or retransmission of any signed facsimile transmission
shall be deemed the same as the delivery of an original.

      17. Interpretation. The headings and captions used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement. The parties hereto acknowledge and agree that: (i)
each party and its counsel reviewed and negotiated the terms and provisions of
this Agreement and have contributed to its revision; (ii) the rule of
construction to the effect that any ambiguities are resolved against the
drafting party shall not be employed in the interpretation of this Agreement;
and (iii) the terms and provisions of this Agreement shall be construed fairly
as to all parties hereto and not in favor of or against any party, regardless of
which party was generally responsible for the preparation of this Agreement.

      18. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY.

                            [SIGNATURES ON NEXT PAGE]

<PAGE>

      IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement as of the date first above written.

                                         COSTAR VIDEO SYSTEMS, LLC

                                         By: /s/ James A. Mitarotonda
                                             -----------------------------------
                                             Name: James A. Mitarotonda
                                             Title: President

                                             JAMES PRITCHETT

                                             /s/ James Pritchett
                                             -----------------------------------

                         Schedule Intentionally Omittedexv10w1

 

Exhibit 10.1

LIVEWORLD, INC.

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT is entered into, effective as of                     , 2007 by and between LiveWorld,
Inc., a Delaware corporation (the “Company”), and                      (“Indemnitee”).

     WHEREAS, it is essential to the Company to retain and attract as directors and officers the
most capable persons available;

     WHEREAS, Indemnitee is a director and/or officer of the Company;

     WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other
claims currently being asserted against directors and officers of corporations;

     WHEREAS, the Certificate of Incorporation and Bylaws of the Company require the Company to
indemnify and advance expenses to its directors and officers to the fullest extent permitted under
Delaware law, and the Indemnitee has been serving and continues to serve as a director and/or
officer of the Company in part in reliance on the Company’s Certificate of Incorporation and
Bylaws; and

     WHEREAS, in recognition of Indemnitee’s need for (i) substantial protection against personal
liability based on Indemnitee’s reliance on the aforesaid Certificate of Incorporation and Bylaws,
(ii) specific contractual assurance that the protection promised by the Certificate of
Incorporation and Bylaws will be available to Indemnitee (regardless of, among other things, any
amendment to or revocation of the Certificate of Incorporation and Bylaws or any change in the
composition of the Company’s Board of Directors or acquisition transaction relating to the Company)
and (iii) an inducement to provide effective services to the Company as a director and/or officer,
the Company wishes to provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under Delaware
law and as set forth in this Agreement, and, to the extent insurance is maintained, to provide for
the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability
insurance policies.

     NOW, THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve
the Company directly or, at its request, with another enterprise, and intending to be legally bound
hereby, the parties agree as follows:

          1. Certain Definitions:

               (a) “Board” shall mean the Board of Directors of the Company.

               (b) “Affiliate” shall mean any corporation or other person or entity that directly, or
indirectly through one or more intermediaries, controls or is controlled by or is under common
control with, the person specified, including, without limitation, with respect to the Company, any
direct or indirect subsidiary of the Company.

 

               (c) A “Change in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company, and other than any person holding shares of the Company on the date that the Company
first registers under the Act or any transferee of such individual if such transferee is a spouse
or lineal descendant of the transferee or a trust for the benefit of the individual, his or her
spouse or lineal descendants), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of
the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during
any period of two consecutive years, individuals who at the beginning of such period constitute the
Board and any new director whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority of the Board,
(iii) the stockholders of the Company approve a merger or consolidation of the Company with any
other entity, other than a merger or consolidation that would result in the Voting Securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of
the total voting power represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation or (iv) the stockholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company (in one transaction or a series of transactions) of all or substantially all of the
Company’s assets.

               (d) “Expenses” shall mean any expense, liability or loss, including attorneys’ fees,
judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any
interest, assessments or other charges imposed thereon, any federal, state, local or foreign taxes
imposed as a result of the actual or deemed receipt of any payments under this Agreement and all
other costs and obligations, paid or incurred in connection with investigating, defending, being a
witness in, participating in (including on appeal) or preparing for any of the foregoing in, any
Proceeding relating to any Indemnifiable Event.

