Document:

Exhibit 10.3

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of the date set forth on the signature
page hereto, by and between Loop Media, Inc., a Nevada corporation (the "Company"), and Neil Watanabe (hereinafter,
the "Executive").

 

R
  E  C  I  T  A  L  S:

 

WHEREAS,
the Executive is currently employed as the Chief Financial Officer of the Company; and

 

WHEREAS,
the Executive possesses intimate knowledge of the business and affairs of the Company, its policies, methods and personnel; and

 

WHEREAS,
the Board of Directors of the Company (the "Board") recognizes that the Executive is expected to contribute to the growth
and success of the Company, and desires to assure the Company of the Executive's continued employment and to compensate him therefor;
and

 

WHEREAS,
the Board has determined that this Agreement will reinforce and encourage the Executive's continued attention and dedication to the Company;
and

 

WHEREAS,
the Executive is willing to make his services available to the Company on the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, for the reasons set forth hereinabove, and in consideration of the mutual promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows:

 

1.            Employment.

 

1.1            Employment
and Term. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company on the terms and
conditions set forth herein.

 

1.2            Duties
of Executive. During the Term of Employment under this Agreement, the Executive shall serve as the Chief Financial Officer of the
Company, shall faithfully and diligently perform all services as may be assigned to him by the Board (provided that, such services shall
not materially differ from the services currently provided by the Executive), and shall exercise such power and authority as may from
time to time be delegated to him by the Board. The Executive shall devote his full time and attention to the business and affairs of the
Company, render such services to the best of his ability, and use his reasonable best efforts to promote the interests of the Company.
Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of this Agreement for the
Executive to: (a) serve on corporate, civic or charitable boards or committees; (b) deliver lectures, fulfill speaking engagements
or teach at educational institutions; or (c) manage personal investments, so long as such activities do not significantly interfere
with or significantly detract from the performance of the Executive's responsibilities to the Company in accordance with this Agreement.

 

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2.            Term.

 

2.1            Initial
Term. The initial Term of Employment (as defined below) under this Agreement, and the employment of the Executive hereunder, shall
commence on September 30, 2021 (the "Commencement Date") and shall expire on the date that is three years from the
date hereof unless sooner terminated in accordance with Article 5 hereof (the "Initial Term").

 

2.2            Renewal
Terms. At the end of the Initial Term, the Term of Employment automatically shall renew for successive three (3) year terms
(subject to earlier termination as provided in Article 5 hereof), unless the Company or the Executive delivers written notice
to the other at least three months prior to the Expiration Date of its or his election not to renew the Term of Employment.

 

2.3            Term
of Employment and Expiration Date. The period during which the Executive shall be employed by the Company pursuant to the terms of
this Agreement is sometimes referred to in this Agreement as the "Term of Employment", and the date on which the Term
of Employment shall expire (including the date on which any renewal term shall expire), is sometimes referred to in this Agreement as
the "Expiration Date."

 

3.            Compensation.

 

3.1            Base
Salary. The Executive shall receive a base salary at the annual rate of $275,000 (the "Base Salary") during the Term
of Employment, with such Base Salary payable in installments consistent with the Company's normal payroll schedule, subject to applicable
withholding and other taxes. The Base Salary shall be adjusted for annual merit increases of a minimum of 5% and may, by action and in
the discretion of the Board, be increased at any time or from time to time but may not be decreased.

 

3.2            Bonuses.

 

(a)            During
the Term of Employment, the Executive shall participate in the Company’s annual cash incentive plan, program and/or arrangements
applicable to senior-level executives as established and modified from time to time by the Compensation Committee of the Board, if one
exists, otherwise by the Board in its sole and absolute discretion. During the Term of Employment, the Executive shall have a threshold
bonus opportunity under such plan or program equal to 40 percent of his current Base Salary, a target bonus opportunity under such plan
or program equal to 65 percent of his current Base Salary, and a maximum bonus under such plan or program equal to 100 percent of his
current Base Salary, in each case based on satisfaction of performance criteria to be established by the Compensation Committee of the
Board, if one exists, otherwise by the Board. Payment of cash incentive awards shall be made in the same manner and at the same time that
other senior-level executives receive their annual cash incentive awards.

 

(b)            For
the Bonus Period in which the Executive's employment with the Company terminates for any reason other than by the Company for Cause under
Section 5.1 hereof, the Company shall pay the Executive a pro rata portion (based upon the period ending on the date on which the
Executive's employment with the Company terminates) of the bonus otherwise payable under Section 3.2(a) hereof for the Bonus
Period in which such termination of employment occurs; provided, however, that: (i) the Bonus Period shall be deemed
to end on the last day of the fiscal quarter of the Company in which the Executive's employment so terminates; and (ii) the business
criteria used to determine the bonus for this short Bonus Period shall be annualized and shall be determined based upon unaudited financial
information prepared in accordance with generally accepted accounting principles, applied consistently with prior periods, and reviewed
and approved by the Compensation Committee of the Board, if one exists, otherwise by the Board. The compensation for this Bonus Period
is sometimes hereinafter referred to as the "Termination Year Bonus."

