Document:

Exhibit
      C

    FORM
      OF NONCOMPETITION AGREEMENT

    

    This
      NONCOMPETITION AGREEMENT (this “Agreement”),
      dated
      as of [_______], 2007, is by and between DG FastChannel, Inc., a Delaware
      Corporation (the “Purchaser”),
      and
      New 360, a California corporation (the “PPB
      Sub”).
      All
      capitalized terms used herein and not defined herein shall have the meanings
      assigned to such terms in the Merger Agreement (as defined below).

     

    WHEREAS,
      the Purchaser is a party to that certain Agreement and Plan of Merger and
      Reorganization, dated as of April 16, 2007, by and among the Purchaser,
      POINT.360, a California corporation (the “Company”),
      and
      the PPB Sub, a wholly-owned subsidiary of the Company (as amended or
      supplemented, the “Merger
      Agreement”),
      pursuant to which, among other things, the Purchaser shall acquire the ADS
      Business of the Company; 

    

    WHEREAS,
      the PPB Sub is a party to that certain Contribution Agreement, dated as of
      April
      16, 2007, by and among the PPB Sub, the Purchaser and the Company, pursuant
      to
      which, among other things, the PPB Sub acquired the non-ADS Business of the
      Company; and

    

    WHEREAS,
      in order to protect the goodwill related to the ADS Business, and as a condition
      of consummating the transactions contemplated by the Merger Agreement on the
      Acceptance Date, the parties hereto are executing this Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and promises contained
      in
      this Agreement and in the Merger Agreement and for other good and valuable
      consideration, the receipt and adequacy of which are hereby acknowledged, the
      parties to this Agreement hereby agree as follows:

    

    SECTION
      1.  CONFIDENTIALITY.

    

    (a)  The
      PPB
      Sub has had access to and contributed to information and materials of a highly
      sensitive nature (including Confidential Information, as defined below) of
      the
      ADS Business. The PPB Sub agrees that on or prior to the fifth (5th) anniversary
      of the Acceptance Date, unless the PPB Sub first secures the written consent
      of
      an authorized representative of the Purchaser, the PPB Sub shall not use for
      itself or anyone else, or disclose to others, any Confidential Information,
      except as may be necessary for the PPB Sub to carry out its duties under any
      agreement with the Purchaser (if applicable) or except to the extent such use
      or
      disclosure is required by law or order of any Governmental Entity (in which
      event the PPB Sub shall, to the extent practicable, inform the Purchaser in
      advance of any such required disclosure, shall cooperate with the Purchaser
      in
      all reasonable ways in obtaining a protective order or other protection in
      respect of such required disclosure, and shall limit such disclosure to the
      extent reasonably possible while still complying with such requirement). The
      PPB
      Sub shall use reasonable care to safeguard Confidential Information and to
      protect it against disclosure, misuse, espionage, loss and theft.

    

    (b)  “Confidential
      Information”
as
      used
      herein, means all highly-sensitive information (whether or not specifically
      identified as confidential) of the ADS Business, in any form or medium, that
      at
      or prior to the Acceptance Date was disclosed to the PPB Sub, as the case may
      be, or that relates to the ADS Business, including, without limitation: (i)
      internal business information (including, without limitation, information
      relating to the strategic plans and practices, business, accounting, financial
      or marketing plans, practices or programs, training practices and programs,
      salaries, bonuses, incentive plans and other compensation and benefits
      information and accounting and business methods); (ii) identities of, individual
      requirements of, specific contractual arrangements with, and information about,
      the ADS Business, its customers and their confidential information; (iii)
      industry research compiled by, or on behalf of the ADS Business, including,
      without limitation, identities of potential target companies, management teams
      and transaction sources; (iv) compilations of data and analyses, processes,
      methods, track and performance records, data and databases relating thereto;
      provided,
      however,
      that
“Confidential
      Information”
shall
      not include any information that has become generally known to and widely
      available for use within the industry other than as a result of a disclosure
      by
      the PPB Sub in violation of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SECTION
      2.  NONCOMPETITION.

     

    (a)  During
      the period that shall commence as of the Effective Time and shall terminate
      on
      the fifth (5th) anniversary of the Acceptance Date (such period being referred
      to as the “Restricted
      Period”),
      the
      PPB Sub shall not (i) enter into the ADS Business, (ii) engage in any business
      which is the same as or substantially similar to or is or would be competitive
      with the ADS Business, or (iii) directly or indirectly (including without
      limitation, through any Affiliate of the PPB Sub), own, manage, operate, control
      or otherwise engage or participate in, or serve as an owner, partner, principal,
      advisor, director, employee, officer or consultant of any company or other
      enterprise or proprietorship that engages in any business within the Business
      Area (as defined below) which is the same as or substantially similar to or
      is
      or would be competitive with the ADS Business.

    

    (b)  Notwithstanding
      the foregoing provisions of Section
      2(a)
      and the
      restrictions set forth therein, the PPB Sub may own securities in any publicly
      held corporation that is covered by the restrictions set forth in Section
      2(a),
      but
      only to the extent that the PPB Sub does not own, of record or beneficially,
      more than five percent (5%) of the outstanding shares of capital stock of such
      corporation.

    

    (c)  “Affiliate”
as
      used
      herein, means, with respect to any entity, any entity directly or indirectly
      controlling, controlled by or under direct or indirect common control with
      such
      other entity.

    

    (d)  “Business
      Area”
as
      used
      herein, means any county in California, including the following counties:
      Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte,
      El
      Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen,
      Los
      Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, Monterey,
      Napa, Nevada, Orange, Placer, Plumas, Riverside, Sacramento, San Benito, San
      Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo,
      Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano,
      Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Ventura, Yolo
      and
      Yuba; or in any county, state, country or other jurisdiction in the balance
      of
      the United States of America and the dependent territories of the United States
      of America and in every other country in the world.

     

    
      
        
        

      

      
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    SECTION
      3.  NONSOLICITATION.

    

    During
      the relevant Restricted Period, the PPB Sub shall not, without the prior written
      consent of the Purchaser, directly or indirectly through another Person (i)
      seek
      to employ or recruit any employee of the Purchaser (or its Affiliates) (each
      an
“Employee”
and
      together, the “Employees”),
      unless such Employee (x) resigns voluntarily (without any direct or
      indirect solicitation or other inducement from the PPB Sub or any of its
      Affiliates), (y) is terminated by the Purchaser after the Effective Time or
      (z) seeks employment on an unsolicited basis, or in response to general
      advertising conducted in the ordinary course of the business of the PPB Sub
      consistent with past practice and which is not specifically directed towards
      Employees; (ii) induce or attempt to induce any officer or director of the
      Purchaser to leave the employ of the Purchaser; (iii) call on, solicit, or
      service any customer, supplier, licensee, licensor or other business relation
      or
      prospective client of the ADS Business with respect to the products and/or
      services of the ADS Business; or (iv) induce or attempt to induce any customer,
      supplier, licensee, licensor or other business relation of the Purchaser to
      cease doing business with the Purchaser.

    

    SECTION
      4.  REASONABLENESS
      AND ENFORCEABILITY OF COVENANTS.

    

    (a)  The
      parties expressly agree that the character, duration and geographical scope
      of
      this Agreement are reasonable in light of the circumstances as they exist on
      the
      date upon which this Agreement has been executed, including, but not limited
      to,
      the PPB Sub’s material economic interest in the Transactions. 

     

    (b)  If
      any
      court determines that any of the covenants and agreements contained herein,
      or
      any part thereof, is unenforceable because of the character, duration or
      geographic scope of such provision, such court shall have the power to reduce
      the duration or scope of such provision, as the case may be, and, in its reduced
      form, such provision shall then be enforceable to the maximum extent permitted
      by applicable law.

    

    (c)  The
      PPB
      Sub acknowledges that (i) it has received a true, correct and complete copy
      of
      the Merger Agreement and (ii) the restrictive covenants and the other agreements
      contained herein are an essential part of this Agreement and no reasonable
      person would enter into the Merger Agreement without the benefit of the
      restrictive covenants herein.

    

    SECTION
      5.  MISCELLANEOUS.

     

    (a)  Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed given if delivered personally (notice deemed given upon receipt),
      telecopied (notice deemed given upon confirmation of receipt) or sent by a
      nationally recognized overnight courier service, such as Federal Express (notice
      deemed given upon receipt of proof of delivery), to the parties at the following
      addresses (or at such other address for a party as shall be specified by like
      notice):

    
 

     
      (i)  if
      to the
      Purchaser, to:

    

    DG
      FastChannel, Inc.

    750
      W.
      John Carpenter Freeway, Suite 700

    Irving,
      TX 75039

    Attention:
      Chief Financial Officer

    Telephone
      No.: (972) 581-2000

    Facsimile
      No.: (972) 581-2100

     

    
      
        
        

      

      
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    with
      a
      copy to:

    

    Latham
      & Watkins LLP

    555
      Eleventh Street NW, Suite 1000

    Washington,
      DC 20004

    Attention:
      William P. O’Neill

       
      Eric L.
      Bernthal

    Telephone
      No.: (202) 637-2200

    Facsimile
      No.: (202) 637-2201

    

     (ii)  if
      to the
      PPB Sub, to:

    

    New
      360

    2777
      North Ontario Street

    Burbank,
      CA 91504

    Attention:
      Chief Financial Officer

    Telephone
      No.: (818) 565-1400

    Facsimile
      No.: (818) 847-2503

    

    with
      a
      copy to:

    

    Troy
      & Gould PC

    1801
      Century Park East, Suite 1600

    Los
      Angeles, CA 90067

    Attention:
      William Gould

    Telephone
      No.: (310) 780-1338

    Facsimile
      No.: (310) 201-4746

    

    (b)  Counterparts;
      Facsimile.
      This
      Agreement may be executed manually or by facsimile by the parties hereto, in
      any
      number of counterparts, each of which shall be considered one and the same
      agreement and shall become effective when a counterpart hereof shall have been
      signed by each party and delivered to the other party.

    

    (c)  Governing
      Law; Consent to Jurisdiction.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of California, without giving effect to conflicts of laws principles
      that would result in the application of the law of any other state.

    

    (d)  Injunctive
      Relief.
      The
      Purchaser and the PPB Sub hereby agree that the remedy at law for any breach
      of
      this Agreement is and will be inadequate, and in the event of a breach or
      threatened breach by the PPB Sub of this Agreement, the Purchaser shall be
      entitled to seek an injunction restraining the PPB Sub from the conduct that
      would constitute a breach of this Agreement. Nothing herein contained shall
      be
      construed as prohibiting the Purchaser from pursuing any other remedies
      available to it for such breach or threatened breach, including, without
      limitation, the recovery of damages from the PPB Sub.

     

    
      
        
        

      

      
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    (e)  Assignment.
      This
      Agreement shall not be assigned by any party hereto (whether by operation of
      law
      or otherwise) without the prior written consent of the other party. Subject
      to
      the preceding sentence, but without relieving any party hereto of any obligation
      hereunder, this Agreement will be binding upon, inure to the benefit of and
      be
      enforceable by the parties and their respective successors and
      assigns.

    

    (f)  Amendments;
      Waiver.
      This
      Agreement may be amended or modified only by a written instrument signed by
      each
      of the parties hereto. Any party may waive any provision of this Agreement
      or
      compliance therewith; provided
      that
      such waiver is set forth in an instrument in writing signed by the party to
      be
      bound thereby. Any waiver or failure to insist on strict compliance with any
      agreement or obligation contained herein shall not operate as a waiver of,
      or
      estoppel with respect to, any subsequent or other failure.

    

    (g)  Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by rule of law or public policy, all other conditions and
      provisions of this Agreement shall nevertheless remain in full force and effect
      so long as the economic or legal substance of the transactions contemplated
      by
      the Merger Agreement are not affected in any manner adverse to any party. Upon
      such determination that any term or other provision is invalid, illegal or
      incapable of being enforced, the parties hereto shall negotiate in good faith
      to
      modify this Agreement so as to effect the original intent of the parties as
      closely as possible in an acceptable manner to the end that the transactions
      contemplated by the Merger Agreement are fulfilled to the extent
      possible.

    

    (h)  WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO
      A
      TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
      OF
      OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH
      PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR
      ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
      OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF
      SUCH WAIVERS, (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
      SUCH WAIVERS, (C) IT MAKES SUCH WAIVERS VOLUNTARILY AND (D) IT HAS
      BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
      WAIVERS AND CERTIFICATIONS IN THIS SECTION 5(h).

    

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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered as of the date first written above.

    
      	 	 	 
	 	
              DG
                FASTCHANNEL, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                 Scott
                K. Ginsburg

              Title:
                 Chairman
                of the Board and 

                
                Chief Executive Officer

            

      	 	 	 
	 	 	 
	 	
              NEW
                360

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Haig S. Bagerdjian

              Title:
                Chairman, President and CEOExhibit
      D

    FORM
      OF POST PRODUCTION SERVICES AGREEMENT

    

    

    This
      Post
      Production Services Agreement (this “Agreement”),
      dated
      as of [_________], 2007, is by and between DG FastChannel, Inc., a Delaware
      corporation (“DG
      FastChannel”),
      and
      New 360, a California corporation (“New
      360”).

    

    WHEREAS,
      DG FastChannel, New 360, and Point.360, a California corporation (“Point.360”),
      are
      parties to an Agreement and Plan of Merger and Reorganization, dated as of
      April
      16, 2007 (as amended or supplemented, the “Merger
      Agreement”);
      and

    

    WHEREAS,
      as a condition of consummating the transactions contemplated by the Merger
      Agreement, the parties hereto are executing this Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and promises contained
      in
      this Agreement and in the Merger Agreement and for other good and valuable
      consideration, the receipt and adequacy of which are hereby acknowledged, the
      parties to this Agreement hereby agree to the following terms in respect of
      post
      production services:

    

    
      	1.  	
              TERM
                OF AGREEMENT.
                The initial term of this Agreement shall commence on the date hereof
                and
                expire on the earlier of (x) the fifth anniversary of the date of
                this
                Agreement and (y) New 360’s breach of its obligations under its
                noncompetition agreement with DG FastChannel. The term of this Agreement
                shall automatically be extended for a one-year term unless either
                party
                has given the other party at least 180 days’ prior written notice prior to
                such fifth anniversary of its intention not to extend the term of
                this
                Agreement by one year. On each anniversary of each such one-year
                extension, the term of this Agreement shall automatically be extended
                for
                another one-year term unless either party has given the other party
                at 180
                days’ prior written notice before such anniversary of its intention not
                to
                extend the term of this Agreement for one additional
                year.

            

    

    

    
      	2.  	
              SERVICES.
                From and after the date of this Agreement until the expiration of
                the term
                of this Agreement (as it may be extended pursuant to Section 1),
                (i) DG
                FastChannel will utilize post production services, including high
                definition duplication, to be provided by New 360; provided
                that New 360 provides those services and that New 360’s service level and
                pricing are competitive, and (ii) New 360 will act as DG FastChannel’s
                resource to vault all elements to be stored in Los Angeles, California
                for
                existing Point.360 customers and new West Coast-based DG FastChannel
                customers; provided
                that New 360 provides those services and that New 360’s service level and
                pricing are competitive. DG FastChannel will bill customers directly
                for
                vaulting services.

            

    

    

    
      	3.  	
              CONSIDERATION.
                

            

    

     

    
      	a.  	
              The
                rate card attached hereto as Exhibit
                A
                will be mutually agreed upon and set forth the rates for the types
                of
                services described in Section
                2
                that New 360 charges third parties as of the date of this Agreement.
                DG
                FastChannel will be billed at a [__]% discount from the rates set
                forth in
                Exhibit
                A
                (other than the rates for vaulting media storage and
                servicing).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	b.  	
              After
                the first anniversary of the date of this Agreement, New 360 has
                the right
                to modify the rates set forth in Exhibit
                A
                at
                any time after the date of this Agreement. Promptly after modifying
                such
                rates, New 360 will advise DG FastChannel of the new rates, and the
                parties will negotiate in good faith to determine the discount that
                DG
                FastChannel will receive from the new rates. Until the parties mutually
                agree upon the discount to be applied to the new rates, DG FastChannel
                will be obligated to make payments to New 360 based upon the prior
                discount applied to the prior rates.

            

    

    

    
      	4.  	
              GENERAL.

            

    

    

    
      	a.  	
              This
                Agreement, including Exhibit
                A,
                includes the entire understanding between the parties hereto, and
                may not
                be modified or amended without the prior written consent of both
                parties.

            

    

    

    
      	b.  	
              The
                parties hereto agree that the terms and conditions contained herein
                shall
                be kept strictly confidential and not disclosed to any third
                parties.

            

    

    

    
      	c.  	
              This
                Agreement shall be governed by the laws of the State of
                California.

            

    

    

    
      	d.  	
              All
                services provided by New 360 hereunder are warranted to be free from
                any
                defects. DG FastChannel must notify New 360 in writing of any defects
                within thirty (30) days after the delivery of the service. In the
                event
                original materials owned by a DG FastChannel customer are lost or
                destroyed, New 360 will not be liable to DG FastChannel or its customers
                for replacement costs of programming or production and New 360’s liability
                to DG FastChannel and its customers will not exceed the cost of replacing
                the applicable medium. In the event that the materials of a DG FastChannel
                customer are not delivered in the agreed upon time, New 360 will
                be liable
                to such customer for the amount equal to the delivery charges in
                connection with such materials; provided,
                however,
                that in no event will New 360 be liable for the cost of unused air
                time.
                The foregoing constitutes New 360’s sole and exclusive warranties under
                this Agreement. There are no other express, implied or statutory
                warranties, including but not limited to implied warranties of
                merchantability or fitness for a particular
                purpose.

            

    

    

    
      	e.  	
              DG
                FastChannel agrees to defend, indemnify and hold harmless New 360
                and its
                affiliates and each of their respective directors, officers, employees,
                agents and representatives from any damages, liabilities, claims
                and
                expenses, including reasonable attorneys’ fees, arising out of or related
                to any material provided to New 360, including but not limited to
                claims,
                actual or alleged, relating to any violation of copyright law, export
                control laws, failure to procure consents or that such content is
                libelous, slanderous, an invasion of privacy, pornographic or otherwise
                unauthorized or illegal.

            

    

     

    
      
        
        

      

      
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      	f.  	
              NONE
                OF NEW 360 OR ITS RESPECTIVE AFFILIATES OR THEIR RESPECTIVE OFFICERS,
                DIRECTORS, AGENTS, EMPLOYEES OR REPRESENTATIVES SHALL HAVE ANY LIABILITY
                FOR INCIDENTAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES, OR LOSS OF
                BUSINESS
                REVENUES OR PROFITS OR LOSS OF OPPORTUNITY, RELATING IN ANY WAY TO
                ANY
                SERVICES PROVIDED UNDER THIS AGREEMENT, UNDER ANY THEORY OF LAW AND
                WHETHER OR NOT THE PARTIES ARE AWARE OF THE POSSIBILITY OF SUCH DAMAGES;
                PROVIDED, HOWEVER, THIS LIMITATION OF LIABILITY SHALL NOT LIMIT NEW
                360’S
                LIABILITY FOR BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER SECTION
                4(b)
                ABOVE.

            

    

    

    
      	g.  	
              Nothing
                contained herein shall be deemed or construed by the parties hereto
                or by
                any third party as creating the relationship of principal and agent,
                partnership or joint venture between either party hereto, and neither
                party hereto is authorized to contract any debt, liability or obligation
                for or on behalf of the other
                party.

            

    

    

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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
      by
      their respective officers thereunto duly authorized as of the date first written
      above.

    
      	 	 	 
	 	
              DG
                FASTCHANNEL, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Scott K. Ginsburg

            
	 	
              Title:
                Chairman and CEO

            

    

    
      	 	 	 
	 	 	 
	 	
              NEW
                360

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Haig S. Bagerdjian

              Title:
                Chairman, President, and CEO

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    Rate
      Card

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