Document:

December 17, 2004

Thomas J. Shea
 144 Pepper Drive
Los Altos, CA  94022

Dear Tom:

On behalf of Roxio, Inc. (the "Company" or "Roxio"), I am pleased to offer you
the following terms regarding your continued position as President and Chief
Operating Officer, Consumer Software Products Division for the Company.

Your initial base salary will be $350,000.00 annually which shall be lowered to
$87,500, effective upon the closing date of the proposed sale of assets of the
Company to Sonic Solutions (the "Closing Date"). Effective upon the Closing
Date, until termination of your employment, you agree to provide 10 hours of
service to the Company per week, assisting Sonic Solutions in its integration of
the Company's former assets and will make yourself available during normal
business hours to answer questions from representatives of the Company and Sonic
Solutions. During such period you may work at home or, in the discretion of the
Company, at the current Company headquarters in Santa Clara. Prior to the
Closing Date, you will be eligible to participate in the annual bonus program
with targeted payout of 50% of your base salary dependent upon your performance
and that of the Company. Prior to the Closing Date, you will also receive an
automobile allowance of $650 per month, a Company-paid annual physical
examination, a health subsidy and financial planning assistance up to $2500
(net) per year.

Roxio may terminate your employment and this agreement at any time. In the event
that the Closing Date occurs prior to January 1, 2005, your employment will
terminate effective January 1, 2005. In the event that the Closing Date occurs
on or after January 1, 2005, your employment will terminate effective on the
Closing Date. You may terminate your employment and this agreement at any time.
If Roxio or its successor terminates your employment and this agreement for
Cause (as defined below), or if you quit, you will not be entitled to severance
benefits. If Roxio or its successor terminates your employment and this
agreement without Cause or in the event your employment automatically terminates
on or after January 1, 2005 you will be entitled to the severance benefits
described below. In no event will you be entitled to severance benefits if your
employment terminates or is terminated due to your death or total disability,
unless the Closing Date occurs prior to January 1, 2005, in which case your
severance benefits will be due and payable upon your death or total disability.
The severance benefits referred to above will be composed of the following: (a)
Roxio will promptly pay you in cash a lump sum severance payment equal to 100%
of your initial base salary of $350,000, (b) 25% of your Roxio stock options
outstanding immediately prior to the termination of your employment will vest,
(c) the exercise period for your Roxio stock options will be extended to one (1)
year from the date of termination, and (d) you will be entitled to continued
coverage in the Company's welfare benefit plans for the twelve-month period
following your termination (or the Company will provide you with similar
coverage). For this purpose, "Cause" means that you have been grossly negligent
in the performance of your duties for Roxio, or you have engaged in willful
misconduct, or you have been convicted of a felony or any crime involving moral
turpitude. Nothing in this paragraph is intended to supercede the automatic
acceleration of your options upon a change of control pursuant to Roxio's stock
option plans.

<PAGE>

Thomas J. Shea Employment Agreement
December 17, 2004
Page 2 of 2

Termination without Cause will include constructive termination in the event
that you resign from the Company for "Good Reason." "Good Reason" shall mean
that you, without your consent, have: (i) incurred a material reduction in your
title, status, authority or responsibility; (ii) incurred a reduction in your
base compensation; (iii) been notified that your principal place of work will be
relocated by a distance of fifty (50) miles or more; or (iv) been required to
work more than ten (10) days per month outside of your principal offices for a
six (6) month continuous period.

In the event that Roxio exercises its option to terminate your employment "for
cause," you shall be entitled only to the unpaid salary and unused vacation
benefits which been accrued on your behalf. You shall be entitled to no other
compensation, benefits or severance payments of any kind in the event your
employment is terminated "for cause." Should you be terminated "for cause,"
Roxio shall provide you with a written statement detailing such cause.

You should understand that this offer does not constitute a contract of
employment for any specified period of time but will create an "employment at
will" relationship.

Please sign this letter, indicating acceptance of this offer, and return to me.

Sincerely,

Wm. Christopher Gorog
Chief Executive Officer and Chairman of the Board

                                Accepted:
                                         ----------------------------------
                                         Thomas J. SheaExhibit 10.2

                     LOAN MODIFICATION AND CONSENT AGREEMENT

         This Loan Modification and Consent Agreement is entered into as of
December __, 2004 by and among Roxio, Inc. ("Roxio") whose address is 9044
Melrose Avenue, Los Angeles, California, 90069, Napster, LLC ("Napster", and
together with Roxio, "Borrower") whose address is 9044 Melrose Avenue, Los
Angeles, California 90069, and Silicon Valley Bank ("Bank") whose address is
3003 Tasman Drive, Santa Clara, California 95054.