 

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(c)            The
Executive shall receive such additional bonuses, if any, as the Compensation Committee of the Board, if one exists, otherwise as the Board
may in its sole and absolute discretion determine.

 

(d)            Any
bonuses payable pursuant to this Section 3.2 are sometimes hereinafter referred to as "Incentive Compensation."
Each period for which Incentive Compensation is payable is sometimes hereinafter referred to as a "Bonus Period."

 

(e)            Any
Incentive Compensation payable pursuant to this Section 3.2 shall be paid by the Company to the Executive within 75 days after the
end of the Bonus Period for which it is payable.

 

3.3            Review
of Agreement, Base Salary and Incentive Compensation. The Company agrees that this Agreement and the Executive’s
Base Salary shall be reviewed should shares of the Company’s common stock, par value $0.0001 per share (“Common
Stock”) be listed on an exchange registered as a national securities exchange under Section 6 of the Securities
Exchange Act of 1934 (the “Uplisting”) or in connection with a significant financing in an amount of at least
$20,000,000. Further, the Company agrees that the Executive’s Incentive Compensation shall be reviewed upon the final pricing
of any Uplisting, or if an Uplisting does not occur, the Executive’s Incentive Compensation shall be reviewed within twelve
(12) months of the Commencement Date.

 

4.            Expense
Reimbursement and Other Benefits.

 

4.1            Reimbursement
of Expenses. Upon the submission of proper substantiation by the Executive, and subject to such rules and guidelines as the Company
may from time to time adopt with respect to the reimbursement of expenses of executive personnel, the Company shall reimburse the Executive
for all reasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to
the business of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is sought
and shall supply to the Company copies of all relevant invoices, receipts or other evidence reasonably requested by the Company.

 

4.2            Compensation/Benefit
Programs. During the Term of Employment, the Executive shall be entitled to participate in all medical, dental, hospitalization, accidental
death and dismemberment, disability, travel and life insurance plans, and any and all other plans as are presently and hereinafter offered
by the Company to its executive personnel, including savings, pension, profit-sharing and deferred compensation plans, subject to the
general eligibility and participation provisions set forth in such plans. In the event Executive elects not to participate in the Company’s
health plan, the Company shall reimburse Executive for the cost of alternative health care coverage of his choosing for Executive and
his dependents in an amount up to $2,000 per month. Payment for all other benefit plans will be paid in accordance with the Company’s
policy in effect for similar executive positions.

 

4.3            Working
Facilities. During the Term of Employment, the Company shall furnish the Executive with an office and such other facilities and services
suitable to his position and adequate for the performance of his duties hereunder. During any period of time where the Company supports
or requires remote working, including during the COVID-19 pandemic of 2020/2021, the Company shall pay reasonable fees and expenses for
the cost of a mobile phone, home/laptop computer, software, and other items that are reasonably required and appropriate for the performance
of his duties hereunder.

 

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4.4            Equity
Awards. During the Term of Employment, the Executive shall be eligible to be granted equity awards under (and therefore subject to
all terms and conditions of) the Company's equity incentive plan or such other plans or programs as the Company may from time to time
adopt, and subject to all rules of regulation of the Securities and Exchange Commission applicable thereto. The number and type of
equity awards, and the terms and conditions thereof, shall be determined by the Compensation Committee of the Board, if one exists, otherwise
by the Board in its discretion and pursuant to the equity incentive plan. These include annual grants of Common Stock, restricted stock
units and stock options.

 

4.5            Other
Benefits. The Executive shall receive such additional benefits, if any, as the Board shall from time to time determine.

 

4.6            Withholding.
Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive
or his estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine
it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in part, the Company
may, in its sole discretion, accept other provisions for payment of taxes and withholding as required by law, provided it is satisfied
that all requirements of law affecting its responsibilities to withhold have been satisfied.

 

5.            Termination.

 

5.1            Termination
for Cause. The Company shall at all times have the right, upon written notice to the Executive, to terminate the Term of Employment,
for Cause as defined below. For purposes of this Agreement, the term "Cause" shall mean:

 

(a)            an
action or omission of the Executive which constitutes a willful and material breach of, or willful and material failure or refusal (other
than by reason of his disability or incapacity) to perform his duties under this Agreement which is not cured within 60 days after receipt
by the Executive of written notice of same;

 

(b)            fraud,
embezzlement, misappropriation of funds or breach of trust in connection with his services hereunder;

 

(c)            a
conviction of, or entry of a plea of guilty or nolo contendere to, a felony (other than a traffic violation); or

 

(d)            gross
negligence in connection with the performance of the Executive's duties hereunder, which is not cured within 60 days after receipt by
the Executive of written notice of same.

