Document:

Exhibit 10.28

 

INDEMNIFICATION ESCROW AGREEMENT

 

This
INDEMNIFICATION ESCROW AGREEMENT, dated as of April 20, 2005 (this “Agreement”),
is made and entered into by and among Blue Lava Wireless, LLC,  a Hawaiian limited liability company (the “Company”),
JAMDAT Mobile (Hawaii ) LLC, a Delaware limited liability company (the “Buyer”),
JAMDAT Mobile Inc., a Delaware corporation (“JAMDAT”), Henk Rogers, an
individual, (the “Members’ Representative”), Akemi Rogers, an
individual, (“Akemi Rogers”), Henk B. Rogers 2005 Dynasty Trust, a trust
formed under the laws of Hawaii (“Family Trust I”),  Akemi M. Rogers 2005 Dynasty Trust, a trust
formed under the laws of Hawaii (“Family Trust II” and together with the
Member’s Representative, the “Members”) and U.S. Bank National
Association, as escrow agent (the “Escrow Agent”).  The Company, the Members, the Members’
Representative, JAMDAT and the Buyer are sometimes referred to herein,
collectively, as the “Interested Parties.”

 

WHEREAS, the
Company, JAMDAT, the Buyer, the Members and certain other parties have entered
into that certain Purchase Agreement, dated as of April 20, 2005 (the “Purchase
Agreement”), pursuant to which the Buyer has agreed to purchase all of the
Members’ limited liability company membership interests in the Company in
exchange for the Sale Consideration (as defined in the Purchase Agreement).

 

WHEREAS,
pursuant to the Purchase Agreement, JAMDAT is required to deliver to the Escrow
Agent in escrow certificates for a portion of the Sale Consideration equal to
1,000,000 shares of the Common Stock of JAMDAT (the “Escrow Shares”) in
order to establish a source of recovery in connection with satisfaction of
claims of the Member Indemnified Parties for any post-closing indemnity claim
pursuant to Article VIII of the Purchase Agreement and as evidence of the
obligation of JAMDAT through the Escrow Agent as agent of JAMDAT for such
purpose to deliver the Escrow Shares at the time or times (if any) as the
Members become entitled to receive the Escrow Shares pursuant to the terms of
this Agreement (it being understood that only such delivery by the Escrow
Agent, as agent for JAMDAT, and not delivery of the Escrow Shares to the Escrow
Agent, shall constitute payment of the portion of the Sale Consideration (if any)
consisting of the Escrow Shares.

 

WHEREAS, the
Interested Parties wish to engage the Escrow Agent to act, and the Escrow Agent
is willing to act, as escrow agent hereunder and, in that capacity, to hold,
administer and distribute the amounts deposited in escrow hereunder in
accordance with, and subject to, the terms of this Agreement.

 

NOW THEREFORE,
for valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree hereby as follows:

 

1.                                       Definitions.  Solely for the convenience of the Interested
Parties, capitalized terms used but not defined herein or in Exhibit A attached
hereto shall have the same meanings given to such terms as in the Purchase
Agreement and the Escrow Agent shall be entitled to rely on the use of such
terms in any communication received by it. 
Concurrently with the execution and delivery of this Agreement by the
Interested Parties, Buyer shall deliver to the Escrow Agent a certified true
copy of the Purchase Agreement.

 

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2.                                       Deposit of Escrow
Shares.  On the Closing Date, JAMDAT
shall deposit with the Escrow Agent the Escrow Shares, and the Escrow Agent
agrees to hold the Indemnification Escrow Fund in an account established with
the Escrow Agent (the “Escrow Account”) and to administer the
Indemnification Escrow Fund in accordance with the terms of this Agreement.

 

3.                                       Claims and
Payment

 

3.1                                 From time to
time, the Buyer may give written notice (a “Notice”) to the Members’
Representative and the Escrow Agent specifying in reasonable detail the nature
and dollar amount of any claim for indemnification (a “Claim”) under
Article VIII of the Purchase Agreement. 
If the Members’ Representative gives written notice to the Buyer and the
Escrow Agent disputing any such Claim (a “Counter Notice”) within 30
days following receipt by the Escrow Agent and the Members’ Representative of
the Notice regarding such Claim, such Claim shall be resolved as provided in Section
3.2 below.  If no Counter Notice is
received by the Escrow Agent within such 30-day period, then the dollar amount
of damages claimed by the Buyer as set forth in the Notice shall be deemed
established for purposes of this Agreement and the Purchase Agreement and, at
the end of such 30-day period, the Escrow Agent shall release to the Buyer the
number of Escrow Shares specified in the Notice (which number of shares, as
reasonably determined by Buyer, shall have a dollar value equal to the dollar
amount of damages claimed in the Notice from (and only to the extent of) the
amounts held in the Escrow Account (based upon the average closing price of a
share of JAMDAT common stock for the fifteen (15) trading days immediately
prior to such Claim date as reported by the NASDAQ National Market)).  The Escrow Agent shall have no duty to and
shall not inquire into or consider whether a Claim complies with the
requirements of the Purchase Agreement.

 

3.2                                 If a Counter
Notice is given with respect to a Claim, the Escrow Agent shall not release any
Escrow Shares and shall make a distribution with respect thereto only in
accordance with: (i) joint written instructions of the Members’ Representative
and the Buyer or (ii) a final non-appealable order, decree or judgment of a
court of competent jurisdiction; provided further that Escrow Agent shall have
received an opinion of counsel to the effect that the order, decree or judgment
is final and non-appealable, and the Escrow Agent shall be entitled to rely on
such opinion. The Escrow Agent shall be fully authorized and protected in
acting on such joint instructions or court order, decree or judgment without
further question and shall release to the Buyer a number of Escrow Shares set
forth in such joint written instructions or, with respect to a court order,
decree or judgment, in the Buyer’s Section 3.2 Certificate, from (and only to
the extent of) the amounts held in the Escrow Account, and such distribution
shall be made on or before the third Business Day following the date on which
such joint instructions or the Buyer’s Section 3.2 Certificate, as applicable, are
received by the Escrow Agent (and only to the extent of the Escrow Shares held
in the Escrow Account).  “Buyer’s Section
3.2 Certificate” shall mean Buyer’s written notice to Escrow Agent and the
Members’ Representative delivered promptly following final and non-appealable determination
of the court order, decree or judgment, setting forth Buyer’s good faith
calculation of the number of Escrow Shares having a value equal to the dollar
amount (based upon the average closing price of a share of JAMDAT common stock
for the fifteen (15) trading days immediately prior to such Claim date as
reported by the NASDAQ National Market) of the Claim as determined in the final
order, decree or judgment.

 

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3.3                                 As promptly as
practicable following any distribution from the Indemnification Escrow Fund,
the Escrow Agent shall send a written statement to each of the Buyer and the
Members’ Representative stating the number of Escrow Shares distributed and the
Escrow Shares and other property, if any, remaining in the Indemnification
Escrow Fund.

 

4.                                       Release From
Escrow.

 

4.1                                 First Partial
Release From Escrow.  On the
one-year anniversary of the Closing, the Escrow Agent shall release 333,333 of
the Escrow Shares (as adjusted for any Capital Change occurring with respect to
such shares prior to release of such shares) from escrow to the Members, provided,
however, that the Escrow Agent shall retain in escrow such number of Escrow Shares
equal to the number of shares set forth in Buyer’s Section 4.1 Certificate timely
delivered to Escrow Agent and the Members’ Representative no more than 10 days prior
to such one-year anniversary.  “Buyer’s
Section 4.1 Certificate” shall mean Buyer’s written notice setting forth Buyer’s
reasonable, good faith estimate of such number of Escrow Shares having a value
equal to (based upon the average closing price of a share of JAMDAT common
stock for the fifteen (15) trading days immediately prior to the applicable
Claim date as reported by the NASDAQ National Market) the sum of: (i) the value
of all actual Claims paid since the Closing and (ii) the value of all then
pending and unsatisfied Claims against the Members under Article VIII of the
Purchase Agreement (if any) with respect to which Buyer has previously given
the Members written notice in accordance with Section 3 hereof.  If prior to the second anniversary of the
Closing, such Claims are finally determined, then the Escrow Agent shall
release from escrow to the Members such portion of such 333,333 Escrow Shares
(if any) (as adjusted for any Capital Change occurring with respect to such
shares prior to release of such shares) which were not release to the Buyer in
satisfaction of such Claims.

