Exhibit 10.4


 


LOCK-UP AND NO SHORTING AGREEMENT


 


This Lock-Up and No
Shorting Agreement (this “Agreement”) is made as of May 5, 2017 by and between Danco Enterprises, LLC, a limited
liability company (the “Restricted Holder”), and Loton, Corp, a Nevada corporation (the “Company”).
Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the APA (as defined herein).


 


WHEREAS, pursuant to
the transactions contemplated under that certain Asset Purchase Agreement, dated as of May 5, 2017 (the “APA”),
by and among the Company, LiveXLive Tickets, Inc. (the “Buyer”), a Delaware corporation and a wholly owned subsidiary
of the Company, Wantickets RDM, LLC, a Delaware limited liability company (the “Seller”), Danco Enterprises,
LLC, a New York limited liability company and the managing member of Gamwant LLC, a Delaware limited liability company and the
ultimate parent company of the Seller, Joseph Schnaier, an individual, and Gamtix LLC, a New York limited liability company, the
Company will acquire the Purchased Assets for 2,000,000 shares (the “Shares”) of the Company’s common
stock, $0.001 par value per share (the “Common Stock”), and certain other consideration, on the terms and conditions
set forth in the APA (the “Acquisition”); and


 


WHEREAS, the APA provides
that, among other things, all of the Shares to be issued to the Restricted Holder pursuant to the APA (collectively, the “Restricted
Securities”) shall be subject to certain restrictions on Disposition (as defined below) during the period of twenty-four
(24) months immediately following the Closing Date (the “Restricted Period”), subject to certain conditions
all as more fully set forth herein.


 


NOW, THEREFORE, as
an inducement to and in consideration of the Company’s and Buyer’s agreement to enter into the APA and proceed with
the Acquisition, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:


 


	1.	Lock Up Period.


 


(a)       During
the Restricted Period, the Restricted Holder will not, directly or indirectly: (i) offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of,
make any short sale, lend or otherwise dispose of or transfer any Restricted Securities or (ii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership
of any Restricted Securities (with the actions described in clause (i) or (ii) above being hereinafter referred to as a “Disposition”); provided, however,
that if the Company engages in an underwritten public offering of its equity or convertible securities prior to the end of the
Restricted Period, the managing underwriter may waive the balance of the Restricted Period if requested by the Company in its sole
and absolute discretion. The foregoing restrictions are expressly agreed to preclude the Restricted Holder from engaging in any
hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition
of any of the Restricted Securities of the Restricted Holder during the Restricted Period, even if such securities would be disposed
of by someone other than the Restricted Holder. The Restricted Holder may sell some or all of the Restricted Securities so long
as the purchaser complies with the provisions of Section 1(c) of this Agreement.


 


(b)      In
addition, during the Restricted Period, the Restricted Holder will not, directly or indirectly, effect or agree to effect any short
sale (as defined in Rule 200 under Regulation SHO of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
whether or not against the box, establish any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange
Act) with respect to any shares of Common Stock, borrow or pre-borrow any shares of Common Stock, or grant any other right (including,
without limitation, any put or call option) with respect to shares of Common Stock or with respect to any security that includes,
is convertible into or exercisable for or derives any significant part of its value from shares of Common Stock or otherwise seek
to hedge the Restricted Holder’s position in the Common Stock.


 




     


     


    

 


(c)      Notwithstanding
anything contained herein to the contrary, the Restricted Holder shall be permitted to engage in any Disposition (w) where the
transferee agrees in writing that the Restricted Securities shall continue to be subject to the restrictions on transfer set forth
in this Agreement and such transferee is approved by the Company in its reasonable discretion, (x) where such Disposition is in
connection with estate planning purposes, including, without limitation to an inter-vivos trust and the transferee takes title
to such shares subject to the restrictions on transfer set forth in this Agreement, (y) upon the written approval of the Company
and the lead underwriter in any underwritten public offering of Company’s securities for gross proceeds to the Company of
at least $50 million, or (z) where such Disposition is to an affiliate of such Restricted Holder (including entities wholly owned
by such Restricted Holder or one or more trusts where such Restricted Holder is the grantor of such trust(s)), and with respect
to each clause (w) through (z) above (inclusive), as long as such transferee executes a copy of this Agreement.