 

Any termination for Cause shall
be made by notice in writing to the Executive, which notice shall set forth in reasonable detail all acts or omissions upon which the
Company is relying for such termination and providing the Executive with an opportunity to cure (if curable) within a reasonable period
of time. No termination of the Executive’s employment for Cause shall be permitted unless the date of termination occurs during
the 120-day period immediately following the date that the events or actions constituting Cause first become known to the Board. The Company
also has the right, upon notice to the Executive, to terminate the Term of Employment for any reason, with or without Cause at any time
up to and including the sixtieth (60th) day following the Commencement Date.

 

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Upon any termination pursuant
to this Section 5.1, the Company shall:

 

(i)            pay
to the Executive any unpaid and accrued Base Salary through the date of termination; and

 

(ii)           pay
to the Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus Period ending on or before the date of the termination
of Executive's employment with the Company.

 

Upon any termination effected
and compensated pursuant to this Section 5.1, the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1 hereof).

 

5.2            Disability.
In the event the Executive shall be unable, or fail, to perform the essential functions of his position, with or without reasonable accommodation,
for any period of six months or more in any 12-month period, the Company shall have the option, in accordance with applicable law, to
terminate this Agreement upon written notice to the Executive. Upon termination pursuant to this Section 5.2, the Company shall:

 

(a)            pay
to the Executive any unpaid and accrued Base Salary through the effective date of termination specified in such notice;

 

(b)            pay
to the Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus Period ending on or before the date of termination
of the Executive's employment with the Company at the time provided in Section 3.2(e) hereof;

 

(c)            pay
to the Executive a severance payment equal to six (6) months of the Executive's Base Salary at the time of the termination of the
Executive's employment with the Company; and

 

(d)            pay
to the Executive his Termination Year Bonus, if any, at the time provided in Section 3.2(f) hereof.

 

Upon any termination effected
and compensated pursuant to this Section 5.2, the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however to the provisions of Section 4.1 hereof).

 

5.3            Death.
Upon the death of the Executive during the Term of Employment, the Company shall:

 

(a)            pay
to the estate of the deceased Executive any unpaid and accrued Base Salary through the Executive's date of death;

 

(b)            pay
to the estate of the deceased Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus Period ending on or before
the Executive's date of death; and

 

(c)            pay
to the estate of the deceased Executive, the Executive's Termination Year Bonus, if any, at the time provided in Section 3.2(f) hereof.

 

Upon any termination effected
and compensated pursuant to this Section 5.3, the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of the Executive's death, subject, however to the provisions of Section 4.1
hereof).

 

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5.4            Termination
Without Cause. The Company shall have the right to terminate the Term of Employment at any time by written notice to the Executive
not less than 60 days prior to the effective date of such termination. Upon any termination pursuant to this Section 5.4 (that is
not a termination under any of Sections 5.1, 5.2, 5.3, 5.5 or 5.6 hereof), the Company shall:

 

(a)            pay
to the Executive any unpaid and accrued Base Salary through the termination of this Agreement;

 

(b)            pay
to the Executive the accrued but unpaid Incentive Compensation, if any, for any Bonus Period ending on or before the termination of this
Agreement;

 

(c)            pay
to the Executive his pro rata Termination Year Bonus, at the time provided in Section 3.2(f) hereof;

 

(d)            pay
to the Executive as a single lump sum payment, within 30 days of the date of the Termination of the Term of Employment equal to six (6) months
of the Executive's Base Salary then in effect; and

 

(e)            ensure
that any stock awards still vesting would become fully vested.

 

Notwithstanding any other provision
herein, the Executive’s right to receive any severance benefits pursuant to this Section 5.4 shall be subject to his execution
and delivery to the Company of a general release of claims in substantially the form attached hereto as Exhibit A (with
such changes as may be reasonably required to such form to help ensure its enforceability in light of any changes in applicable law) not
more than twenty-one (21) days (forty-five (45) days if required under applicable law) after the date the Company provides the
final form of release to the Executive (and the Executive’s not revoking such release within any revocation period provided under
applicable law). The Company shall provide the final form of release agreement to the Executive not later than seven (7) days
following the date of the termination date.

 

Upon any termination effected
and compensated pursuant to this Section 5.4, the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1 hereof).

 

5.5            Termination
by Executive.

 

(a)            The
Executive shall at all times have the right, by written notice not less than 60 days prior to the termination date, to terminate the Term
of Employment.

 

(b)            Upon
termination of the Term of Employment pursuant to this Section 5.5 (that is not a termination under Section 5.6 hereof) by the
Executive without Good Reason (as defined below), the Company shall:

 

(i)            pay
to the Executive any unpaid and accrued Base Salary through the effective date of termination of the Term of Employment specified in such
notice; and

 

(ii)            pay
to the Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus Period ending on or before the date on which the
Term of Employment terminates.

 

Upon any termination effected
and compensated pursuant to this Section 5.5(b), the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1 hereof).

