Document:

Output Distribution Agmt., Dated 07/07/2006, by and among Genius and ESPN

 Exhibit 10.1 
 *** CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R.
SECTION 200.80(B)(4), 200.83 AND 230.406. 
 OUTPUT DISTRIBUTION AGREEMENT 
 THIS AGREEMENT (“Agreement”) is dated as of July 7, 2006 and is entered into between Genius Products, Inc. (“Genius”) and ESPN Enterprises, Inc.
(“ESPN”). All capitalized terms (other than paragraph headings) are defined as set forth herein. 
  

	1.	Grant of Rights. ESPN hereby grants to Genius, throughout the Territory and during the Term, the exclusive Videogram rights as more particularly set forth herein, in and to
all audiovisual productions released by ESPN that ESPN elects to distribute or cause to be distributed by means of Videograms during the Term and as to which ESPN owns or controls said rights in the Territory (each an “AP” and individually
or collectively, “APs”). In addition to future APs, subject to the terms and conditions hereof Genius will distribute hereunder certain APs existing as of the date hereof which are set forth in Exhibit “1” attached hereto, and
Exhibit 1 will be supplemented from time to time as each additional AP or APs become covered hereunder during the Term. Notwithstanding the foregoing, the following productions are excluded from this Agreement and are not APs hereunder:
(i) ”ESPN Golf Schools 3-Club Tour with Hank Haney,” (ii) “ESPN Golf Schools Top Tips with Hank Haney,” and (iii) “Code*Breakers.” 

  

	2.	Territory. Unless ESPN notifies Genius to the contrary in writing with respect to a particular AP no later than six (6) months prior to the intended Release Date (as
defined below) of such AP hereunder, the “Territory” is the United States and Canada and their respective territories and possessions, including the U.S. Virgin Islands, Puerto Rico and Guam. The Territory shall also include Army, Navy,
Air Force, Red Cross and other U.S. and Canadian national and governmental installations. wherever any such facilities and installations are located. 

  

	3.	Term. The “Term” of this Agreement shall mean the period commencing on the date hereof and continuing through and including December 31, 2011. Commencing
immediately at the end of the Term, Genius will have an additional six (6) month period as a non-exclusive sell-off period for Videograms, during which sell-off period Genius will have the right to continue to market, distribute and account for
hereunder all previously manufactured Videograms remaining in Genius’s inventory. 

  

	4.	 Rights Granted. Subject to the terms and conditions set forth herein, ESPN hereby irrevocably licenses to Genius, throughout the Territory during the Term,
the exclusive right, under copyright and otherwise, to manufacture, produce, market and distribute, and subject to ESPN’s prior written approval except for licenses or sub-licenses to wholesalers (e.g., Ingram) and revenue-sharing
arrangements with retailers, to license, sub-license, lease, rent, exhibit and exploit each and all of the APs (in their entirety (except for marketing and publicity) unless otherwise approved in writing in advance by ESPN) and all elements thereof
by means of and in connection with “Videograms,” which for purposes hereof shall mean videocassettes, videodiscs, videotape, DVD, High-Definition DVD (e.g., “HD-DVD” and “Blu-Ray”), Universal Media Disc
(“UMD”), CD-ROM, DVD-ROM or other hard carrier devices now known or hereafter devised and designed to embody one or more APs or portions thereof and to be used in conjunction with a personal reproduction, player or viewing apparatus which
causes a visual image (whether or not synchronized with sound) to be seen on a screen, display or device (e.g., a television receiver or computer display), all for home use and falling within the definition of “home video” as that term is
generally understood in the industry; and to act as sales agent on behalf of ESPN with respect to such rights; and to authorize others to do any or all of the foregoing; and/or to refrain from any or 

  

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and filed separately with the Commission. 

	 	 
all of the foregoing as Genius may determine in its reasonable discretion subject only to the terms and conditions hereof. For the avoidance of doubt,
“Videograms” does not include digital downloads, podcasts, television (other than for display of Videograms), theatrical, non-theatrical, online / internet, digital media, VOD, SVOD, SD Cards or Flash Memory. 

ESPN hereby further irrevocably licenses to Genius, throughout the Territory during the Term, the non-exclusive right, under copyright and otherwise,
and subject to the approval provisions contained in this Agreement, to promote, market, advertise and publicize each and all of the APs and all elements thereof by means of and in connection with Videograms. 
 Subject to ESPN’s prior written approval over each key creative element of advertising, marketing, publicity and packaging, the Rights Granted
include without limitation the right to use any and all elements of the APs and all Delivery Materials (as defined below) (including without limitation the names, voices, likenesses and biographies of all persons appearing in and/or connected with
the APs), and any portions thereof, in connection with the advertising, marketing, publicity and packaging of the APs, including DVD menu design and DVD “extras” and/or the institutional promotion of Genius, including without limitation
the right to reproduce, distribute and exhibit any and all visual images and/or sound recordings contained in the APs and/or the Delivery Materials throughout the Territory, by any and all means of distribution, and in any and all media now or
hereafter known or devised, in connection with such advertising, marketing and/or publicity. Notwithstanding the foregoing, if ESPN has given written approval of guidelines that Genius will provide to wholesalers for their trade ads in connection
with APs, a violation of such guidelines by such wholesalers or retailers in connection with such trade ads will not constitute a breach of this Agreement by Genius. 
  

	5.	ESPN Rights. ESPN reserves all rights in the APs not granted to Genius hereunder. Without limiting the foregoing, ESPN reserves the following rights in the APs:

  

	 	(a)	The right to promote the APs with respect to ESPN’s reserved rights, and with respect to Videograms to the extent that ESPN’s existing distribution partners (e.g., Hart
Sharp Video, Ingram, etc.) may promote their ESPN Videogram titles, and so that ESPN and its partners may promote the APs. 

  

	 	(b)	Exploitation of content contained in or derived from the APs, provided that such exploitation is by means of “Video Now” and similar interactive videogame devices,
broadband, video-on-demand, interactive board games, greeting cards, SD cards, books or other products (which may include added Videogram content); provided, however, that such content may be exploited by ESPN only in conjunction with such products
and not as standalone Videogram product in any of the formats set forth in Paragraph 4 above, Genius acknowledging that the foregoing rights set forth in this Paragraph 5(b) have been licensed to a third party; 

  

	 	(c)	Licensing of excerpts and clips derived from the APs (each a “Clip”) by means of Videograms; provided, however, that unless otherwise agreed to in writing by Genius and
ESPN, if a Clip licensed by ESPN to a third party for use in a Videogram to be sold at retail is part of the titled content of an AP, such Clip may not have a length longer than the greater of ten percent (10%) of the length of the AP or five
(5) minutes, but if such Clip is not part of such titled content but is part of “value added” or “bonus content” included (or to be included) in a Videogram of such AP, there will be no limitation on the length of such Clip.
For the avoidance of doubt, nothing in the foregoing will limit Genius’s marketing and publicity rights with respect to APs hereunder or Genius’s use of Clips in connection therewith. 

  

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	 	(d)	Exploitation of “premium” offerings of APs (i.e., co-branded or custom content product created for an advertiser or affiliate of ESPN as a premium item for promotional or
other non-retail purposes), direct to consumer continuity programs (i.e., the marketing and delivery of content to targeted databases via direct mail or otherwise but not made available at retail), or exploitation by means of electronic sell-through
or download. 

  

	 	(e)	Notwithstanding the foregoing, ESPN and Genius shall discuss in good faith any proposed exploitation by ESPN of the APs in digital media during the Term; provided, however, that
ESPN shall have no obligation to enter into an agreement with Genius regarding such exploitation. In this connection, upon Genius’s request at any time after January 1, 2009, Genius and ESPN will review and discuss in good faith
(i) then-prevailing industry trends concerning the impact of digital media upon the Videogram business in general and the impact of ESPN’s digital distribution rights upon the value of Genius’s rights hereunder in particular, and
(ii) possible adjustment of the remaining “Minimum Guarantee” (as defined below) payable by Genius hereunder based on such impacts; provided, however, that no such adjustment shall be made unless agreed to in writing by Genius and
ESPN. 

  

	6.	ESPN Approvals; Marketing Plan. 

  

	 	(a)	ESPN shall have the right of final approval over all content of all Videograms manufactured, produced and/or distributed hereunder, including the packaging thereof and all creative
content, unit forecast, inventory production and initial shipment, as well as final approval over the initial marketing plan (including, without limitation, wholesale pricing), release strategy, budget and all of the “Distribution
Expenses” (as defined below) for each AP, which approval may be granted or withheld in ESPN’s sole discretion. In connection with ESPN’s approval right over Distribution Expenses, the marketing plan submitted by Genius for each AP
pursuant to subparagraph (b) below will include Genius’s estimate of the “P&L” for such AP, including all customary Distribution Expenses, and ESPN’s approval of such marketing plan will constitute approval of all such
customary Distribution Expenses to the extent set forth in such P&L. 

  

	 	(b)	Genius will submit the initial marketing plan for each AP, and if ESPN does not expressly approve or disapprove the marketing plan within five (5) business days after its
receipt thereof, such marketing plan will be deemed not approved. In the event such plan is so deemed not approved, Genius shall contact ESPN’s designee hereunder and ESPN shall give Genius the reasons for such disapproval within the next five
(5) business days. Genius and ESPN will use their best efforts to resolve any disagreement with respect to the marketing plan, but ESPN shall have the final decisions in its sole discretion with respect thereto. 

  

	 	(c)	Genius may modify the approved marketing plan for each AP based on the performance of such AP in the marketplace and prevailing market costs, provided that any such marketing
expenses and/or other Distribution Expenses in excess of the approved marketing expenses plus 5% shall require ESPN’s prior written approval, which shall not be unreasonably withheld. 

  

	 	(d)	Without limiting the foregoing, in connection with the marketing of APs hereunder Genius shall not purchase advertising on a television sports network competitive with ESPN without
ESPN’s prior written approval. 

  

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	7.	Genius Obligations. During the Term: 

  

	 	(a)	Genius shall provide all customary manufacturing, production, marketing, sales and distribution services with respect to Genius’s manufacturing, production, marketing, sales
and distribution of Videograms of the APs hereunder. Subject to ESPN’s approval rights hereunder, such services shall include,: 

  

	 	(i)	Package design, menu design, VAM development, authoring and replication; 

  

	 	(ii)	Taking orders and picking, packing and shipping Videograms to retailers (such services to be fully operational by June 5, 2006); 

  

	 	(iii)	Providing dedicated personnel to work exclusively on furnishing Genius’s services for ESPN as set forth herein, consisting of a minimum of one brand manager and one retail
strategies manager; 

  

	 	(iv)	Providing weekly status updates regarding sales solicitation, sell-through tracking, industry tracking and key performance indicators; 

  

	 	(v)	Providing monthly reporting pursuant to Paragraph 20 below and , periodic business reviews, industry comparison analyses and recommendations for increasing sales;

  

	 	(vi)	Designing, preparing and monitoring point-of-purchase materials and in-store presence; and 

  

	 	(vii)	Coordinating retailer-sponsored advertising. 

  

	 	(viii)	If requested by ESPN and to the extent reasonably available to Genius and not otherwise available to ESPN or included in Genius’s reporting to ESPN hereunder, providing such
additional information as is necessary to enable ESPN to determine its obligations pursuant to Paragraph 8(b) below. 

  

	 	(b)	Subject to ESPN’s approval in each instance, Genius shall release each AP in at least the following formats: DVD and High Definition DVD, subject to a release schedule to be
approved in advance by ESPN. Genius acknowledges that ESPN currently plans to use the Blu-Ray format for its high definition releases, and any non Blu-Ray High Definition DVD release contemplated by Genius shall be subject to ESPN’s prior
written approval. 

  

	 	(c)	Genius shall not enter into a distribution agreement or similar arrangement for production, manufacture and/or distribution of any Videograms of content owned by any third-party
sports media brand (i.e., a sports television network or other sports broadcast outlet) without ESPN’s prior written approval, which may be granted or withheld at ESPN’s sole discretion. 

  

	 	(d)	ESPN shall be entitled to purchase from Genius Videograms of each AP at a reduced price equal to Genius’s *** thereof, in aggregate quantities not to exceed *** Videogram units
for all APs per Sales Period, to be used only for internal sales and promotions by ESPN. Any ESPN requests for additional reduced-price purchases shall be subject to good faith negotiation. 

  

	 	(e)	Genius shall deliver to ESPN, at no cost to ESPN in advance of the retail launch of each AP hereunder, fifty (50) Videogram units of such AP in each format released by Genius.

  

	 	(f)	 Unless otherwise agreed to in writing by Genius and ESPN, all promotional and/or insert space on the Videogram of each AP and/or the packaging thereof shall be
reserved for 

  

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ESPN promotional content (e.g., promotional spots in a DVD, packaging inserts, etc.) as designated by ESPN in its sole discretion subject to Paragraph 8(b)
below. 

  

	 	(g)	Genius shall use its best efforts to cause the Videograms manufactured, produced and distributed hereunder to be of first class technical quality customary in the US home video
industry at the time of manufacture. 

  

	 	(h)	Genius shall give “equal treatment” to the APs as compared to other productions distributed by Genius, i.e., Genius shall deal with the distribution of APs hereunder with
a standard of care and diligence no less than that accorded other productions distributed by Genius; 

  

	 	(i)	Genius shall be solely responsible for all third party clearances, all residual costs and royalties payable to third parties, including all music clearance costs, guild and union
residuals and other payments, and all third party profit participations or other contingent compensation associated with any DVD Extras or other content created and/or added to the Videograms by Genius (i.e., not supplied to Genius by ESPN). The
inclusion of any such Genius-created material in Videograms hereunder, and Genius’s right to include the costs of such material as part of Distribution Expenses hereunder, shall be subject to ESPN’s prior written approval.

  

	 	(j)	If ESPN requests that Genius execute any further documents reasonably relating to this Agreement or ESPN’s rights hereunder, subject to Genius’s right to review and
comment thereon Genius shall complete, execute and return such documents to ESPN expeditiously, including at the end of the Term of this Agreement and any sell-off period hereunder. 

  

	8.	ESPN Obligations. During the Term: 

  

	 	(a)	ESPN shall deliver to Genius a minimum of fifteen (15) APs during each Sales Period (as defined below) hereunder. The parties may discuss in good faith a reduction of such
minimums, provided that any reduction will be subject to the parties’ mutual agreement, which may be given or withheld in their respective sole discretion. The APs may include national, regional and/or exclusive releases.

  

	 	(b)	Subject to Paragraph 7(i) above, ESPN shall be solely responsible for all third party clearances, all residual costs and royalties payable to third parties, including all music
clearance costs, guild and union residuals and other payments, and all third party profit participations or other contingent compensation associated with the APs; and all APs will be delivered to Genius fully cleared and authorized for Genius’s
distribution hereunder with no additional payments to be made by Genius to any third party in connection therewith. If an AP is not cleared by ESPN for distribution in Canada hereunder, ESPN will evaluate the costs of such clearance and, in its sole
discretion, will either (i) undertake such clearance so as to allow Genius to distribute the AP in Canada, or (ii) notify Genius in writing pursuant to Paragraph 2 above that such AP is not cleared for distribution in Canada (in which case
Genius shall not distribute such AP in Canada). 