 


(d)     Notwithstanding
anything contained herein to the contrary, the restrictions contained in this Agreement shall not apply to any shares of Common
Stock acquired by Restricted Holder in the open market after the closing of the Acquisition.


 


	2.	Legends; Stop Transfer Instructions.


 


(a)      In
addition to any legends to reflect applicable transfer restrictions under federal or state securities laws, each stock certificate
representing Restricted Securities shall be stamped or otherwise imprinted with the following legend:


 


“THE SECURITIES REPRESENTED
HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK-UP AGREEMENT, DATED AS OF MAY 5, 2017, BETWEEN THE HOLDER HEREOF AND THE
ISSUER AND MAY ONLY BE SOLD OR TRANSFERRED IN ACCORDANCE WITH THE TERMS THEREOF.”


 


(b)     The
Restricted Holder hereby agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent
and registrar against the transfer of the Restricted Securities or securities convertible into or exchangeable for Restricted Securities
held by the Restricted Holder except in compliance with this Agreement.


 


	3.	Miscellaneous.


 


(a)       Periodic
Reports. The Company shall be permitted at any time to request from the Restricted Holder such person’s brokerage statement
summary with respect to the Restricted Securities covering any period during the Restricted Period, and the Restricted Holder shall
in good faith provide such statement to the Company within three (3) business days of the date of such request.


 


(b)      Specific
Performance. The Restricted Holder agrees that in the event of any breach or threatened breach by the Restricted Holder of
any covenant, obligation or other provision contained in this Agreement, then the Company shall be entitled (in addition to any
other remedy that may be available to the Company) to: (i) a decree or order of specific performance or mandamus to enforce the
observance and performance of such covenant, obligation or other provision; and (ii) an injunction restraining such breach or threatened
breach. The Restricted Holder further agrees that neither the Company nor any other person or entity shall be required to obtain,
furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this
Section 3, and the Restricted Holder irrevocably waives any right that he, she, or it may have to require the obtaining, furnishing
or posting of any such bond or similar instrument.


 




     


     


    

 


(c)      Other
Agreements. Nothing in this Agreement shall limit any of the rights or remedies of the Company or the Restricted Holder under
the APA, or any of the rights or remedies or any of the obligations of the Company or the Restricted Holder under any other agreement
between the Restricted Holder and the Company or any certificate or instrument executed by either party in favor of the other;
and nothing in the APA or in any other agreement, certificate or instrument shall limit any of the rights or remedies or any of
the obligations of the Company or the Restricted Holder under this Agreement.


 


(d)      Notices.
All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim
or other communication hereunder shall be deemed duly delivered four business days after it is sent by registered or certified
mail, return receipt requested, postage prepaid, or one business day after it is sent for next business day delivery via a reputable
nationwide overnight courier service, in each case to the intended recipient as set forth below:


 


	If to the Company:	Copy to (which copy shall not constitute notice hereunder):
	 	 
	Loton, Corp	Foley Shechter LLP
	269 South Beverly Drive, Suite 1450	211 East 43rd Street, Suite 609
	Beverly Hills, CA 90212 	New York, New York 10017
	Attn: Robert S. Ellin, Executive Chairman	Attn: Sasha Ablovatskiy, Esq.
	Facsimile: 	Facsimile: (917) 688-4092
	 	 
	If to the Restricted Holder:	Copy to (which copy shall not constitute notice hereunder):


 


	To the address set forth on the signature page 	 	 	 	 	 
	hereto.	 	 	 	 	 
	 	 	 	 	 	 
	 	 	Attn:  	 	 	 
	 	 	Facsimile:  	 	 


 


Any party may give
any notice, request, demand, claim or other communication hereunder using any other means (including personal delivery, expedited
courier, messenger service, telecopy, telex, ordinary mail or electronic mail), but no such notice, request, demand, claim or other
communication shall be deemed to have been duly given unless and until it actually is received by the party for whom it is intended.
Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered
by giving the other parties notice in the manner herein set forth.