 

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(c)            Upon
termination of the Term of Employment pursuant to this Section 5.5 (that is not a termination under Section 5.6 hereof) by the
Executive for Good Reason, the Company shall pay to the Executive the same amounts, and shall continue to provide or compensate for all
benefits in the same amounts, that would have been payable or provided by the Company to the Executive under Section 5.4 of this
Agreement if the Term of Employment had been terminated by the Company without Cause.

 

Notwithstanding any other provision
herein, the Executive’s right to receive any severance benefits pursuant to this Section 5.5(c) shall be subject to his
execution and delivery to the Company of a general release of claims in substantially the form attached hereto as Exhibit A (with
such changes as may be reasonably required to such form to help ensure its enforceability in light of any changes in applicable law) not
more than twenty-one (21) days (forty-five (45) days if required under applicable law) after the date the Company provides the
final form of release to the Executive (and the Executive’s not revoking such release within any revocation period provided under
applicable law). The Company shall provide the final form of release agreement to the Executive not later than seven (7) days
following the date of the termination date.

 

Upon any termination effected
and compensated pursuant to this Section 5.5(c), the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1 hereof).

 

(d)            For
purposes of this Agreement, "Good Reason" shall mean:

 

(i)            the
assignment to the Executive of any duties inconsistent in any material respect with the Executive's position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 1.2 of this Agreement, or any
other action by the Company which results in a diminution in such position, authority, duties or responsibilities, excluding for this
purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt
of notice thereof given by the Executive;

 

(ii)            any
material failure by the Company to comply with any of the provisions of Article 3 of this Agreement, other than an isolated, insubstantial
and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of written notice thereof
given by the Executive;

 

(iii)            the
Company's requiring the Executive to be based at any office or location more than 30 miles from the location of the Company's office on
the Commencement Date, except for travel reasonably required in the performance of the Executive's responsibilities; and

 

(iv)            any
purported termination by the Company of the Executive's employment otherwise than for Cause pursuant to Section 5.1 hereof, or by
reason of the Executive's disability pursuant to Section 5.2 of this Agreement, prior to the Expiration Date.

 

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5.6            Change
in Control of the Company.

 

(a)            In
the event that: (i) a Change in Control (as defined in paragraph (b) of this Section 5.6) in the Company shall occur during
the Term of Employment; and (ii) either: (A) prior to the earlier of the Expiration Date and one year after the date of the
Change in Control, either: (1) the Term of Employment is terminated by the Company without Cause, pursuant to Section 5.4 hereof
or (2) the Executive terminates the Term of Employment for Good Reason as defined in Section 5.5(d) hereof, or (B) the
Executive terminates the Term of Employment for any reason within 30 days after the Change in Control occurs, the Company shall:

 

(i)            pay
to the Executive any unpaid Base Salary through the effective date of termination;

 

(ii)           pay
to the Executive the Incentive Compensation, if any, not yet paid to the Executive for any year prior to such termination, at such time
as the Incentive Compensation otherwise would have been payable to the Executive;

 

(iii)          pay
to the Executive his Termination Year Bonus, if any, at the time provided in Section 3.2 hereof; and

 

(iv)          pay
to the Executive as a single lump sum payment, within 30 days of the termination of the Term of Employment, equal to the sum of (x) two
(2) times the sum of the Executive's annual Base Salary, Incentive Compensation, and the value of the annual fringe benefits
(based upon their cost to the Company) required to be provided to the Executive under Sections 4.2 and 4.4 hereof, for the fiscal year
immediately preceding the year in which the Term of Employment terminates, plus (y) the value of the portion of his benefits under
any savings, pension, profit sharing or deferred compensation plans that are forfeited under those plans by reason of the termination
of his employment hereunder.

 

Notwithstanding any other
provision herein, the Executive’s right to receive any severance benefits pursuant to this Section 5.6 shall be subject to
his execution and delivery to the Company of a general release of claims in substantially the form attached hereto as Exhibit A (with
such changes as may be reasonably required to such form to help ensure its enforceability in light of any changes in applicable law) not
more than twenty-one (21) days (forty-five (45) days if required under applicable law) after the date the Company provides the
final form of release to the Executive (and the Executive’s not revoking such release within any revocation period provided under
applicable law). The Company shall provide the final form of release agreement to the Executive not later than seven (7) days
following the date of the termination date.

 

Upon any termination effected
and compensated pursuant to this Section 5.6(a), the Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1 hereof).

 

(b)            For
purposes of this Agreement, the term "Change in Control" shall mean:

 

(i)            The
acquisition by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange
Act of 1934) of more than 50 percent of either (A) the then outstanding shares of capital stock of the Company (the
 "Outstanding Company Capital Stock"); or (B) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting
Securities") (the foregoing Beneficial Ownership hereinafter being referred to as a "Controlling
Interest"); provided, however, that for purposes of this Section 5.6(b), the following acquisitions
shall not constitute or result in a Change in Control: (1) any acquisition directly from the Company; (2) any acquisition
by the Company; (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any subsidiary of the Company; or (4) any acquisition by any corporation pursuant to a transaction which complies with clauses
(A), (B) and (C) of subsection (iii) below; or

 

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(ii)            During
any period of two consecutive years (not including any period prior to the Commencement Date) individuals who constitute the Board on
the Commencement Date (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the Commencement Date whose election, or nomination for election
by the Company's shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 

(iii)            Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of
its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or
stock of another entity by the Company or any of its subsidiaries (each a "Business Combination"), in each case, unless,
following such Business Combination: (A) all or substantially all of the individuals and entities who were the Beneficial Owners,
respectively, of the Outstanding Company Capital Stock and Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50 percent of the then outstanding shares of Common Stock and the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Capital Stock and Outstanding
Company Voting Securities, as the case may be; (B) any Person that as of the Commencement Date owns Beneficial Ownership of a Controlling
Interest beneficially owns, directly or indirectly, more than 50 percent of the then outstanding shares of Common Stock of the corporation
resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except
to the extent that such ownership existed prior to the Business Combination; and (C) at least a majority of the members of the Board
of Directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution
of this initial Agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv)            approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

(c)            For
purposes of Section 5.6(b) hereof, the term "Person" shall have the meaning ascribed to such term in Section 3(a)(9) of
the Securities Exchange Act of 1934 and used in Sections 13(d) and 14(d) thereof and shall include a "group" as defined
in Section 13(d) thereof.

 

5.7            Resignation.
Upon any termination of employment pursuant to this Article 5, the Executive shall be deemed to have resigned as an officer of the
Company and its subsidiaries, and if he was then serving as a director of the Company or any of its subsidiaries, be deemed to resign
as a director of the Company and its subsidiaries, and if required by the Board, the Executive shall upon such termination execute a resignation
letter to the applicable board of directors.

 

5.8            Survival.
The provisions of this Article 5 shall survive the termination of the Term of Employment or expiration of the term of this Agreement.

 

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6.            Restrictive
Covenants.

 

6.1            Confidential
Information.

 

(a)            Executive
hereby understands and acknowledges that because of Executive's experience with and relationship to the Company, in the course of his
Term of Employment he will acquire knowledge and will have access to and learn about confidential, secret and proprietary documents, materials,
data, and other information, in tangible and intangible form, of and relating to the Company and its businesses ("Confidential
Information"). Executive further understands and acknowledges that this Confidential Information and the Company's ability to
reserve it for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company,
and that improper use or disclosure of the Confidential Information by the Executive might cause the Company to incur financial costs,
loss of business advantage, liability under confidentiality agreements with third parties, civil damages and criminal penalties.

 

(b)            For
purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public,
in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods,
policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements,
transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software,
source codes, object codes, applications, operating systems, software design, web design, databases, device configurations, embedded data,
compilations, metadata, technologies, manuals, records, articles, systems, content, sources of content, vendor information, financial
information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing
information, credit information, payroll information, personnel information, employee lists, content provider lists, vendor lists, developments,
reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, notes,
communications, algorithms, product plans, service plans, ideas, audiovisual programs, inventions, unpublished patent applications, original
works of authorship, discoveries, experimental processes, experimental results, specifications, distributor lists, customer information,
customer lists, client information and client lists of the Company or its businesses or any existing or prospective customer, content
provider, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in
confidence.

 

(c)            The
Executive understands and acknowledges that the above list is not exhaustive, and that Confidential Information also includes other information
that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential
or proprietary in the context and circumstances in which the information is known or used.

 

(d)            The
Executive understands and acknowledges that Confidential Information developed by him in the course of his employment by the Company shall
be subject to the terms and conditions of this Agreement as if the Company furnished the same Confidential Information to the Executive
in the first instance. Confidential Information shall not include information that is generally available to and known by the public at
the time of disclosure to the Executive, provided that such disclosure is through no direct or indirect fault of the Executive or person(s) acting
on the Executive's behalf.

 

(e)            For
purposes of this Agreement, all information regarding specific prospective and existing customers and clients of the Company and other
individuals and businesses with whom the Company does business is collectively referred to as "Customer/Client Information"
and includes, but is not limited to, names, phone numbers, addresses, email addresses, order history, order preferences, chain of command,
pricing information, and other information identifying facts and circumstances specific to the customer/client and relevant to sales/services.
All books, records, accounts and information relating in any manner to the Customer/Client Information, whether prepared by the Executive
or otherwise coming into the Executive's possession, shall be the exclusive property of the Company and shall be returned immediately
to the Company on termination of the Executive's employment hereunder or on the Company's request at any time.

 

    10

     

    

 

 

6.2            Disclosure
and Use Restrictions.

 

(a)            Executive
covenants and agrees to treat all Confidential Information as strictly confidential, and:

 

(ii)            not
to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published,
communicated or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having
a need to know and authority to know and to use the Confidential Information in connection with the business of the Company and, in any
event, not to anyone outside of the direct employ of the Company except as required in the performance of any of the Executive's authorized
employment duties to the Company; and

 

(iii)            not
to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any
Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the
Company, except as required in the performance of any of the Executive's authorized employment duties to the Company. The Executive understands
and acknowledges that the Executive's obligations under this Agreement regarding any particular Confidential Information begin immediately
and shall continue during and after the Executive's employment by the Company until the Confidential Information has become public knowledge
other than as a result of the Executive's breach of this Agreement or a breach by those acting in concert with the Executive or on the
Executive's behalf.

 

(b)        Nothing
in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation,
or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does
not exceed the extent of disclosure required by such law, regulation, or order. The Executive shall promptly provide written notice of
any such order to an authorized officer of the Company.

 

(c)           Nothing
in this Agreement prohibits or restricts the Executive (or the Executive's attorney) from initiating communications directly with, responding
to an inquiry from, or providing testimony before the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority
(FINRA), any other self-regulatory organization, or any other federal or state regulatory authority regarding a possible securities law
violation.

 

6.3        Duration
of Confidentiality Obligations. The Executive understands and acknowledges that his obligations under this Agreement with regard to
any particular Confidential Information shall commence immediately upon the Executive first having access to such Confidential Information
(whether before or after he begins employment by the Company) and shall continue during and after his employment by the Company until
such time as such Confidential Information has become public knowledge other than as a result of the Executive's breach of this Agreement
or breach by those acting in concert with the Executive or on the Executive's behalf.

 

6.4       Non-solicitation
of Customers/Clients and Employees. Executive specifically understands and acknowledges that he will have access to Confidential Information,
including, specifically, without limitation, Customer/Client Information and trade secrets. Executive covenants and agrees that during
the Restricted Period, except as otherwise approved in writing by the Company, Executive shall not, either directly or indirectly, for
himself, or through, on behalf of, or in conjunction with any person, persons, partnership, association, corporation, or entity:

 

(a)            Use
any Confidential Information, including, specifically, any Customer/Client Information and/or trade secrets to directly or indirectly
solicit the customers/clients of the Company, or use to disrupt, disturb, or interfere with the relationships of the Company with its
customers/clients; or

 

(b)            Disrupt,
disturb or interfere with the business of the Company by directly or indirectly soliciting, recruiting, attempting to recruit, or raiding
the employees of the Company, or otherwise inducing the termination of employment of any employee of the Company. Executive also agrees
and covenants not to use any Confidential Information to directly or indirectly solicit the employees of the Company.

 

6.5        Definition
of Company. Solely for purposes of this Article 6, the term "Company" also shall include any existing or future
subsidiaries of the Company that are operating during the time periods described herein and any other entities that directly or indirectly,
through one or more intermediaries, control, are controlled by or are under common control with the Company during the periods described
herein.

 

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6.6       Acknowledgment
by Executive. The Executive acknowledges and confirms that the restrictive covenants contained in this Article 6 (including without
limitation the length of the term of the Restricted Period) are reasonably necessary to protect the legitimate business interests of the
Company, and are not overbroad, overlong, or unfair and are not the result of overreaching, duress or coercion of any kind. The Executive
further acknowledges and confirms that the compensation payable to the Executive under this Agreement is in consideration for the duties
and obligations of the Executive hereunder, including the restrictive covenants contained in this Article 6, and that such compensation
is sufficient, fair and reasonable. The Executive further acknowledges and confirms that his full, uninhibited and faithful observance
of each of the covenants contained in this Article 6 will not cause him any undue hardship, financial or otherwise, and that enforcement
of each of the covenants contained herein will not impair his ability to obtain employment commensurate with his abilities and on terms
fully acceptable to him or otherwise to obtain income required for the comfortable support of him and his family and the satisfaction
of the needs of his creditors. The Executive acknowledges and confirms that the Confidential Information is such as would cause the Company
serious injury or loss if he were to use such Confidential Information to the benefit of a competitor or were to compete with the Company
in violation of the terms of this Article 6. The Executive further acknowledges that the restrictive covenants contained in this
Article 6 are intended to be, and shall be, for the benefit of and shall be enforceable by, the Company's successors and assigns.
The Executive expressly agrees that upon any breach or violation of the provisions of this Article 6, the Company shall be entitled,
as a matter of right, in addition to any other rights or remedies it may have, to: (a) temporary and/or permanent injunctive relief
in any court of competent jurisdiction as described in Section 6.9 hereof; and (b) such damages as are provided at law or in
equity. The existence of any claim or cause of action against the Company or its affiliates, whether predicated upon this Agreement or
otherwise, shall not constitute a defense to the enforcement of the restrictions contained in this Article 6.

 

6.7        Restricted
Period. For purposes of this Agreement, the term "Restricted Period" shall mean, and be the same length as, the
Term of Employment; provided, however, if the Term of Employment is terminated by: (i) the Company for Cause (as defined
in Section 5.1 hereof); or (ii) the Executive for other than Good Reason (as defined in Section 5.5(d) hereof), then
the Restricted Period shall also include the 12-month period immediately following the termination of the Term of Employment. Notwithstanding
the foregoing, the Restricted Period shall end in the event that the Company fails to make any payments or provide any benefits required
by Article 5 hereof with 15 days of written notice from the Executive of such failure.

 

6.8        Reformation
by Court. In the event that a court of competent jurisdiction shall determine that any provision of this Article 6 is invalid
or more restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Article 6 within
the jurisdiction of such court, such provision shall be interpreted or reformed and enforced as if it provided for the maximum restriction
permitted under such governing law.

 

6.9        Extension
of Time. If the Executive shall be in violation of any provision of this Article 6, then each time limitation set forth in this
Article 6 shall be extended for a period of time equal to the period of time during which such violation or violations occur. If
the Company seeks injunctive relief from such violation in any court, then the covenants set forth in this Article 6 shall be extended
for a period of time equal to the pendency of such proceeding including all appeals by the Executive.

 

6.1        Injunction.
It is recognized and hereby acknowledged by the parties hereto that a breach by the Executive of any of the covenants contained in Article 6
of this Agreement will cause irreparable harm and damage to the Company, the monetary amount of which may be virtually impossible to ascertain.
As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to an injunction from any court of competent
jurisdiction enjoining and restraining any violation of any or all of the covenants contained in Article 6 of this Agreement by the
Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall
be cumulative and in addition to whatever other remedies the Company may possess.

 

6.         Noncompetition.
  Except as may otherwise be approved by the Board, during the Restricted Period,
the Executive shall not have any ownership interest (of record or beneficial) in, or have any interest as an executive, salesman,
consultant, officer or director in, or otherwise aid or assist in any manner, any firm, corporation, partnership, proprietorship or other
business that engages in any county, city or part thereof in the United States and/or any foreign country in a business which competes
directly or indirectly (as determined by the Board) with the business of the Company in such county, city or part thereof, so long as
the Company or any successors in interest to the business and goodwill of the Company, remains engaged in such business in such county,
city or part thereof or continues to solicit customers or potential customers therein; provided, however, that Executive may
own, directly or indirectly, solely as an investment, securities of any entity if Executive (x) is not a controlling person of, or
a member of a group which controls, such entity; or (y) does not, directly or indirectly, own five
percent (5%) or more of any class of securities of any such entity.

 

6.12      Survival.
The provisions of this Article 6 shall survive termination of this Agreement and the Term of Employment in accordance with the terms
herein.

 

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7.            Section 409A
of the Code.

 

		(a)	The provisions of this Agreement
are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and any final regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in
a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. The Company and Executive agree to
work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate
or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

		(b)	To the extent that Executive will be reimbursed for costs and expenses or in-kind benefits, except as
otherwise permitted by Section 409A, (a) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange
for another benefit, (b) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year
shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that
the foregoing clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of
the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect and (c) such payments
shall be made on or before the last day of the taxable year following the taxable year in which the expense was incurred.

 

		(c)	A termination of employment shall not be deemed to have occurred for purposes of any provision of this
Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination constitutes
a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement
references to a “termination,” “termination of employment” or like terms shall have such meaning.

 

		(d)	Each installment payable hereunder shall constitute a separate payment for purposes of Treasury Regulation
Section 1.409A-2(b), including Treasury Regulation Section 1.409A-2(b)(2)(iii). Each payment that is made within the terms of
the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet
the “short-term deferral” rule. Each other payment is intended to be a payment upon an involuntary termination from service
and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation,
with any amount that is not exempt from Code Section 409A being subject to Code Section 409A.

 

		(e)	Notwithstanding anything to the contrary in this Agreement, if the Executive is a “specified employee”
within the meaning of Section 409A at the time of Executive’s termination, then only that portion of the severance and benefits
payable to Executive pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered
 “deferred compensation” under Section 409A (together, the “Deferred Compensation Separation Benefits”),
which (when considered together) do not exceed the Section 409A Limit (as defined herein) may be made within the first six (6) months
following Executive’s termination of employment in accordance with the payment schedule applicable to each payment or benefit. Any
portion of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit otherwise due to Executive on or within
the six (6) month period following Executive’s termination will accrue during such six (6) month period and will become
payable in one lump sum cash payment on the date six (6) months and one (1) day following the date of Executive’s termination
of employment. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule
applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following termination but prior
to the six (6) month anniversary of Executive’s termination date, then any payments delayed in accordance with this paragraph
will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred
Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

		(f)	For purposes of this Agreement, “Section 409A Limit” will mean a sum equal
(x) to the amounts payable prior to March 15 following the year in which Executive is terminated plus (y) the lesser of
two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the
Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment as determined under
Section 409A and any IRS guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under
a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

 