               (e) “Indemnifiable Event” shall mean any event or occurrence that takes place either
prior to or after the execution of this Agreement, related to the fact that Indemnitee is or was a
director or officer of the Company or an Affiliate of the Company, or while a director or officer
is or was serving at the request of the Company or an Affiliate of the Company as a director,
officer, employee, trustee, agent or fiduciary of another foreign or domestic corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise or was a director,
officer, employee or agent of a foreign or domestic corporation that was a predecessor corporation
of the Company or of another enterprise at the request of such predecessor corporation, or related
to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the
Proceeding is alleged action in an official capacity as a director, officer, employee or agent or
in any other capacity while serving as a director, officer, employee or agent of the Company or an
Affiliate of the Company, as described above.

-2-

 

               (f) “Independent Counsel” shall mean the person or body appointed in connection with
Section 3.

               (g) “Proceeding” shall mean any threatened, pending or completed action, suit or
proceeding or any alternative dispute resolution mechanism (including an action by or in the right
of the Company or an Affiliate of the Company) or any inquiry, hearing or investigation, whether
conducted by the Company or an Affiliate of the Company or any other party, that Indemnitee in good
faith believes might lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other.

               (h) “Reviewing Party” shall mean the person or body appointed in accordance with
Section 3.

               (i) “Voting Securities” shall mean any securities of the Company that vote generally
in the election of directors.

          2. Agreement to Indemnify.

               (a) General Agreement. In the event Indemnitee was, is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or witness or other
participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the
Company shall indemnify Indemnitee from and against any and all Expenses to the fullest extent
permitted by law, as the same exists or may hereafter be amended or interpreted (but in the case of
any such amendment or interpretation, only to the extent that such amendment or interpretation
permits the Company to provide broader indemnification rights than were permitted prior thereto).
The parties hereto intend that this Agreement shall provide for indemnification in excess of that
expressly permitted by statute, including, without limitation, any indemnification provided by the
Company’s Certificate of Incorporation, its Bylaws, vote of its stockholders or disinterested
directors or applicable law.

               (b) Initiation of Proceeding. Notwithstanding anything in this Agreement to the
contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in
connection with any Proceeding initiated by Indemnitee against the Company or any director or
officer of the Company unless (i) the Company has joined in or the Board has consented to the
initiation of such Proceeding, (ii) the Proceeding is one to enforce indemnification rights under
Section 5 or (iii) the Proceeding is instituted after a Change in Control (other than a Change in
Control approved by a majority of the directors on the Board who were directors immediately prior
to such Change in Control) and Independent Counsel has approved its initiation.

               (c) Expense Advances. If so requested by Indemnitee, the Company shall advance
(within thirty (30) days of such request) any and all Expenses to Indemnitee (an “Expense
Advance”). The Indemnitee shall qualify for such Expense Advances upon the execution and delivery
to the Company of this Agreement which shall constitute an undertaking providing that the
Indemnitee undertakes to repay such Expense Advances if and to the extent that it is ultimately
determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be indemnified by the Company. Indemnitee’s obligation to reimburse

-3-

 

the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.
This Section 2(c) shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 2(b) or 2(f).

               (d) Mandatory Indemnification. Notwithstanding any other provision of this Agreement,
to the extent that Indemnitee has been successful on the merits or otherwise in defense of any
Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or
matter therein, Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

               (e) Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses, but not, however,
for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

               (f) Prohibited Indemnification. No indemnification pursuant to this Agreement shall
be paid by the Company on account of any Proceeding in which a final judgment is rendered against
Indemnitee or Indemnitee enters into a settlement, in each case (i) for an accounting of profits
made from the purchase or sale by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Exchange Act or similar provisions of any federal, state or
local laws; (ii) for which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the amount
paid under any insurance policy or other indemnity provision; or (iii) for which payment is
prohibited by law. Notwithstanding anything to the contrary stated or implied in this Section
2(f), indemnification pursuant to this Agreement relating to any Proceeding against Indemnitee for
an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company
pursuant to the provisions of Section 16(b) of the Exchange Act or similar provisions of any
federal, state or local laws shall not be prohibited if Indemnitee ultimately establishes in any
Proceeding that no recovery of such profits from Indemnitee is permitted under Section 16(b) of the
Exchange Act or similar provisions of any federal, state or local laws.

          3. Reviewing Party. Prior to any Change in Control, the Reviewing Party shall be any
appropriate person or body consisting of a member or members of the Board or any other person or
body appointed by the Board who is not a party to the particular Proceeding with respect to which
Indemnitee is seeking indemnification; provided that if all members of the Board are parties to the
particular Proceeding with respect to which Indemnitee is seeking indemnification, the Independent
Counsel referred to below shall become the Reviewing Party; after a Change in Control, the
Independent Counsel referred to below shall become the Reviewing Party. With respect to all
matters arising before a Change in Control for which Independent Counsel shall be the Reviewing
Party and all matters arising after a Change in Control, in each case concerning the rights of
Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement
or under applicable law or the Company’s Certificate of Incorporation or Bylaws now or hereafter in
effect relating to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from Independent Counsel selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld or delayed), and who has not otherwise performed services for
the Company or the Indemnitee (other than in connection with

-4-

 

indemnification matters) within the last five years. The Independent Counsel shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have
a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. Such counsel, among other things, shall render its
written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee
should be permitted to be indemnified under applicable law. The Company agrees to pay the
reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all
expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or
relating to this Agreement or the engagement of Independent Counsel pursuant hereto.

          4. Indemnification Process and Appeal.

               (a) Indemnification Payment. Indemnitee shall be entitled to indemnification of
Expenses, and shall receive payment thereof, from the Company in accordance with this Agreement as
soon as practicable after Indemnitee has made written demand on the Company for indemnification,
but in no event later than thirty (30) business days after demand, unless the Reviewing Party has
given a written opinion to the Company that Indemnitee is not entitled to indemnification under
applicable law. Indemnitee shall cooperate with the Reviewing Party making a determination with
respect to Indemnitee’s entitlement to indemnification, including providing to the Reviewing Party
upon reasonable advance request any documentation or information which is not privileged or
otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination.

               (b) Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if
Indemnitee has not received full indemnification within thirty (30) days after making a demand in
accordance with Section 4(a), Indemnitee shall have the right to enforce its indemnification rights
under this Agreement by commencing litigation in any court in the State of California or the State
of Delaware having subject matter jurisdiction thereof seeking an initial determination by the
court or challenging any determination by the Reviewing Party or any aspect thereof. The Company
hereby consents to service of process and to appear in any such proceeding. Any determination by
the Reviewing Party not challenged by the Indemnitee shall be binding on the Company and
Indemnitee. The Company shall be precluded from asserting in any such proceeding that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court that the Company is bound by all the provisions of this Agreement. The
remedy provided for in this Section 4 shall be in addition to any other remedies available to
Indemnitee at law or in equity.

               (c) Defense to Indemnification, Burden of Proof, and Presumptions. It shall be a
defense to any action brought by Indemnitee against the Company to enforce this Agreement (other
than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in
advance of its final disposition) that it is not permissible under applicable law for the Company
to indemnify Indemnitee for the amount claimed. In connection with any such action or any
determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be
indemnified hereunder, the burden of proving such a defense or determination shall be on the
Company. Neither the failure of the Reviewing Party or the Company (including its Board,
independent legal counsel or its stockholders) to have made a determination prior to the

-5-

 

commencement of such action by Indemnitee that indemnification of the claimant is proper under
the circumstances because Indemnitee has met the standard of conduct set forth in applicable law,
nor an actual determination by the Reviewing Party or Company (including its Board, independent
legal counsel or its stockholders) that the Indemnitee had not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met
the applicable standard of conduct. For purposes of this Agreement, the termination of any claim,
action, suit or proceeding, by judgment, order, settlement (whether with or without court
approval), conviction or upon a plea of nolo contendere or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular
belief or that a court has determined that indemnification is not permitted by applicable law. For
purposes of any determination of good faith under any applicable standard of conduct, Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books
of account of the Company, including financial statements, or on information supplied to Indemnitee
by the officers of the Company in the course of their duties, or on the advice of legal counsel for
the Company or the Board or counsel selected by any committee of the Board or on information or
records given or reports made to the Company by an independent certified public accountant or by an
appraiser, investment banker or other expert selected with reasonable care by the Company or the
Board or any committee of the Board. The provisions of the preceding sentence shall not be deemed
to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be
deemed to have met the applicable standard of conduct. The knowledge and/or actions, or failure to
act, or any director, officer, agent or employee of the Company shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement.

          5. Indemnification for Expenses Incurred in Enforcing Rights. The Company shall
indemnify Indemnitee against any and all Expenses that are incurred by Indemnitee in connection
with any action brought by Indemnitee for

                    (i) indemnification or advance payment of Expenses by the Company under this Agreement or any
other agreement or under applicable law or the Company’s Certificate of Incorporation or Bylaws now
or hereafter in effect relating to indemnification for Indemnifiable Events, and/or

                    (ii) recovery under directors’ and officers’ liability insurance policies maintained by the
Company; but only in the event that Indemnitee ultimately is determined to be entitled to such
indemnification or insurance recovery, as the case may be. In addition, the Company shall, if so
requested by Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and in accordance
with Section 2(c).

          6. Notification and Defense of Proceeding.

               (a) Notice. Promptly after receipt by Indemnitee of notice of the commencement of any
Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under
this Agreement, notify the Company of the commencement thereof; but the omission so to notify the
Company will not relieve the Company from any liability that it may have to Indemnitee, except as
provided in Section 6(c).

-6-

 

               (b) Defense. With respect to any Proceeding as to which Indemnitee notifies the
Company of the commencement thereof, the Company will be entitled to participate in the Proceeding
at its own expense and except as otherwise provided below, to the extent the Company so wishes, it
may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice
from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company
shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently
incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable
costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ
legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the
Company of its assumption of the defense shall be at Indemnitee’s expense unless: (i) the
employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has
reasonably determined that there may be a conflict of interest between Indemnitee and the Company
in the defense of the Proceeding, (iii) after a Change in Control, the employment of counsel by
Indemnitee has been approved by the Independent Counsel or (iv) the Company shall not in fact have
employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of
the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the
defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall
have made the determination provided for in (ii) above or under the circumstances provided for in
(iii) and (iv) above.

               (c) Settlement of Claims. The Company shall not be liable to indemnify Indemnitee
under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected
without the Company’s written consent, such consent not to be unreasonably withheld; provided,
however, that if a Change in Control has occurred, the Company shall be liable for indemnification
of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the
settlement. The Company shall not settle any Proceeding in any manner that would impose any penalty
or limitation on Indemnitee without Indemnitee’s written consent. The Company shall not be liable
to indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company
was not given a reasonable and timely opportunity as a result of Indemnitees’ failure to provide
notice, at its expense, to participate in the defense of such action, and the lack of such notice
materially prejudiced the Company’s ability to participate in defense of such action. The
Company’s liability hereunder shall not be excused if participation in the Proceeding by the
Company was barred by this Agreement.

          7. Establishment of Trust. In the event of a Change in Control, the Company shall,
upon written request by Indemnitee, create a Trust for the benefit of the Indemnitee and from time
to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to satisfy
any and all Expenses reasonably anticipated at the time of each such request to be incurred in
connection with investigating, preparing for, participating in, and/or defending any Proceeding
relating to an Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant to
the foregoing funding obligation shall be determined by the Independent Counsel. The terms of the
Trust shall provide that (i) the Trust shall not be revoked or the principal thereof invaded
without the written consent of the Indemnitee, (ii) the Trustee shall advance, within thirty (30)
days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee
hereby agrees to reimburse the Trust under the same circumstances for which the Indemnitee would be
required to reimburse the Company under Section 2(c) of this Agreement), (iii) the Trust shall
continue to be

-7-

 

funded by the Company in accordance with the funding obligation set forth above, (iv) the
Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled
to indemnification pursuant to this Agreement or otherwise no later than thirty (30) days after
notice pursuant to Section 4(a) and (v) all unexpended funds in the Trust shall revert to the
Company upon a final determination by the Independent Counsel or a court of competent jurisdiction,
as the case may be, that the Indemnitee has been fully indemnified under the terms of this
Agreement. The Trustee shall be chosen by the Indemnitee. Nothing in this Section 7 shall relieve
the Company of any of its obligations under this Agreement. All income earned on the assets held
in the Trust shall be reported as income by the Company for federal, state, local and foreign tax
purposes. The Company shall pay all costs of establishing and maintaining the Trust and shall
indemnify the Trustee against any and all expenses (including attorneys’ fees), claims,
liabilities, loss and damages arising out of or relating to this Agreement or the establishment and
maintenance of the Trust.

          8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to any
other rights Indemnitee may have under the Company’s Certificate of Incorporation, Bylaws,
applicable law or otherwise; provided, however, that this Agreement shall supersede any prior
indemnification agreement between the Company and the Indemnitee. To the extent that a change in
applicable law (whether by statute or judicial decision) permits greater indemnification than would
be afforded currently under the Company’s Certificate of Incorporation, Bylaws, applicable law or
this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.

          9. Liability Insurance. To the extent the Company maintains an insurance policy or
policies providing general and/or directors’ and officers’ liability insurance, Indemnitee shall be
covered by such policy or policies, in accordance with its or their terms, to the maximum extent of
the coverage available for any Company director or officer.

          10. Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or on behalf of the Company or any Affiliate of the Company against
Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives after the
expiration of two (2) years from the date of accrual of such cause of action or such longer period
as may be required by state law under the circumstances. Any claim or cause of action of the
Company or its Affiliate shall be extinguished and deemed released unless asserted by the timely
filing and notice of a legal action within such period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, the shorter period shall
govern.

          11. Amendment of this Agreement. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be binding unless in the form of a writing signed by
the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a
waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in
exercising any right or remedy hereunder shall constitute a waiver thereof.

          12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who

-8-

 

shall execute all papers required and shall do everything that may be necessary to secure such
rights, including the execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

          13. No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any claim made against Indemnitee to the extent Indemnitee
has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder.

          14. Duration of Agreement. This Agreement shall continue until and terminate upon the
later of (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director
or officer of the Company or (b) one (1) year after the final termination of any Proceeding,
including any appeal, then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 4(b) of this Agreement relating thereto.

          15. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Company), assigns, spouses, heirs and personal and legal
representatives. The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of
the business and/or assets of the Company, by written agreement in form and substance satisfactory
to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform if no such succession had taken
place. The indemnification provided under this Agreement shall continue as to Indemnitee for any
action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable
Event even though Indemnitee may have ceased to serve in such capacity at the time of any
Proceeding.

          16. Severability. If any provision (or portion thereof) of this Agreement shall be
held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, (a) the
remaining provisions shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to applicable
law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest
extent possible, the provisions of this Agreement (including, without limitation, each portion of
this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that
is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, void or unenforceable.

          17. Contribution. To the fullest extent permissible under applicable law, whether or
not the indemnification provided for in this Agreement is available to Indemnitee for any reason
whatsoever, the Company shall pay all or a portion of the amount that would otherwise be incurred
by Indemnitee for Expenses in connection with any claim relating to an Indemnifiable Event, as is
deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to
reflect (i) the relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of
the Company (and its

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directors, officers, employees and agents) and Indemnitee in connection with such event(s)
and/or transaction(s).

     18. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in such State without giving effect to its principles of conflicts of laws. The Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement may be brought in the Delaware Court of Chancery, (ii)
consent to submit to the jurisdiction of the Delaware Court of Chancery for purposes of any action
or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the
laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive,
and agree not to plead or to make, any claim that any such action or proceeding brought in the
Delaware Court of Chancery has been brought in an improper or inconvenient forum.

     19. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt or mailed, postage prepaid, certified or registered mail, return receipt
requested and addressed to the Company at:

LiveWorld, Inc.

4340 Stevens Creek Blvd., Suite 101

San Jose, CA 95129

Attention: Chief Executive Officer

and to Indemnitee at the address set forth below Indemnitee’s signature hereto. Notice of change
of address shall be effective only when given in accordance with this Section. All notices
complying with this Section shall be deemed to have been received on the date of hand delivery or
on the third business day after mailing.

     20. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

* * * * *

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     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement
as of the day specified above.

	 	 	 	 	 	 	 	 	 
	 	 	LIVEWORLD, INC.	 	 
	 	 	a Delaware corporation	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Print Name:	 	 
	 

	 	Title:
	 	 	 	 

	 	 
	 	 	 	 	 	 	 
	 
	 	 	INDEMNITEE	 	 
	 	 	an individual	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Indemnitee	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Address)

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