A. Among other indebtedness which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to, among other documents, a Loan and Security
Agreement, dated March 25, 2004, (as may be amended from time to time, the "Loan
Agreement"). The Loan Agreement provides for, among other things, a revolving
line of credit in the original principal amount of Fifteen Million Dollars
($15,000,000) and subsequently increased to Seventeen Million Dollars
($17,000,000) (the "Revolving Facility").

B. Repayment of the Indebtedness is secured by the Collateral as described in
the Loan Agreement and the Intellectual Property Security Agreement.
Additionally, repayment of the Indebtedness was guaranteed by Napster pursuant
to an Unconditional Guaranty dated March 25, 2004 (the "Guaranty") and the
obligations under the Guaranty were secured by an Intellectual Property Security
Agreement (the "Napster Intellectual Property Security Agreement") dated March
25, 2004 between Bank and Napster.

C. Borrowers have requested that Bank (i) extend the maturity date of the
Revolving Facility to December 15, 2006, (ii) add Napster, LLC as a co-Borrower
under the Loan Agreement, (iii) consent to the sale of assets by Roxio to Sonic
Solutions pursuant to that certain Asset Purchase Agreement to be entered into
between Roxio and Sonic Solutions (which Asset Purchase Agreement, in the form
provided to Bank as of the date hereof is hereinafter referred to as the
"Purchase Agreement"), (iv) release Bank's security interest in all assets being
sold by Roxio to Sonic Solutions pursuant to the Purchase Agreement, and (v)
make such other changes to the Loan Agreement all as more fully set forth
herein,

D. Defined terms used but not otherwise defined herein shall have the same
meanings as in the Loan Agreement. Hereinafter, (i) all indebtedness owing by
Borrower to Bank shall be referred to as the "Indebtedness", (ii) the
above-described security documents and guaranties, together with all other
documents securing repayment of the Indebtedness shall be referred to
hereinafter as the "Security Documents" and (iii) the Security Documents,
together with all other documents evidencing or securing the Indebtedness shall
be referred to as the "Existing Loan Documents".

1. DESCRIPTION OF CHANGE IN TERMS.

         A. From and after the date hereof, Section 6.2(b) and (c) of the Loan
Agreement are hereby amended and restated in their entirety as follows:

         (b) Borrower will deliver to Bank aged listings of accounts receivable
and accounts payable, which aged listings of accounts receivable and accounts
payable shall be due to Bank (a) within thirty (30) days after the last day of
each month if all Borrower's aggregate unrestricted cash is $40,000,000 or less,
or (b) within thirty (30) days after the last day of each calendar quarter if
all Borrowers' aggregate unrestricted cash exceeds $40,000,000.

         (c) Borrower will deliver to Bank a Compliance Certificate signed by a
Responsible Officer in the form of Exhibit C; which Compliance Certificate shall
be due to Bank (a) within thirty (30) days after the last day of each month if
all Borrowers' aggregate unrestricted cash is $40,000,000 or less, or (b) within
thirty (30) days after the last day of each calendar quarter if all Borrowers'
unrestricted cash exceeds $40,000,000.

<PAGE>

         B. From and after the date hereof, the Section 6.7 of the Loan
Agreement is hereby amended and restated in its entirety as follows:

         6.7 FINANCIAL COVENANTS. Borrower will maintain as of the last day of
each month (provided, however that the covenants set forth below shall be
measured on the last day of each calendar quarter at all times that Borrower's
unrestricted cash exceeds $40,000,000):

         (a) TANGIBLE NET WORTH. An Aggregate Tangible Net Worth of at least
$45,000,000.

         (b) LIQUIDITY COVERAGE. A ratio of unrestricted cash, cash equivalents
and short-term and long-term marketable securities, plus ten percent (10%) of
Net Accounts Receivable divided by the aggregate Obligations of not less than
2.00 to 1.00.

         C. From and after the date hereof, the following definition set forth
in Section 13.1 (Definitions) of the Loan Agreement is hereby amended and
restated in its entirety as follows:

             "REVOLVING MATURITY DATE" is December 15, 2006.

2. PAYMENT OF LOAN FEE. Borrower shall pay to Bank a fully earned, nonrefundable
loan restructuring fee in the amount of Twenty Thousand Dollars ($20,000) (the
"Loan Fee") plus all out-of-pocket expenses, including, but not limited to fees
and expenses of Bank's counsel.

3. WAIVER REGARDING FILING OF TAX RETURN. Borrower has notified Bank that
Borrower will not be able to timely file its Federal tax return due December 31,
2004 (the "Applicable Tax Return") and has requested that Bank waive the
requirement. Notwithstanding anything to contrary contained in the Loan
Documents, Bank hereby waives the requirement that Borrower timely files the
Applicable Tax Return; provided, however that Borrower hereby agrees to file the
Applicable Tax Return on or before January 31, 2005. Bank's agreement to waive
the requirement of the timely filing of the Applicable Tax Return pursuant to
this Agreement shall in no way obligate Bank to make any future modifications to
the Loan Agreement or to waive Borrower's compliance with any other terms of the
Loan Documents, and shall not limit or impair Bank's right to demand strict
performance of all other terms and covenants as of any date.

4. CONSENT TO SALE OF ASSETS. Subject to the terms and conditions contained
herein, Bank hereby consents to the sale of the Acquired Assets by Roxio, Inc to
Sonic Solutions pursuant to the Purchase Agreement.

5. RELEASE OF SECURITY INTEREST IN ASSETS TO BE SOLD. Subject to the terms and
conditions contained herein, Bank hereby consents to the release of its security
interests in the Acquired Assets being sold by Roxio to Sonic Solutions pursuant
to the Purchase Agreement.

6. Compliance Certificate. From and after the effective date hereof, Exhibit C
(Compliance Certificate) of the Loan Agreement shall be deleted in its entirety
and replace with Exhibit C attached hereto.

7. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above.

8. NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing
below) agrees that, as of the date hereof, it has no defenses against the
obligations to pay any amounts under the Indebtedness. The Borrower acknowledges
and warrants that Bank has acted in good faith and has conducted in a
commercially reasonable manner its relationships with Borrower in connection
with this Agreement and in connection with the Loan Documents, including the
Loan Agreement and the Indebtedness, the Borrower hereby waives and releases any
claims to the contrary.

9. WAIVER AND RELEASE OF CLAIMS.

                                       2
<PAGE>

         (a) Borrower ("Releasing Party") hereby releases, acquits, and
discharges Bank and Bank's employees, agents, representative, consultants,
attorneys, fiduciaries, servants, officers, directors, partners, predecessors,
successors and assigns, subsidiary corporations, parent corporations, and
related corporate divisions (all of the foregoing hereinafter called the
"Released Parties"), from all actions and causes of action, judgments,
executions, suits, debts, claims, demands, liabilities, obligations, damages,
and expenses of any and every character, known or unknown, direct and/or
indirect, at law or in equity, of whatsoever kind or nature, whether heretofore
or hereafter arising, for or because of any matter or things done, omitted or
suffered to be done by any of the Released Parties prior to and including the
date of execution hereof, and in any way directly or indirectly arising out of
or in any way connect to this Agreement and the Existing Loan Documents,
including, but not limited to, claims relating to any settlement negotiation
(all of the foregoing hereinafter called the "Released Matters"). Each Releasing
Party acknowledges that the agreements in this section are intended to be in
full satisfaction of all or any alleged injuries or damages arising in
connection with the Released Matters.

         (b) Releasing Party acknowledges that it has not relied, in executing
the release set forth in this section, upon any representations, warranties, or
conditions by Bank or any other entity except as are specifically set forth in
this Agreement.

         (c) Nothing contained herein shall be construed at any time as an
admission by Bank of any liability to Borrower or any other entity.

         (d) Releasing Party warrants to Bank that it has not purported to
transfer, assign, or otherwise convey any right, title or interest of such
Releasing Party in any Released Matter to any other entity, and that the
foregoing constitutes a full and complete release of all Released Matters.

10. CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below)
understands and agrees that in modifying the existing Indebtedness, Bank is
relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Agreement, the terms of the Existing Loan Documents remain unchanged and in
full force and effect. Bank's agreement to modifications to the existing
Indebtedness pursuant to this Agreement in no way shall obligate Bank to make
any future modifications to the Indebtedness. Nothing in this Agreement shall
constitute a satisfaction of the Indebtedness. It is the intention of Bank and
Borrower to retain as liable parties all makers and endorsers of Existing Loan
Documents, unless the party is expressly released by Bank in writing. No maker,
endorser, or guarantor will be released by virtue of this Agreement. The terms
of this paragraph apply not only to this Agreement, but also to all subsequent
loan modification agreements.

11 INTEGRATION. This Agreement, together with the Existing Loan Documents,
constitutes the entire agreement and understanding among the parties relating to
the subject matter hereof, and supersedes all prior and contemporaneous
proposals, negotiations, agreements, and understandings relating to the subject
matter. In entering into this Agreement, Borrower acknowledges that it is
relying on no statement, representation, warranty, covenant, or agreement of any
kind made by the Bank or any employee or agent of Bank, except for the
agreements of Bank set forth herein. No modification, rescission, waiver,
release, or amendment of any provision of this Agreement shall be made, except
by a written agreement signed by Bank and Borrower.

12. GOVERNING LAW, HEADINGS. This Agreement is one of the Loan Documents defined
in the Loan Agreement and shall be governed and construed in accordance with the
laws of the State of California. The headings and captions in this Agreement are
for the convenience of the parties only and are not a part of this Agreement.

13. CONDITIONS. The effectiveness of this Loan Modification Agreement is
conditioned upon the following:

                                       3
<PAGE>

         a. Borrower's payment of the Loan Fee;

         b. delivery to Bank of a fully executed Joinder Agreement acceptable to
Bank, for the addition of Napster as a co-borrower under the Loan Documents;

         c. Delivery to Bank of a fully executed Intellectual Property Security
Agreement providing Bank a security interest in Napster's Intellectual Property
as security for Napster's obligations under the Loan Documents; and

         d. Delivery to Bank of resolutions (acceptable to Bank) adopted by
Roxio and Napster with respect to the transactions described herein.

                         [signatures on following page]

                                       4
<PAGE>

         This Agreement is executed as of the date first written above.

BORROWER:                                       BANK:

ROXIO, INC.                                     SILICON VALLEY BANK

By:                                             By:
     ----------------------------                    ---------------------------
Name:                                           Name:
       --------------------------                      -------------------------
Title:                                          Title:
        -------------------------                       ------------------------

NAPSTER, LLC

By:                              ,
     ----------------------------
Manager/Member

By:
     ----------------------------
Name:
       --------------------------
Title:
        -------------------------

                                       5
<PAGE>

                                    EXHIBIT C
                             COMPLIANCE CERTIFICATE

TO:               SILICON VALLEY BANK
                  3003 Tasman Drive
                  Santa Clara, CA 95054

FROM:             ROXIO, INC. and NAPSTER, LLC

         The undersigned authorized officer of ROXIO, INC. and NAPSTER, LLC
(together "Borrower") certifies that under the terms and conditions of the Loan
and Security Agreement between Borrower and Bank (the "Agreement"), (i) Borrower
is in complete compliance for the period ending _______________ with all
required covenants except as noted below and (ii) all representations and
warranties in the Agreement are true and correct on this date. Attached are the
required documents supporting the certification. In addition, the undersigned
authorized officer of Borrower certifies that Borrower and each Subsidiary (i)
has timely filed all required tax returns and paid, or made adequate provision
to pay, all material taxes, except those being contested in good faith with
adequate reserves under GAAP and (ii) does not have any legal actions pending or
threatened against Borrower or any Subsidiary in which an adverse decision could
reasonably be expected to cause a Material Adverse Change for Borrower which
Borrower has not previously notified in writing to Bank. The Officer certifies
that these are prepared in accordance with Generally Accepted Accounting
Principles (GAAP) consistently applied from one period to the next except as
explained in an accompanying letter or footnotes. The Officer acknowledges that
no borrowings may be requested at any time or date of determination that
Borrower is not in compliance with any of the terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered.

PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<TABLE>
<CAPTION>
REPORTING COVENANT                                            REQUIRED                            COMPLIES
<S>                                                           <C>
Monthly financial statements*                                 Monthly within 30 days              Yes     No
Compliance Certificate**   Monthly/Quarterly within 30 days   Yes               No
Quarterly financial statements (10Q)                          Within 5 days after filing          Yes     No
Annual (Audited) (10K)                                        Within 5 days after filing          Yes     No
A/R & A/P Agings**                                            Monthly/Quarterly within 30 days    Yes     No
Business Forecast                                             Within 45 days after year end       Yes     No

*Unless Borrower's unrestricted cash exceeds $40,000,000
**Monthly if Borrower's unrestricted cash is $40,000,000 or less; quarterly if Borrower's unrestricted cash
------------------------------------------------------------------------------------------------------------
exceeds $40,000,000

FINANCIAL COVENANT                                            REQUIRED           ACTUAL           COMPLIES

Maintain on a Monthly Basis (quarterly if unrestricted cash exceeds
$40,000,000):
  Minimum Tangible Net Worth                                  $45,000,000        $________        Yes     No
  Minimum Liquidity Coverage                                  2.00:1.00          _____:1.00       Yes     No

Have there been updates to Borrower's intellectual property, if appropriate?     Yes / No
</TABLE>

<PAGE>

<TABLE>
<S>                                                             <C>
COMMENTS REGARDING EXCEPTIONS:  See Attached.                   ----------------------------------------------------
                                                                                    BANK USE ONLY

Sincerely,                                                      Received by:
                                                                             ---------------------------------------
                                                                                  AUTHORIZED SIGNER
Roxio, Inc.
                                                                Date:
-----------------------------------------                             ----------------------------------------------
SIGNATURE
                                                                Verified:
-----------------------------------------                                 ------------------------------------------
TITLE                                                                             AUTHORIZED SIGNER
                                                                Date:
-----------------------------------------                             ----------------------------------------------
DATE
                                                                Compliance Status:                        Yes     No
                                                                ----------------------------------------------------
Napster, LLC

By:                                      ,
   ---------------------------------------
Manager/Member

-----------------------------------------
SIGNATURE

-----------------------------------------
TITLE

-----------------------------------------
DATE
</TABLE>

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