 


(e)      Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction
declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making such determination
shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. In the event such court
does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable
term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business
and other purposes of such invalid or unenforceable term.


 




     


     


    

 


(f)        Applicable
Law; Jurisdiction. THIS AGREEMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAW. In any action between or among any of the parties arising out of this Agreement, (i) each of the parties irrevocably
and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts having jurisdiction
over New York County, New York; (ii) if any such action is commenced in a state court, then, subject to applicable law, no
party shall object to the removal of such action to any federal court having jurisdiction over New York County, New York; (iii) each
of the parties irrevocably waives the right to trial by jury; and (iv) each of the parties irrevocably consents to service
of process by first class certified mail, return receipt requested, postage prepared, to the address at which such party is to
receive notice in accordance with this Agreement.


 


(g)      Waiver;
Termination. No failure on the part of the Company to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of the Company in exercising any power, right, privilege or remedy under this Agreement, shall operate
as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or
remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. The Company shall
not be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement,
unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed
and delivered on behalf of the Company; and any such waiver shall not be applicable or have any effect except in the specific instance
in which it is given. If the APA is terminated, this Agreement shall thereupon terminate.


 


(h)       Captions.
The captions contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement
and shall not be referred to in connection with the construction or interpretation of this Agreement.


 


(i)       Further
Assurances. The Restricted Holder hereby represents and warrants that the Restricted Holder has full power and authority to
enter into this Agreement and that this Agreement constitutes the legal, valid and binding obligation of the Restricted Holder,
enforceable in accordance with its terms. The Restricted Holder shall execute and/or cause to be delivered to the Company such
instruments and other documents and shall take such other actions as the Company may reasonably request to effectuate the intent
and purposes of this Agreement.


 


(j)       Entire
Agreement. This Agreement and the APA (and the other documents entered into in connection with the Contemplated Transactions)
collectively set forth the entire understanding of the Company and the Restricted Holder relating to the subject matter hereof
and supersedes all other prior agreements and understandings between the Company and the Restricted Holder relating to the subject
matter hereof.


 


(k)       Non-Exclusivity.
The rights and remedies of the parties hereunder are not exclusive of or limited by any other rights or remedies which the parties
may have, whether at law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative).


 




     


     


    

 


(l)       Amendments.
This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed
and delivered on behalf of the Company and the Restricted Holder.


 


(m)     Assignment.
This Agreement and all obligations of the Restricted Holder hereunder are personal to the Restricted Holder and may not be assigned,
transferred or delegated by the Restricted Holder at any time except as set forth in Section
1(c) above. The Company may freely assign any or all of its rights under this Agreement, in whole or in part, to any successor
entity without obtaining the consent or approval of the Restricted Holder.


 


(n)      Binding
Nature. Subject to Section 3(m) above, this Agreement will inure to the benefit of and will be binding upon the Company and
its successors and assigns and the Restricted Holder and the Restricted Holder’s representatives, executors, administrators,
estate, heirs, successors and assigns.


 


(o)      Survival.
Each of the representations, warranties, covenants and obligations contained in this Agreement shall survive the consummation of
the Acquisition.


 


(p)     Counterparts
and Electronic Signature. 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. Signatures delivered by e-mail and/or .pdf transmission
shall be sufficient and binding as if they were originals and such delivery shall constitute valid delivery of this Agreement.


 


[Signature Page Follows]


 




     


     


    

 


IN WITNESS WHEREOF,
the parties hereto have executed and delivered this Agreement as of the date first set forth above.


 


	 	LOTON, CORP
	 	 
	 	By:	 /s/ Robert Ellin
	 	Name:	Robert Ellin
	 	Title:	Executive Chairman and President


 


	 	RESTRICTED HOLDER:
(to be signed by the Restricted Holder)
	 	 
	 	Danco Enterprises, LLC
	 	(print name)


 


	 	By: 	/s/ Joseph Schnaier
	 	Name: 	Joseph Schnaier
	 	Title: 	President and CEO


 


	 	Address: (to
be completed by the Restricted Holder)


 


	 	 
	 	 
	 	 
	 	Email: