Document:

Portal Agreement dated September 9, 2004

 Exhibit 10.25 
  
 Portal Agreement 
  

This Agreement made this 9 day of SEPT, 2004 describes the legal relationship between Green Linnet Records, Inc. (Hereinafter referred to as Label) and Rio Bravo
Entertainment, LLC. d/b/a Psychobaby (collectively with our licensees and assignees referred to in this Agreement as “Psychobaby) 
  

	1.	Definitions. 

  
 The following terms shall have the following meanings for purposes of this Agreement: 
  

	a.	“Digital Master” or “Digital Masters” means copies of RIGHTS HOLDER Content in digital form, which Psychobaby may sell or authorize Distributors to sell via
permanent digital download, streams or burns, as individual tracks or as a whole album, and artwork pursuant to the terms and conditions of this Agreement. 

  

	b.	“Distributor” means any third party, including but not limited to iTunes, Sony Connect, MusicMatch, that Psychobaby in its soled discretion may authorize to carry out the
marketing, distribution and sale or other use of the Digital Masters pursuant to the terms of this Agreement. 

  

	c.	“Term” means the period beginning on the Effective Date of this Agreement and ending two years after the Effective Date, after which such Term shall automatically renew
for successive one-year periods, unless either party gives the other notice in writing, no later than 60 days prior to the end of the then current term. 

  

	d.	“Territory” means the Universe. 

  

	e.	“Label Content” means sound recordings and underlying musical compositions that Label owns, controls, or has the appropriate rights to distribute in a digital form. Any
sound recordings and the underlying musical compositions that are provided by or on behalf of Label to Psychobaby must be owned or controlled by Label and/or have been cleared by Label. Any sound recording provided by Label to Psychobaby shall be
deemed subject to this agreement. 

  

	f.	“Artwork” means album cover artwork and any other artwork relating to Label Content that Label provides to Psychobaby. Any artwork that is provided by or on behalf of
Label to Psychobaby before or during the Term will be deemed to have been cleared by Label unless Label promptly notifies Psychobaby in writing to the contrary. 

  

	2.	Rights. 

  

	a.	 Subject to the terms of this Agreement, Label hereby Psychobaby as Label’s exclusive authorized representative for the sale and other distribution of Digital
Masters. Accordingly, Label hereby grants an exclusive right to Psychobaby, during the Term, to: (i) Reproduce and convert Label’s content delivered Label into Digital Masters; (ii) Perform and make thirty (30) second 

	 	 
clips of the Label’s content available by streaming (“Clips”) to promote the sale and distribution of applicable Digital Masters; (iii)
Promote, sell, distribute, and electronically fulfill and deliver Digital Masters, as individual tracks or entire albums, and associated metadata to purchasers who may use such Digital Masters in accordance with usage rules similar to those set
forth by the music services; 

  

	(iv)	Display and electronically fulfill and deliver Artwork for personal use solely in conjunction with the applicable purchased Digital Master; (v) Use Labels’ Content, Artwork and
metadata as may be reasonably necessary or desirable for Psychobaby to exercise Psychobaby rights under the terms of this Agreement; 

  

	(vi)	Pay all mechanical royalties due to publishers and/or authors or co-authors of copyrighted musical compositions embodied in Digital Masters from sales or other uses of Digital
Masters; such payments shall be deducted from Label’s share of royalties hereunder. Label with provide Psychobaby all necessary information to make such payments including publishers and writer contact information, which Label warrants that
Psychobaby will rely upon to make such payments. Psychobaby will make its best efforts to make such mechanical payment; however, if Psychobaby is not able to locate the publisher to make such mechanical payments, Psychobaby, at it’s sole
election, may make such payments to Label, at which time the Label will be solely responsible for such payments, and (vii) authorize or appoint any Distributors to perform the activities in (i)-(vi) above. 

  

	b.	Psychobaby may use and authorize its Distributors to use the names and licensees of, and biographical material concerning, any Digital Master, artists, bands, producers and/or
songwriters, as well as track and/or album name, and Artwork, in any marketing materials for the sale, promotion and advertising of the applicable Digital Master which is offered for sale or other use under the terms of this Agreement (e.g., an
artist or band name and likeness may be used in an informational fashion, such as textual displays or other informational passages, to identify and represent authorship, production credits, and performances of the applicable artist or band in
connection with the authorized exploitation of applicable Digital Masters). Psychobaby and any of its Distributors shall have the unrestricted right to market, promote and advertise the Digital Masters available for purchase as it determines in its
discretion. 

  
 Nothing herein shall obligate Psychobaby or any
Distributor to actually exercise any rights granted under this Agreement. 
  

	3.	LABEL’s Obligations. 

  
 Label shall obtain and pay for any necessary clearances and licenses in the Territory for all Label Content and Artwork. Specifically, Label shall be responsible for and
timely pay (i) any royalties and other income due to artists, authors, co-authors, copyright owners, co-copyright owners, producers and other record royalty participants from sales or other uses of Digital Masters, (ii) all payments that may be
required under collective bargaining agreements applicable to Label or third parties other than Psychobaby, and (iv) any other royalties, fees and/or sums payable with respect to the Label Content, 

 
Artwork, metadata and other materials provided by Label to Psychobaby, (v) Label agrees that it shall prominently promote no less than one (1) of
Psychobaby’s digital distributors on Label’s own website and any artist’s website that the Label has provided Psychobaby music for, and shall provide a link to said distributor. (Eg.” featured on iTunes logo.) 
  

	4.	Payment. 

  
 Psychobaby shall pay Label [*] of the amount that Psychobaby receives from Distributors for the sale or other use of Label’s Digital Masters, minus mechanical royalty payments. Psychobaby will compute amounts
payable Label within [*] of the end of each [*] during the Term, and will provide a statement to Label in accordance with Psychobaby’s standard business practices Psychobaby. Such payment shall constitute full consideration for all rights
granted and obligations undertaken by Label hereunder. 
  

	5.	Ownership. 

  
 As between the Parties, all right, title and interest in and to (i) Label’s Content, (ii) the Digital Masters, (iii) the Clips, (iv) all copyrights and equivalent rights embodied therein, and (v) all materials
furnished by Label, except as to any rights of Psychobaby (whether pre-existing or under this Agreement), shall remain the property of Label, it being understood that under no circumstances shall Psychobaby have any lesser rights than it would have
as a member of the public. 
  

	6.	Indemnification and Limitation of Liability. 

  

	a.	Label will indemnity and hold harmless, and upon Psychobaby’s request, defend, Psychobaby and its Distributors and affiliates (and their respective directors, officers and
employees) from and against any and all losses, liabilities, damages, costs or expenses (including reasonable attorneys’ fees and costs) arising out of a claim by a third party by reason of: (i) a breach of any warranty, representation,
covenant or obligation of Label under this Agreement; or (ii) any claim that any Digital Master, sound recording or Label Content, Artwork, metadata or any other materials provided or authorized by or on behalf of Label hereunder or
Psychobaby’s or its Distributors” use thereof violates or infringes the rights of another party. Label will reimburse Psychobaby and its Distributors and affiliates on demand for any actual payments made in resolution of any liability or
claim that is subject to indemnification under this Section 9, provided that Psychobaby obtains Label’s written consent prior to making such payments, such consent not to be unreasonably withheld, delayed or conditioned Psychobaby shall
promptly notify Label of any such claim, Label may assume control of the defense of such claim. Psychobaby shall have the right, at its expense, to participate in the defense thereof under RIGHTS HOLDER’s direction. 

  

	b.	 Label represents and warrants that it has the full authority to act on behalf of any and all owners of any right, title and interest in and to the Label Content;
that it has full authority to enter into this Agreement and to fully perform its obligations hereunder and has obtained all necessary third-party consents, licenses and permissions necessary to enter into and fully perform its obligations herein;
that it 

  

  

	*	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

	 	 
owns or controls the necessary rights in order to make the grant of rights, licenses and permissions herein, and that the exercise of such rights, licenses
and permissions by the other party hereto shall not violate or infringe the rights of any third party; that it shall not act in any manner which conflicts or interferes with any existing commitment or obligation of such party, and that no agreement
previously entered into by such party will interfere with such party’s performance of its obligations under this Agreement. 

  

	c.	The warranties and indemnification herein shall survive the termination of this agreement. 

  

	7.	General Provisions. 

  

	a.	No Agency or Joint Venture. The parties agree and acknowledge that the relationship between the parties is that of independent contractors. This Agreement shall not be deemed
to create a partnership or joint venture, and neither party is the other’s agent, partner, employee, or representative. 

  

	b.	Binding on Successors. This Agreement shall be binding on the assigns, heirs, executors, personal representatives, administrators, and successors (whether through merger,
operation of law, or otherwise) of the parties. 

  

	d.	Notices. Any notice, approval, request, authorization, direction or other communication under this Agreement shall be given in writing and shall be deemed to have been
delivered and given for all purposes: (i) on the delivery date if sent by electronic mail to the addresses provided to and by Label upon registration with the Psychobaby, or as property updated. 

  

	e.	This writing contains the entire understanding between the parties and supercedes any previous agreements between the parties. During the term of this Agreement, it is understood
and agreed that there shall be no change or modification of this Agreement unless reduced to writing and signed by all parties hereto. This agreement shall be governed by the laws of the State of New York, and subject to the exclusive jurisdiction
of the courts located in the State of New York. 

  

	f.	Cure. If either party hereto alleges that the other has breached this agreement, they must notify the other party in writing of such breach and then the other party
shall have a period of thirty (30) days to cure such breach. 

  

			
	Accepted and Agreed to:
	
	Rio Bravo Entertainment, LLC d/b/a Psychobaby
		
	By:	 	/s/    RICHARD REES        
		
	By:	 	/s/    WENDY NEWTON        
	 Label:
	 	 Green Linnet Records, Inc.Employment Agreement dated September 28, 2005 with Clifford Haigler

 Exhibit 10.26 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (the “Agreement”) is entered into as of September 26, 2005, and shall become effective upon the
closing of the Merger (as defined below) so long as Executive is an employee of the Company at such time (the “Effective Date”), between Digital Music Group, Inc., a Delaware corporation with its principal offices located at
1545 River Park Drive, Suite 210, Sacramento, CA 95815 (the “Company”), and Cliff Haigler, a resident of Massachusetts (the “Executive”). 
  
 In consideration of the promises and the terms and conditions set forth in this Agreement, the parties agree as follows:

  
 1. Position. On the Effective Date and during
the term of this Agreement, Company will employ Executive, and Executive will serve Company as the Company’s Chief Financial Officer and Investor Relations Officer will have such responsibilities and authority as may from time to time be
assigned to Executive by the Company’s Chief Executive Officer and the Board of Directors of the Company. Executive will report directly to the Chief Executive Officer. 
  
 2. Duties. Beginning on the Effective Date, Executive will have day-to-day responsibility for managing the
Company’s accounting department, human resources department and the legal department, and shall be responsible for all communication with financial analysts and investors. Executive shall also be responsible for hiring and firing any employees
in these departments and shall serve the Company in such capacities and with such duties and responsibilities as the Chief Executive Officer of the Company and the Board of Directors of the Company may from time to time determine. Executive will
comply with and be bound by Company’s operating policies, procedures, and practices from time to time in effect during Executive’s employment. Executive will perform his duties under this Agreement at the offices of Company. Executive
hereby represents and warrants that he is free to enter into and fully perform this Agreement and the agreements referred to herein without breach of any agreement or contract to which he is a party or by which he is bound. 
  
 3. Exclusive Service. Beginning on the Effective Date,
Executive shall devote his full time and efforts exclusively to this employment and apply all his skill and experience to the performance of his duties and advancing the Company’s interests in accordance with Executive’s experience and
skills. In addition, Executive will not engage in any consulting activity except with the prior written approval of Company, or at the direction of Company, and Executive will otherwise do nothing inconsistent with the performance of his duties
hereunder. 
  
 4. Term of Agreement. This Agreement
will commence on the Effective Date, and will continue until the earlier of two (2) years after the Effective Date or when terminated pursuant to Section 7 hereof. 
  
 5. Compensation and Benefits. 
  

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 5.1 Base Salary. Upon the closing of the merger of Digital Musicworks International, Inc.
with and into the Company (the “Merger”), the Company shall begin paying Executive an initial minimum salary of one hundred and thirty thousand dollars ($130,000) per year (“Base Salary”). At such time, Executive’s salary
will be payable as earned in accordance with Company’s customary payroll practice. The parties agree this salary shall be applicable only to periods starting immediately after the Effective Date and that no compensation will begin to accrue or
be due or payable until immediately after the Effective Date. 
  
 5.2 Additional Benefits. Beginning on the Effective Date, Executive will be eligible to participate in Company’s employee benefit plans of general application, including without limitation those plans covering pension and
profit sharing, executive bonuses, stock purchases, and those plans covering life, health, and dental insurance in accordance with the rules established for individual participation in any such plan and applicable law. Once Executive is eligible for
health and dental insurance coverage hereunder, Executive’s spouse and dependents shall also be eligible for such coverage at Company’s sole expense. In addition, beginning on the Effective Date, Executive will receive such other benefits,
including vacation, holidays and sick leave, as the Company generally provides to its employees holding similar positions as that of Executive. 
  
 5.3 Cash Bonus. Executive shall be paid an annual bonus, if ever, solely at the discretion of the Compensation Committee of the
Company’s Board of Directors. 
  
 5.4 Expenses.
The Company will reimburse Executive for all reasonable and necessary expenses incurred by Executive in connection with the Company’s business, provided that such expenses are deductible to the Company, are in accordance with the Company’s
applicable policy and are properly documented and accounted for in accordance with the requirements of the Internal Revenue Service. 
  
 6. Proprietary Rights. Executive hereby agrees to execute, on the Effective Date, an Employee Invention Assignment and Confidentiality
Agreement with the Company in substantially the form attached hereto as Exhibit A. 
  
 7. Termination. 
  
 7.1 Events of Termination. Executive’s employment with the Company shall terminate upon any one of the following: 
  
 (a) the Company’s determination made in good faith that it is terminating Executive for “cause” as defined under Section 7.2 below
(“Termination for Cause”) provided, that if the “Cause” for termination is a curable failure by Executive to properly perform his assigned duties (as determined in good faith by the Board of Directors of the
Company), then the Company will give Executive written notice of such failure (a “Cause Notice”), and if Executive fails to cure such failure to the reasonable satisfaction of the Board of Directors within sixty
(60) days after the Company gives the Cause Notice, then the Company may immediately terminate Executive’s employment, and such termination will be conclusively deemed to be for “cause” hereunder; or 
  

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 (b) the effective date of a written notice sent to the Company from Executive stating that Executive is
electing to terminate his employment with the Company for “good reason” as defined under Section 7.3 below (“Termination for Good Reason”); or 
  
 (c) thirty (30) days after the effective date of a written notice sent to Executive stating that the Company is
terminating his employment, without cause, which notice can be given by the Company at any time after the Effective Date at the Company’s sole discretion, for any reason or for no reason (“Termination Without Cause”); or

  
 (d) the effective date of a written notice sent to the
Company from Executive stating that Executive is electing to terminate his employment with the Company (“Voluntary Termination”). 
  
 7.2 “Cause” Defined. For purposes of this Agreement, “cause” for Executive’s termination shall be as defined as
(i) Executive’s failure to perform his assigned duties or responsibilities as an employee of the Company (other than a failure resulting from the Executive’s death or permanent disability); (ii) Executive being convicted of any
act of dishonesty, fraud or misrepresentation; (iii) Executive’s violation of any federal or state law or regulation applicable to the Company’s business; (iv) Executive’s breach of any confidentiality agreement or invention
assignment agreement between Executive and the Company; (v) Executive being convicted of, or entering a plea of nolo contendere to, any felony, other than with respect to moving vehicle violations, or committing any act of moral
turpitude; or (vi) Company notifies Executive prior to the closing of the Merger that Company has identified a replacement Chief Financing Officer for the Company and hires such replacement within thirty (30) days after the closing of the
Merger. 
  
 7.3 “Good Reason” Defined. For
purposes of this Agreement, Executive’s “good reason” to terminate his employment with the Company shall be as defined as (i) Executive’s position with the Company is changed in a manner which materially reduces his level of
responsibility or the nature of his functions; (ii) Executive’s level of compensation (including base salary, fringe benefits and participation in non-discretionary bonus programs under which awards are payable pursuant to objective
financial or performance standards) is reduced by more than fifteen percent (15%) without his consent; or (iii) Executive is required to relocate his principal office of employment more than fifty (50) miles without his consent.

  
 8. Effect of Termination. 
  
 8.1 Termination for Cause or Voluntary Termination. In the
event of any termination of this Agreement pursuant to Sections 7.1(a) or 7.1(d), the Company shall pay Executive the compensation and benefits otherwise payable to Executive under Section 5 through the date of termination. Executive’s
rights under the Company’s benefit plans of general application shall be determined under the provisions of those plans. 
  
 8.2 Termination Without Cause or for Good Reason. In the event of any termination of this Agreement pursuant to Section 7.1(b) or
7.1(c): 
  
 (a) the Company shall pay Executive the compensation
and benefits otherwise payable to Executive under Section 5 through the date of termination; 
  

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 (b) for a period of three (3) months after the Effective Date, the Company shall continue to pay
Executive his base salary under Section 5.1 above at Executive’s then-current salary, his benefits under Section 5.2 and any bonus due to Executive pursuant to Section 5.3, less applicable withholding taxes, payable on the
Company’s normal payroll dates during that period, provided, however, that if Executive secures other employment during the period that Section 5.1, Section 5.2 and 5.3 remains in effect pursuant to this
Section 8.2, the Company will be entitled to set off, dollar for dollar, whatever is earned in such employment against the amount owed to Executive hereunder; provided, that if the total amount of the benefits available to Executive
under this Section 8.2, either alone or together with other payments which Executive has the right to receive from the Company, would constitute a “parachute payment” as defined in Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), then the Company shall pay to Executive at the time of termination an additional amount such that the net amount retained by Executive, after deduction of the excise tax imposed by Section 4999 of
the Code and any federal, state and local income tax and excise tax imposed on such additional amount, shall be equal to the amount payable to the Executive under this Section 8.2 as originally determined prior to the deduction of the excise
tax; and 
  
 (c) Executive’s rights under the Company’s
benefit plans of general application shall be determined under the provisions of those plans. 
  
 9. Executive Solicitation. So long as Executive is an employee of the Company and for one (1) year thereafter, Executive shall not, directly or indirectly, either for himself or
for any other person or entity, directly or indirectly, solicit, induce or attempt to induce any employee of the Company to terminate his or her employment with the Company. 
  
 10. Miscellaneous. 
  
 10.1 Arbitration. Executive and the Company shall submit to mandatory binding arbitration in any controversy or claim arising out of, or
relating to, this Agreement or any breach hereof, provided, however, that the Company retains its right to, and shall not be prohibited, limited or in any other way restricted from, seeking or obtaining equitable relief from a court
having jurisdiction over the parties. Such arbitration shall be conducted in accordance with the commercial arbitration rules of the American Arbitration Association in effect at that time, and judgment upon the determination or award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. 
  
 10.2 Severability. If any provision of this Agreement shall be found by any arbitrator or court of competent jurisdiction to be invalid or unenforceable, then the parties hereby waive such provision to the extent that it is
found to be invalid or unenforceable and to the extent that to do so would not deprive one of the parties of the substantial benefit of its bargain. Such provision shall, to the extent allowable by law and the preceding sentence, be modified by such
arbitrator or court so that it becomes enforceable and, as modified, shall be enforced as any other provision hereof, all the other provisions continuing in full force and effect. 
  
 10.3 Remedies. The Company and Executive acknowledge that the service to be provided by Executive is of a
special, unique, unusual, extraordinary and intellectual character, which gives it peculiar value the loss of which cannot be reasonably or adequately compensated in damages in an action at law. Accordingly, Executive hereby consents and agrees

  

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that for any breach or violation by Executive of any of the provisions of this Agreement including, without limitation, Section 3, a restraining order
and/or injunction may be issued against Executive, in addition to any other rights and remedies the Company may have, at law or equity, including without limitation the recovery of money damages. 
  
 10.4 No Waiver. The failure by either party at any time to
require performance or compliance by the other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter. The waiver by either party of a breach of any provision hereof
shall not be taken or held to be a waiver of any preceding or succeeding breach of such provision or as a waiver of the provision itself. No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against
whom such waiver is sought to be enforced. 
  
 10.5
Assignment. This Agreement and all rights hereunder are personal to Executive and may not be transferred or assigned by Executive at any time. The Company may assign its rights, together with its obligations hereunder, to any parent,
subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, provided, however, that any such assignee assumes the Company’s obligations
hereunder. 
  
 10.6 Withholding. All sums payable to
Executive hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law. 
  
 10.7 Entire Agreement. This Agreement constitutes the entire and only agreement between the parties relating to employment of Executive with
the Company, and this Agreement supersedes and cancels any and all previous contracts, arrangements or understandings with respect thereto. 
  
 10.8 Amendment. This Agreement may be amended, modified, superseded, cancelled, renewed or extended only by an agreement in writing executed
by both parties hereto. 
  
 10.9 Notices. All
notices and other communications required or permitted under this Agreement shall be in writing and hand delivered, sent by telecopier, sent by certified first class mail, postage pre-paid, or sent by nationally recognized express courier service.
Such notices and other communications shall be effective upon receipt if hand delivered or sent by telecopier, five (5) days after mailing if sent by mail, and one (l) day after dispatch if sent by express courier, to the following
addresses, or such other addresses as any party shall notify the other parties: 
  

							
	 	 	If to the Company:	 	 Digital Music Group, Inc.
	 	 
	 	 	 	 	 1545 River Park Drive, Suite 210

	 	 	 	 	 Sacramento, CA 95815
	 	 
				
	 	 	Phone:	 	 916-239-6010
	 	 
				
	 	 	Fax:	 	 916-239-6018
	 	 
				
	 	 	Attention:	 	 Chief Executive Officer
	 	 

  
  
  
  
  

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	 	 	If to Executive:	 	 Cliff Haigler
	 	 
	 	 	 	 	                                       
                                        
                            

	 	 	 	 	                                       
                                        
                            

			
	 	 	Phone:	 	                                       
                                        
                            

			
	 	 	Fax:	 	                                       
                                        
                            

  
 10.10 Binding
Nature. This Agreement shall be binding upon, and inure to the benefit of, the successors and personal representatives of the respective parties hereto. 
  

10.11 Headings. The headings contained in this Agreement are for reference purposes only and shall in no way affect the meaning or
interpretation of this Agreement. In this Agreement, the singular includes the plural, the plural included the singular, the masculine gender includes both male and female referents, and the word “or” is used in the inclusive sense.

  
 10.12 Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement. 
  

10.13 Governing Law. This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws
of the State of California, without giving effect to the principles of conflict of laws. 
  
 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the date first above written. 
  

									
	“COMPANY”	 	 	 	“EXECUTIVE”
			
	 /s/ Steve Colmar

	 	 	 	 /s/ Cliff Haigler

					
	By:	 	 Steve Colmar
	 	 	 	By:	 	 Cliff Haigler

  

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 DIGITAL MUSIC GROUP, INC. 

 
 EXHIBIT A 
 TO EMPLOYMENT AGREEMENT 
 BETWEEN DIGITAL MUSIC GROUP, INC AND 

CLIFFORD HAIGLER DATED SEPTEMBER 28, 2005 
  
 As a condition of my employment with DIGITAL MUSIC GROUP, INC., its subsidiaries, affiliates,
successors or assigns (together the “Company”), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by Company, I agree to the following: 
  
 1. At-Will Employment. I UNDERSTAND AND ACKNOWLEDGE THAT MY
EMPLOYMENT WITH THE COMPANY IS SUBJECT TO THAT CERTAIN EMPLOYMENT AGREEMENT DATED SEPTEMBER 28, 2005, AND TO WHICH THIS EXHIBIT A IS ATTACHED. I ACKNOWLEDGE THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE
OR FOR ANY OR NO CAUSE, AT THE OPTION EITHER OF THE COMPANY OR MYSELF, WITH OR WITHOUT NOTICE SUBJECT TO THE TERMS AND CONDITIONS OF SAID EMPLOYMENT AGREEMENT. 
  

2. Confidential Information. 
  
 (a) Company Information. I agree at all times during the term of my employment and thereafter, to hold in strictest confidence, and not to
use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any Confidential Information of the Company. I understand that
“Confidential Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers (including,
but not limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my employment), markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, finances or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment. I further understand that Confidential
Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved or
improvements or new versions thereof. 
  
 (b) Former
Employer Information. I agree that I will not, during my employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not
bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity. 
  

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 (c) Third Party Information. I recognize that the Company has received and in the future
will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree to hold all such
confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company’s agreement with
such third party. 
  
 3. Inventions. 
  
 (a) Inventions Retained and Licensed. I have attached hereto,
as Exhibit A, a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the Company (collectively referred to as “Prior
Inventions”), which belong to me, which relate to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are
no such Prior Inventions. If in the course of my employment with the Company, I incorporate into a Company product, process or machine a Prior Invention owned by me or in which I have an interest, the Company is hereby granted and shall have a
nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine. 
  
 (b) Assignment of Inventions. I agree that I will promptly make
full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest in and to any and all inventions, original works of
authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to
practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company (collectively referred to as “Inventions”), except as provided in Section 3(f) below. I further
acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Company and which are protectible by copyright are “works made for
hire,” as that term is defined in the United States Copyright Act. I understand and agree that the decision whether or not to commercialize or market any invention developed by me solely or jointly with others is within the Company’s sole
discretion and for the Company’s sole benefit and that no royalty will be due to me as a result of the Company’s efforts to commercialize or market any such invention. 
  
 (c) Inventions Assigned to the United States. I agree to assign to the United States government all my right,
title, and interest in and to any and all Inventions whenever such full title is required to be in the United States by a contract between the Company and the United States or any of its agencies. 
  
 (d) Maintenance of Records. I agree to keep and maintain
adequate and current written records of all Inventions made by me (solely or jointly with others) during the term of my employment with the Company. The records will be in the form of notes, sketches, drawings, and 

  

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any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times. 

 
 (e) Patent and Copyright Registrations. I agree to assist
the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and
all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary
in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work
rights or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this
Agreement. If the Company is unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering
Inventions or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and
stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me.

  
 (f) Exception to Assignments. I understand that
the provisions of this Agreement requiring assignment of Inventions to the Company do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as Exhibit B). I will
advise the Company promptly in writing of any inventions that I believe meet the criteria in California Labor Code Section 2870 and not otherwise disclosed on Exhibit A. 
  
 4. Conflicting Employment. I agree that, during the term of my employment with the Company, I will not engage
in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that
conflict with my obligations to the Company. 
  
 5.
Returning Company Documents. I agree that, at the time of leaving the employ of the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data,
notes, reports, proposals, lists, correspondence, specifications, drawings blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by me pursuant to my employment with the
Company or otherwise belonging to the Company, its successors or assigns, including, without limitation, those records maintained pursuant to paragraph 3(d). In the event of the termination of my employment, I agree to sign and deliver the
“Termination Certification” attached hereto as Exhibit C. 
  

 9 

 6. Notification of New Employer. In the event that I leave the employ of the Company, I
hereby grant consent to notification by the Company to my new employer about my rights and obligations under this Agreement. 
  
 7. Solicitation of Employees. I agree that for a period of twelve (12) months immediately following the termination of my relationship
with the Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment, or take away such employees, or attempt to
solicit, induce, recruit, encourage or take away employees of the Company, either for myself or for any other person or entity. 
  
 8. Conflict of Interest Guidelines. I agree to diligently adhere to the Conflict of Interest Guidelines attached as Exhibit D
hereto. 
  
 9. Representations. I agree to execute
any proper oath or verify any proper document required to carry out the terms of this Agreement. I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired
by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any oral or written agreement in conflict herewith. 
  
 10. Arbitration and Equitable Relief. 
  
 (a) I agree that any and all past or present disputes with anyone (including the Company and any employee, officer,
director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from my employment with the Company or the termination of my employment with the Company shall be subject to
binding arbitration held in Sacramento County, California, under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including section 1283.05 (the “Rules”) and pursuant to
California law. A copy of the Rules is attached to this Agreement as Exhibit A. 
  
 (b) Disputes which I agree to arbitrate include any potential claims of harassment, discrimination or wrongful termination and any statutory claims. I understand that this Agreement to arbitrate, the Rules and
California law also apply to any disputes which the Company may have with me. 
  
 (c) I agree that any arbitration will be held before an arbitrator from a list provided by JAMS (Judicial Arbitration and Mediation Service) Endispute. To initiate arbitration, I may either contact the Company’s
Human Resources Department for a form or contact JAMS directly. To choose an arbitrator, each party to the arbitration will select five names from the list, and beginning with me, will alternatively strike names from the list until a single
arbitrator is remaining who is available to decide the dispute. I understand that the Company will pay for any administrative or hearing fees charged by the arbitrator or JAMS. 
  

 10 

 (d) I agree that the arbitrator shall have the power to decide any motions brought by any party to the
arbitration, including motions requesting that a judgment be awarded on any claims raised in arbitration. I also agree that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under
applicable law. 
  
 (e) In addition to the right under the Rules
to petition the court to confirm, correct or vacate the arbitrator’s award, I agree that any party to the arbitration may appeal the arbitrator’s award in any appropriate court on any grounds which would exist for an appeal of a decision
of a trial court sitting without a jury. 
  
 (f) In addition to
the right under the Rules to petition the court for provisional relief, I agree that any party may petition the court for injunctive relief, in lieu of or in addition to arbitration proceedings, under any circumstances where an injunction (including
a temporary restraining order) would be appropriate under state or federal law. 
  
 (g) I understand that this Agreement does not prohibit me from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal
Employment Opportunity Commission or the workers’ compensation board. 
  
 11. General Provisions. 
  
 (a) Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by the laws of the State of California. I hereby expressly consent to the personal jurisdiction of the state and federal courts located in
California for any lawsuit filed there against me by the Company arising from or relating to this Agreement. 
  
 (b) Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject
matter herein and supersedes all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged. Any
subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. 
  
 (c) Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in
full force and effect. 
  
 (d) Successors and
Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. 
  
 12. I acknowledge and agree to each of the following items: 
  
 (a) I am executing this Agreement voluntarily and without any duress or undue
influence by the Company or anyone else; and 
  

 11 

 (b) I have carefully read this Agreement and the Rules. I have asked any questions needed for me to
understand the terms, consequences and binding effect of this Agreement and fully understand them, including that I am waiving my right to a jury trial by signing below; and 
  
 (c) I sought the advice of an attorney of my choice if I wanted to before signing this Agreement. 
  

									
	 	 	 	 	 
				
	Date: September 28, 2005	 	 	 	 	 	/s/ Cliff Haigler
	 	 	 	 	 	 	 	 	Signature

  

									
	 	 	 	 	 
					
	 	 	 	 	 	 	 	 	Cliff Haigler
	 	 	 	 	 	 	 	 	Name

  
  

 12 

 EXHIBIT A 
  

LIST OF PRIOR INVENTIONS 
 AND
ORIGINAL WORKS OF AUTHORSHIP 
  

					
	 Title

	  	 Date

	  	 Identifying Number or Brief Description

	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 

  
            No inventions or improvements 
  
            Additional Sheets Attached 
  
 Signature of Employee:
                                        

  
 Print Name of Employee:
                                        

  
 Date:
                     
  

 13 

 EXHIBIT B 
  

CALIFORNIA LABOR CODE SECTION 2870 
 INVENTION ON OWN TIME EXEMPTION FROM AGREEMENT 
  
 “(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 
  
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or
demonstrably anticipated research or development of the employer; or 
  
 (2) Result from any work performed by the employee for the employer. 
  
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is
against the public policy of this state and is unenforceable.” 
  

 14 

 EXHIBIT C 
  

DIGITAL MUSIC GROUP, INC. 
 TERMINATION CERTIFICATION 
  
 This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches,
materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to DIGITAL MUSIC GROUP, INC., its subsidiaries, affiliates, successors or assigns
(together, the “Company”). 
  
 I further certify
that I have complied with all the terms of the Company’s At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement signed by me, including the reporting of any inventions and original works of authorship (as
defined therein), conceived or made by me (solely or jointly with others) covered by that agreement. 
  
 I further agree that, in compliance with the At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement, I will preserve
as confidential all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of
authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees. 
  
 I further agree that for twelve (12) months from this date, I will not
hire any employees of the Company and I will not solicit, induce, recruit or encourage any of the Company’s employees to leave their employment. 
  
 Date:  
  

	
	 
	
	 
	 (Employee’s Signature)

  

	
	 
	
	 
	 (Type/Print Employee’s Name)

  

 15 

 EXHIBIT D 
  

DIGITAL MUSIC GROUP, INC. 
 CONFLICT OF INTEREST GUIDELINES 
  
 It is the policy of DIGITAL MUSIC GROUP, INC. to conduct its affairs in strict compliance with the letter and spirit of the law and to adhere to the highest
principles of business ethics. Accordingly, all officers, employees and independent contractors must avoid activities which are in conflict, or give the appearance of being in conflict, with these principles and with the interests of the Company.
The following are potentially compromising situations which must be avoided. Any exceptions must be reported to the President and written approval for continuation must be obtained. 
  
 1. Revealing confidential information to outsiders or misusing confidential information. Unauthorized divulging of
information is a violation of this policy whether or not for personal gain and whether or not harm to the Company is intended. (The At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement elaborates on this
principle and is a binding agreement.) 
  
 2. Accepting or
offering substantial gifts, excessive entertainment, favors or payments which may be deemed to constitute undue influence or otherwise be improper or embarrassing to the Company. 
  
 3. Participating in civic or professional organizations that might involve divulging confidential information of the
Company. 
  
 4. Initiating or approving personnel actions
affecting reward or punishment of employees or applicants where there is a family relationship or is or appears to be a personal or social involvement. 
  
 5. Initiating or approving any form of personal or social harassment of employees. 
  
 6. Investing or holding outside directorship in suppliers, customers, or competing companies, including financial
speculations, where such investment or directorship might influence in any manner a decision or course of action of the Company. 
  
 7. Borrowing from or lending to employees, customers or suppliers. 
  
 8. Acquiring real estate of interest to the Company. 
  
 9. Improperly using or disclosing to the Company any proprietary information or trade secrets of any former or concurrent
employer or other person or entity with whom obligations of confidentiality exist. 
  

 16 

 10. Unlawfully discussing prices, costs, customers, sales or markets with competing companies or their
employees. 
  
 11. Making any unlawful agreement with distributors
with respect to prices. 
  
 12. Improperly using or authorizing
the use of any inventions which are the subject of patent claims of any other person or entity. 
  
 13. Engaging in any conduct which is not in the best interest of the Company. 
  
 Each officer, employee and independent contractor must take every necessary action to ensure compliance with these
guidelines and to bring problem areas to the attention of higher management for review. Violations of this conflict of interest policy may result in discharge without warning. 
  

 17

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