AMENDED AND RESTATED ESCROW AGREEMENT


 




Exhibit 10.12




AMENDED AND RESTATED ESCROW AGREEMENT




THIS AMENDED AND RESTATED ESCROW AGREEMENT (the "Escrow Agreement"), dated November 14, 2017, effective as of September 19, 2017 (the “Effective Date”), is by and among Bright Mountain Media, Inc., a Florida corporation (the “Buyer”), Harry G. Pagoulatos (“Pagoulatos”), George G. Rezitis ("Rezitis"), Angelos Triantafillou ("Triantafillou"), Vinay Belani ("Belani") and Pearlman Law Group LLP, as escrow agent (the “Escrow Agent”).  Pagoulatos, Rezitis and Triantafillou are sometimes collectively referred to as the “Members” and individually as a “Member”.  Capitalized terms used but not defined herein have the meaning afforded to them in the Purchase Agreement (defined below).




WHEREAS, the Buyer and the Members entered into the Amended and Restated Membership Interest Purchase Agreement dated September 19, 2017 (the “Purchase Agreement”), pursuant to which the Members sold all of the membership interests of Daily Engage Media Group LLC, a New Jersey limited liability company (“Daily Engage”) to the Buyer;




WHEREAS, the Members previously assigned Belani the right to receive certain of the Closing Notes, the Closing Consideration Shares and the Earnout Shares;




WHEREAS, pursuant to the terms of the Purchase Agreement, the Earnout Shares were to be deposited into escrow pending the satisfaction of certain earnout conditions;




WHEREAS, following the closing of the purchase of the Membership Interests by the Buyer, and in accordance with Section 8.2(b) of the Purchase Agreement, the Buyer delivered the Irrevocable Instructions to Transfer Agent directing that the certificates representing the Earnout Shares be issued and delivered to the Escrow Agent;




WHEREAS, the Buyer's transfer agent has advised the Buyer that it is unable to process the issuance of the certificates representing the Escrow Shares in accordance with the Irrevocable Instructions to Transfer Agent based upon prior guidance to it by the Commission, notwithstanding the ability to so issue under the Florida Statutes; 




WHEREAS, on the date hereof the Members, the Buyer and the Escrow Agent have entered into an amendment to the Purchase Agreement (the "Amendment to Purchase Agreement") pursuant to which Instructions to the Transfer Agent (as hereinafter defined) shall be deposited in escrow with the Escrow Agent in the place of the certificates representing the Earnout Shares; and




WHEREAS, the parties hereto wish to enter into this Escrow Agreement to reflect the terms of the Amendment to Purchase Agreement.




IT IS AGREED:




1. 

Appointment of Escrow Agent. The Buyer, the Members and Belani hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Escrow Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms.












2. 

Deposit of Instructions to Transfer Agent.  




Immediately following the execution of this Escrow Agreement by the parties hereto, the Buyer shall deliver to the Escrow Agent instructions to the Buyer's transfer agent in the forms attached hereto as Exhibits A, B and C (collectively, the "Instructions to Transfer Agent") to issue the stock certificates to the Members and Belani in the following amounts following the satisfaction of the provisions of Section 3 of this Escrow Agreement. 




				
	Member

	Year-One Earnout Shares

	Year-Two Earnout Shares

	Year-Three Earnout Shares


	Pagoulatos

	252,137

	199,055

	180,881


	Rezitis

	252,137

	199,055

	180,881


	Triantafillou

	253,137

	199,055

	180,881


	Belani

	252,136

	199,054

	180,880


	Total

	1,008,547

	796,221

	723,523










3.

Disposition of Escrow.  The Escrow Agent will hold the Instructions to Transfer Agent (the "Escrow Property") in escrow until authorized hereunder to release and deliver the Escrow Property as follows:




(a)

Year-One Earnout Shares.  Upon written notice to the Escrow Agent by the Buyer certifying that the Year-One Daily Engage Revenue Target has been met and the Year-One Earnout Shares are to be released to the Members and Belani (the "Year-One Earnout Release Notice"), the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-One Instructions to Transfer Agent to the Buyer's transfer agent in in the form attached hereto as Exhibit A accordance with the terms of the Purchase Agreement.  If the Escrow Agent does not receive the Year-One Earnout Release Notice by 5 p.m., Eastern time, on November 19, 2020, then the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-One Instructions to Transfer Agent to the Buyer in accordance with the terms of the Purchase Agreement.




(b)

Year-Two Earnout Shares.  Upon written notice to the Escrow Agent by the Buyer certifying that the Year-Two Daily Engage Revenue Target has been met and the Year-Two Earnout Shares are to be released to the Members and Belani (the "Year-Two Earnout Release Notice"), the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-Two Instructions to Transfer Agent to the Buyer's transfer agent in the form attached hereto as Exhibit B in accordance with the terms of the Purchase Agreement.  If the Escrow Agent does not receive the Year-Two Earnout Release Notice by 5 p.m., Eastern time, on November 19, 2020, then the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-Two Earnout Instructions to Transfer Agent to the Buyer in accordance with the terms of the Purchase Agreement.




(c)

Year-Three Earnout Shares.  Upon written notice to the Escrow Agent by the Buyer certifying that the Year-Three Daily Engage Revenue Target has been met and the Year-Three Earnout Shares are to be released to the Members and Belani (the "Year-Three Earnout Release Notice"), the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-Three Instructions to Transfer Agent to the Buyer's transfer agent in the form attached hereto as Exhibit C in accordance with the terms of the Purchase Agreement.  If the Escrow Agent does not receive the Year-Three Earnout Release Notice by 5 p.m., Eastern time, on November 19, 2020, then the Escrow Agent shall promptly, without any further notice, action or deed, release and deliver the Year-Three Earnout Shares to the Buyer in accordance with the terms of the Purchase Agreement.









2







(d)

Termination of Escrow.  The escrow created hereunder shall terminate without any further notice, action or deed, upon the earlier to occur of (i) the release of all Instructions to Transfer Agent pursuant to this Escrow Agreement, or (ii) November 19, 2020 (the "Termination Date").  To the extent any Escrow Property continues to be held by the Escrow Agent following the Termination Date, such Escrow Property, if any, shall be delivered to the Buyer.




(e)

Disposition Dispute.  If either the Buyer, a Member or Belani believes that the Escrow Property should not be released by the Escrow Agent pursuant to a notice given under this Escrow Agreement, then such party shall deliver written notice thereof to the Escrow Agent prior to such release (with the failure to timely deliver such notice waiving any right to challenge the release of the Escrow Property).  Upon receipt of such notice, the Escrow Agent may take one of the following actions, in its sole and absolute discretion: (i) deposit the Escrow Property with the clerk of a court of competent jurisdiction, provided, that upon the deposit by the Escrow Agent of the Escrow Property with such clerk, the Escrow Agent shall be relieved of all further obligations and released from all liability hereunder; (ii) file a suit in interpleader in such court and obtain an order from such court requiring all parties involved to litigate in such court their respective claims arising out of or in connection with the Escrow Property; (iii) continue to hold the Escrow Property until direction to release the Escrow Property by the final, non-appealable judgment of a court of competent jurisdiction or by mutual written agreement of the Buyer, the Members and Belani; or (iv) deliver the Escrow Property to a successor escrow agent mutually selected by the Buyer, the Members and Belani, provided that the Buyer, the Members and Belani release the Escrow Agent from all further liability with respect to the Escrow Property. In the event that any such controversy arises hereunder may take the aforementioned actions and in no event shall the Escrow Agent be required to determine the proper resolution of such controversy or the proper disposition of the Escrow Property.




(f)

No Discretionary Authority.  The Escrow Agent has no discretion with respect to, or duty to make any determination as to, whether a notice is properly given, nor is the Escrow Agent required to review or evaluate, or be subject to, the Purchase Agreement, any other Transaction Documents or any other underlying agreement.  The Escrow Agent shall have no further duties hereunder after the disbursement of the Escrow Property in accordance with Section 3.  




4.

Rights of the Members and Belani in Earnout Shares.




(a)

Voting and Other Shareholder Rights.  Neither any Member nor Belani will have any voting rights or any other rights as a shareholder of the Buyer with respect to any portion of the Year-One Earnout Shares, Year-Two Earnout Shares and/or Year-Three Earnout Shares, nor will such shares be considered issued and outstanding or beneficially owned by any Member or Belani, until such time as they are delivered to the Member or Belani, as the case may be, in accordance with Section 3.




(b) 

Adjustments in Number of Earnout Shares. The number of Earnout Shares set forth in the Instructions to Transfer Agent will be adjusted by Buyer without notice to the Members and Belani to reflect any split, reverse split, reclassification or other adjustment to the Buyer Common Stock in the same manner as the number of issued and outstanding shares of the Buyer Common Stock are adjusted to reflect any such event.  




(c) 

[intentionally omitted] 




5. 

Concerning the Escrow Agent.




5.1

Good Faith Reliance. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith or for any mistake of fact or law, or for any error of judgment, or for the misconduct of any employee, agent or attorney appointed by it, while acting in good faith.  The Escrow 






3






Agent shall be entitled to consult with internal or external counsel of its own selection and the opinion of such counsel shall be full and complete authorization and protection to the Escrow Agent in respect of any action taken or omitted by the Escrow Agent hereunder in good faith and in accordance with the opinion of such counsel.  The Escrow Agent may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including internal or external counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Escrow Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.  It is understood and acknowledged that certain notices given by the Buyer hereunder may be prepared by the Escrow Agent when acting in its capacity as counsel to the Buyer, and that fact shall not undermine the validity of any such notice or the Escrow Agent’s ability to rely thereon.




5.2

Duties Limited.  The Escrow Agent: (i) is not responsible for the performance by the Buyer, the Members or Belani of this Escrow Agreement or any of the other Transaction Documents or for determining or compelling compliance therewith; (ii) is only responsible for holding the Escrow Property in escrow pending release thereof in accordance with Section 3; and (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 indemnification acceptable to it, in its sole and absolute discretion.  The duties and obligations of the Escrow Agent shall be limited to and determined solely by the express provisions of this Escrow Agreement and no implied duties or obligations shall be read into this Escrow Agreement against the Escrow Agent.  The Escrow Agent’s duties hereunder are purely ministerial and the Escrow Agent is not acting as a fiduciary to the Buyer or the Members or Belani.  The Escrow Agent is not bound by and is under no duty to inquire into the terms or validity of any other agreements or documents, including any agreements which may be related to, referred to in or deposited with the Escrow Agent in connection with this Escrow Agreement, notwithstanding that the Escrow Agent has acted as counsel to the Buyer in connection with the subject matter thereof.




5.3 

Indemnification.  The Escrow Agent shall be indemnified and held harmless jointly and severally by the Buyer, each Member and Belani from and against any expenses, including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Escrow Agreement, the services of the Escrow Agent hereunder, or the Escrow Property held by it hereunder.  In no event shall Escrow Agent be liable for special, indirect, consequential, or punitive damages, or damages for lost profits.  In the event of the receipt of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent, in its sole and absolute discretion, may take the actions set forth in Section 3(e) hereof with respect to the Escrow Property. The provisions of this Section 5.3 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections 5.6 or 5.7 below. The Escrow Agent shall not incur any liability for not performing or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Escrow Agent (including but not limited to any act or provision of any present or future Law or governmental body or any act of God or war). 




5.4 

Fees and Expenses.  The Buyer shall be liable for and shall pay 100% of the Escrow Agent’s out of pocket expenses incurred by Escrow Agent in the performance of its duties hereunder.  The out of pocket expenses shall be paid to the Escrow Agent from time to time at its request. 









4







5.5 

Further Assurances.  From time to time on and after the date hereof, the Buyer, the Members and Belani shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Escrow Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.




5.6

Resignation.  The Escrow Agent shall have the right at any time to resign for any reason or no reason at all and be discharged of its duties as Escrow Agent hereunder by giving written notice of its resignation to the parties hereto at least ten (10) calendar days prior to the date specified for such resignation to take effect.  All obligations of the Escrow Agent hereunder shall cease and terminate on the effective date of its resignation and its sole responsibility thereafter shall be to hold the Escrow Property, for a period of ten (10) calendar days following the effective date of resignation, at which time:




(i)

if a successor escrow agent shall have been appointed and written notice thereof shall have been given to the resigning Escrow Agent by parties hereto and the successor escrow agent, then the resigning Escrow Agent shall deliver the Escrow Property to the successor escrow agent; or




(ii)

if a successor escrow agent shall not have been appointed, for any reason whatsoever, the resigning Escrow Agent shall deliver the Escrow Property to a court of competent jurisdiction in the county in which the Escrow Property is then being held, and take all necessary steps to do so, and give written notice of the same to the parties hereto.




5.7 

Discharge of Escrow Agent.  The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time by the Buyer, all of the Members and Belani; provided, that any notice of discharge must (i) direct the disposition of the Escrow Property by Escrow Agent and (ii) include a full release of the Escrow Agent of all liability hereunder.




5.8

Conflicting Demands.  In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Escrow Property which, in its sole and absolute discretion, are in conflict either with other instructions received by it or with any provision of this Escrow Agreement, the Escrow Agent shall have the absolute right to suspend all further performance or that portion of further performance subject to such uncertainty under this Escrow Agreement (except for the safekeeping of the Escrow Property) until such uncertainty or conflicting instructions have been resolved to the Escrow Agent’s sole and absolute satisfaction in accordance with Section 3(e) hereof; provided that if the Escrow Agent so suspends all or some portion of further performance under this Escrow Agreement because of any such uncertainty, then the Escrow Agent shall use its commercially reasonable efforts to resolve such uncertainty as soon as reasonably practicable so as to be able to resume such performance.  




6. 

Miscellaneous.




6.1 

Governing Law. This Escrow Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of Florida, without regard to the conflicts of laws principles thereof.




6.2 

Entire Agreement.  This Escrow Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the Buyer, the Members, Belani and the Escrow Agent.









5







6.3 

Headings.  The headings contained in this Escrow Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.




6.4 

Binding Effect.  This Escrow Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and assigns.




6.5 

Notices. Any notice or other communication required or which may be given hereunder shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days after deposit of such notice, postage prepaid, or sent by facsimile or other electronic transmission (with confirmation of receipt), addressed as follows:







		
	If to the Members:

	Harry. G. Pagoulatos

20 Rena Lane

Bloomfield, NJ  07003

E-mail: harry@dailyengagemedia.com


	 

	 


	 

	George G. Rezitis

90 West First Street

Clifton, NJ  07011

E-mail:  George@dailyengagemedia.com


	 

	 


	 

	Angelos Triantafillou

102 Mountainside Terrace

Clifton, NJ  07013

E-mail:  angelostriantafillou@gmail.com


	 
	 

	If to Belani:

	6B/152 15th Floor

SS Nagar, Sion East

Mumbai 400037

Maharashtra, India

E-mail: vinay@dailyengagemedia.com


	 
	 

	If to Buyer:

	6400 Congress Avenue

Suite 2050

Boca Raton, FL  33431 

E-mail: kip@brightmountainmedia.com

Attention:  W. Kip Speyer, Chief Executive Officer


	 

	 


	with a copy to

(which shall not

constitute notice):

	Pearlman Law Group LLP

200 South Andrews Avenue

Suite 901

Fort Lauderdale, FL 33301-2068

E-mail: charlie@pslawgroup.net

Attention:  Charles B. Pearlman, Esq.


	 
	 

	If to the Escrow Agent:

	Pearlman Law Group LLP

200 South Andrews Avenue

Suite 901

Fort Lauderdale, FL 33301-2068

E-mail: charlie@pslawgroup.net

Attention:  Charles B. Pearlman, Esq.









6











		





The parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein for giving notice.




6.6 

Counterparts.  This Escrow Agreement may be executed in several counterparts, each one of which shall constitute an original and may be delivered by facsimile transmission, and together shall constitute one instrument.




6.7

No Conflict of Interest.  The Buyer, the Members and Belani (i) (A) acknowledge and agree that the Escrow Agent’s serving as escrow agent hereunder shall not constitute a conflict of interest despite the Escrow Agent’s contemporaneously serving as counsel to the Buyer in connection with the Purchase Agreement, this Escrow Agreement and the other Transaction Documents and any other matters, and shall not constitute a conflict of interest in connection with Escrow Agent’s representation of the Buyer in the future in any matter, (B) waives any conflict of interest resulting from the Escrow Agent’s contemporaneously serving as counsel to the Buyer in connection with the Purchase Agreement, this Escrow Agreement and the other Transaction Documents, and (ii) covenants and agrees not to assert a conflict of interest as a result of the Escrow Agent serving in such roles.  The parties agree that the Escrow Agent may serve as counsel to the Buyer in connection with a dispute involving this Escrow Agreement or the Escrow Property, provided that the Escrow Agent shall promptly resign from its duties as Escrow Agent as provided for in Section 5.6.  The Buyer acknowledges that the provisions of this Section 6.7 constitute a material inducement for the Escrow Agent to serve as escrow agent hereunder.  The Buyer,  the Members and Belani further acknowledge and agree that they have selected the Escrow Agent in order to facilitate the consummation of the transactions contemplated by the Purchase Agreement and the retention of the Escrow Property in order to avoid the time, cost and expense of a third party serving as the escrow agent hereunder.




[signature page follows]






7









WITNESS the execution of this Escrow Agreement as of the date first above written.




			
	 

	BUYER:




Bright Mountain Media, Inc.


	 

	 

	 


	 

	By:

	/s/ W. Kip Speyer


	 

	 

	W. Kip Speyer, Chief Executive Officer


	 

	 

	 


	 

	


ESCROW AGENT:




Pearlman Law Group LLP


	 

	 

	 


	 

	By:

	/s/ Charles B. Pearlman


	 

	 

	Charles B. Pearlman, Esq., Partner


	 

	 

	 


	 

	Members:


	 

	 

	 


	 
	/s/ Harry G. Pagoulatos


	 

	Harry G. Pagoulatos


	 

	 

	 


	 
	/s/ George G. Rezitis


	 

	George G. Rezitis


	 

	 

	 


	 
	/s/ Angelos Triantafillou


	 

	Angelos Triantafillou


	 
	 

	 
	Belani


	 
	 

	 
	/s/ Vinay Belani


	 
	Vinay Belani













8






 




Exhibit A




YEAR-ONE INSTRUCTIONS TO TRANSFER AGENT

BRIGHT MOUNTAIN MEDIA, INC.

[Date]

Island Stock Transfer

15500 Roosevelt Boulevard

Clearwater, FL  33760




Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Membership Interest Purchase Agreement, dated as of September 19, 2017, as amended (collectively, the "Agreement"), by and among Bright Mountain Media, Inc. (the “Buyer”), Daily Engage Media Group LLC (“Daily Engage”), and Harry G. Pagoulatos, George G. Rezitis and Angelos Triantafillou, constituting all of the members of Daily Engage (collectively, the “Members” and individually a “Member”). 




This letter shall serve as Buyer's irrevocable authorization and direction to you to issue an aggregate of 1,008,547 the shares of its common stock, par value $0.001 per share, to the Members and Belani as follows:




		
	Name, address, phone number and taxpayer ID number

	No. of Shares


	 
	 

	Harry G. Pagoulatos

[intentionally omitted]

	252,137


	 
	 

	George G. Rezitis

[intentionally omitted]

	252,137


	 
	 

	Angelos Triantafillou

[intentionally omitted]

	252,137


	 
	 

	Vinay Belani

[intentionally omitted]

	252,136







The per share basis is $__________.  Please overnight the original certificates representing the shares to the holders at the addresses set forth above.  




The shares are being issued in a private transaction exempt from registration under the Securities Act of 1933, as amended (the "1933 Act") in reliance on an exemption under Section 4(a)(2) of that act.  Such shares are not registered for resale under the 1933 Act and, accordingly, the certificate for such Shares shall bear the following legend:




THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN 








EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM TO BRIGHT MOUNTAIN MEDIA, INC., THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.  




The certificates representing the shares should also bear the following legend:




“THE SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK UP AGREEMENT DATED SEPTEMBER 19, 2017 BY AND BETWEEN BRIGHT MOUNTAIN MEDIA, INC. AND THE SHAREHOLDER LISTED ON THE FACE HEREOF.  NO TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF BRIGHT MOUNTAIN MEDIA, INC. UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH LOCK UP AGREEMENT.”




Should you have any questions concerning this matter, please contact me at (561) 998-2440.




			
	 
	Very truly yours,


	 
	 
	 

	 
	BRIGHT MOUNTAIN MEDIA, INC.


	 
	 
	 

	 
	By:  

	 

	 
	Name:

	W. Kip Speyer


	 
	Title:

	Chief Executive Officer















2












 




Exhibit B




YEAR-TWO INSTRUCTIONS TO TRANSFER AGENT

BRIGHT MOUNTAIN MEDIA, INC.

[Date]

Island Stock Transfer

15500 Roosevelt Boulevard

Clearwater, FL  33760




Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Membership Interest Purchase Agreement, dated as of September 19, 2017, as amended (collectively, the "Agreement"), by and among Bright Mountain Media, Inc. (the “Buyer”), Daily Engage Media Group LLC (“Daily Engage”), and Harry G. Pagoulatos, George G. Rezitis and Angelos Triantafillou, constituting all of the members of Daily Engage (collectively, the “Members” and individually a “Member”). 




This letter shall serve as Buyer's irrevocable authorization and direction to you to issue an aggregate of 796,221 the shares of its common stock, par value $0.001 per share, to the Members and Belani as follows:




		
	Name, address, phone number and taxpayer ID number

	No. of Shares


	 
	 

	Harry G. Pagoulatos

[intentionally omitted]

	199,056


	 
	 

	George G. Rezitis

[intentionally omitted]

	199,056


	 
	 

	Angelos Triantafillou

102 Mountainside Terrace

Clifton, NJ  07013

Phone number (973) 868-3561

Taxpayer ID #xxx-xx-xxxx

	199,055


	 
	 

	Vinay Belani

[intentionally omitted]

	199,054







The per share basis is $__________.  Please overnight the original certificates representing the shares to the holders at the addresses set forth above.  




The shares are being issued in a private transaction exempt from registration under the Securities Act of 1933, as amended (the "1933 Act") in reliance on an exemption under Section 4(a)(2) of that act.  Such shares are not registered for resale under the 1933 Act and, accordingly, the certificate for such Shares shall bear the following legend:




THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  








THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM TO BRIGHT MOUNTAIN MEDIA, INC., THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.  




The certificates representing the shares should also bear the following legend:




“THE SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK UP AGREEMENT DATED SEPTEMBER 19, 2017 BY AND BETWEEN BRIGHT MOUNTAIN MEDIA, INC. AND THE SHAREHOLDER LISTED ON THE FACE HEREOF.  NO TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF BRIGHT MOUNTAIN MEDIA, INC. UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH LOCK UP AGREEMENT.”




Should you have any questions concerning this matter, please contact me at (561) 998-2440.




			
	 
	Very truly yours,


	 
	 
	 

	 
	BRIGHT MOUNTAIN MEDIA, INC.


	 
	 
	 

	 
	By:  

	 

	 
	Name:

	W. Kip Speyer


	 
	Title:

	Chief Executive Officer





















2












 




Exhibit C




YEAR-THREE INSTRUCTIONS TO TRANSFER AGENT

BRIGHT MOUNTAIN MEDIA, INC.

[Date]

Island Stock Transfer

15500 Roosevelt Boulevard

Clearwater, FL  33760




Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Membership Interest Purchase Agreement, dated as of September 19, 2017, as amended (collectively, the "Agreement"), by and among Bright Mountain Media, Inc. (the “Buyer”), Daily Engage Media Group LLC (“Daily Engage”), and Harry G. Pagoulatos, George G. Rezitis and Angelos Triantafillou, constituting all of the members of Daily Engage (collectively, the “Members” and individually a “Member”). 




This letter shall serve as Buyer's irrevocable authorization and direction to you to issue an aggregate of 723,523 the shares of its common stock, par value $0.001 per share, to the Members and Belani as follows:




		
	Name, address, phone number and taxpayer ID number

	No. of Shares


	 
	 

	Harry G. Pagoulatos

[intentionally omitted]

	180,881


	 
	 

	George G. Rezitis

[intentionally omitted]

	180,881


	 
	 

	Angelos Triantafillou

[intentionally omitted]

	180,881


	 
	 

	Vinay Belani

[intentionally omitted]

	180,880







The per share basis is $__________.  Please overnight the original certificates representing the shares to the holders at the addresses set forth above.  




The shares are being issued in a private transaction exempt from registration under the Securities Act of 1933, as amended (the "1933 Act") in reliance on an exemption under Section 4(a)(2) of that act.  Such shares are not registered for resale under the 1933 Act and, accordingly, the certificate for such Shares shall bear the following legend:




THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN 














EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM TO BRIGHT MOUNTAIN MEDIA, INC., THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.  




The certificates representing the shares should also bear the following legend:




“THE SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK UP AGREEMENT DATED SEPTEMBER 19, 2017 BY AND BETWEEN BRIGHT MOUNTAIN MEDIA, INC. AND THE SHAREHOLDER LISTED ON THE FACE HEREOF.  NO TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF BRIGHT MOUNTAIN MEDIA, INC. UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH LOCK UP AGREEMENT.”




Should you have any questions concerning this matter, please contact me at (561) 998-2440.




			
	 
	Very truly yours,


	 
	 
	 

	 
	BRIGHT MOUNTAIN MEDIA, INC.


	 
	 
	 

	 
	By:  

	 

	 
	Name:

	W. Kip Speyer


	 
	Title:

	Chief Executive Officer


















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