  

	 	(c)	If Genius requests that ESPN execute any further documents reasonably relating to this Agreement or Genius’s rights hereunder, subject to ESPN’s right to review and
comment thereon ESPN shall complete, execute and return such documents to Genius expeditiously, including at the end of the Term of this Agreement and any sell-off period hereunder. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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	9.	Minimum Guarantee. Subject to Paragraph 21 below, Genius shall pay to ESPN a minimum of Four Million Five Hundred Thousand Dollars ($4,500,000) in “ESPN Receipts”
(as defined below) during each Sales Period (as defined below) (each, a “Minimum Guarantee”) during the Term, subject to the following: 

  

	 	(a)	Each payment of the Minimum Guarantee hereunder will be non-returnable to Genius except as provided in Paragraphs 21 and/or 22 below, will be recoupable by Genius and credited
against ESPN Receipts pursuant to Paragraph 11 below, and will be net of any ESPN Receipts theretofore paid to ESPN during such Sales Period. For the avoidance of doubt, in any Sales Period ESPN will be entitled to receive the greater, but not both,
of (i) the actual ESPN Receipts for such Sales Period and (ii) the Minimum Guarantee. 

  

	 	(b)	The Minimum Guarantee for Sales Period 1 shall be payable 50% thereof within ten (10) business days after full execution of this Agreement and 50% thereof (less any ESPN
Receipts theretofore paid in such Sales Period) on or before February 1, 2007. The Minimum Guarantee for each of Sales Periods 2 through 5 shall be payable 50% thereof on or before the first day of such Sales Period, 25% thereof (less any
ESPN Receipts theretofore paid in such Sales Period) on or before three (3) months after such first day and 25% thereof (less any ESPN Receipts theretofore paid in such Sales Period and not already credited against the Minimum Guarantee) on or
before six (6) months after such first day. 

  

	 	(c)	The Sales Periods are as follows: 

 Sales Period 1:
July 7, 2006 - December 31, 2007; 
 Sales Period 2: January 1, 2008 - December 31, 2008; 
 Sales Period 3: January 1, 2009 - December 31, 2009; 
 Sales Period 4: January 1, 2010 - December 31, 2010; and 
 Sales Period 5: January 1, 2011 -
December 31, 2011. 
  

	 	(d)	*** 

 (i) 
  

	10.	Gross Receipts; Net Receipts. With respect to each AP, “Gross Receipts” means all amounts actually received by Genius in U.S. Dollars in the United States from the
distribution of Videograms that are released hereunder during the Term; and “Net Receipts” means Gross Receipts less all refunds, rebates, credits, discounts, allowances, advance payments (until earned or forfeited), security deposits
(until earned or forfeited), the Return Reserve (as defined below) and actual returns in excess of the Return Reserve. Genius shall be entitled to establish and maintain a reserve for returns of Videograms in an amount (“Return Reserve”)
equal to twenty percent (20%) of Gross Receipts, provided that each addition to the Return Reserve shall be liquidated (to the extent not applied to actual returns) within six (6) months of its establishment, subject to Genius’
retention of its Distribution Fee (as defined below) on such liquidated Return Reserves. 

  

	11.	Allocation of Net Receipts. All Net Receipts derived from the distribution of each AP hereunder shall be allocated as follows: 

  

	 	(a)	First, Genius shall retain a distribution fee in an amount equal to the following applicable percentage of the Net Receipts, computed as follows based on the Net Receipts derived
from all APs distributed hereunder in each Sales Period (for each Sales Period, “Sales Period’s Net Receipts”): 

  

	 	(i)	If a Sales Period’s Net Receipts are less than or equal to *** Dollars ($***): *** Percent (***%) of such Sales Period’s Net Receipts; 

  

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	 	(ii)	If a Sales Period’s Net Receipts are greater than *** but less than or equal to *** Dollars ($***): *** Percent (***%) of the first *** Dollars ($***) of such Sales
Period’s Net Receipts and *** Percent (***%) of such Sales Period’s Net Receipts in excess of *** Dollars ($***); and 

  

	 	(iii)	If a Sales Period’s Net Receipts are greater than $***: *** Percent (***%) of the first *** Dollars ($***) of such Sales Period’s Net Receipts, *** Percent (***%) of such
Sales Period’s Net Receipts in excess of *** Dollars ($***) but less then or equal to *** Dollars ($***), and *** Percent (***%) of such Sales Period’s Net Receipts in excess of *** Dollars ($***). 

  

	 	(b)	Then, Genius shall retain 100% of further Net Receipts until it has recouped (i) the Minimum Guarantee for the applicable Sales Period (i.e., the Sales Period in which such Net
Receipts are derived), (ii) any unrecouped portion of the Minimum Guarantees for the immediately preceding two (2) Sales Periods, and (ii) *** percent (***%) of any unrecouped portion of the Minimum Guarantees for all Sales Periods
prior to the immediately preceding two (2) Sales Periods; 

  

	 	(c)	Then, Genius shall retain 100% of all further Net Receipts until it has recouped all Distribution Expenses of such Sales Period and all previous Sales Periods; and

  

	 	(d)	Then, ESPN shall be entitled to all further Net Receipts (collectively, “ESPN Receipts”). 

 For the avoidance of doubt, if Genius has not recouped all of its Distribution Expenses with respect to any AP, Genius shall be entitled to recoup such
unrecouped portion from the Net Receipts otherwise payable to ESPN hereunder with respect to all other APs. 
  

	12.	Distribution Expenses. Subject to ESPN’s approval rights pursuant to Paragraph 6 above, whether as to individual expense items or as included as part of the
“P&L” for each AP, Genius shall pay for, and recoup pursuant to the terms hereof, all customary “Distribution Expenses” with respect to each AP, which for purposes hereof means and includes all costs and expenses of whatever
kind paid or incurred in connection with the manufacture, production, distribution, advertising, exploitation and turning to account of each AP hereunder and includes without limitation all of the following, as applicable: 

 

	 	(a)	All costs of duped and dubbed tapes, Videograms (including without limitation the creation, compression and authoring of Videogram masters (e.g., a 16:9 digibeta video master),
duplicating material and facilities and all other material manufactured for use in connection with each AP, including the cost of inspecting, repairing, checking and renovating Videograms, packing, storing, shipping and all other expenses connected
therewith. 

  

	 	(b)	All out-of-pocket costs of advertising, publicizing and/or exploiting each AP, including without limitation all advertisements, press books, artwork, publicity materials,
advertising accessories and trailers, Videogram screeners and all other pre- and post-release advertising and publicity, so-called cooperative advertising, and/or other advertising and/or publicity engaged in with or for television exhibitors,
internet providers and/or Videogram retailers. 

  

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and filed separately with the Commission. 
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	 	(c)	All other costs of preparing and delivering the APs for distribution hereunder, including without limitation all costs in connection with the preparation of “bonus
materials” or other additional materials contained in or as part of the Videograms and all costs of preparing such Videograms, including the costs of creating menus and other navigational elements and designs in connection therewith.

  

	 	(d)	Subject to Paragraph 20(e) below, all sums paid or liabilities incurred on account of sales, use, receipts, excise, remittance and other transactional taxes (however denominated) to
any governmental authority assessed upon the Videograms, or upon the use or distribution of the APs hereunder, or upon the revenues derived therefrom, or any part thereof, or upon the remittance of such revenues, or any part thereof; and provided
that the following sums or liabilities are not recouped by Genius by means of a tax refund or other reimbursement from the governing tax authority (in connection with which Genius shall use commercially reasonable efforts to obtain such a refund,
and costs which are so refunded or reimbursed to Genius after having been deducted shall be added back to Gross Receipts hereunder),any and all sums paid or accrued on account of duties, customs and imposts, costs of acquiring permits or any similar
authority to secure the entry, licensing, exhibition, performance, use or televising of the APs in the Territory or part thereof, regardless of whether such payments or liabilities are assessed against the AP or the proceeds thereof or against a
group of motion pictures in which the AP may be included or the proceeds thereof. Genius’s own income taxes and franchise taxes based on Genius’s net income shall not be deductible hereunder. 

  

	 	(e)	Expenses of transmitting to the United States any funds accruing to Genius from the APs in foreign countries and any discounts from such funds taken to convert such funds directly
or indirectly into U.S. dollars, and all customs costs, bank fees, transfer fees and other similar fees and charges. 

  

	 	(f)	In the event any person or entity shall make a claim relating to any AP against Genius or any of its licensees, which claim, in Genius ‘s judgment, is of sufficient merit to
constitute a reasonable probability of ultimate loss, cost, damage or expense, Genius may, subject to ESPN’s approval in its sole discretion, deduct such amount as Genius may reasonably deem necessary to cover loss, cost, damage or expense
which may be suffered as a result thereof. Subject to ESPN’s approval in its sole discretion, Genius shall have the right to settle and pay any such claim, and after the settlement of any such claim, or after the final judicial determination
thereof, the amount previously deducted hereunder shall be adjusted accordingly with the next accounting statement rendered hereunder. Nothing herein contained shall be construed as a waiver of any of ESPN’s warranties contained in this
Agreement, or a waiver of any right or remedy at law or otherwise which may exist in favor of Genius including without limitation the right to require ESPN to reimburse Genius on demand for any liability, cost, damage or expense arising out of, or
resulting from, any breach by ESPN of any warranty, undertaking or obligation by ESPN, or any right on the part of Genius to recoup or recover any such cost or expense out of ESPN’s share of any monies payable hereunder, or otherwise, rather
than treating such costs or expenses as Distribution Expenses. 

  

	13.	Manufacturing/Sourcing; International Labor Standards (“ILS”); Compliance.  

  

	 	(a)	Genius. 

  

	 	(i)	 With regard to international labor standards (“ILS”), to the extent that Genius owns or operates any manufacturing facilities utilized for the manufacture
of Videograms hereunder (for purposes of this Paragraph 13, “Videograms” 

  

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referring to Videograms of APs hereunder), Genius covenants on behalf of such Genius-owned or Genius-operated manufacturing facilities to comply with the
Code of Conduct attached hereto as Attachment 1 and incorporated by this reference (the “Code”), in the manufacturing, packaging and distribution of Videograms. “Manufacturer” means any of the manufacturers, factories, suppliers
and facilities (as well as any sub-manufacturers, factories, suppliers and facilities) that reproduce or use any of the Videograms, components of Videograms, promotional materials, or any other item related to the Videograms, or that assemble the
Videograms, or that assemble a final product including one or more Videograms. Genius shall require all Genius-owned and/or Genius-operated Manufacturers to covenant to comply with the Code in the manufacturing, packaging and distribution of the
Videograms by signing the Manufacturer’s Agreement in substantially the form and substance attached hereto as Attachment 4. The Code shall not be interpreted to require Genius or its owned or operated Manufacturers to violate any applicable
Law. 

  

	 	(ii)	Genius agrees to be bound by the Code of Conduct for Genius, attached hereto as Attachment 2 and incorporated by this reference (“Genius’s Code”).

  

	 	(iii)	As provided in the Code, , Genius agrees that ESPN and its designated agents (including third parties) may engage in monitoring activities to confirm compliance with this Paragraph.
An inspection typically consists of an initial audit, a period of time to remediate, and a follow-up audit; provided, however, that egregious violations, e.g., child labor, result in an immediate failure with no opportunity to remediate.

  

	 	(iv)	Genius agrees to investigate or notify ESPN of any claimed or observed violations of the Code, and, if it finds there have been violations of the Code, to take appropriate and
prompt steps to correct the situation. In any case where there are severe violations of the Code and remediation is unlikely to occur, ESPN shall have the right to require that Genius move the production of Videograms to an alternative factory on a
reasonably expedient basis. 

  

	 	(b)	Manufacturers. 

  

	 	(i)	 Genius shall supply ESPN with the names and addresses of all of its owned or operated manufacturing facilities, if any, for the Videograms. If Genius at any time
desires to use a third-party Manufacturer to produce the Videograms, components of Videograms or related items, whether the third party is located within or outside the Territory, Genius shall provide ESPN the accurate name and complete address of
the Manufacturer and identify the Videograms, components, or related items, using the Facilities and Merchandise Authorization (FAMA) form, attached hereto as Attachment 2, and obtain ESPN’s prior written permission to use the third party. The
references to “Disney” and “Disney’s merchandise” in the FAMA form shall be deemed to be references to “ESPN” and “ESPN’s merchandise” for purposes of this Agreement. ESPN’s decision as to
whether a Manufacturer complies with the Code shall be a matter within ESPN’s absolute discretion. ESPN’s permission in each case is conditioned upon the execution and delivery of a Manufacturer’s Agreement. The references to
“Disney” and “Disney’s merchandise” in the Manufacturer’s Agreement form shall be deemed to be references to “ESPN” and “ESPN’s merchandise” for purposes of this Agreement. ESPN may require a
pre-approval compliance inspection (at ESPN’s sole cost) of a Manufacturer prior to the production of any Videograms, components, or other related items. Genius immediately shall notify ESPN when 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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Genius no longer is using a Manufacturer. Genius agrees to comply with all applicable privacy and data protection laws with regard to the submission of
information regarding Manufacturers and the ILS inspection reports on such Manufacturers. 

  

	 	(ii)	If any Manufacturer utilizes an AP for any unauthorized purpose, Genius shall cooperate fully in bringing such utilization to an immediate halt. If, by reason of Genius’s
failure to submit all necessary FAMA forms, ESPN makes any representation or takes any action that causes it to be subject to any penalty or expense, Genius shall fully reimburse ESPN for any cost or loss ESPN sustains, and ESPN shall retain all
rights it otherwise would have to other legal or equitable remedies. 

  

	 	(iii)	If a Manufacturer fails to pass a compliance inspection as referenced in subparagraph (c) below, and thereafter fails to remedy the cited failure(s) within the time designated
by ESPN, or if the Manufacturer otherwise breaches the Manufacturer’s Agreement, the Manufacturer’s Agreement for such Manufacturer may be terminated immediately by ESPN, and upon receipt by Genius of written notice from ESPN of such
termination, Genius thereafter shall not use such Manufacturer to manufacture Videograms, components, or related items, subject to an orderly transition of business. If a Manufacturer fails to pass a pre-approval compliance inspection, and
thereafter fails to remedy the cited failure(s) within the time designated by ESPN, upon receipt by Genius of written notice from ESPN thereof Genius shall not use such Manufacturer to produce Videograms, components or related items.

  

	 	(iv)	Genius agrees not to manufacture Videograms, or permit the manufacturing of Videograms, in countries where the manufacturing of ESPN products is prohibited. A current list of
prohibited countries may be obtained by written request to ESPN. 

  

	 	(c)	Videogram Quality and Safety 

  

	 	(i)	With regard to product quality and safety, Genius covenants that each Videogram, and each component of each Videogram, shall be of good technical quality and free of defects in
design, materials and workmanship, and shall comply with all applicable laws (other than laws relating to the content of each Videogram, as to which ESPN has sole responsibility), and such specifications, if any, as may have been required in
connection with this Agreement, and shall conform to the approvals given by ESPN. 

  

	 	(ii)	 Both before and after Genius puts Videograms on the market, Genius shall follow reasonable and proper procedures for testing or otherwise determining that
Videograms comply with all applicable product safety laws, and shall permit ESPN’s designees, at ESPN’s sole cost, to inspect testing and quality control records and procedures, and to test the Videograms for compliance with product safety
and other applicable laws; however, ESPN shall not be required to conduct any such testing. Genius also shall give due consideration to any recommendations by ESPN that Videograms exceed the requirements of applicable laws. Videograms not
manufactured, packaged or distributed in 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 10/39 

	 	 
accordance with applicable laws shall be deemed unapproved, even if previously approved by ESPN, and shall not be shipped unless and until they have been
brought into full compliance. 

  

	 	(iii)	Without limiting the foregoing, Genius agrees that all Videograms shall comply fully with all applicable federal and state laws and regulations and all voluntary industry standards
and shall be safe for children as required by applicable laws (collectively, “Safety Requirements”). Genius immediately shall notify ESPN if Genius obtains information reasonably supporting the conclusion that a Videogram may fail to
comply with one or more Safety Requirements or may contain a defect that could create a substantial risk of injury to the public, and thereafter shall provide ESPN with timely information regarding further developments. If ESPN determines from
information supplied by Genius or from other information that such a defect or failure to comply exists, and if ESPN so directs, then Genius, at its expense and in compliance with any applicable governmental regulations and ESPN’s directions,
shall notify the CPSC (or other governmental agency specified by ESPN) of such defect or failure to comply and shall take such further actions as the CPSC, other governmental agency or ESPN shall direct, including, without limitation, notifying the
public of such failure or defect, recalling the Videogram from retailers and consumers, repairing or replacing the Videogram and refunding sums paid and expenses incurred by retailers, consumers and others by reason of the recall (all such actions
being referred to collectively as the “Recall Campaign”). Genius shall provide ESPN with contemporaneous copies of correspondence and communications related to the foregoing. Whether ESPN or Genius notifies the CPSC or other governmental
agency of such defect or failure, all reasonable expenses paid or incurred by ESPN by reason of or in connection with such notification, including, without limitation, all Recall Campaign expenses, shall be promptly reimbursed by Genius to ESPN. In
addition, Genius shall not be entitled to recoup at any time any of its Distribution Expenses (as defined in Paragraph 12) which are associated with the Videogram in question. The obligations of Genius under this Paragraph are in addition to and not
in limitation of other obligations, representations, warranties and indemnities of Genius. 

  

	 	(iv)	Without limiting the foregoing, Genius shall give ESPN written notice of any product liability claim made or suit filed with respect to any Videogram, any investigations or
directives regarding the Videograms issued by the CPSC or other federal, state, provincial, or local consumer safety agency, and any notices sent by Genius to, or received by Genius from, the CPSC or other consumer safety agency regarding the
Videograms within seven (7) days after Genius’s receipt or promulgation of the claim, suit, investigation, directive, or notice. 

  

	14.	Delivery. 

  

	 	(a)	With respect to each AP, “Delivery” means complete delivery and acceptance, in Genius’s sole discretion as to completeness and technical quality, of all of the
delivery materials set forth in Schedule A attached hereto (comprised of “Documentation,” “Film Materials” and “Publicity Materials,” and collectively, “Delivery Materials”), which Delivery Materials shall be
delivered to Genius, at ESPN’s sole cost and expense, on or before the applicable delivery dates for such materials as set forth below (as to each category of Delivery Materials, the “Delivery Date”). Time is of the essence of this
Agreement with respect to ESPN’s complete Delivery on or before the Delivery Date. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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	 	(b)	The applicable Delivery Date for all of the items comprising each category of the Delivery Materials shall be, with respect to the initial Videogram release date of each AP in the
Territory as set forth in the mutually-approved marketing plan for each AP (as to each AP, the “Release Date”): (i) for the Publicity Materials no later than one hundred twenty (120) days prior to the Release Date, and
(ii) for the Film Materials and Documentation, no later than ninety (90) days prior to the Release Date. 

  

	 	(c)	If ESPN does not timely deliver one or more items of the Delivery Materials with respect to an AP, then Genius shall have the right to adjust the Release Date for such AP to a date
that is commercially practical in Genius’s judgment in light of such late delivery. 

  

	15.	Credits. 

  

	 	(a)	Genius shall use the credit block provided by ESPN on the prints, posters, packaging box and advertising materials for each AP. Genius shall not alter the copyright notice supplied
by ESPN on an AP, provided that Genius may add its logos on Videograms, packaging and advertising materials for each AP (in a size of type no larger than the respective size of type used for ESPN’s logos in or on such Videograms, packaging and
advertising materials.). Genius shall notify its licensees of the aforementioned credit provisions. No casual or inadvertent failure to accord credits as set forth hereunder shall be deemed a breach of this Agreement by Genius. Upon Genius’s
receipt of written notice from ESPN specifying a breach of the foregoing credit provisions, Genius shall use its best efforts to cure such breach on any materials manufactured or prepared after receipt of such notice. 

  

	 	(b)	ESPN shall use its best efforts to inform Genius in writing, no later than four (4) months prior to the Release Date of each AP hereunder, of any restrictions on the use of any
of the Delivery Materials for such AP, including without limitation clips and footage for use in Genius’s advertising and marketing campaigns. 

  

	16.	Intellectual Property Rights. 

  

	 	(a)	ESPN’s provision of the AP content and deliverables to Genius hereunder shall not convey to Genius any copyright, trademark, other intellectual property rights, title or other
ownership in any of the AP content and deliverables. As between Genius and ESPN, all such rights shall remain at all times held and owned by ESPN. 

  

	 	(b)	All worldwide copyright, trademark, trade name, other intellectual property rights, title and interest in and to the Videograms and all elements thereof (including any DVD extras or
other content added or created by Genius) shall be owned and held by ESPN. Genius acknowledges that it is creating the Videograms as a “work made for hire” under 17 U.S.C. § 101 of the U.S. Copyright Act of 1976 (and any other
applicable foreign law), for the benefit of ESPN, and ESPN will be deemed the sole author and owner of all copyright in the Videograms and all elements thereof, and any derivative works containing or based thereon. 

  

	 	(c)	 To the extent the Videograms are not covered by the definition of a “work made for hire” under 17 U.S.C. § 101 of the U.S. Copyright Act of 1976,
Genius hereby irrevocably grants, transfers, assigns and conveys to ESPN and its successors and assigns, without any further consideration, the following rights: (a) all ownership rights in and to the Videograms and all elements thereof
(including DVD extras or other content added or 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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created by Genius) — including, without limitation, all intellectual property, ownership and proprietary rights anywhere in the world, and any and all
causes of action heretofore accrued in Genius’ favor with respect to any of the foregoing rights. In the event any right (including, without limitation, moral rights) in the Videograms cannot be assigned, Genius hereby waives enforcement
anywhere in the world of such right against ESPN, its assigns, distributors, licensees and customers, or, if necessary agree to exclusively license such rights (with the right to sublicense) worldwide to ESPN and any and all such rights Genius may
have in and to the Videograms or any portion thereof; and (b) the sole and exclusive right to reproduce, copy, publish, distribute, disseminate, broadcast, transmit, disseminate, publicly perform, display, reproduce, license or syndicate others
the right to use, archive, make derivative works of, and/or otherwise use the Videograms for any purpose and in any medium worldwide now or hereafter known. 

  

	 	(d)	ESPN shall be solely responsible for enforcing, in its sole discretion, all copyright, trademark and other intellectual property rights in and to the Videograms and each AP as
against any alleged third-party infringer, and ESPN shall control, be solely responsible for and pay all legal fees and costs necessary for any legal action and litigation necessary to enforce such intellectual property rights. Upon discovery
of any instances of possible or alleged infringement of any copyright, trademark and other intellectual property rights in and to the Videograms or any AP, Genius shall promptly notify ESPN of such possible or alleged infringement. Genius shall
also fully cooperate with ESPN and shall make it records, documents and witnesses available to ESPN for the purposes of any legal action or litigation necessary to enforce ESPN’s intellectual property rights in and to the Videograms and the
content of any AP. 

  

	 	(e)	Pursuant to the Trademark License attached hereto as Exhibit 2 and incorporated herein by reference, Genius is hereby licensed to use the ESPN Marks. 

  

	17.	Representations and Warranties. 

  

	 	(a)	ESPN hereby represents and warrants that: 

  

	 	(i)	ESPN has the full right, power, and authority to enter into and perform this Agreement and to grant to Genius hereunder all of the Rights Granted, and that ESPN solely controls and
shall solely control throughout the Territory during the Term all of the rights granted to Genius hereunder in and to the APs and all elements thereof, including without limitation all performance, distribution, exhibition, advertising and all other
rights therein; 

  

	 	(ii)	 No claim exists that ESPN does not or may not have any of the rights granted to Genius hereunder, and there is not now valid or outstanding, and ESPN will not
hereafter grant, any right in connection with any AP which is or would be adverse to, or inconsistent with, or impair, the rights granted to Genius hereunder; except with respect to the AP entitled “Playmakers” (with respect to which there
is a trademark claim against ESPN), no claim exists that any AP violates, conflicts with, or infringes upon, and neither the AP entitled “Playmakers” nor any other AP violates, conflicts with or infringes upon, any rights whatsoever
(including, without limitation, any copyright, common law or statutory right anywhere in the world; any right of publication, performance, or any other right in any work; nor does any AP constitute or contain any libel, slander, invasion of privacy
or defamation of any person, or entity; and none of either the APs nor any elements thereof are the subject of any third party claim; and the APs and all elements thereof and all Delivery Materials shall be fully cleared by ESPN for all uses set
forth herein, and no payments will be required to be made to any third party in connection with the exploitation of the APs hereunder (or, if any such payments 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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are required, ESPN will be solely responsible therefor and indemnify and hold harmless Genius in connection therewith. 

  

	 	(b)	Genius hereby represents and warrants that Genius has the full right, power, and authority to enter into this Agreement and to perform all of the services required of Genius
hereunder. 

  

	18.	Indemnities. ESPN shall defend, indemnify and hold harmless Genius, any parent or affiliate of Genius, and its and their respective owners, shareholders, members, managers,
officers, directors, employees and agents from and against all third-party claims, losses, liabilities, actions, judgments, costs and expenses of any kind (including without limitation attorneys’ fees and costs) arising out of or in connection
with any breach by ESPN of any representation, warranty or agreement set forth in this Agreement or arising out of any AP (including without limitation the AP entitled “Playmakers”) or any element of any AP or any AP content or any other
material supplied to Genius by ESPN hereunder. Genius shall defend, indemnify and hold harmless ESPN, any parent or affiliate of ESPN, and its and their respective owners, shareholders, members, managers, officers, directors, employees and agents
from and against all third-party claims, losses, liabilities, actions, judgments, costs and expenses of any kind (including without limitation attorneys’ fees and costs) arising out of or in connection with any breach by Genius of any
representation, warranty or agreement set forth in this Agreement or arising out of Genius’s distribution of the APs hereunder (including product liability or other claims arising out of physical injuries caused by the physical Videogram units
or the packaging thereof), except to the extent covered by ESPN’s indemnities to Genius hereunder. 

  

	19.	Insurance. 

  

	 	(a)	During the Term, ESPN shall maintain, at its sole cost and expense, an Errors and Omissions policy of insurance with respect to each AP which has limits of not less than
$1,000,000/$3,000,000 (the “E&O Policy”). ESPN shall include Genius as an additional insured on the E&O Policy. The E&O Policy shall provide that it may not be canceled or modified without prior written notice to and written
approval by Genius. Upon Genius’s request ESPN shall provide Genius with a certificate of Errors and Omissions coverage so naming Genius as an additional insured. 

  

	 	(b)	Genius shall obtain an E&O Policy on or before October 15, 2006; if and when such policy is obtained, Genius shall include ESPN as an additional insured on such policy.

  

	 	(c)	On or before the date of the first Videogram release of APs hereunder, Genius shall obtain, from companies having an A.M Best rating of B+ VII or better: (i) commercial
general liability insurance with customary minimum limits of not less than $2,000,000 and shall include ESPN as an additional insured on such policy; (ii) worker’s compensation insurance as required by applicable law, and employer’s
liability insurance with minimum limits of no less than $1,000,000; and (iii) media liability insurance in amounts not less than $1,000,000/$1,000,000 and shall include ESPN as an additional insured on such policy. Upon ESPN’s request
Genius shall provide ESPN with certificates of insurance with respect to the foregoing, so naming ESPN as an additional insured as applicable. 

  

	20.	Accounting Statements; Payments; Withholdings. 

  

	 	(a)	Within *** after the end of each *** during the Term and thereafter for so long as Genius receives at least One Hundred Dollars of Gross Receipts hereunder (each such month, a
“Reporting Period”), Genius will provide to ESPN a sales report (i.e., a “gross and net shipped” report categorized by account and by title). 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 14/39 

	 	(b)	Within *** after the end of each *** during the Term (each such period, an “Accounting Period”), Genius will provide to ESPN an accounting statement (which will include
without limitation detailed information on Gross Receipts, Distribution Expenses, detailed accounts receivable balances, collection details and an aged trial balance by customer), a calculation of amounts applied against the Minimum Guarantee for
that Sales Period and any remaining balance of the Minimum Guarantee to be recouped; and accompanied by payment of all ESPN Receipts payable hereunder with respect to such Accounting Period, provided that no check for payment need be issued for any
Accounting Period in which ESPN Receipts are less than One Hundred Dollars ($100). 

  

	 	(c)	ESPN will be deemed to have consented to all accounting statements rendered by Genius or its assignees, licensees or successors, and all statements will be binding upon ESPN and
will be deemed an account stated and not subject to any objection by ESPN for any reason, unless specific written objection to such statement is received by Genius within *** from the date such statement was rendered or if an audit is commenced
prior thereto pursuant to subparagraph (d) below, within *** after the completion of the applicable audit. In the event that ESPN makes a timely written objection to an accounting statement, ESPN shall have *** from the date of such written
objection to bring suit; thereafter, ESPN shall be deemed to have waived such objection finally and conclusively. 

  

	 	(d)	Genius shall keep customary books and records in connection with its distribution and exploitation of the APs hereunder. At ESPN’s sole cost and expense, ESPN shall have the
right, upon thirty (30) days’ written notice to Genius, to audit Genius’s records relating to Genius’s distribution of the APs hereunder in order to verify the accounting statements issued by Genius hereunder. Any such audit
shall be conducted only by a certified public accountant experienced in entertainment industry audits, during reasonable business hours and in such a manner as not to interfere with Genius’s normal business activities. In no event shall an
audit with respect to any accounting statement commence later than *** from the rendition of the accounting statement involved; nor shall any audit continue for longer than ***; nor shall audits be made hereunder more frequently than *** during the
Term; nor shall the records supporting any accounting statement be audited more than once. If Genius, as a courtesy to ESPN, includes cumulative figures in any accounting statement, the time within which ESPN may commence any audit or make any
objection in respect of any statement shall not be enlarged or extended thereby. ESPN shall have no right to examine records relating to Genius’s business generally or with respect to any motion pictures or other production not constituting APs
hereunder, for purposes of comparison or otherwise, unless such records also relate to APs hereunder. If any audit reveals an underpayment of greater than *** of the amounts due ESPN in any Sales Period taken as a whole, then Genius shall bear
ESPN’s reasonable, out-of-pocket third-party costs of such audit. 

  

	 	(e)	Genius shall not deduct or withhold any withholding or other tax on income from the amounts due ESPN hereunder; provided, however, that if Genius determines in its sole discretion
that distribution of APs hereunder outside the United States is or may be subject to a withholding or other tax on income, the parties will endeavor to cooperate to appropriately structure the foreign distribution operations so as to eliminate any
such tax. If the parties are unable to structure the foreign distribution operations for a specific territory so as to eliminate such tax in a practicable manner as determined by Genius in its sole discretion, Genius will have the right, by
written notice thereof to ESPN, to elect not to distribute APs hereunder in such territory. For purposes of this provision, the United States includes only the 50 states and the District of Columbia. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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	21.	ESPN Elective Termination. On or after January 1, 2008, ESPN shall have the right to terminate this Agreement for any reason, upon sixty (60) days’ written
notice to Genius (“Elective Termination”). In the event of Elective Termination (i.e., a termination by ESPN other than an Extraordinary Termination or by reason of Genius’s other material default hereunder): 

 

	 	(a)	Genius shall, upon receipt of the notice of termination, have no further obligation to make any Minimum Guarantee payments hereunder and may immediately extinguish any outstanding
amount of any LC established hereunder. 

  

	 	(b)	Genius shall have a six (6) month period (“Sell-Off Period”) after the date of such termination during which Genius will have the non-exclusive right to continue to
market, distribute and account for hereunder all previously manufactured Videograms remaining in inventory, and to manufacture Videograms of all APs delivered by ESPN before such termination to the extent that Genius has not manufactured all of the
Videograms specified in the mutually-approved marketing plan for such APs. At the end of such Sell-Off Period, if Genius has not fully recouped all of the Minimum Guarantee paid for the Sales Period in which the termination occurs, ESPN shall refund
to Genius a portion of such unrecouped Minimum Guarantee so that Genius, after giving effect to such refund, will have paid the Minimum Guarantee only in the proportion that (X) the number of APs which pursuant to mutually-approved marketing
plans have been Delivered to Genius by ESPN in that Sales Period before the termination and released by Genius for retail (“streeted”) during the Sell-Off Period, bears to (Y) the total number of AP’s deliverable to Genius by
ESPN during the Sales Period had the Agreement not been terminated. By way of example, if four months after the beginning of a Sales Period ESPN delivers a termination notice and the Agreement is thereby terminated two months later (i.e., six months
after the beginning of the Sales Period), and if at the time of termination Genius had paid 75% of the Minimum Guarantee for such Sales Period, then if at the end of the Sell-Off Period Genius has not recouped all of such Minimum Guarantee payment
and at the time of termination ESPN had Delivered to Genius five APs during such Sales Period which pursuant to mutually-agreed marketing plans had “streeted” during the Sell-Off Period (out of the 15 APs deliverable to Genius by ESPN
during such Sales Period had the Agreement not been terminated), then ESPN shall refund to Genius the difference between one-third of the Minimum Guarantee (corresponding to five out of 15, or one-third, of the deliverable APs) and the 75% of the
Minimum Guarantee paid by Genius, i.e., ESPN shall refund five-twelfths of the Minimum Guarantee. 

  

	 	(c)	If at the end of the Sell-Off Period Genius has not recouped any approved Distribution Expenses, then the parties shall negotiate in good faith regarding a refund of a portion of
such approved Distribution Expenses. 

  

	 	(d)	At the end of the Sell-Off Period, ESPN shall have the right to purchase, at Genius’s out-of-pocket cost, any remaining unsold inventory, finished goods or components of AP
Videograms. 

  

	22.	ESPN Extraordinary Termination. 

  

	 	(a)	ESPN shall have the right at any time to terminate this Agreement immediately upon giving Genius written notice if one or more of the following events occur (“Extraordinary
Termination”), such written notice to set forth the specific reason for such Extraordinary Termination: 

  

	 	(i)	Genius distributes APs outside the Territory or knowingly sells APs to a third party when Genius knows or should know in the exercise of prudent business judgment that such sales
ultimately will result in distribution outside the Territory, unless pursuant to a written consent or separate written license agreement with ESPN; 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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	 	(ii)	Genius commits three (3) or more uncured material breaches of the same nature that violate the same provision of this Agreement as a material breach of which ESPN previously
gave Genius written notice; 

  

	 	(iii)	Genius makes a general assignment for the benefit of creditors; or any proceeding is instituted by or against Genius seeking to adjudicate it as bankrupt or insolvent, or seeking
liquidation, winding up or reorganization of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of any order for relief or the appointment of a receiver, trustee or other
similar official for all or for any substantial part of its property or assets; 

  

	 	(iv)	ESPN notifies Genius in writing that a third-party Manufacturer is in material breach of its Manufacturing Agreement and that pursuant to Paragraph 13 hereof Genius must therefore
terminate its manufacture of Videograms hereunder with such Manufacturer, and after a reasonable period of time Genius fails to so terminate such manufacturing, and after receipt of an additional written notice from ESPN giving Genius a final
opportunity to cure such failure, Genius continues such manufacturing; or 

  

	 	(v)	Genius breaches any material term of this Agreement which is not reasonably capable of being cured (it being acknowledged that a failure to make a payment of money hereunder is a
breach capable of being cured). 

  

	 	(b)	Upon an Extraordinary Termination pursuant to subparagraph (a)(i) through (a)(iv) above, all rights licensed to Genius hereunder with respect to APs shall revert to ESPN; and
without limiting any of the parties’ other rights or remedies, any unpaid portion of the Minimum Guarantee (“Accelerated MG”) and ESPN Receipts (net of the Accelerated MG) for the entire Term shall immediately be due and payable
(together with the accounting statement due at such time); provided, however, that in such event ESPN shall immediately commence and continue to use commercially reasonable efforts to distribute and/or exploit, and/or enter into an agreement with a
third party for the distribution and/or exploitation of, the APs and the productions that would have been included as APs had the Extraordinary Termination not occurred (collectively, “ESPN Exploitation”). Any revenues derived by ESPN from
ESPN Exploitation (“Revenues”) shall reduce the portion of the Accelerated MG payable by Genius pursuant to the foregoing, and ESPN shall, upon receipt of any Revenues, refund to Genius the equivalent amount of any Accelerated MG
theretofore paid by Genius. If a senior executive of ESPN verifies in writing to Genius that the Revenues reported to Genius pursuant to this provision are a true and accurate accounting of the Revenues, then Genius shall not be entitled to inspect
the terms of any third-party agreement(s) for ESPN Exploitation. 

  

	 	(c)	Upon ESPN’s Extraordinary Termination pursuant to the foregoing, Genius shall neither produce, manufacture nor distribute, directly or indirectly, any further APs and, at
ESPN’s sole option, Genius will either sell to ESPN at Genius’s out-of-pocket cost or destroy any and all materials and assets (including without limitation finished goods, component inventory, DLTs, packaging and advertising assets) used
or created by Genius in connection with this Agreement; and all such materials and assets not ordered destroyed shall promptly be delivered free of charge to ESPN at the address designated by ESPN at that time. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
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	23.	Notices; Approvals. All notices, accountings, payments and any other document that either of the parties is required or may desire to serve upon the other party
(“Notices”) may be served by personal delivery or by registered or certified mail, return receipt requested, or by overnight or express courier, all postage and other charges prepaid. Notices to Genius shall be sent to Genius at 2230
Broadway, Santa Monica, CA 90404, Attention: Trevor Drinkwater; and Notices to ESPN shall be sent to ESPN’s address set forth on the first page of this Agreement with a copy to ESPN Legal, ESPN Plaza, Bristol, CT 06010; or to such other address
that one party may hereafter designate in writing to the other. Payments due ESPN hereunder shall be sent to ESPN, Inc. – Miscellaneous, 13045 Collections Center Drive, Chicago, IL. Accounting Statements and other reports made pursuant to
Paragraph 20 above shall be sent to ESPN, Inc., ESPN Plaza, Bristol, CT 06010, Attn: Kristen Van Asten. Receipt of Notices shall be deemed to have occurred five (5) days after the date of mailing, the date of personal delivery or the day after
mailing by overnight courier, as applicable. All approvals to be given by a party to the other hereunder “in writing” will be deemed to have been given in writing if transmitted by email or included in or as a schedule, calendar, form,
supplement, exhibit or like communication delivered in hard copy, by fax or electronically (e.g., by email) from such party to the other. 

  

	24.	Assignment. 

  

	 	(a)	This Agreement, and the rights granted to Genius hereunder, are specific to Genius. Except as expressly permitted hereunder, Genius shall not voluntarily or by operation of law
assign, sub-license, transfer or otherwise dispose of all or any part of Genius’s interest in this Agreement (including without limitation any encumbrance of the APs (as distinguished from the Videograms thereof to be sold and/or otherwise
exploited hereunder) without ESPN’s prior written consent, to be granted or withheld in ESPN’s absolute discretion. Any attempted assignment, sub-license, transfer, or other disposal without such consent shall be void and shall constitute
a material default and breach of this Agreement, provided that such a breach shall not give rise to a right of Extraordinary Termination hereunder. “Transfer” within the meaning of this Paragraph shall include any merger or consolidation
involving Genius or any directly or indirectly controlling Affiliate(s) of Genius (“Controlling Affiliate”); any sale or transfer of all or substantially all of Genius’s or its Controlling Affiliate(s)’ assets; any transfer of
Genius’s rights, obligations, or both, under this Agreement, to a division, business segment or other entity different from the one specifically referenced on page 1 of this Agreement (or any sale or attempted sale of Articles under a trademark
or trade name of such division, business segment or other entity); any public offering, or series of public offerings, whereby a cumulative total of thirty-three and one-third percent (33 1/3%) or more of the voting stock of Genius or its
Controlling Affiliate(s) is offered for purchase; and any acquisition, or series of acquisitions, by any person or entity, or group of related persons or entities, of a cumulative total of thirty-three and one-third percent (33-1/3%) or more of the
voting stock of Genius or its Controlling Affiliate(s), or the right to vote such percentage (or, if Genius is a partnership, resulting in the transfer of thirty-three and one-third percent (33-1/3%) or more of the profit and loss participation
in Genius, or the occurrence of any of the foregoing with respect to any general partner of Genius; or, if Genius is a legal entity other than a corporation or partnership, resulting in the transfer of thirty-three and one-third percent (33-1/3%) or
more of the control of Genius, or the occurrence of any of the foregoing with respect to any manager or administrator of the legal entity). 

  

	 	(b)	 Genius shall provide ESPN with at least thirty (30) days’ prior written notice of any desired assignment of this Agreement or other Transfer (as defined
in Paragraph 25(A). 

  

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and filed separately with the Commission. 
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At the time Genius gives such notice, Genius shall provide ESPN with the information and documentation necessary to evaluate the contemplated transaction.
ESPN shall have the absolute discretion as to whether to consent to any assignment of this Agreement or other Transfer. ESPN’s consent (if given) shall be subject to such terms and conditions as ESPN deems appropriate, including but not limited
to, payment of a transfer fee if the Agreement adds value to the Transfer transaction, or if the Transfer presents potential business risk or cost to ESPN, as determined in ESPN’s absolute discretion. The amount of the transfer fee shall be
determined by ESPN based upon the circumstances of the particular assignment or Transfer, taking into account such factors as the estimated value of the license being assigned or otherwise transferred; the risk of business interruption or loss of
quality, production or control ESPN may suffer as a result of the assignment or other Transfer; the identity, reputation, creditworthiness, financial condition and business capabilities of the proposed assignee or other entity involved in the
Transfer; and ESPN’s internal costs related to the assignment or other Transfer; provided, however, in no event shall a transfer fee be in an amount less than U.S. $250,000. 

  

	 	(c)	Genius may, upon ESPN’s prior written consent, sublicense Genius’s rights, obligations, or both, under this Agreement, to any of Genius’s Affiliates
(“Affiliates” means, with regard to either party, any corporation or other entity that directly or indirectly controls, is controlled by, or is under common control with the party. “Control” of an entity shall mean possession,
directly or indirectly, or power to direct or cause the direction of management or policies of such entity, whether through ownership of voting securities, by contract or otherwise), provided that each such Affiliate agrees to be bound by all of the
terms and conditions of this Agreement, and further provided that Genius and each such Affiliate provide ESPN with satisfactory documentation of such agreement(s), guarantee(s), and indemnification upon ESPN’s request, and in a form
satisfactory to ESPN. Genius represents and irrevocably and unconditionally guarantees that any and all Affiliates sublicensed will observe and perform all of Genius’s obligations under this Agreement, including, but not limited to, the
provisions governing approvals, and compliance with approved samples, applicable Laws, indemnification and all other provisions, and that they otherwise will adhere strictly to all of the terms hereof and act in accordance with Genius’s
obligations. Any involvement of an Affiliate in the activities related to this Agreement shall be deemed carried on pursuant to such a sublicense and thus covered by such guarantee; however, unless Genius has obtained ESPN’s prior written
consent to sublicense to an Affiliate in each instance, any such sublicense shall be void and ESPN may treat such unapproved involvement of the Affiliate as a breach of the Agreement, provided that such a breach shall not give rise to a right of
Extraordinary Termination hereunder. 

  

	 	(d)	Notwithstanding anything to the contrary set forth in this Agreement, the foregoing restrictions on assignment shall not apply to Genius in connection with the contemplated
transaction (“Transaction”) between Genius and The Weinstein Company or an affiliate thereof pursuant to which Genius Products, LLC (a US entity) or a like US entity (“Genius Affiliate”) will be formed and acquire some or all of
Genius’s assets. For the avoidance of doubt, Genius may assign this Agreement to a Genius Affiliate in connection with the closing of the Transaction without restriction or payment of any sums of money hereunder. 

  

	 	(e)	ESPN may assign any of its rights hereunder to any third party, provided that ESPN may not delegate its obligations hereunder without Genius’s prior written consent, not to be
unreasonably withheld or delayed. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 19/39 

	 	(f)	Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and permitted assigns.

  

	25.	Cure Period. No failure by either party to fulfill any of its obligations under this Agreement shall constitute a breach of this Agreement by such party unless and until the
non-breaching party has provided the breaching party with written notice specifying such failure(s) and the breaching party has failed to cure such breach within thirty (30) days after receipt of such notice. 

  

	26.	Relationship of the Parties. This Agreement does not constitute a joint venture, partnership, agency or employment relationship between the parties. Neither party shall state
or imply that such party or its activities, other than under this Agreement, are supported, endorsed or sponsored by the other. 

  

	27.	Entire Agreement. This Agreement is the complete and final agreement and understanding between the parties with respect to the subject matter hereof. The parties hereby
acknowledge that they are not, nor shall this Agreement be construed to constitute, a partnership or joint venture between them. The parties agree that this Agreement will be construed in all respects in accordance with the laws of the State of
California applicable to agreements entered into and to be wholly performed therein, and the parties hereto agree to submit to the exclusive jurisdiction of the federal and state courts of the State of California located in Los Angeles County. The
prevailing party in any such litigation shall be entitled to its reasonable attorneys’ fees and costs. This Agreement may not be changed or modified, or any covenant or provision hereof waived, except by an agreement in writing. Paragraph
headings are used in this Agreement for convenience only, and will not be used to interpret or construe the provisions of this Agreement. 

  

			
	 ACCEPTED AND AGREED:
  
 Genius Products, Inc.

		
	 By:
	 	/s/    Trevor Drinkwater        
	 Its:
	 	Chief Executive Officer
	
	 ESPN Enterprises, Inc.

		
	 By:
	 	/s/    Victoria Stevens
	 Its:
	 	  

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 20/39 

 EXHIBIT 1 
 APs 
 Previously Released – 
  

			
	 Title
	  	 Release Timing

	3	  	Active Title
	Four Minutes	  	Active Title
	Hustle	  	Active Title
	The Junction Boys	  	Active Title
	Playmakers	  	Active Title
	Through the Fire	  	Active Title
	Tilt	  	Active Title
	Ultimate X	  	Active Title

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 21/39 

 EXHIBIT 2 
 TRADEMARK LICENSE AGREEMENT 
 This agreement runs concurrent with the Output Distribution Agreement (the
“ODA”) dated as of July 7, 2006 by and between Genius Products, Inc., having a principal place of business at 2230 Broadway, Santa Monica, California 90404 (“Genius”) and ESPN, Inc., a Delaware corporation, having a
principal place of business at ESPN Plaza, Bristol, Connecticut 06010 (“ESPN”). 
 WHEREAS, ESPN owns the marks set forth on Schedule 1 (the
“Marks”); 
 WHEREAS, ESPN wishes to license the Marks for use as trademarks in connection with the ODA (the “LICENSED USE”); and

 WHEREAS, ESPN wishes to license Genius to use the Marks for the LICENSED USE, 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows. 
  

	1.	ESPN hereby grants to Genius a nonexclusive, royalty free worldwide license to use the Marks for the LICENSED USE. 

  

	2.	ESPN declares that on the effective date of this agreement, the quality standards and controls applied by Genius to the LICENSED USE are consistent with those established by ESPN.

  

	3.	If for any reason, ESPN determines that the quality standards or controls applied by Genius to the LICENSED USE fall below those that are consistent with ESPN’s standards, upon
written notice of deficiency to Genius, Genius agrees to undertake to correct the deficiency within thirty (30) days. In the event, the LICENSED USE fail to meet the quality standards after the 30 day cure period, ESPN may, at its option,
immediately terminate this agreement upon written notice to Genius. 

  

	4.	Once every calendar year Genius will, upon ESPN’s written request and at Genius’s expense, provide ESPN with a representative sample of the LICENSED PRODUCT and a
representative sample of promotional materials displaying the Marks. 

  

	5.	Genius acknowledges that ESPN is the owner of the Marks and all goodwill attached thereto. This agreement does not give Genius any interest in the Marks except the right to use the
Marks in accordance with the provisions of this agreement. Genius agrees not to attempt to register the Marks nor to adopt or register anywhere in the world a mark the same as or confusingly similar to the Marks. 

  

	6.	Genius recognizes ESPN’s exclusive and discretionary right to initiate and maintain any legal or administrative proceedings against third parties relative to the protection and
defense of the Marks including the settlement of any dispute with third parties relating to the Marks. Genius agrees to cooperate fully with ESPN in the protection, maintenance and defense of the Marks and waives any claim it may have against ESPN
as a result of is exercise of or failure to exercise its exclusive and discretionary right hereunder. 

  

	7.	The effective date of this agreement is the date entered on the first sentence of this agreement and except for termination for cause, this agreement shall remain in effect at the
will of the parties. ESPN may terminate this agreement immediately upon written notice to Genius. 

  

	8.	This agreement shall be governed by and construed in accordance with the law of the State of California. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 22/39 

	9.	This agreement shall be binding upon and inure to the benefit of the parties hereto and their successors. 

  

	10.	This agreement shall not be assigned without the express written consent of ESPN. 

  

									
	 GENIUS PRODUCTS, INC.
	 		 	 ESPN Inc.

					
	By:	 	  	 		 	 By:
	 	  
					
	 Name:
	 	  	 		 	 Name:
	 	
					
	 Title:
	 	  	 		 	 Title:
	 	
					
	 Date:
	 	  	 		 	 Date:
	 	  

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 23/39 

 SCHEDULE 1 
 ESPN 
 ESPN LOGO 
 3 (DESIGN MARK) 
 FOUR MINUTES (DESIGN MARK) 
 HUSTLE (DESIGN MARK) 
 THE JUNCTION BOYS (DESIGN MARK) 
 PLAYMAKERS (DESIGN MARK) 
 THROUGH THE FIRE (DESIGN MARK) 
 TILT (DESIGN MARK) 
 ULTIMATE X (DESIGN MARK) 
  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 24/39 

 SCHEDULE A 
 DELIVERY MATERIALS 
 ESPN shall make full and complete delivery to Genius or its designees, at ESPN’s
sole cost, of each and every item specified below as set forth herein and any other material required to be delivered pursuant to this agreement, to the following address in California or elsewhere in the Territory as Genius may designate. When
delivery of an element is by access, it shall be substantially in the form of the laboratory access letter attached hereto. All Delivery Materials are to be delivered to Genius, 2230 Broadway, Santa Monica, CA 90404, Attention: Chief Operating
Officer. 
 All must be subtitled or dubbed into English before delivery, with the acknowledgment and approval of Genius. All non-film materials not
originally in English (including foreign language publicity materials) are to be provided along with an English translation. 
  

	I.	DOCUMENTATION: With respect to each AP: 

  

	1.	Omitted. 

  

	2.	Omitted. 

  

	3.	One (1) Certificate of United States Copyright Registration for the screenplay or it not yet available, a copy of the application therefore accompanied by the letter of
transmission to the U.S. Copyright Office; 

  

	4.	Omitted. 

  

	5.	If requested by Genius, chain-of-title documentation evidencing valid and effective transfers to ESPN of the following: 

  

	 	(a)	any underlying intellectual property incorporated into the APs from original author to ESPN and any and all intermediate rights holders, and certificates of authorship with respect
to any creative services provided on a work-made-for-hire basis. 

  

	 	(b)	a schedule indicating (i) the date of original copyright of the musical, literary and dramatic materials upon which the APs are based, if applicable (and any renewals and
extensions thereof), and (ii) the exact copyright notice of the APs. 

  

	 	(c)	one (1) copy of each of the signed composers, lyricist and/or publishing agreements entered into for the original music composed for and embodied in the APs.

  

	 	(d)	synchronization licenses for every musical composition and Master Recordings contained in the AP (“the Synchronization Licenses”). The Synchronization Licenses shall be in
full force and effect, and shall permit the synchronization, reproduction, exhibition and distribution of each clip, item of previously released footage, musical composition and master recordings as embodied as the AP in all media including on
Videograms throughout the Territory during the Term and the Sell Off Period. Delivery of the Synchronization Licenses to Genius shall not relieve ESPN of its warranties made in this Agreement and shall not in any way affect Genius’s rights
under such agreement in the event of a breach of such warranties. 

  

	 	(e)	all clip and/or previously released footage licenses for every clip and item of previously released footage contained in the AP, if any. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 25/39 

	6.	A complete and accurate written statement of any and all screen and advertising credit obligations and any and all likeness restrictions, together with a layout of the proposed
advertising credits and photostatic copies of excerpts from all agreements defining and describing both the form and nature of the required credits (including any tie-in obligations) and any restrictions as to the use of name and likeness.

  

	7.	If the AP was recorded in Dolby or Ultra Stereo, a copy of the applicable license. 

  

	8.	If required in writing by Genius, all agreements or other documents relating to the engagement of personnel in connection with the AP not set forth above (including those individual
producers, directors, artists and conductors) as may be requested by Genius in form and substance satisfactory to Genius. 

  

	9.	A music cue sheet(s) in customary form containing all titles, timings, copyright owners and publishers, performance rights societies, and type of usage. 

  

	10.	Upon Genius’s reasonable request in writing, copies of any other agreements entered into in connection with the AP. 

  

	11.	Certificate of errors and omissions insurance policy as set forth in the Agreement. 

  

	12.	Title Report obtained by ESPN from Thomson & Thomson, CT Corsearch or another entity acceptable to Genius for purposes of obtaining errors and omissions insurance.

  

	II.	FILM MATERIALS: With respect to each AP: 

  

	 	(a)	If available, one dialogue/continuity and transcript. 

  

	 	(b)	The highest quality available of either (i), (ii), (iii) or (iv) below, listed in descending order of quality: 

  

	 	(i)	One (1) original first class quality D5 (1080p/24) NTSC 16:9 UNSUBTITLED master with NON-DROP FRAME timecode, technically suitable television broadcast and/or the
manufacture of video recordings including DVDs, with the following audio and text configuration: 

 Channel 1&2:
    L/R 
 Channel 3&4:     center/sub 
 Channel 5&6:     Ls/Rs 
 Channel 7&8:     stereo LT/RT 
  

	 	(ii)	One (1) original first class quality Digital Betacam NTSC 16:9 UNSUBTITLED master with NON-DROP FRAME timecode, technically suitable for television broadcast and/or the
manufacture of video recordings including DVDs, with the following audio and text configuration. : 

 Channel 1:
    full stereo mix left 
 Channel 2:     full stereo mix right 
 Channel 3:     music, effects (stereo left) 
 Channel 4:     music, effects (stereo right) 
  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 26/39 

	 	(iii)	One (1) original first class quality Digital Betacam NTSC or High Definition videotape 1.85, 2.35 letterbox master (UNSUBTITLED) with NON-DROP FRAME timecode,
technically suitable for television broadcast and/or the manufacture of video recordings including DVDs, with the following audio and text configuration: 

 Channel 1:     full stereo mix left 
 Channel 2:     full stereo mix
right 
 Channel 3:     music, effects (stereo left) 
 Channel 4:     music, effects (stereo right) 
  

	 	(iv)	One (1) original first class quality Digital Betacam NTSC or High Definition videotape full frame 1.33 master (UNSUBTITLED) with NON-DROP FRAME timecode, technically
suitable for television broadcast and/or the manufacture of video recordings including DVDs, with the following audio and text configuration: 

 Channel 1:     full stereo mix left 
 Channel 2:     full stereo mix
right 
 Channel 3:     music, effects (stereo left) 
 Channel 4:     music, effects (stereo right) 
  

	 	(c)	If available, one (1) NTSC Digital Betacam of deleted scenes (with sync audio), interview footage, EPK’s, making of footage, or other video or audio material suitable for
inclusion as bonus material on DVD. 

  

	 	(d)	One (1) DA88 with 29.97 non-drop frame time code that syncs with above with the following configuration: 

 Channel 1:     full stereo mix left 
 Channel 2:     full stereo mix right 
 Channel 3:     dialogue left

 Channel 4:     dialogue right 
 Channel 5:     music left 
 Channel 6:     music right 

Channel 7:     effects left 
 Channel 8:     effects right 
  

	 	(e)	The hightest quality available of either (i) or (ii) below, listed in descending order of quality: 

  

	 	(i)	One (1) complete Pro Tools audio recording file suitable for DVD encoding and disc manufacture, including without limitation all files necessary to create discrete dialogue,
music and effects tracks. 

  

	 	(ii)	One (1) set of the following DA88 or DAT masters: 

  

	 	(A)	One (1) DA88 or DAT with 29.97 non-drop frame time code of all music scores in the AP free from fades; and 

  

	 	(B)	One (1) DA88 with 29.97 non-drop frame time code of a 5.1 Dolby Surround Sound mix suitable for DVD encoding and disc manufacture. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 27/39 

	 	(f)	If available, one (1) Digital Betacam NTSC of standard advertising units produced in support of TV release including one or more of :10, :15, :30, :60 and/or :90 creative.

  

	 	(g)	Free access to foreign language masters, if and when created. 

  

	III.	PUBLICITY MATERIALS: With respect to each AP: 

 Such
pre-existing advertisements, publicity pieces and promotional materials concerning the AP (“Publicity Materials”) as Genius requires, including without limitation the following: 
  

	 	(a)	If available, press kit information, including 

  

	 	(i)	a synopsis of the story 

  

	 	(ii)	production notes 

  

	 	(iii)	bios for key players, the director, producers, screenwriters 

  

	 	(iv)	credit lists of cast and crew. All in English. 

  

	 	(b)	All key art if available and used in all previously existing marketing materials for the AP, to be delivered on CD. (i.e., artwork elements) 

  

	 	(c)	If available, the billing block to be delivered on a CD or sent via electronic mail. (Billing block may also be delivered as a b&w photstat with prior approval of the
Genius’s Director of Creative Services.) All billing block art will be considered pre-approved by all parties prior to delivery. 

  

	 	(d)	If available, Unit photography consisting of all photography relating to the AP and/or of actors in the AP shot on the set or for publicity. (Notations should be made where possible
identifying the persons and subject matter depicted.) Unit photography elements are non-returnable and the property of Genius; duplication of original photography is the responsibility of ESPN. 

  

	 	(e)	If available, EPK to be delivered on Digital Betacam NTSC. EPK should contain scene clips, soundbites, unedited B-roll, featurette and trailer. 

  

	 	(f)	If available,all other available advertising and marketing materials including one-sheets, sell sheets and advertising art elements. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 28/39 

 EXHIBIT C 
 FORM OF LABORATORY ACCESS LETTER 
 DATE 
 LABORATORY NAME (the “Laboratory”) 
 LABORATORY ADDRESS 
  

	Re:	“NAME OF PICTURE” 

 To Whom It May Concern: 

 

	1.	PICTURE/TERM/TERRITORY: The undersignedESPN Enterprises, Inc. (“ESPN”) has granted to GENIUS Products, Inc. ( “Distributor”) a license to manufacture,
market, distribute, exhibit and otherwise exploit the motion picture entitled name of picture (the “AP”) for a Distribution term expiring date (the “Term”) for the territory name of territory (the
“Territory”). 

  

	2.	MATERIAL: Laboratory confirms that the materials as set forth on the attached ANNEX 1 (list of film materials) (the “Material”) are satisfactory for the
manufacture of commercially acceptable quality prints, video duplicates, video transfers, and pre-print material. During the entire period of said license, the Material shall remain in Laboratory’s possession and under Laboratory’s control
at the above address and shall not be removed from the facility without the express written consent of both the Distributor and ESPN. 

  

	3.	DISTRIBUTOR’S ORDERS: This will authorize, direct and instruct the Laboratory to fill all orders of Distributor or Distributor’s designees at any time during the
Term as Distributor or Distributor’s designees shall request at the sole cost and expense of Distributor or Distributor’s designees. 

  

	4.	NO CLAIM: Notwithstanding any claim or lien which Laboratory may now or hereafter assert against ESPN or others with respect to the AP or any of the Material, Laboratory
agrees that it shall not, by asserting or enforcing any such claim or lien, refuse to accept or perform any requests placed by Distributor or Distributor’s designees as herein provided. Conversely, notwithstanding any claim or lien which
Laboratory may now or hereafter have or assert against Distributor or others against AP or any of the Material, Laboratory agrees that it shall not, by asserting or enforcing any such claim or lien refuse to accept or perform any requests placed by
ESPN or ESPN’s designee as herein provided. 

  

	5.	IRREVOCABILITY: The instruction, authorization and directions herein contained in favor of Distributor are being relied on by Distributor and are coupled with an interest and
may not be revoked, rescinded, or in any way modified without written consent of Distributor. During the Term, Laboratory irrevocably agrees and undertakes not to cause or permit the removal of the Material from its premises without the written
permission of both ESPN and Distributor. 

  

	6.	LABORATORY FACILITY ACKNOWLEDGMENT: By signing in the space provided below, Laboratory agrees that it will fill all orders from Distributor or Distributor’s designees,
as the case may be, in accordance with the authority granted herein without regard to any liability or obligation or ESPN or any third party and Laboratory agrees to be bound by the foregoing instructions and directions. 

  

	7.	This agreement supersedes and revokes any prior instruments or written agreement among the parties in connection with the Material. 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 29/39 

	8.	If no orders are received by Laboratory in regard to the AP for the period of one (1) year, the ESPN agrees that it shall either commence paying Laboratory charges for the
storage of the Material or remove the Material to another laboratory subject to such laboratory executing a Laboratory Access Agreement in favor of Distributor substantially in the form hereof. 

 By signing in the space provided below, the signatories agree to all of the terms and conditions herein set forth. 
  

			
	 Very truly yours,

	
	 ESPN ENTERPRISES, INC.
 “ESPN”

		
	 By:
	 	  
	 Title:
	 	
	
	 ACKNOWLEDGED AND AGREED TO:

	
	 Laboratory name
 “Laboratory”

		
	 By:
	 	  
	 Title:
	 	
	
	 GENIUS PRODUCTS, INC.

	 “Distributor”

		
	 By:
	 	  
	 Title:
	 	

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 30/39 

 ATTACHMENT 1 
 Code of Conduct for Manufacturers 
 At ESPN, we are committed to: 

 

	 	•	 	a standard of excellence in every aspect of our business and in every corner of the world; 

  

	 	•	 	ethical and responsible conduct in all of our operations; 

  

	 	•	 	respect for the rights of all individuals; and 

  

	 	•	 	respect for the environment. 

 We expect these same commitments to be
shared by all manufacturers of ESPN merchandise. At a minimum, we require that all manufacturers of ESPN merchandise meet the following standards: 
  

			
	Child Labor	  	Manufacturers will not use child labor.
		
		  	The term “child” refers to a person younger than 15 (or 14 where local law allows) or, if higher, the local legal minimum age for employment or the age for completing compulsory
education.
		
		  	Manufacturers employing young persons who do not fall within the definition of “children” will also comply with any laws and regulations applicable to such persons.
		
	Involuntary Labor	  	Manufacturers will not use any forced or involuntary labor, whether prison, bonded, indentured or otherwise.
		
	Coercion and Harassment	  	Manufacturers will treat each employee with dignity and respect, and will not use corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment
or abuse.
		
	Nondiscrimination	  	Manufacturers will not discriminate in hiring and employment practices, including salary, benefits, advancement, discipline, termination or retirement, on the basis of race, religion, age,
nationality, social or ethnic origin, sexual orientation, gender, political opinion or disability.
		
	Association	  	Manufacturers will respect the rights of employees to associate, organize and bargain collectively in a lawful and peaceful manner, without penalty or interference.
		
	Health and Safety	  	Manufacturers will provide employees with a safe and healthy workplace in compliance with all applicable laws and regulations, ensuring at a minimum, reasonable access to potable water and
sanitary facilities, fire safety, and adequate lighting and ventilation.
		
		  	Manufacturers will also ensure that the same standards of health and safety are applied in any housing that they provide for employees.

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 31/39 

			
	Compensation	  	We expect manufacturers to recognize that wages are essential to meeting employees’ basic needs. Manufacturers will, at a minimum, comply with all applicable wage and hour laws and
regulations, including those relating to minimum wages, overtime, maximum hours, piece rates and other elements of compensation, and provide legally mandated benefits. If local laws do not provide for overtime pay, manufacturers will pay at least
regular wages for overtime work. Except in extraordinary business circumstances, manufacturers will not require employees to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours
allowed by local law or, where local law does not limit the hours of work, the regular work week in such country plus 12 hours overtime. In addition, except in extraordinary business circumstances, employees will be entitled to at least one day off
in every seven-day period.
		
		  	Where local industry standards are higher than applicable legal requirements, we expect manufacturers to meet the higher standards.
		
	Protection of the Environment	  	Manufacturers will comply with all applicable environmental laws and regulations.
		
	Other Laws	  	Manufacturers will comply with all applicable laws and regulations, including those pertaining to the manufacture, pricing, sale and distribution of merchandise.
		
		  	All references to “applicable laws and regulations” in this Code of Conduct include local and national codes, rules and regulations as well as applicable treaties and voluntary
industry standards.
		
	Subcontracting	  	Manufacturers will not use subcontractors for the manufacture of ESPN merchandise or components thereof without ESPN’s express written consent, and only after the subcontractor has entered
into a written commitment with ESPN to comply with this Code of Conduct.
		
	Monitoring and Compliance	  	Manufacturers will authorize ESPN and its designated agents (including third parties) to engage in monitoring activities to confirm compliance with this Code of Conduct, including unannounced
on-site inspections of manufacturing facilities and employer-provided housing; reviews of books and records relating to employment matters; and private interviews with employees. Manufacturers will maintain on site all documentation that may be
needed to demonstrate compliance with this Code of Conduct.
		
	Publication	  	Manufacturers will take appropriate steps to ensure that the provisions of this Code of Conduct are communicated to employees, including the prominent posting of a copy of this Code of Conduct,
in the local language and in a place readily accessible to employees, at all times.

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 32/39 

 ATTACHMENT 2 
 Code of Conduct for Genius 
 At ESPN, we are committed to: 
  

	 	•	 	a standard of excellence in every aspect of our business and in every corner of the world; 

  

	 	•	 	ethical and responsible conduct in all of our operations; 

  

	 	•	 	respect for the rights of all individuals; and 

  

	 	•	 	respect for the environment. 

 We expect these same commitments to be
shared by all ESPN licensees and the manufacturers with which they work in the production of ESPN merchandise. At a minimum, we require that all ESPN licensees meet the following standards: 
  

			
	Conduct of Manufacturing	  	Licensees that engage directly in the manufacturing of ESPN merchandise will comply with all of the standards set forth in ESPN’s Code of Conduct for Manufacturers, a copy of which is
attached.
		
		  	Licensees will ensure that each manufacturer other than the licensee also enters into a written commitment with ESPN to comply with the standards set forth in ESPN’s Code of Conduct for
Manufacturers.
		
		  	Licensees will prohibit manufacturers from subcontracting the manufacture of ESPN merchandise or components thereof without ESPN’s express written consent, and only after the subcontractor
has entered into a written commitment with ESPN to comply with ESPN’s Code of Conduct for Manufacturers.
		
	Monitoring and Compliance	  	Licensees will take appropriate steps, in consultation with ESPN, to develop, implement and maintain procedures to evaluate and monitor manufacturers of ESPN merchandise and ensure compliance
with ESPN’s Code of Conduct for Manufacturers, including unannounced on-site inspections of manufacturing facilities and employer-provided housing; review of books and records relating to employment matters; and private interviews with
employees.
		
		  	Licensees will authorize ESPN and its designated agents (including third parties) to engage in similar monitoring activities to confirm Licensees’ compliance with this Code of Conduct.
Licensees will maintain on site all documentation that may be needed to demonstrate such compliance.

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 33/39 

 ATTACHMENT 3 
 FACILITY AND MERCHANDISE AUTHORIZATION FORM 
 Attached is the Facility and Merchandise Authorization Form
(“Authorization Form”) that must be completed for each Facility that will produce ESPN Merchandise. 
  

	 	•	 	Please make as many copies of the attached Authorization Form as necessary so that you can complete an Authorization Form for each Facility 

  

	 	•	 	Once the Authorization Form is completed for each Facility, please send to: 

  

			
	  	  	  
	  	  	  

  

	 	•	 	ESPN will verify the information and determine whether each Facility will be allowed to produce ESPN Merchandise 

  

	 	•	 	For those Facilities that are allowed to produce ESPN Merchandise, and have not yet executed a Manufacturer’s Agreement on behalf of ESPN, you will be sent a
Manufacturer’s Agreement that must be signed by each Facility 

  

	 	•	 	Once it is determined that a Manufacturer’s Agreement is in place for each Facility, the Authorization Form will be signed by ESPN and returned to you 

 

	 	•	 	You may begin production of ESPN Merchandise as authorized under your applicable agreement with ESPN, once you receive the signed Authorization Form from ESPN

  

	 	•	 	You also may present the Authorization Form to Customs officials to facilitate the importation of goods if the Facility is outside the territory where the Merchandise is to be sold.
Emergency Customs letters will no longer be issued. 

 The information you are providing is for use in the ESPN Compliance
Program only, and will be kept confidential in accordance with ESPN’s usual and customary business practices. 
  

	
	Definition of “Facility”: any manufacturer, factory, supplier, facility or any other entity which produces
or manufactures Merchandise, or components of Merchandise, labels, hang-tags, packaging, or any other item which bears any ESPN Property, Brand or Logo. Do NOT list facilities that only produce generic items such as cardboard boxes, plastic wrap, or
plain buttons, UNLESS these components contain any ESPN proprietary material. Unless they are involved in the actual production or manufacture of Merchandise, do NOT list agents, business offices or showrooms as a Facility. The Shipper and/or
Importer of Record is strictly the party who transports the goods; if the name is different from that of the Licensee/Vendor or Facility, please so indicate on the Facility and Merchandise Authorization.

 Incomplete or illegible forms will be returned to you for resubmission. Please make copies of
these forms 
 and use the copies to submit your information. Maintain the original in your files for future use.

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 

 FACILITY AND MERCHANDISE AUTHORIZATION 
 (Please Type or Print Legibly in Ink) 
  

			
	 LICENSEE/VENDOR NAME:
  
 _________________________________________________
	  	 TELEPHONE NUMBER:
  
 _________________________________________________

	 STREET ADDRESS:
  
 ____________________________________
	  	FAX NUMBER:
	  
 _________________________________________________
	  	
		
	 _________________________________________________
  
 _________________________________________________
	  	 CONTACT NAME, TITLE AND, IF AVAILABLE,
E-MAIL ADDRESS:
  
 _________________________________________________
  
 _________________________________________________

		
	 1.      Manufacturing Facility Name (Place Where Merchandise is
Produced):
  
 _________________________________________________
  
 1a.    Manufacturing Facility
Address:
  
 _________________________________________________
  
 _________________________________________________
  
 _________________________________________________
  
 _________________________________________________
  
 _________________________________________________
 1b.   Telephone Number:
  
 _________________________________________________
  
 1c.    Fax Number:
  
 _________________________________________________
  
 1d.   Contact Name and Title:
  
 _________________________________________________
	  	 1e.    List All Other Names by Which the Manufacturing Facility is
Known:
  
 _________________________________________________
  
 _________________________________________________
  
 1f.    Is this Manufacturing Facility
Owned by the Licensee or Vendor?
  
 ______________Yes
 ______________No
  
 1g.    List All Authorized Merchandise
Produced in this Facility (as listed on the License Agreement) : Attach a separate sheet if necessary

		
	 2.      ESPN Property, Brand or Logo (List All Produced in this Facility):
	  	4.      ̈Shipper  ̈Importer of Record (check one). Provide Name and Address: Only List if the Transporter of the Merchandise is other than Facility or
Licensee/Vendor.
		
	 3.      Territory Where Merchandise May Be Sold:
	  	

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 35/39 

 Once signed on behalf of ESPN Enterprises, Inc., this document may be presented to the Customs authority, in the
country specified above as the territory where the Merchandise may be sold, at the port of entry, to confirm ESPN’s authorization of shipments of the Merchandise identified above. This Authorization shall expire on the first to occur of
the following: (1) the passage of 3 years from the date set forth below, (2) the expiration or termination of the applicable agreement between Licensee/Vendor and ESPN, or, (3) the termination of the Authorization by ESPN. 

 

									
	 Very truly yours,
 DISNEY ENTERPRISES, INC.
	 		 	
					
	By:	 	  	 		 		 	
		 	 ESPN ENTERPRISES, INC.
	 		 		 	
		 	 Consumer Products
	 		 	 Date:
                                        
                            

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 36/39 

 ATTACHMENT 4 
 MANUFACTURER’S AGREEMENT 
  

	Facility	Name and Address: 

  
  
  
 The “Facility”
referenced above enters into this Manufacturer’s Agreement (“MA”) for the express purpose of inducing the reliance thereon by ESPN Enterprises, Inc., and/or its affiliates and/or its authorized sublicensors (“ESPN”), and/or
its and their licensees and/or vendors (“Authorized Party”), any of which may order from the Facility merchandise, packaging, materials or fixtures containing a trademark, character, design, name, symbol or other material owned,
copyrighted or licensed by ESPN (“Proprietary Material”). All of such merchandise, packaging, materials or fixtures containing such Proprietary Material shall be referred to herein by the term “Merchandise.” Facility intends and
agrees to be bound by all of the terms and conditions hereof, for the benefit and in favor of ESPN and/or the Authorized Party. This MA shall remain in effect for three (3) years, and thereafter shall automatically renew for three (3) year
periods, unless it is terminated earlier by ESPN in its absolute discretion upon written notice to the Facility, or unless it is superceded by another MA provided by ESPN to the Facility. 
 In consideration for ESPN’s agreement to permit the manufacture of Merchandise by the Facility, the Facility covenants and agrees that: 
 1. The Facility will not manufacture the Merchandise to the order of anyone but ESPN or the Authorized Party, will invoice only ESPN or the Authorized Party, or their
designees, and will not ship to anyone other than ESPN or the Authorized Party or their designees. In addition to any other remedies at law, which shall be cumulative, the Facility agrees to pay ESPN its gross revenues from any sales of Merchandise
not authorized by or on behalf of ESPN. 
 2. The Facility will not subcontract production of the Merchandise or components which contain Proprietary
Material without ESPN’s written consent and the subcontractor’s execution of a Manufacturer’s Agreement. 
 3. The Facility will not (without
ESPN’s written consent) manufacture merchandise utilizing any properties the copyright or trademark to which is owned or licensed by ESPN, other than the Merchandise in accordance with this Agreement. 
 4. From time to time, the Facility will permit ESPN’s authorized representative to inspect its activities and premises, accounting books and invoices relevant to
its manufacture and supply of Merchandise. 
 5. The Facility will not publish or cause the publication of pictures of the Merchandise in any publication or
promotional material, nor advertise the fact that it is permitted to manufacture Merchandise, nor use the name “ESPN” or any variant thereof without ESPN’s prior written consent. 
 6. In manufacturing the Merchandise, the Facility will comply with all applicable local and national laws and regulations, treaties, voluntary industry standards, codes
or other obligations (collectively, “Laws”), including but not limited to, applicable health and safety standards and labor laws for manufacturing 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 37/39 

 
operations. Specifically, the Facility covenants that it will honor the terms of the Code of Conduct for Manufacturers as follows: 
 (a) The Facility shall not use child labor in the manufacturing, packaging or distribution of ESPN Merchandise. The term “child” refers to a person younger
than the local legal minimum age for employment or the age for completing compulsory education, but in no case shall any child younger than fifteen (15) years of age (or fourteen (14) years of age where local law allows) be employed in the
manufacturing, packaging or distribution of ESPN Merchandise. The Facility employing young persons who do not fall within the definition of “children” also shall comply with any Laws applicable to such persons. 
 (b) The Facility shall only employ persons whose presence is voluntary. The Facility shall not use any forced or involuntary labor, whether prison, bonded, indentured or
otherwise. 
 (c) The Facility shall treat each employee with dignity and respect, and shall not use corporal punishment, threats of violence, or other forms
of physical, sexual, psychological or verbal harassment or abuse. 
 (d) The Facility shall not discriminate in hiring and employment practices, including
salary, benefits, advancement, discipline, termination, or retirement on the basis of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, political opinion or disability. 
 (e) The Facility recognizes that wages are essential to meeting employees’ basic needs. The Facility shall comply, at a minimum, with all applicable wage and hour
Laws, including minimum wage, overtime, maximum hours, piece rates and other elements of compensation, and shall provide legally mandated benefits. If local Laws do not provide for overtime pay, the Facility shall pay at least regular wages for
overtime work. Except in extraordinary business circumstances, the Facility shall not require employees to work more than the lesser of (1) 48 hours per week and 12 hours overtime or (2) the limits on regular and overtime hours allowed by
local law, or, where local law does not limit the hours of work, the regular work week in such country plus 12 hours overtime. In addition, except in extraordinary business circumstances, employees will be entitled to at least one day off in every
seven-day period. The Facility agrees that, where local industry standards are higher than applicable legal requirements, it will meet the higher standards. 
 (f) The Facility shall provide employees with a safe and healthy workplace in compliance with all applicable Laws, ensuring, at a minimum, reasonable access to potable water and sanitary facilities, fire safety, and adequate lighting and
ventilation. The Facility also shall ensure that the same standards of health and safety are applied in any housing it provides for employees. The Facility shall provide ESPN with all information ESPN may request about manufacturing, packaging and
distribution facilities for the Merchandise. 
 (g) The Facility shall respect the rights of employees to associate, organize and bargain collectively in a
lawful and peaceful manner, without penalty or interference, in accordance with applicable Laws. 
 (h) The Facility shall comply with all applicable Laws,
including those pertaining to the manufacture, pricing, sale and distribution of the Merchandise. 
  

	(i)	The Facility shall comply with all applicable environmental Laws. 

 (j)
The Facility agrees that ESPN and its designated agents (including third parties) and the Authorized Party may engage in monitoring activities to confirm compliance with this MA, including unannounced on-site inspections of manufacturing, packaging
and distribution facilities, and employer-provided housing, such inspections to include reviews of books and records relating to employment matters and private interviews 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 38/39 

 
with employees. The Facility shall maintain on site all documentation necessary to demonstrate compliance with this MA. 
 (k) The Facility shall take appropriate steps to ensure that the provisions of this Paragraph 6 are communicated to employees, including the prominent posting of a copy
of ESPN’s Code of Conduct for Manufacturers in the local language and in a place readily accessible to employees at all times. 
 7. All artwork
utilized in the manufacture of the Merchandise shall be subject to ESPN’s prior approval (which approval may be withheld at ESPN’s absolute discretion) and the rights to said artwork and the devices used specifically to manufacture said
artwork (molds, plates, engravings, etc.), as well as all other Proprietary Material, shall at all times remain the sole property of ESPN. 
 8. As an
express condition of this MA, Facility shall affix a copyright and/or trademark notice, in a form to be authorized by ESPN, to any Merchandise manufactured by Facility containing Proprietary Material, before its delivery thereof to ESPN or the
Authorized Party. If and to the extent the Merchandise will be incorporated into other articles which shall have a ESPN copyright and/or trademark notice affixed thereto, then and to that extent Facility will not be required to affix ESPN’s
copyright and/or trademark notice to the Merchandise; provided, however, that this waiver of ESPN’s usual requirement that Facilities affix the foregoing copyright and/or trademark notice to all Merchandise being manufactured for or on behalf
of ESPN which contain Proprietary Material shall only apply to Merchandise delivered by Facility to ESPN or the Authorized Party for incorporation into articles on which the foregoing copyright and/or trademark notice is affixed. 
 9. Upon expiration or termination of this MA, or upon notification by ESPN, the Facility will (a) immediately cease manufacturing the Merchandise and deliver to
ESPN or its authorized representative that portion of any and all molds, plates, engravings or other devices used to reproduce the Proprietary Material, or (b) provide ESPN with satisfactory evidence that the Proprietary Material has been
erased or eradicated and is no longer reproducible. 
 10. This MA shall be deemed to be entered into in California and shall be governed and interpreted
according to the laws of the State of California applicable to contracts made and to be fully performed in California. Any legal actions pertaining to this MA shall be commenced within the State of California and within either Los Angeles or Orange
Counties, and the Facility hereby consents to the jurisdiction of the appropriate court within the State of California. ESPN may rely for any and all purposes on the Facility’s faxed signature on this MA, but faxing the MA does not excuse the
Facility from its obligation to return the original executed MA so that ESPN may maintain the original executed MA in its files. 
  

			
	 FACILITY:

		
	 By:
	 	  
		
	 Title:
	 	  
		
	 Date:
	 	  

  

	*	PLEASE ANSWER THESE TWO QUESTIONS: 

  

	 	1.	Is your address correct on the first page of this Agreement?
                             

 If not, please write the correct address next to the address section. 
  

	 	2.	What percentage of your facility capacity is dedicated to ESPN Merchandise?
                                % 

  

 *** Certain confidential information in this document has been omitted pursuant to a request for Confidential Treatment
and filed separately with the Commission. 
 39/39Employment Agreement between OMNI Energy Services Corp. and John Harris

 Exhibit 10.1 
 JOHN HARRIS 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”) is made effective as of September 23, 2006, between OMNI Energy Services Corp., a Louisiana
corporation (“OMNI”) and John Harris, a resident of Hazelhurst, Mississippi (“Employee”). In order to protect the goodwill of OMNI and in consideration of the premises and the mutual covenants contained herein, the parties hereby
agree as follows: 
 1. Employment. OMNI hereby agrees to employ Employee and Employee hereby agrees to work for OMNI as its Vice
President—Seismic Operations or such other salaried, executive position as OMNI and Employee shall mutually agree. So long as Employee is employed by OMNI, Employee shall devote Employee’s skill, energy and substantially all of his
business-related efforts to the faithful discharge of Employee’s duties as a salaried, exempt employee of OMNI. In providing services hereunder, Employee shall comply with and follow all directives, policies, standards and regulations from time
to time established by the Board of Directors of OMNI. 
 2. Term of Employment. Employee’s employment by OMNI pursuant to this
Agreement shall continue in effect until December 31, 2008 (the “Initial Period”), which shall be automatically extended for additional, successive one year periods (the “Additional Periods”) commencing on January 1,
2009, unless either party gives notice of non-renewal as provided in Section 6(d) or otherwise terminates this Agreement in accordance with the other provisions of Section 6. 
 3. Representations and Warranties. Employee represents and warrants that Employee is under no contractual or other restrictions or obligations
that will limit Employee’s activities on behalf of OMNI or will prohibit or limit the disclosure or use by Employee of any information which directly or indirectly relates to the business of OMNI or the services to be rendered by Employee under
this Agreement. 
 4. Compensation.. Subject to the provisions of Section 6, Employee will be entitled to the compensation and
benefits set forth in this Section 4. 
 (a) During the Initial Period, OMNI shall pay Employee an Annual Base Salary, payable semi-monthly,
in equal semi-monthly installments at a rate equal to $185,000.00 per year. In each Additional Period, OMNI shall pay to Employee an Annual Base Salary (not less than $185,000.00 per year) determined by the OMNI Board of Directors following its
annual salary and performance review. Employee’s Annual Base Salary will be reviewed annually in the fourth quarter of each fiscal year of Employee’s employment hereunder, commencing in the fourth quarter of fiscal year 2007. 

(b) Employee shall be eligible to receive an annual bonus. For 2006, the bonus will be calculated per Exhibit “C” (attached). The bonus
targets for subsequent years will be generated by the Company CEO, approved by the OMNI Board of Directors, and presented to Employee before April 1. The bonus will be determined and if appropriate, awarded by the 

 Board during each calendar year beginning with the 2006 calendar year, but will be paid following the closing of the
books and records of OMNI for each such calendar year, but not later than April 1 of the following calendar year. 
 (c) All payments of
salary and other compensation to Employee shall be made after deduction of any taxes required to be withheld with respect thereto under applicable federal and state laws. 
 5. Fringe Benefits; Expenses. 
 (a) During the term of employment of Employee hereunder, Employee
shall be entitled to participate in all employee benefit plans sponsored by OMNI and made available for salaried, exempt employees, including sick leave and disability leave, health insurance and 401(k) plans. 
 (b) OMNI will reimburse Employee for all reasonable business expenses incurred by Employee in the scope of Employee’s employment; provided, however,
that Employee must file expense reports with respect to such expenses and otherwise comply with OMNI’s policies as are in effect from time to time and are made known to Employee. During the term of employment of Employee hereunder, OMNI will
provide Employee with a personal residence substantially similar to that being provided on the date this Agreement is executed, as well as use of a company-owned vehicle. At the conclusion of the Employee’s employment, Employee shall
immediately return the residence and vehicle to OMNI in the same condition in which they were provided, subject to normal wear and tear. 
 (c) During the term of employment of Employee hereunder, Employee shall be entitled to four (4) weeks paid vacation during each calendar year (prorated for any partial year) and to paid holidays and other paid leave set forth in and in
accordance with OMNI’s policies in effect from time to time for other salaried, exempt employees. Any vacation not used during a calendar year may not be used during any subsequent period. Employee shall be compensated for any unused vacation
upon termination of this Agreement for any reason. 
 (d) (i) On April 11, 2006 Employee was granted non-qualified options to purchase
60,000 shares of OMNI Common Stock pursuant to the Sixth Amended and Restated OMNI Energy Services Corp Stock Incentive Plan (the “Plan”). The options shall vest in accordance to the Stock Option Agreement for the Grant of Non-Qualified
Stock Options dated April 11, 2006 under the Plan. (ii) All options granted to Employee hereunder shall vest immediately upon termination by OMNI without cause (See Section 6(a) hereof), and upon a Change of Control as defined in
Section 10.11(A) of the Plan. The exercise price of the options granted hereunder shall be equal to the Fair Market Value, as defined in the Plan, of a share of Common Stock on the date of grant. The Options may be exercised as provided in
Section 6.4 of the Plan. All options granted to Employee hereunder shall expire three (3) years after the effective Option Date. 
 6. Termination or Non-Renewal of Employment. 
 (a) Termination by OMNI Without Cause. OMNI may terminate
Employee’s employment hereunder at any time during the term of this Agreement Without Cause by delivery 

 of thirty (30) days prior written notice by OMNI to Employee. After such termination of employment, OMNI shall pay:
(i) the Annual Base Salary then in effect in semi-monthly payments and in accordance with OMNI’s normal payroll practices for the remainder of the contract period or twelve months (Restricted Period), which ever is greater,
(ii) vacation pay earned but not taken to the date of such termination, (iii) annual bonuses prorated to date of termination, if awarded pursuant to Section 4(b) hereof, and (iv) all stock options will become vested and shall be
eligible for execution twelve months after termination of employment pursuant to this subparagraph. Upon termination of Employee’s employment hereunder, Employee shall be deemed to have resigned from all offices, directorships, and committee
positions then held with OMNI or any Affiliate. 
 (b) Termination by Employee. Employee may terminate Employee’s employment
hereunder at any time during the term of this Agreement by obtaining the concurrence of OMNI, and by delivery of thirty (30) days prior written notice by Employee to OMNI. Promptly after such termination of employment, OMNI shall pay to
Employee an amount equal to the sum of: (i) Employee’s earned but unpaid Annual Base Salary through the date of termination of employment at the rate in effect at the time of such termination (ii) vacation pay earned but not taken to
the date of such termination and, (iii) annual bonuses prorated to date of termination, if awarded pursuant to Section 4(b) hereof. Upon termination of Employee’s employment hereunder, Employee shall be deemed to have resigned from
all offices, directorships, and committee positions then held with OMNI or any affiliate. 
 (c) Termination for Cause. If OMNI
terminates Employee’s employment for Cause (by delivering written notice of termination setting forth the event or events constituting Cause and the effective date of such termination) the payments due to Employee shall be limited to the
amounts described in Section 6(b)(i) and (ii). Upon termination of Employee’s employment hereunder, Employee shall be deemed to have resigned from all offices, directorships, and committee positions then held with OMNI or any affiliate.

 (d) Non-Renewal of Employment. Either OMNI or Employee may elect not to renew Employee’s employment hereunder at the end of
the Initial Period, or at the end of any Additional Period thereafter, by delivery of sixty (60) calendar days prior written notice by the electing party to the other party. At the expiration of the employment term, OMNI shall pay to Employee
an amount equal to the sum of: (i) Employee’s earned but unpaid Annual Base Salary through the date of termination of employment at the rate then in effect (ii) vacation pay earned but not taken to the date of such termination, and
(iii) annual bonuses prorated to date of termination, if awarded pursuant to Section 4(b) hereof. Upon termination of Employee’s employment hereunder, Employee shall be deemed to have resigned from all offices, directorships, and
committee positions then held with OMNI or any affiliate. 
 (e) Waiver of Claims. In the event this Agreement is terminated by OMNI
without Cause, Employee agrees to accept, in full settlement of any and all claims, losses, damages and other demands that Employee may have arising out of such termination or non-renewal, as liquidated damages and not as a penalty, the payments,
benefits and vesting of rights set forth in this Agreement. Employee hereby waives any and all rights Employee may have to bring any cause of action or proceeding contesting any such termination or non-renewal; provided, however, that such waiver
shall not be deemed to affect Employee’s rights to enforce 

 any other obligations of OMNI unrelated to employment. Under no circumstances shall Employee be entitled to any
compensation or confirmation of any benefits under this Agreement for any period of time following Employee’s date of termination if Employee’s termination is for Cause. 
 (f) Death. If Employee dies during his employment by OMNI under this Agreement, (i) the Employee’s employment will terminate on the date
of his death, (ii) OMNI will pay to Employee’s estate the remainder of Employee’s Annual Base Salary at the rate then in effect and any accrued incentive bonus through the end of the twelfth (12th) calendar month following the month in which such death occurred, and (iii) Employee’s estate shall be entitled to all rights and
benefits that Employee may have under the terms of OMNI’s Employee Benefit Plans, and Stock Incentive Plan. 
 7. Covenant Not to
Compete. 
 (a) During Employee’s employment with OMNI or any of its Affiliates and thereafter during the Restricted Period (as
defined in Exhibit A attached hereto), Employee will not (i) engage in or carry on, directly or indirectly, either in Employee’s individual capacity or as a member of a partnership or as a shareholder, investor, owner, officer or director
of a company or other entity, or as an employee, agent, associate or consultant of any person, partnership, corporation or other entity, any business in Texas, Louisiana, Mississippi or any parish or county thereof (including but not limited to the
Parishes and Counties listed on Exhibit “B”) or the offshore waters within one-hundred (100) miles of the coast of either such state that directly competes with any services or products produced, sold, provided, conducted or
developed, by OMNI on the date of termination of Employee’s employment including the services described on Exhibit A as “OMNI’s Business”. Notwithstanding the foregoing, Employee shall not be deemed to be in violation of
Section 7(a)(i) based solely on the ownership of less than five (5%) percent of any class of securities registered under the Securities Exchange Act of 1934, as amended. 
 (b) Employee acknowledges that the limitations set forth in this Section 7 are reasonable and necessary for the protection of OMNI and its
Affiliates. In this regard, Employee specifically agrees that the limitations as to period of time and geographic area, as well as all other restrictions on Employee’s activities specified herein, are reasonable and necessary for the protection
of OMNI and its Affiliates. Employee further acknowledges that the parties anticipate that Employee will be actively seeking markets for the products and services of OMNI and its Affiliates throughout the United States during Employee’s
employment with OMNI. 
 (c) In the event that there shall be any violation of the covenants set forth in this Section 7, then the time
limitation thereof shall be automatically extended for a period of time equal to the period of time during which such violation continues; and in the event OMNI is required to seek relief from such violation in any court, board of arbitration or
other tribunal, then the covenant shall be extended for a period of time equal to the pendency of such proceedings, including all appeals. 

 (d) Employee agrees that the remedy at law for any breach by Employee of this Section 7 will be
inadequate and that OMNI shall also be entitled to injunctive relief. 
 8. Non-solicitation. During Employee’s employment with
OMNI or any of its Affiliates and thereafter during the Restricted Period, Employee will not whether for the Employee’s own account or the account of any other Person (A) solicit, employ, or otherwise engage as an employee, independent
contractor, or otherwise, any Person who is an employee of OMNI or any of its Affiliates or in any manner induce or attempt to induce any employee of OMNI and any such Affiliate to terminate his employment with OMNI or such Affiliate or
(B) interfere with OMNI’s or any of its Affiliate’s relationship with any Person, including any Person who at any time during the Employee’s employment with OMNI was an employee, contractor, supplier, or customer of OMNI or any
such Affiliate. 
 9. Confidential Information; Business Opportunity. During the term of Employee’s employment hereunder, and for
five (5) years after Employee’s termination of employment, Employee shall not use or disclose, without the prior written consent of OMNI, Confidential Information (as defined in Exhibit A attached hereto) relating to OMNI or any of its
Affiliates, and upon termination of Employee’s employment will return to OMNI all written materials in Employee’s possession embodying such Confidential Information. Employee will promptly disclose to OMNI all Confidential Information, as
well as any domestic business opportunity related to OMNI which comes to Employee’s attention during the term of Employee’s employment with OMNI. Employee will not take advantage of or divert any such business opportunity for the benefit
of Employee or any other Person (as defined in Exhibit A attached hereto) without the prior written consent of OMNI. Employee agrees that the remedy at law for any breach by Employee of this Section 7 will be inadequate and that OMNI shall also
be entitled to injunctive relief. 
 10. Intellectual Property. 
 (a) To the extent they relate to, or result from, directly or indirectly, the actual or anticipated operations of OMNI or any of its Affiliates, Employee
hereby agrees that all patents, trademarks, copyrights, trade secrets, and other intellectual property rights, all inventions, whether or not patentable, and any product, drawing, design, recording, writing, literary work or other author’s
work, in any other tangible form developed in whole or in part by Employee during the term of this Agreement, or otherwise developed, purchased or acquired by OMNI or any of its Affiliates, shall be the exclusive property of OMNI or such Affiliate,
as the case may be (“Intellectual Property”). 
 (b) Employee will hold all Intellectual Property in trust for OMNI and will
deliver all Intellectual Property in Employee’s possession or control to OMNI upon request and, in any event, at the end of Employee’s employment with OMNI. 
 (c) Employee shall assign to OMNI all property rights that Employee may now or hereafter have in the Intellectual Property. Employee shall take such action, including, but not limited to, the execution,
acknowledgment, delivery and assistance in preparation of documents, and the giving of testimony, as may be requested by OMNI to evidence, transfer, vest or confirm OMNI’s right, title and interest in the Intellectual Property. 

 (d) Employee will not contest the validity of any invention, any copyright, any patent, or any trademark
registration owned by or vesting in OMNI or any of its Affiliates under this Agreement. 
 11. Mediation. Any controversy which may
arise under this Agreement, whether it be between Employee and the Company or any of its officers, directors, shareholders, employees, agents, benefit plans, or affiliates, shall first be heard before a mutually agreed upon mediator. Any mediation
shall take place in Lafayette, Louisiana, or as otherwise agreed upon by the parties. However, Employee retains any and all rights he may have to complain to, and file charges with, any administrative agency dealing with the rights of employees and
to participate in all administrative proceedings before those agencies. This provision shall not preclude either party from seeking temporary injunctive relief from a court of competent jurisdiction. 
 12. Definitions. As used in this Agreement, the terms defined in Exhibit A have the meanings assigned to such terms in such exhibit. 

13. Notices. All notices, requests, demands and other communications required by or permitted under this Agreement shall be in writing and
shall be sufficiently delivered if delivered by hand, by courier service, or sent by registered or certified mail, postage prepaid, to the parties at their respective addresses listed below: 
  

	 	(a)	If to Employee: 

 John Harris 
 2044 East Gallman Road 
 Hazlehurst, MS
39083 
  

	 	(b)	If to OMNI: 

 OMNI Energy Services Corp. 
 P.O. Box 3761 
 Lafayette, LA 70502-3761

 Attention: President 
 Any
party may change such party’s address by furnishing notice to the other party in accordance herewith, except that notices of changes of address shall be effective only upon receipt. 
 14. Assignment. This Agreement is personal to Employee, and Employee shall not assign any of Employee’s rights or delegate any of
Employee’s duties hereunder without the prior written consent of OMNI. OMNI shall have the right to assign this Agreement to a successor in interest in connection with a merger, sale of substantially all assets, or the like; provided however,
that an assignment of this Agreement to an entity with operations, products or services outside of the industries in which OMNI is then active shall not be deemed to expand the scope of Employee’s covenant not to compete with such operations,
products or services 

 without Employee’s written consent. OMNI shall require any Person who is the successor (whether direct or indirect,
by purchase, merger, consolidation, reorganization, or otherwise) to all or substantially all of the business and/or assets of OMNI to expressly assume and agree to perform, by a written agreement, all of the obligations of OMNI under this
Agreement. 
 15. Survival. The provisions of this Agreement shall survive the termination of Employee’s employment hereunder in
accordance with their terms. 
 16. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Louisiana without regard to the choice-of-law principles thereof. 
 17. Choice of Forum; Consent to
Jurisdiction. Any suit, action or proceeding arising with respect to the validity, construction, enforcement or interpretation of this Agreement, and all issues relating in any manner thereto, shall be brought in the United States District Court
for the Western District of Louisiana, Lafayette Division, or in the event that federal jurisdiction does not pertain, in the state court’s of the State of Louisiana in Lafayette Parish. Each of the parties hereto hereby submits and consents to
the jurisdiction of such courts for the purpose of any such suit, action or proceeding and hereby irrevocably waives (a) any objection which any of them may now or hereafter have to the placing of venue in such courts, and (b) any claim
that any such suit, action or proceeding brought in such court has been brought in an inconvenient forum. 
 18. Binding Upon
Successors. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. 
 19. Entire Agreement. This Agreement constitutes the entire agreement between OMNI and Employee with respect to the terms of employment of
Employee by OMNI and supersedes all prior agreements and understandings, whether written or oral, between them concerning such terms of employment. 
 20. Amendments and Waivers. This Agreement may be amended, modified or supplemented, and any obligation hereunder may be waived, only by a written instrument executed by the parties hereto. The waiver by either party of a breach of
any provision of this Agreement shall not operate as a waiver of any subsequent breach. No failure on the part of any party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver hereof, nor shall any single
or partial exercise of any such right or remedy by such party preclude any other or further exercise thereof or the exercise of any other right or remedy. 
 21. Cumulative Rights And Remedies. All rights and remedies hereunder are cumulative and are in addition to all other rights and remedies provided by law, agreement or otherwise. Employee’s obligations to
OMNI and OMNI’s rights and remedies hereunder are in addition to all other obligations of Employee and rights and remedies of OMNI created pursuant to any other agreement and to applicable law. 
 22. Construction. Each party to this Agreement has had the opportunity to review this Agreement with legal counsel. This Agreement shall not be
construed or interpreted against any party on the basis that such party drafted or authored a particular provision, parts of or the entirety of this Agreement. 

 23. Severability. In the event that any provision or provisions of this Agreement is held to be
invalid, illegal or unenforceable by any court of law or otherwise, the remaining provisions of this Agreement shall nevertheless continue to be valid, legal and enforceable as though the invalid or unenforceable parts had not been included therein.
In addition, in such event the parties hereto shall negotiate in good faith to modify this Agreement so as to affect the original intent of the parties as closely as possible with respect to those provisions which were held to be invalid, illegal or
unenforceable. 
 24. Attorneys’ Fees and Costs. If any action at law or in equity is brought to enforce or interpret the terms
of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 
 25. Management/Employment Agreements. By execution hereof, Employee represents and warrants that he has no current employment agreements,
management agreements or consulting agreements with any third party. 
 [Signatures appear on the following page.] 

 IN WITNESS WHEREOF, OMNI and Employee have executed this Agreement on the date first above written.

  

			
	COMPANY:
	
	OMNI Energy Services Corp.
		
	By:	 	 /s/ James C. Eckert

	Name:	 	James C. Eckert
	Title:	 	President
	
	EMPLOYEE:
	
	 /s/ John Harris

	John Harris

 EXHIBIT A 
 DEFINITIONS 
 “Annual Base Salary” means the salary of Employee in effect at the
relevant time determined in accordance with Section 4(a) hereof. 
 “Affiliate” means, with respect to any Person, each
other Person who controls, is controlled by, or is under common control with the Person specified. 
 “Cause” when used in
connection with the termination of employment with OMNI, means the termination of Employee’s employment by OMNI by reason of: (i) the conviction of, the indictment for (or its procedural equivalent), or the entering of a guilty plea or
plea of no contest with respect to, any felony, the equivalent thereof, or any crime or offense causing harm to OMNI or any of its Affiliates (whether or not for personal gain) or involving acts of theft, fraud, embezzlement, moral turpitude or
similar conduct; (ii) the commission (or attempted commission) by Employee of an act of fraud upon OMNI or any of its Affiliates; (iii) the misuse or diversion (or attempted misuse or diversion) of OMNI’s or any of its
Affiliates’ funds or property; (iv) fraudulent or willful and material misrepresentation or concealment on any written report submitted to OMNI or any of its Affiliates; (v) misconduct, failure by Employee to adhere to any written
policy of OMNI or any of its Affiliates, breach of this Agreement, or failure to perform material duties assigned to Employee hereunder or the habitual neglect thereof, in each case described in this clause (v), after reasonable written notice and
opportunity to cure has been given by OMNI; (vi) the appropriation (or attempted appropriation) of a material business opportunity of OMNI or any of its Affiliates, including attempting to secure or securing personal profit in connection with
any transaction entered into on behalf of OMNI or any of its Affiliates; (vii) the engagement by Employee in any conflict of interest with OMNI or any of its Affiliates (except as provided in Section 7(b) of this Agreement) without
compliance with OMNI’s conflict of interest policy, if any, then in effect; (viii) the engagement by Employee, without the prior written approval of the Board of Directors of OMNI, in any activity or venture which competes with the
domestic business of OMNI or any of its Affiliates; (ix) the engagement in any behavior or conduct which would constitute a material violation of the provisions of OMNI’s insider trading policy or business ethics policy, if any, then in
effect; or (x) the engagement in any behavior or conduct which, in the judgment of the Board of Directors, is detrimental to or harms the business or reputation of OMNI or any of its Affiliates, after reasonable notice and opportunity to cure
has been given by OMNI; or (xi) the engagement by or acceptance of employment with another company or entity. 
 “Confidential
Information” includes information conveyed or assigned to OMNI or any of its Affiliates by Employee or conceived, compiled, created, developed, discovered or obtained by Employee from and during Employee’s employment relationship with
OMNI, whether solely by Employee or jointly with others, which concerns the affairs of OMNI or its Affiliates and which OMNI could reasonably be expected to desire be held in confidence, or the disclosure of which would likely be embarrassing,
detrimental or disadvantageous to OMNI or its Affiliates and without limiting the generality of the foregoing includes information relating to inventions, and the trade secrets, technologies, algorithms, methods, products, services, finances,
business plans, marketing plans, legal affairs, supplier lists, client lists, potential clients, business 

 prospects, business opportunities, personnel assignments, contracts and assets of OMNI or any of its Affiliates and
information made available to OMNI or any of its Affiliates by other parties under a confidential relationship. Confidential Information, however, shall not include information (a) which is, at the time in question, in the public domain through
no wrongful act of Employee, (b) which is later disclosed to Employee by one not under obligations of confidentiality to OMNI or any of its Affiliates or Employee, (c) which is required by court or governmental order, law or regulation to
be disclosed, or (d) which OMNI has expressly given Employee the right to disclose pursuant to written agreement. 
 “OMNI’s Business” means domestic oilfield seismic support services, domestic oilfield equipment sales and rental services and domestic oilfield environmental services. 
 “Person” means any individual, corporation, trust, partnership, limited partnership, foundation, association, limited liability company,
limited liability partnership, joint stock association or other legal entity. 
 “Restricted Period” means the period
beginning on the effective date of the termination of Employee’s employment with OMNI and its Affiliates for any reason (including non-renewal) and ending (1) year after the termination of Employee’s employment. 

 EXHIBIT “B” 
 SECTION 7 NON-COMPETE 
 PARISHES AND COUNTIES 
  

									
	 Louisiana:
	  	 Texas:
	  	Mississippi:	  	 
	Beauregard	  	San Augustine	  	Hancock	  		  	
	Calcasieu	  	Sabine	  	Harrison	  		  	
	Cameron	  	Tyler	  	Jackson	  		  	
	Allen	  	Jasper	  		  		  	
	Jefferson Davis	  	Newton	  		  		  	
	Evangeline	  	Harris	  		  		  	
	Acadia	  	Liberty	  		  		  	
	Vermilion	  	Hardin	  		  		  	
	St. Landry	  	Orange	  		  		  	
	Lafayette	  	Jefferson	  		  		  	
	St. Martin	  	Chambers	  		  		  	
	Iberia	  	Galveston	  		  		  	
	West Baton Rouge	  	Fort Bend	  		  		  	
	Iberville	  	Wharton	  		  		  	
	East Baton Rouge	  	Lavaca	  		  		  	
	St. Mary	  	Dewitt	  		  		  	
	Livingston	  	Victoria	  		  		  	
	Ascension	  	Jackson	  		  		  	
	Assumption	  	Matagorda	  		  		  	
	St. James	  	Brazoria	  		  		  	
	Terrebonne	  	Calhoun	  		  		  	
	Tangipahoa	  	Refugio	  		  		  	
	St. John the Baptist	  	Goliad	  		  		  	
	St. Charles	  	Bee	  		  		  	
	Lafourche	  	Aransas	  		  		  	
	St. Tammany	  	San Patricio	  		  		  	
	Orleans	  	Nueces	  		  		  	
	Jefferson	  	Kleberg	  		  		  	
	St. Bernard	  	Kennedy	  		  		  	
	Plaquemines	  		  		  		  	

 

 
 Exhibit “C” 
 The 2006 incentive bonus program for OMNI Business Unit Vice Presidents is based on the highest annual base salary of all participating executives. The program will be capped at 75% of the highest annual base salary, with 60% being
discretionary and 40% being based on the criteria listed in the table below. 
 The table provides a list of specific performance targets and the maximum
allowable percentage for each milestone. The executives must receive a minimum of 80% of the target goal to receive any portion thereof. Likewise, the maximum allowable bonus can never exceed 120% in any one category. Any payouts would then be
prorated in accordance to the successful completion of the goals listed in the following table. The bonus pool will be created by combining all three executives’ incentive bonus and each will be eligible for one-third of the total bonus money
available in the pool. 
  

					
	 OBJECTIVES
	  	 GOAL
	  	 INCENTIVE
BONUS

	Business:	  	Annual Projected Pro Forma - Combined Revenue	  	15%
			
		  	Annual Projected Pro Forma - Combined Net Income at Business Unit Level	  	15%
			
	Personnel:	  	Key Personnel Evaluations / Training for each Business Unit as agreed upon	  	5%
			
	HSE:	  	Annual Projected OGP TRIR – Combined Statistics as mutually agreed upon	  	5%
		  		  	 
		  	TOTAL POTENTIAL INCENTIVE BONUS	  	40%
		  		  	 

 To qualify for this program you must be an employee of OMNI Energy Services Corp. on December 31, 2006.
Incentive bonuses that are realized will be paid after finalized year-end results have been confirmed and verified, but not later than April 1.

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