 

4.2                                 Second Partial
Release From Escrow.  On the
two-year anniversary of the Closing, the Escrow Agent shall release 333,333 of
the Escrow Shares (as adjusted for any Capital Change occurring with respect to
such shares prior to release of such shares) from escrow to the Members,
provided, however, that the Escrow Agent shall retain in escrow such number of
Escrow Shares equal to the number of shares set forth in Buyer’s Section 4.2
Certificate timely delivered to Escrow Agent and the Members’ Representative no
more than 10 days prior to such two-year anniversary.  “Buyer’s Section 4.2 Certificate” shall mean
Buyer’s written notice setting forth Buyer’s reasonable, good faith estimate of
such number of Escrow Shares having a value equal to (based upon the average
closing price of a share of JAMDAT common stock for the fifteen (15) trading
days immediately prior to the applicable Claim date as reported by the NASDAQ
National Market) the sum of: (i) the value of all actual Claims paid between
the first and second anniversary of the Closing and (ii) the value of all then
pending and unsatisfied Claims against the Members under Article VIII of the
Purchase Agreement (if any) with respect to which Buyer has previously given
the Members written notice in accordance with Section 3 hereof.  If prior to the third anniversary of the
Closing, such Claims are finally determined, then, the Escrow Agent shall
release from escrow to the Members such portion of such 333,333 Escrow Shares
(if any) (as adjusted for any Capital Change occurring with respect to such
shares prior to release of such shares) which were not released to the Buyer in
satisfaction of such Claims.

 

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4.3                                 Subsequent
Release From Escrow.  On the
three-year anniversary of the Closing, the Escrow Agent shall release all of
the remaining Escrow Shares (as adjusted for any Capital Change occurring with
respect to such shares prior to release of such shares) and other property, if
any, remaining in the Indemnification Escrow Fund from escrow to the Members, provided,
however, that the Escrow Agent shall retain in escrow such number of Escrow
Shares equal to the number of shares set forth in Buyer’s Section 4.3
Certificate timely delivered to Escrow Agent and the Members’ Representative no
more than 10 days prior to such three-year anniversary.  “Buyer’s Section 4.3 Certificate” shall mean
Buyer’s written notice setting forth Buyer’s reasonable, good faith estimate of
such number of Escrow Shares having a value equal to (based upon the average
closing price of a share of JAMDAT common stock for the fifteen (15) trading
days immediately prior to the applicable Claim date as reported by the NASDAQ
National Market) the sum of: (i) the value of all actual Claims paid between the
second and third anniversary of the Closing and (ii) the value of all then
pending and unsatisfied Claims against the Members under Article VIII of the
Purchase Agreement (if any) with respect to which Buyer has previously given
the Members written notice in accordance with Section 3 hereof.  If the amount of such Claims are finally
determined, then, the Escrow Agent shall release from escrow to the Members
such portion of such 333,333 Escrow Shares (if any) (as adjusted for any
Capital Change occurring with respect to such shares prior to release of such
shares) which were not released to the Buyer in satisfaction of such Claims.

 

4.4                                 Escrow Shares
Rights.  During the period the Escrow
Shares remain in the Indemnification Escrow Fund, JAMDAT shall have all of the
voting rights related to the Escrow Shares. 
Any dividends or other income payable on the Escrow Shares during such
period shall accumulate in escrow, be invested in Eligible Investments and be
held in the Indemnification Escrow Fund for ultimate distribution with the
underlying Escrow Shares.

 

4.5                                 Right of
Substitution.  At the
expense of Buyer and JAMDAT (including without limitation, reimbursement and
indemnification of the Members for any amount or liability to the Escrow Agent
incurred by them under Section 10 or Section 11 of this Agreement), Buyer shall
have the right (“Substitution Right”) exercisable by notice given in or with
Buyer’s Section 4.1 Certificate, Buyer’s Section 4.2 Certificate or Buyer’s
Section 4.3 Certificate, respectively, with respect to the Escrow Shares (as
adjusted for any Capital Change occurring with respect to such shares prior to
release of such shares) specified therein and otherwise required to be
delivered to the Members by the Escrow Agent pursuant to Section 4.1, Section
4.2 or Section 4.3, respectively, in accordance with such certificate, (i) to
issue new shares of the Common Stock of JAMDAT (“Substitute JAMDAT Stock”) in
the number of such Escrow Shares (as so adjusted) otherwise so required to be
delivered, (ii) to require the Escrow Agent to deliver to JAMDAT the Escrow
Shares otherwise so required to be delivered to the Members by the Escrow
Agent, and (iii) concurrently with and against receipt by JAMDAT from the
Escrow Agent of such Escrow Shares otherwise so required to be delivered to the
Members by the Escrow Agent, either (A) deliver all certificates for the
Substitute JAMDAT Stock directly to the Members or (B) deliver all certificates
for the Substitute JAMDAT Stock to the Escrow Agent for delivery to the Members
by the Escrow Agent; provided, however, a condition precedent to exercise of
the Substitution Right by JAMDAT shall be the delivery by Buyer to the Members,
concurrently with delivery of the certificates for the Substitute JAMDAT Stock,
of an opinion of Sheppard, Mullin, Richter & Hampton LLP (or of other
counsel to Buyer, which other counsel shall be reasonably acceptable to the
Members) to the effect that the Substitute 

 

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JAMDAT
Stock is duly authorized, validly issued, fully paid and nonassessable and
subject to no Encumbrance that would not have applied to the Escrow Shares for
which the Substitute JAMDAT Stock is substituted (which opinion shall, insofar
as applicable, be in substantially the same form as Exhibit H to the Purchase
Agreement and may rely as to factual matters upon Opinion Certificates (as that
term in defined in Exhibit H to the Purchase Agreement) received at the time of
any exercise by the Buyer of the Substitution Right).

 

5.                                       Investments of
Escrow Fund.

 

5.1                                 Escrow Agent
Not Responsible For Investment Decisions.  Absent its timely receipt of
such specific written investment instruction from Buyer, the Escrow Agent shall
have no obligation or duty to invest (or otherwise pay interest on) the
Additional Escrow Property; provided, however, that in the event the Escrow
Agent shall not have received such written investment instruction, the Escrow
Agent shall be authorized to invest any of the Additional Escrow Property in
the Escrow Agent’s “MMIS Business
Insured Savings” fund until such investment instruction is received.  All earnings received from the investment of
the Additional Escrow Property shall be credited to, and shall become a part
of, the Escrow (and any losses on such investments shall be debited to the
Escrow Account).  The Escrow Agent shall
have no liability for any investment losses, including without limitation any
market loss on any investment liquidated prior to maturity in order to make a
payment required hereunder.

 

5.2                                 The Escrow
Agent is hereby authorized, in making or disposing of any investment permitted
by this Agreement, to deal with itself (in its individual capacity) or with any
one or more of its affiliates, whether it or such affiliate is acting as a
subagent of the Escrow Agent or for any third person or dealing as principal
for its own account.

 

5.3                                 Notwithstanding
any term appearing in this Agreement to the contrary, in no instance shall the
Escrow Agent be required or obligated to distribute any Escrow Shares or
Additional Escrow Property (or take other action that may be called for
hereunder to be taken by the Escrow Agent) sooner than two (2) Business Days
after (i) it has received the applicable documents required under this
Agreement in good form, or (ii) passage of the applicable time period (or both,
as applicable under the terms of this Agreement), as the case may be.

 

5.4                                 Unless and
except to the extent otherwise expressly set forth herein, all deposits and
payments hereunder, or pursuant to the terms hereof (including without
limitation all payments to the Escrow Agent hereunder), shall be in U.S. dollars.

 

6.                                       Cooperation.  At the Closing, JAMDAT shall deliver to the
Escrow Agent certificates evidencing the Escrow Shares and the Members shall
deliver assignments executed in blank with respect to the Escrow Shares.  In connection with any partial or complete
release of Escrow Shares, JAMDAT shall provide to the Members certificates
evidencing such released Escrow Shares and the parties shall execute such
documents and take such further actions as necessary or appropriate to
effectuate the provisions of this Agreement.

 

7.                                       Termination.  This Agreement shall terminate and be of no
further force and effect immediately upon the Escrow Agent’s payment and
distribution of the entire Indemnification Escrow Fund in accordance with the
terms and provisions hereof.

 

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8.                                       Tax Matters

 

8.1                                 Tax Reporting.  The Interested Parties agree that, for tax
reporting purposes, all dividend, interest or other income, if any, earned from
the Escrow Shares and all Additional Escrow Property in any tax year shall be
reported as income of JAMDAT.

 

8.2                                 Certification
of Taxpayer Identification Number.  Set forth on Exhibit B are tax
identification numbers for JAMDAT from copies of Form W-9 provided by JAMDAT.  JAMDAT understands that, in the event its tax
identification numbers is not certified to the Escrow Agent, the Internal
Revenue Code of 1986, as amended (the “Code”), and applicable treasury
regulations thereunder may require withholding of a portion of any dividend,
interest or other income earned on the investment of the Escrow Shares.

 

9.                                       Concerning the
Escrow Agent

 

9.1                                 Each Interested
Party acknowledges and agrees that the Escrow Agent (i) shall not be
responsible for any of the agreements referred to or described herein
(including without limitation the Purchase Agreement), or for determining or
compelling compliance therewith, and shall not otherwise be bound thereby, (ii)
shall be obligated only for the performance of such duties as are expressly and
specifically set forth in this Agreement on its part to be performed, each of
which is ministerial (and shall not be construed to be fiduciary) in nature,
and no implied duties or obligations of any kind shall be read into this
Agreement against or on the part of the Escrow Agent, (iii) shall not be
obligated to take any legal or other action hereunder which might in its
judgment involve or cause it to incur any expense or liability unless it shall
have been furnished with acceptable indemnification, (iv) may rely on and shall
be protected in acting or refraining from acting upon any written notice,
instruction (including, without limitation, wire transfer instructions, whether
incorporated herein or provided in a separate written instruction), instrument,
statement, certificate, request or other document furnished to it hereunder and
believed by it to be genuine and to have been signed or presented by the proper
person, and shall have no responsibility for making inquiry as to or
determining the genuineness, accuracy or validity thereof, or of the authority
of the person signing or presenting the same, and (v) may consult counsel
satisfactory to it, including in-house counsel, and the well-reasoned opinion
or advice of such counsel which, in any instance, is made in good faith shall
be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in accordance with
such opinion or advice of such counsel.

 

9.2                                 The Escrow
Agent shall not be liable to anyone for any action taken or omitted to be taken
by it hereunder except in the case of the Escrow Agent’s gross negligence or
willful misconduct.  In no event shall
the Escrow Agent be liable for indirect, punitive, special or consequential
damage or loss (including but not limited to lost profits) whatsoever, even if
the Escrow Agent has been informed of the likelihood of such loss or damage and
regardless of the form of action.

 

9.3                                 The Escrow
Agent shall have no more or less responsibility or liability on account of any
action or omission of any book-entry depository, securities intermediary or
other subescrow agent employed by the Escrow Agent than any such book-entry
depository, securities intermediary or other subescrow agent has to the Escrow
Agent, except to the extent that such

 

6

 

action
or omission of any book-entry depository, securities intermediary or other
subescrow agent was caused by the Escrow Agent’s own gross negligence or
willful misconduct in breach of this Agreement.

 

9.4                                 Notwithstanding
any term appearing in this Agreement to the contrary, in no instance shall the
Escrow Agent be required or obligated to distribute Escrow Shares or any other
property from the Indemnification Escrow Fund (or take other action that may be
called for hereunder to be taken by the Escrow Agent) sooner than two (2)
Business Days after (i) it has received the applicable documents required under
this Agreement in good form, or (ii) passage of the applicable time period (or
both, as applicable under the terms of this Agreement), as the case may be.

 

10.                                 Compensation,
Expense Reimbursement and Indemnification

 

10.1                           JAMDAT shall
pay the Escrow Agent compensation for its services hereunder in accordance with
the Schedule of Fees dated March 21, 2005 annexed hereto as Exhibit C.

 

10.2                           Each of Buyer
and JAMDAT on the one hand and the Members on the other agree, jointly and severally,
to pay or reimburse Escrow Agent for its attorney’s fees and expenses incurred
in connection with the preparation of this Agreement and to reimburse the
Escrow Agent on demand for one-half of all reasonable and actual costs and
expenses incurred in connection with the administration of this Agreement or
the escrow created hereby or the performance or observance of its duties
hereunder which are in excess of the compensation provided for in Section 10.1
above, including without limitation, payment of any legal fees and expenses
incurred by the Escrow Agent in connection with resolution of any claim by any
party hereunder, except in the case of the Escrow Agent’s gross negligence or
willful misconduct.

 

10.3                           Buyer, JAMDAT
and the Members jointly covenant and agree to indemnify the Escrow Agent (and
its directors, officers and employees) and hold it (and such directors,
officers and employees) harmless from and against any loss, liability, damage,
cost and expense of any nature incurred by the Escrow Agent arising out of or
in connection with this Agreement or with the administration of its duties
hereunder, including but not limited to attorney’s fees and other costs and
expenses of defending or preparing to defend against any claim of liability
unless and except to the extent such loss, liability, damage, cost and expense
shall be caused by the Escrow Agent’s gross negligence or willful misconduct; provided,
however, that the Buyer, JAMDAT and the Members shall not indemnify (or
otherwise be responsible for) any taxes imposed on the Escrow Agent with
respect to any amounts payable to the Escrow Agent hereunder.  The foregoing indemnification and agreement
to hold harmless shall survive the termination of this Agreement.

 

10.4                           Notwithstanding
anything herein to the contrary, the Escrow Agent shall have and is hereby
granted a possessory lien on and security interest in the Additional Escrow
Property, and all proceeds thereof, to secure payment of all amounts owing to
it from time to time hereunder, whether now existing or hereafter arising.  The Escrow Agent shall have the right to
deduct from the Additional Escrow Property, and proceeds thereof, any such
sums, upon one Business Day’s notice to the Interested Parties of its intent to
do so.

 

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11.                                 Tax
Indemnification.  The Members
agree to assume any and all obligations imposed now or hereafter by any
applicable tax law with respect to any payment or distribution of the
Indemnification Escrow Fund to the Members provided, however,
that the Members shall not indemnify (or otherwise be responsible for) any
taxes imposed on the Escrow Agent with respect to any amounts payable to the
Escrow Agent hereunder. Buyer and JAMDAT agree, jointly and severally, to
assume any and all obligations imposed now or hereafter by any applicable tax
law with respect to any payment or distribution of the Indemnification Escrow
Fund to the Buyer; provided, however, that the Buyer and JAMDAT
shall not indemnify (or otherwise be responsible for) any taxes imposed on the
Escrow Agent with respect to any amounts payable to the Escrow Agent
hereunder.  The foregoing indemnification
and agreement to hold harmless shall survive the termination of this Agreement.

 

12.                                 Resignation.

 

12.1                           The Escrow
Agent may at any time resign as Escrow Agent hereunder by giving thirty (30)
days’ prior written notice of resignation to the Members’ Representative and
the Buyer.  In addition, the Members’
Representative and the Buyer may jointly remove the Escrow Agent as escrow
agent at any time with or without cause, by an instrument executed by the
Members’ Representative and the Buyer (which may be executed in counterparts)
given to the Escrow Agent, which instrument shall designate the effective date
of such removal.  Prior to the effective
date of the resignation or removal as specified in such notice, the Members’
Representative and the Buyer will issue to the Escrow Agent a written
instruction authorizing redelivery of the Indemnification Escrow Fund to a bank
or trust company that shall be mutually agreed upon by the Members’
Representative and the Buyer as successor to the Escrow Agent hereunder, which
shall be a bank or trust company organized under the laws of the United States
of America or of the State of California having (or if such bank or trust
company is a member of a bank company, its bank holding company shall have) a
combined capital and surplus of not less than $500,000,000.  If no successor escrow agent is named by the
Members and the Buyer, the Escrow Agent may apply to a court of competent
jurisdiction for appointment of a successor escrow agent.

 

13.                                 Dispute
Resolution.  It is
understood and agreed that, should any dispute arise with respect to the
delivery, ownership, right of possession, and/or disposition of the
Indemnification Escrow Fund, or should any claim be made upon the Escrow Agent
or the Indemnification Escrow Fund by a third party, the Escrow Agent upon
receipt of notice of such dispute or claim is authorized and shall be entitled (at
its sole option and election) to retain in its possession without liability to
anyone, all or any of said Indemnification Escrow Fund until such dispute shall
have been settled either by the mutual written agreement of the parties
involved or by a final order, decree or judgment of a court in the United
States of America, the time for perfection of an appeal of such order, decree
or judgment having expired.  The Escrow
Agent may, but shall be under no duty whatsoever to, institute or defend any
legal proceedings which relate to the Indemnification Escrow Fund.

 

14.                                 Consent to
Jurisdiction and Service.  Each
of the Interested Parties hereby absolutely and irrevocably consents and
submits to the jurisdiction of the state and federal courts located in the State
of California in connection with any actions or proceedings brought against the
Interested Parties (or any of them) by the Escrow Agent arising out of or
relating to this

 

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Escrow
Agreement.  In any such action or
proceeding, the Interested Parties each hereby absolutely and irrevocably (i)
waives any objection to jurisdiction or venue, (ii) waives personal service of
any summons, complaint, declaration or other process, and (iii) agrees that the
service thereof may be made by certified or registered first-class mail
directed to such party, as the case may be, at their respective addresses in
accordance with Section 17.1 hereof.

 

15.                                 WAIVER OF JURY
TRIAL.  THE ESCROW AGENT AND THE
INTERESTED PARTIES HEREBY WAIVE A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING
IN ANY ACTION OR PROCEEDING BETWEEN THEM OR THEIR SUCCESSORS OR ASSIGNS, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF ITS PROVISIONS OR ANY
NEGOTIATIONS IN CONNECTION HEREWITH.

 

16.                                 Force Majeure.  The Escrow Agent shall not be responsible for
delays or failures in performance resulting from acts beyond its control.  Such acts shall include but not be limited to
acts of God, strikes, lockouts, riots, acts of war, epidemics, governmental
regulations superimposed after the fact, fire, communication line failures,
computer viruses, power failures, earthquakes or other disasters.

 

17.                                 Notices; Wiring
Instructions

 

17.1                           Notice
Addresses.  Any notice
permitted or required hereunder shall be in writing, and shall be sent (i) by
personal delivery, overnight delivery by a recognized courier or delivery
service, or (ii) mailed by registered or certified mail, return receipt
requested, postage prepaid, or (iii) by confirmed telecopy accompanied by
mailing of the original on the same day by first class mail, postage prepaid,
in each such case, to the parties at their respective address set forth below
(or to such other address as any such party may hereafter designate by written
notice to the other parties):

 

If to the
Members’ Representative:

 

Blue Lava
Wireless, LLC

2800 Woodlawn Drive, Suite 245

Honolulu, HI 96822

Phone: (808)
539-3800

Facsimile:  (808) 539-3679

Attention:
Henk Rogers

 

If to the
Buyer or JAMDAT:

 

JAMDAT Mobile (Hawaii) Inc.

3415 S. Sepulveda Blvd., Ste. 700

Los Angeles, CA 90034

Phone: (310) 636-3103

Facsimile: (310) 397-0353

Attention: Craig S. Gatarz

 

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with a copy to
(which shall not constitute notice to any Buyer or JAMDAT):

 

Sheppard, Mullin,
Richter & Hampton LLP

800 Anacapa Street

Santa Barbara, CA 93101

Phone:  (805) 879-1813

Facsimile:  (805) 568-1955

Attention:  C. Thomas Hopkins, Esq.

 

If to the
Escrow Agent:

 

U.S. Bank
National Association

Corporate Trust Services

225 Asylum Street, 23rd Floor

Hartford, CT 06103

Phone: (860) 241-6859

Facsimile:  (860) 241-6881

Attention:  JAMDAT/Blue Lava Escrow

 

Notices
addressed to the Escrow Agent shall be effective only upon receipt.  If any Notice, Counter Notice or other
document is required to be delivered simultaneously to the Escrow Agent and any
other person, the Escrow Agent may assume delivery to such other person without
requiring that such other person confirm receipt of such document.

 

17.2                           Wiring
Instructions of the Buyer and the Escrow Agent.  Any disbursements by the Escrow Agent
hereunder shall be sent by such method of payment and pursuant to such
instruction as may have been given in advance and in writing to or by the
Escrow Agent, as the case may be, in accordance with Section 17.1 above:

 

18.                                 Miscellaneous

 

18.1                           Binding Effect;
Successors.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, executors, successors and assigns.  If the Escrow Agent consolidates, merges or converts
into, or transfers all or substantially all of its corporate trust business to,
another corporation, the successor corporation, without any further act, shall
be the successor Escrow Agent.

 

18.2                           Modifications.  This Agreement may not be altered or modified
without the express written consent of the parties hereto.  No course of conduct shall constitute a
waiver of any of the terms and conditions of this Escrow Agreement, unless such
waiver is specified in writing, and then only to the extent so specified.  A waiver of any of the terms and conditions
of this Escrow Agreement on one occasion shall not constitute a waiver of the
other terms of this Escrow Agreement, or of such terms and conditions on any
other occasion.  Notwithstanding any
other provision hereof, consent to an alteration or modification of this
Agreement may not be signed by means of an e-mail address.

 

10

 

18.3                           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA.

 

18.4                           Reproduction of
Documents.  This
Agreement and all documents relating hereto, including, without limitation, (a)
consents, waivers and modifications which may hereafter be executed, and (b)
certificates and other information previously or hereafter furnished, may be
reproduced by any photographic, photostatic, microfilm, optical disk,
micro-card, miniature photographic or other similar process.  The parties agree that any such reproduction
shall be admissible in evidence as the original itself in any judicial or
administrative proceeding, whether or not the original is in existence and
whether or not such reproduction was made by a party in the regular course of
business, and that any enlargement, facsimile or further reproduction of such
reproduction shall likewise be admissible in evidence.

 

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

 

18.6                           Entire
Agreement. This Agreement contains the entire agreement of
the parties hereto with respect to the transactions contemplated hereby and
supersedes any and all prior agreements, arrangements and understandings among
the parties relating to the subject matter hereof.

 

18.7                           Costs and
Expenses.  Subject to Sections
9 and 10 hereof, (a) each of the parties hereto shall bear its own
costs and expenses, including attorneys’ fees, incurred or to be incurred in
connection with the negotiation and preparation of this Agreement, and in
carrying out the transactions contemplated hereby, and (b) if any legal action,
arbitration or other proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any of the provisions of this Agreement,
the successful or prevailing party or parties will be entitled to recover
reasonable attorneys’ fees and other costs incurred in that action or proceeding,
in addition to any other relief to which they may be entitled.

 

18.8                           Severability.  The provisions of this Agreement are
independent of and several from each other, and no provision shall be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in
part.

 

18.9                           Members’
Representative.  The
appointment of the Members’ Representative hereunder with the authority to bind
all Members hereto is evidenced by the due execution of all Members of resolutions
dated April 20, 2005.

 

18.10                     Stock Powers.  When and if requested by Escrow Agent, each
Member shall execute and deliver to Escrow Agent stock powers necessary to
allow the release of Escrow Shares pursuant to the terms and conditions hereof.

 

[Signature Page Follows]

 

11

 

IN WITNESS
WHEREOF, each of the parties has caused this Agreement to be duly executed and
delivered in its name and on its behalf as of the date first above written.

 

	
  ESCROW AGENT:

  	
  COMPANY:

  
	
   

  	
   

  
	
  U.S. BANK NATIONAL ASSOCIATION

  	
  Blue Lava
  Wireless, LLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ Elizabeth C. Hammer

  	
   

  	
  By:

  	
  /s/
  Henk Rogers 

  	
   

  
	
  Name:Elizabeth C. Hammer

  	
  Name: 

  	
  Henk Rogers 

  
	
  Title:Vice President

  	
  Title:

  	
  Co-Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Akemi
  Rogers

  	
   

  
	
   

  	
  Name: 

  	
  Akemi Rogers

  
	
   

  	
  Title:

  	
  Co-Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
  MEMBERS’ REPRESENTATIVE:

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  JAMDAT
  Mobile (Hawaii) LLC

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Henk Rogers

  	
   

  	
  /s/ Mitch
  Lasky

  	
   

  
	
  Henk Rogers,
  an individual

  	
  By:

  	
  Mitch Lasky

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  JAMDAT: 

  
	
   

  	
   

  
	
   

  	
  JAMDAT
  Mobile Inc.

  
	
   

  	
   

  
	
   

  	
  /s/ Mitch
  Lasky 

  	
   

  
	
   

  	
  By:

  	
  Mitch Lasky 

  
	
   

  	
  Its:

  	
  Manager

  
												

 

S-1

 

EXHIBIT A

 

 

DEFINITIONS

 

 

“Additional
Escrow Property” means any and all property, monies, funds and investments
held in the Escrow Account other than the Escrow Shares.

 

“Business
Day” means a day other than Saturday, Sunday or any day on which banks
located in the State of California are authorized or obligated to close.

 

“Capital
Change” means a recapitalization by JAMDAT, either through a subdivision
(or stock split) of any of its outstanding shares of JAMDAT Common Stock into a
greater number of such shares, or a combination (or reverse stock split) of any
of its outstanding shares of JAMDAT Common Stock into a lesser number of such
shares, or a reorganization, reclassification or other change in its
outstanding shares of JAMDAT Common Stock into the same or a different number
of shares of other classes or series of JAMDAT stock (other than through a subdivision
or combination of shares provided for in the preceding clause), or a declaration
by JAMDAT of a dividend or other distribution on its outstanding shares payable
in shares of JAMDAT Common Stock or in shares or securities convertible into
shares of JAMDAT Common Stock.

 

“Closing”
means the date of closing of the Transactions pursuant to terms and conditions
of the Purchase Agreement.

 

“Closing
Date” means the 12:01 am on the day of Closing.

 

“Eligible
Investments” shall mean (i) obligations issued or guaranteed by the United
States of America or any agency or instrumentality thereof (provided that the
full faith and credit of the United States is pledged in support thereof); (ii)
obligations (including certificates of deposit and banker’s acceptances) of any
domestic commercial bank having capital and surplus in excess of $500,000,000;
(iii) repurchase obligations for underlying securities of the type described in
clause (i); (iv) investment in the Escrow Agent’s “MMIS Business Insured
Savings” fund.  If otherwise qualified,
obligations of the Escrow Agent or any of its affiliates shall qualify as
Eligible Investments.  Notwithstanding
the foregoing, Eligible Investments shall be limited to those instruments
readily obtainable and routinely offered by the Escrow Agent’s Corporate Trust
Services.

 

“Indemnification
Escrow Fund” means the Escrow Shares, together with any dividend income or
proceeds received by the Escrow Agent in connection therewith from time to
time.

 

“Sale”
means the sale of all of the membership interests in the Company by the Members
to the Buyer pursuant to the Purchase Agreement.

 

“Transactions”
means the Sale and the other transactions contemplated hereby and in the
transaction documents provided for in the Purchase Agreement.Exhibit 10.29

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT is made as of April 20, 2005, by and
among JAMDAT Mobile Inc., a Delaware corporation (the “Company”) and the persons
listed on Schedule A hereto, each of which is herein referred to as
an “Investor.”

 

RECITALS

 

WHEREAS, the Company and the Investors are parties to that certain Purchase
Agreement dated as of April 20, 2005 (the “Purchase Agreement”);

 

WHEREAS, as a condition of the obligations of, and an inducement to,
the parties to consummate the purchase by the Company and sale by the Investors
of the membership interests of Blue Lava Wireless, LLC, a Hawaiian limited
liability company, contemplated by the Purchase Agreement, this Agreement shall
be executed and delivered;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, the parties hereto agree as follows:

 

1.             Registration Rights.  The Company covenants and agrees as follows:

 

1.1.                Definitions.  For purposes of this Agreement:

 

(a)           The term “Act” means the Securities
Act of 1933, as amended.

 

(b)           The term “Common Stock” shall mean
the Common Stock of the Company.

 

(c)           The term “Form S-3” means such form
under the Act as in effect on the date hereof or any registration form under
the Act subsequently adopted by the SEC which permits inclusion or
incorporation of substantial information by reference to other documents filed
by the Company with the SEC.

 

(d)           The term “Holder” means any person
owning or having the right to acquire Registrable Securities or any assignee
thereof in accordance with Section 1.9 hereof.

 

(e)           The term “1934 Act” shall mean the
Securities Exchange Act of 1934, as amended.

 

(f)            The term “Person or Persons” shall
mean an individual, corporation, partnership, joint venture, trust, or
unincorporated organization, or a government or any agency or political
subdivision thereof.

 

(g)           The term “register,” “registered,”
and “registration” refer to a registration effected by preparing and filing a
registration statement or similar document in

 

1

 

compliance with the Act, and the declaration
or ordering of effectiveness of such registration statement or document.

 

(h)           The term “Registrable Securities”
means (i) the Common Stock issuable or issued to the Investors pursuant to the Purchase
Agreement and (ii) any Common Stock issued as (or issuable upon the conversion,
exercise or exchange of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of the shares referenced in (i) above, excluding in all cases,
however, any Registrable Securities (a) sold by a person in a transaction
in which the rights under this Section 1 are not assigned,
(b) registered under the Act pursuant to an effective registration
statement filed thereunder and disposed of in accordance with the registration
statement covering them, or (c) publicly sold pursuant to Rule 144
under the Act.

 

(i)            The number of shares of “Registrable
Securities then outstanding” shall be determined by the number of shares of
Common Stock then outstanding which are, and the number of shares of Common
Stock issuable pursuant to then exercisable, exchangeable or convertible
securities which are, Registrable Securities.

 

(j)            The term “SEC” shall mean the Securities
and Exchange Commission.

 

1.2.                 Incidental
Registration.  If the Company at any time proposes to
register any of its securities under the Act for sale to the public, whether
for its own account or for the account of other security holders or both
(except with respect to registration statements on Forms S-4, S-8 or
another form not available for registering the Registrable Securities for sale
to the public), each such time it will give written notice to all holders of
outstanding Registrable Securities of its intention so to do.  Upon the written request of any such Holder,
received by the Company within twenty (20) days after the giving of any
such notice by the Company, to register any of its Registrable Securities, the
Company will use commercially reasonable efforts to cause the Registrable
Securities as to which registration shall have been so requested to be included
in the securities to be covered by the registration statement proposed to be
filed by the Company, all to the extent requisite to permit the sale or other
disposition by the holder of such Registrable Securities so registered.  In the event that any registration pursuant
to this Section 1.2 shall be, in whole or in part, an underwritten public
offering of Common Stock, the number of shares of Registrable Securities to be
included in such an underwriting may be reduced if and to the extent that the
managing underwriter(s) advise the Company, in writing or otherwise, that such
inclusion would adversely affect the marketing of the securities to be sold by
the Company therein.  The Company shall not
be required to include more than one million (1,000,000) shares (subject to
appropriate adjustment for stock splits, stock dividends, combination’s and
other recapitalizations) of the Registrable Securities initially issued the
Investors pursuant to the Purchase Agreement in any single registration
pursuant to this Section 1.2.  Without
limiting the preceding sentence, with respect to any one Holder, the maximum number
of such Holder’s shares of Registrable Securities registrable under this
Section 1.2 in any single registration shall be equal to the total number of
Registrable Securities to be registered in the registration multiplied by a fraction,
the numerator of which shall be the total number of Registrable Securities held
by such Holder and the denominator of which shall be the total number of Registrable
Securities held by all Holders requesting registration pursuant to this Section
1.2.

 

2

 

1.3.                Request for Registration.

 

(a)           If the Company shall
receive at any time twelve (12) months after the date of this Agreement, a
written request from the Holders of one-third (1/3) of the Registrable
Securities then outstanding and owned by such Holders that the Company file a
registration statement under the Act covering all or any portion of the
registration of Registrable Securities, then the Company shall:

 

(a)           (i)            within
ten (10) days of the receipt thereof, give written notice of such request to
all Holders, and such Holders shall then be entitled within twenty (20) days
thereafter to request the Company to include in the requested registration all
or any portion of their shares of Registrable Securities, provided, however,
that in no event shall the Company be obligated to register more than one
million (1,000,000) shares of Registrable Securities less the aggregate number
of shares of Registrable Securities previously registered pursuant to Section
1.2 of this Agreement (in each case, subject to appropriate adjustment for
stock splits, stock dividends, combinations and other recapitalizations), and
provided, further, that, with respect any one Holder (and without limiting the
immediately preceding proviso), the maximum number of such Holder’s shares of
Registrable Securities registrable under this Section 1.3 shall be equal to the
total number of Registrable Securities to be registered in the registration
multiplied by a fraction, the numerator of which shall be the total number of
Registrable Securities held by such Holder and the denominator of which shall
be the total number of Registrable Securities held by all Holders requesting
registration pursuant to this Section 1.3; and

 

(ii)           effect as soon as
possible the registration under the Act of all Registrable Securities which the
Holders request to be registered, subject to the limitations of subsection 1.3(b).

 

Notwithstanding anything to the contrary contained herein, prior to September
28, 2005, the Company shall only be obligated to effect a registration under
this Section 1.3 if, and only if, it is eligible to file such registration on
Form S-3.

 

(b)           If the Holders
initiating the registration request hereunder (“Initiating Holders”) intend to
distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made
pursuant to subsection 1.3(a) and the Company shall include such information in
the written notice referred to in subsection 1.3(a).  The underwriter will be selected by the
Company and shall be reasonably acceptable to a majority in interest of the
Initiating Holders.  In such event, the
right of any Holder to include such Holder’s Registrable Securities in such
registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their
securities through such underwriting shall (together with the Company as
provided in subsection 1.4(e)) enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting.  Notwithstanding any other
provision of this Section 1.3, if the managing underwriter(s) advises the
Company, in writing or otherwise, that marketing factors require the limitation
of the number of shares to be underwritten, then the Company shall so advise
all Holders of Registrable Securities which would otherwise be

 

3

 

underwritten pursuant hereto, and the number of
shares of Registrable Securities that may be included in the underwriting shall
be allocated among all Holders thereof, including the Initiating Holders, as
follows:  the number of shares of
Registrable Securities that may be included in the underwriting shall be
allocated among all Holders in proportion (as nearly as practicable) to the
amount of Registrable Securities owned by each such Holder; provided, however,
that the number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all other securities are first
entirely excluded from the underwriting.

 

(c)           The Company shall
not be obligated to effect, or to take any action to effect, any registration
pursuant to this Section 1.3 after the Company has effected one (1) registration
pursuant to this Section 1.3; provided, however, that such obligation shall be
deemed satisfied only when a registration statement covering all shares of
Registrable Securities specified in notices received as aforesaid for sale in
accordance with the method of disposition specified by the requesting holders
shall have become effective or if such registration statement has been
withdrawn prior to the consummation of the offering at the request of the
holders of Registrable Securities (other than as a result of a material adverse
change in the business or condition, financial or otherwise, of the Company)
and, if such method of disposition is a firm commitment underwritten public
offering, all such shares shall have been sold pursuant thereto (not including shares
eligible for sale pursuant to the underwriters’ over-allotment option).

 

(d)           The Company shall be
entitled to include in any registration statement referred to in this Section
1.3 shares of Common Stock to be sold by the Company for its own account,
except as and to the extent that, in the written opinion of the managing
underwriter, such inclusion would adversely affect the marketing of the
Registrable Securities to be sold. 
Except for registration statements on Form S-4, S-8 or any successor
thereto, the Company will not file with the SEC any other registration
statement with respect to its Common Stock, whether for its own account or that
of other stockholders, from the date of receipt of a notice from requesting
holders requesting sale pursuant to an underwritten offering pursuant to this
Section 1.3 until the completion of the period of distribution of the
registration contemplated thereby.

 

1.4.                Obligations
of the Company. 
Whenever required under this Section 1 to effect the registration
of any Registrable Securities, the Company shall, as expeditiously as
reasonably possible:

 

(a)           Prepare and file with the SEC a
registration statement with respect to such Registrable Securities and use commercially
reasonable efforts to cause such registration statement to become and remain
effective, and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such registration statement
effective for a period of up to one hundred twenty (120) days (provided, however,
that the period of distribution of Registrable Securities in a firm commitment
underwritten public offering shall be deemed to extend until each underwriter
has completed the distribution of all securities purchased by it).

 

(b)           Prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to keep
such registration statement effective for the period specified in paragraph (a)
above and to comply with the provisions of the Act with respect

 

4

 

to the disposition of all securities covered
by such registration statement in accordance with the sellers’ intended method
of disposition set forth in such registration statement for such period.

 

(c)           Furnish to the Holders and to each
underwriter such numbers of copies of a registration statement and a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably
request in order to facilitate the public sale or disposition of the
Registrable Securities covered by such registration statement.

 

(d)           Use commercially reasonable efforts
to register and qualify the securities covered by such registration statement
under such other securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders, or in the case of an underwritten public
offering, the managing underwriter; provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions.

 

(e)           In the event of any underwritten
public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such
offering.

 

(f)            Notify each Holder of Registrable
Securities covered by such registration statement at any time when a prospectus
relating thereto is required to be delivered under the Act, of the happening of
any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing.

 

(g)           Use best efforts to list the Registrable Securities
covered by such registration statement with any securities exchange on which
the Common Stock of the Company is then listed.

 

(h)           Provide a transfer agent and
registrar for all such Registrable Securities, not later than the effective
date of such registration statement.

 

(i)            If the offering is underwritten and
at the request of any seller of Registrable Securities, use best efforts to
furnish on the date that Registrable Securities are delivered to the
underwriters for sale pursuant to such registration:  (i) an opinion dated such date of
counsel representing the Company for the purposes of such registration,
addressed to the underwriters and to such seller, stating that such
registration statement has become effective under the Act and that (A) to
the knowledge of such counsel, no stop order suspending the effectiveness
thereof has been issued and no proceedings for that purpose have been
instituted or are pending or contemplated under the Act, (B) the
registration statement, the related prospectus and each amendment or supplement
thereof comply as to form in all material respects with the requirements of the
Act (except that such counsel need not express any opinion as to financial
statements contained therein) and (C) to such other effects as reasonably
may be requested by counsel for the underwriters or by such seller or its
counsel and (ii) a letter dated such date from the independent public
accountants retained by the Company, addressed to the underwriters and to such
seller,

 

5

 

stating that they are independent public
accountants within the meaning of the Act and that, in the opinion of such
accountants, the financial statements of the Company included in the
registration statement or the prospectus, or any amendment or supplement
thereof, comply as to form in all material respects with the applicable
accounting requirements of the Act, and such letter shall additionally cover
such other financial matters (including information as to the period ending no
more than five business days prior to the date of such letter) with respect to
such registration as such underwriters or such seller reasonably may request.

 

(j)            Advise each selling Holder of
Registrable Securities, promptly after it shall receive notice or obtain
knowledge thereof, of the issuance of any stop order by the SEC suspending the
effectiveness of such registration statement or the initiation or threatening
of any proceeding for such purpose and promptly use all reasonable efforts to
prevent the issuance of any stop order or to obtain its withdrawal if such stop
order should be issued.

 

(k)           Cooperate with the selling Holders of
Registrable Securities and the managing underwriters, if any, to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be sold, such certificates to be in such denominations and
registered in such names as such Holders or the managing underwriters may
request at least two (2) business days prior to any sale of Registrable
Securities.

 

In connection with each registration pursuant to
Section 1 covering an underwritten public offering, the Company and each
participating Holder of Registrable Securities agree to enter into a written
agreement with the managing underwriter selected in the manner herein provided
in such form and containing such provisions as are customary in the securities
business for such an arrangement between such underwriter and companies of the
Company’s size and investment stature.

 

Notwithstanding the provisions of this Section 1.4,
the Company’s obligation to file a registration statement, or cause such
registration statement to become and remain effective, shall be suspended for a
period not to exceed 90 days in any twelve (12) month period if there exists at
the time material non-public information relating to the Company which, in the
reasonable opinion of the Company, should not be disclosed.

 

1.5.                 Furnish Information.  It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder’s
Registrable Securities.  Each Holder
participating in any underwritten public offering, shall also enter into and
perform its obligations under the underwriting agreement, in usual and
customary form.

 

1.6.                Expenses
of Registration.  All expenses other than underwriting
discounts and commissions and the fees of disbursements of counsel for the
selling Holders, if any, incurred in connection with registrations, filings or
qualifications pursuant to Section 1, including (without limitation) all
registration, filing and qualification fees, printers’ and accounting fees,
fees of the National Association of Securities Dealers, Inc., transfer taxes,
fees of

 

6

 

transfer agents and registrars and reasonable fees and disbursements of
one counsel to the selling Holders (which may be Company counsel) shall be
borne by the Company.

 

1.7.                Delay of Registration.  No Holder shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 1.

 

1.8.                Indemnification
and Contribution.  In the event any Registrable Securities are
included in a registration statement under this Section 1:

 

(a)           The Company will indemnify and hold
harmless each Holder, any underwriter (as defined in the Act) for such Holder
and each person, if any, who controls such Holder or underwriter within the
meaning of the Act or the 1934 Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the Act,
the 1934 Act or other federal or state law or otherwise, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or
violations (collectively a “Violation”): 
(i) any untrue statement or alleged untrue statement of any
material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, (ii) the omission or alleged omission to state
therein a material fact required to be stated therein, or necessary to make the
statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, any state securities law or
any rule or regulation promulgated under the Act, the 1934 Act or any state
securities law; and the Company will pay to each such Holder, underwriter or
controlling person any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability, or action as incurred; provided, however, that the indemnity
agreement contained in this subsection 1.8(a) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability, or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case
for any such loss, claim, damage, liability, or action to the extent that it
arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, underwriter or controlling person.

 

(b)           Each selling Holder, severally and
not jointly, will indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each
person, if any, who controls the Company within the meaning of the Act, any
underwriter, any other Holder selling securities pursuant to in such
registration statement and any controlling person of any such underwriter or
other Holder, against any losses, claims, damages, or liabilities (joint or
several) to which any of the foregoing persons may become subject, under the
Act, the 1934 Act or other federal or state law or otherwise, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereto) arise
out of or are based upon any Violation, in each case to the extent (and only to
the extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Holder expressly for use in connection
with such registration; and each such Holder will pay any legal or other
expenses reasonably incurred by any person entitled to be indemnified pursuant
to this subsection 1.8(b),

 

7

 

in connection with investigating or defending
any such loss, claim, damage, liability, or action; provided, however, that the
indemnity agreement contained in this subsection 1.8(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Holder, which consent
shall not be unreasonably withheld; provided, that, in no event shall any
indemnity under this subsection 1.8(b) exceed the net proceeds from the
offering received by such Holder.

 

(c)           Promptly after receipt by an indemnified
party under this Section 1.8 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this
Section 1.8, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties which
may be represented without conflict by one counsel) shall have the right to
retain one separate counsel, with the fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding.  The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action shall not relieve the indemnifying party of any liability that it may
have to the indemnified party hereunder unless such failure materially and
adversely prejudices the ability of the indemnifying party to defend such
action, and the omission to so deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.8.

 

(d)           If the indemnification provided for
in this Section 1.8 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability, claim,
damage, or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the Violations that resulted in such
loss, liability, claim, damage, or expense as well as any other relevant
equitable considerations; provided, however,
that no such indemnifying party will be required to contribute any amount
in excess of the net proceeds of all such Registrable Securities offered by it
pursuant to such registration statement. 
The relative fault of the indemnifying party and of the indemnified
party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state
a material fact relates to information supplied by the indemnifying party or by
the indemnified party and the parties’ relative intent, knowledge, access to
information, and opportunity to correct or prevent such statement or
omission.  The parties agree that it
would not be just and equitable if contribution pursuant to this
Section 1.8 were determined by pro rata allocation or by any other method
of allocation which does not take into account of the equitable considerations
referred to above.  No person guilty of
fraudulent misrepresentation in connection with a registration statement (within
the meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person.

 

8

 

(e)           Notwithstanding the foregoing, to the
extent that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in this
Agreement shall control.

 

(f)            The obligations of the Company and
Holders under this Section 1.8 shall survive the completion of any
offering of Registrable Securities in a registration statement under this
Section 1, and otherwise.

 

1.9.                Reports
Under Securities Exchange Act of 1934.  With a view to making available to the
Holders the benefits of Rule 144 promulgated under the Act and any other rule
or regulation of the SEC that may at any time permit a Holder to sell
securities of the Company to the public without registration or pursuant to a
registration on Form S-3, the Company agrees to:

 

(a)           make and keep public information
available, as those terms are understood and defined in Rule 144 under the Act,
at all times after ninety (90) days after the effective date of the first
registration statement filed by the Company for the offering of its securities
to the general public;

 

(b)           use its best efforts to file with the
SEC in a timely manner all reports and other documents required of the Company
under the Act and the 1934 Act; and

 

(c)           furnish to any Holder, so long as the
Holder owns any Registrable Securities, forthwith upon request (i) a
written statement by the Company that it has complied with the reporting
requirements of Rule 144 under the Act (at any time after ninety (90) days
after the effective date of the first registration statement filed by the Company),
the Act and the 1934 Act (at any time after it has become subject to such
reporting requirements) or that it qualifies as a registrant whose securities
may be resold pursuant to Form S-3 (at any time after it so qualifies),
(ii) a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested in availing
any Holder of any rule or regulation of the SEC which permits the selling of
any such securities without registration or pursuant to such form.

 

1.10.              Assignment
of Registration Rights.  The rights to cause the Company to register
Registrable Securities pursuant to this Section 1 may be assigned (but
only with all related obligations) by a Holder to (i) any family member or
family trust or similar entity for the benefit of any Holder who is an
individual (or such Holder’s family member) and (ii) a transferee or assignee
of such securities who, after such assignment or transfer, holds at
least 250,000 shares of Registrable Securities (subject to appropriate
adjustment for stock splits, stock dividends, combinations and other
recapitalizations), provided: 
(a) the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned; and (b) such transferee or assignee agrees in writing to
be bound by and subject to the terms and conditions of this Agreement,
including without limitation the provisions of Section 1.11 below by
executing an Instrument of Accession in the form of Schedule B
hereto.  For the purposes of determining
the number of shares of Registrable Securities held by a

 

9

 

transferee or assignee, the holdings of transferees and assignees of a
partnership who are partners or retired partners of such partnership (including
spouses and ancestors, lineal descendants and siblings of such partners or
spouses who acquire Registrable Securities by gift, will or intestate
succession) shall be aggregated together and with the partnership; provided
that all assignees and transferees who would not qualify individually for
assignment of registration rights shall have a single attorney-in-fact for the
purpose of exercising any rights, receiving notices or taking any action under
this Section 1.

 

1.11.                “Market
Stand-Off” Agreement.  Each Holder and each Restricted Person hereby
agrees that, if requested in writing, during the period of time specified by an
underwriter of Common Stock or other securities of the Company, following the
date of the initial sale to the public pursuant to a registration statement of
the Company filed under the Act, it shall not, to the extent requested by such
underwriter, directly or indirectly sell, offer to sell, contract to sell
(including, without limitation, any short sale), grant any option to purchase
or otherwise transfer or dispose of (other than to donees of Holders who agree
to be similarly bound) any securities of the Company held by it at any time
during such period except Common Stock included in such registration
(including, without limitation, pursuant to this Section 1); provided,
that (i) all executive officers and directors of the Company enter into similar
agreements and (ii) such market stand-off time period shall not exceed 180
days.

 

In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Registrable Securities of each Investor (and
the shares or securities of every other person subject to the foregoing
restriction) until the end of such period.

 

1.12.                Termination
of Registration Rights.  The obligations of the Company
to register shares of Registrable Securities, and the obligations of each
Holder and each Restricted Person, under Section 1 shall terminate on the third
anniversary of the date of this Agreement.

 

2.     Miscellaneous

 

2.1.          Successors
and Assigns. 
Except as otherwise provided herein, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties (including transferees of any shares of
Registrable Securities).  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement. 
The Company shall amend Schedule
A as necessary (which amendments shall not require the consent of the
holders of Registrable Securities in accordance with Section 2.7) to
include any successor or assign of an Investor or any successor or permitted
assign of a Restricted Person upon the execution by such successor or assign of
an instrument of accession, in the form of Schedule B hereto.

 

2.2.                Governing
Law. 
This Agreement shall be governed by and construed under the laws of the
State of California as applied to agreements among California residents entered
into and to be performed entirely within California.

 

10

 

2.3.                Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Any signature page
delivered by facsimile or telecopy machine shall be binding to the same extent
as an original.

 

2.4.                Titles
and Subtitles. 
The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.

 

2.5.                Notices.  Unless otherwise provided, any notice
required or permitted under this Agreement shall be given in writing and shall
be sent to the address/fax number indicated for such party on the signature
page hereof or an instrument of accession attached in the form of Schedule B
hereto, as appropriate (provided that any party may at any time change its
address/fax number for notice by providing ten (10) days advance written notice
to the other parties), and shall be deemed effectively given upon (i) personal
delivery to the party to be notified, (ii) the time of successful facsimile
transmission to the party to be notified, (iii) one (1) day following sending
by reputable overnight delivery service or (iv) five (5) days following deposit
with the United States Post Office, by registered or certified mail, postage
prepaid.

 

2.6.                Expenses.  If any action at law or in equity is
necessary 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 such party may be
entitled.

 

2.7.                Amendments
and Waivers. 
Except as otherwise set forth herein, any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively),
only with the written consent of the Company and the holders of at least
two-thirds (2/3) of the Registrable Securities then outstanding.  Subject to the forgoing, any amendment or
waiver effected in accordance with this Section 2.7 shall be binding upon
each holder (and future holder) of any Registrable Securities then outstanding
(whether or not such holder in fact consented to such amendment or waiver) and
the Company.

 

2.8.                Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

 

2.9.                Aggregation
of Stock. 
All shares of Registrable Securities held or acquired by affiliated
entities or persons shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement.

 

2.10.              Entire
Agreement. 
This Agreement (including the Exhibits hereto, if any) constitutes the
full and entire understanding and agreement between the parties with regard to
the subjects hereof and thereof.

 

2.11.              Additional
Parties. 
Any purported transfer of Shares without full compliance with the provisions
of this Agreement shall be null and void. 
Any Investor may

 

11

 

transfer Shares to any Person provided that the transferee of the
Shares shall hold the Shares so acquired with, subject to Section 1.10, all the
rights conferred by, and subject to all the restrictions imposed by, this
Agreement, and as a condition to such transfer each such transferee shall
execute and deliver an instrument of accession in the form of Schedule B
hereto agreeing to be bound by the provisions of this Agreement, as if he, she
or it was an Investor.  The Company shall
amend (which amendments shall not require the consent of the holders or
Registrable Securities in accordance with Section 2.7) Schedule A
to reflect any transfer by an Investor, upon the execution by such Restricted
Person or transferee, as the case may be, of an instrument of accession, in the
form of Schedule B hereto.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

12

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

 

	
   

  	
   

  	
  JAMDAT Mobile Inc.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mitch Lasky

  	
   

  
	
   

  	
   

  	
   

  	
  Mitch Lasky, Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  3415 S. Sepulveda Blvd., Suite 700

  
	
   

  	
   

  	
  Los Angeles, CA 90034

  
	
   

  	
   

  	
  Facsimile: (310) 397-0353

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  C. Thomas Hopkins, Esq.

  
	
   

  	
   

  	
  Sheppard, Mullin, Richter
  & Hampton, LLP

  
	
   

  	
   

  	
  800 Anacapa Street

  
	
   

  	
   

  	
  Santa Barbara, CA 93101

  
	
   

  	
   

  	
  Facsimile: (805) 568-1955

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INVESTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ HENK ROGERS

  	
   

  
	
   

  	
   

  	
  HENK ROGERS, in his
  individual capacity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1050 Lunalilo St., PH5

  
	
   

  	
   

  	
  Honolulu, Hawaii 96822

  
	
   

  	
   

  	
  Facsimile: (808) 528-1634

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ AKEMI ROGERS

  	
   

  
	
   

  	
   

  	
  AKEMI ROGERS, in her
  individual capacity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1050 Lunalilo St., PH5

  
	
   

  	
   

  	
  Honolulu, Hawaii 96822

  
	
   

  	
   

  	
  Facsimile: (808) 528-1634

  
						

 

 

	
   

  	
   

  	
  Henk B. Rogers 2005
  Dynasty Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Akemi Rogers

  	
   

  
	
   

  	
   

  	
   

  	
  Akemi Rogers, Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Henk Rogers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Henk Rogers, Settlor

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1050 Lunalilo St., PH5

  
	
   

  	
   

  	
  Honolulu, Hawaii 96822

  
	
   

  	
   

  	
  Facsimile: (808) 528-1634

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Akemi M. Rogers 2005
  Dynasty Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Henk Rogers

  	
   

  
	
   

  	
   

  	
   

  	
  Henk Rogers, Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Akemi Rogers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Akemi Rogers, Settlor

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1050 Lunalilo St., PH5

  
	
   

  	
   

  	
  Honolulu, Hawaii 96822

  
	
   

  	
   

  	
  Facsimile: (808) 528-1634

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Lloyd Living Trust u/t/a
  February 20, 1993

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/  Robert E. Lloyd

  	
   

  
	
   

  	
   

  	
   

  	
  Robert E. Lloyd, Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kay Lloyd

  	
   

  
	
   

  	
   

  	
   

  	
  Kay Lloyd, Trustee

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  26707 Tanglewood Lane

  
	
   

  	
   

  	
  Los Altos Hills, CA 94022

  
	
   

  	
   

  	
  Facsimile:

  	
   

  	
   

  
												

 

 

	
   

  	
   

  	
  /s/ MINORU ARAKAWA

  	
   

  
	
   

  	
   

  	
  MINORU ARAKAWA, in his
  individual

  capacity

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  1611 Evergreen Point Road

  
	
   

  	
   

  	
  Medina, WA 98039

  
	
   

  	
   

  	
  Facsimile: (808) 804-8155

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