		(g)	If any payment provided to Executive pursuant to this Agreement is subject to adverse tax consequences
under Code Section 409A, then Company shall make such additional payments to Executive (“409A Gross Up Payments”)
as are necessary to provide Executive with enough funds to pay the additional taxes, interest, and penalties imposed by Code Section 409A
(collectively, the “409A Tax”), as well as any additional taxes, including but not limited to additional 409A
Tax, attributable to or resulting from the payment of the 409A Gross Up Payments, with the end result that Executive shall be in the same
position with respect to his tax liability as he would have been in if no 409A Tax had ever been imposed; provided, however, that the
Company’s obligation to make payments under this Section 7 shall be limited to an amount equal to three times the 409A Tax
(not including for this purpose 409A Tax attributable to the payment of any portion of the 409A Gross Up Payment). The Company shall make
any payments required by this paragraph no later than the last day of Executive’s taxable year next following the Executive’s
taxable year in which the 409A Tax is remitted to the taxing authority.

 

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8.            Section 280G
of the Code: Limitation on Payments.

 

		(a)	The provisions of this Agreement
are intended to comply with Section 280G of the Code and any final regulations and guidance promulgated thereunder (“Section 280G”)
and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 280G. The
Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
which are necessary, appropriate or desirable to comply with Section 280G.

 

		(b)	If any payment or benefit Executive will or may receive from the Company or otherwise (a “280G
Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and
(ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then any such 280G Payment pursuant to this Agreement (a “Payment”) shall be equal to the Reduced Amount. The “Reduced
Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after reduction)
being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e.,
the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt,
on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant
to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that
results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit,
the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

 

		(c)	Notwithstanding any provision of paragraph (a) to the contrary, if the Reduction Method or the Pro
Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that
would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction
Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows:
(A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for Executive
as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being
terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as
a third priority, Payments that are “deferred compensation” within the meaning of Section 409A of the Code shall be reduced
(or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code.

 

		(d)	Unless Executive and the Company agree on an alternative accounting firm or law firm, the accounting firm
engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control shall perform
the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity
or group effecting the Change in Control, the Company shall appoint a nationally recognized accounting or law firm to make the determinations
required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to
be made hereunder. The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations
hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within fifteen (15) calendar
days after the date on which Executive’s right to a 280G Payment becomes reasonably likely to occur (if requested at that time by
Executive or the Company) or such other time as requested by Executive or the Company.

 

		(e)	If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) of
Section 8(b) and the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise
Tax, Executive shall promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of
Section 8(b)) so that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced
Amount was determined pursuant to clause (y) Section 8(b), Executive shall have no obligation to return any portion of the Payment
pursuant to the preceding sentence.

 

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9.         Assignment.
The Company shall have the right to assign this Agreement and its rights and obligations hereunder in whole, but not in part, to any corporation
or other entity with or into which the Company may hereafter merge or consolidate or to which the Company may transfer all or substantially
all of its assets, if in any such case said corporation or other entity shall by operation of law or expressly in writing assume all obligations
of the Company hereunder as fully as if it had been originally made a party hereto, but may not otherwise assign this Agreement or its
rights and obligations hereunder. The Executive may not assign or transfer this Agreement or any rights or obligations hereunder.

 

10.      Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of California,
without regard to principles of conflict of laws.

 

11.       Jurisdiction
and Venue. The parties acknowledge that a substantial portion of the negotiations, anticipated performance and execution of this
Agreement occurred or shall occur in Los Angeles County, California, and that, therefore, without limiting the jurisdiction or venue of
any other federal or state courts, each of the parties irrevocably and unconditionally: (a) agrees that any suit, action or legal
proceeding arising out of or relating to this Agreement which is expressly permitted by the terms of this Agreement to be brought in a
court of law, shall be brought in the courts of record of the State of California in Los Angeles County or the court of the United States,
Central District of California; (b) consents to the jurisdiction of each such court in any such suit, action or proceeding; (c) waives
any objection which it or he may have to the laying of venue of any such suit, action or proceeding in any of such courts; and (d) agrees
that service of any court papers may be effected on such party by mail, as provided in this Agreement, or in such other manner as may
be provided under applicable laws or court rules in such courts.

 

12.       Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof
and, upon its effectiveness, shall supersede all prior agreements, understandings and arrangements, both oral and written, between the
Executive and the Company (or any of its affiliates) with respect to such subject matter. This Agreement may not be modified in any way
unless by a written instrument signed by both the Company and the Executive.

 

13.       Notices.
All notices required or permitted to be given hereunder shall be in writing and shall be personally delivered by courier, sent by registered
or certified mail, return receipt requested or sent by confirmed electronic transmission addressed as set forth herein. Notices personally
delivered, sent by facsimile or e-mail or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in
accordance with the foregoing shall be deemed given upon the earlier of receipt by the addressee, as evidenced by the return receipt thereof,
or three days after deposit in the U.S. mail. Notice shall be sent: (a) if to the Company, addressed to 700 N. Central Ave., Suite 430,
Glendale, California 91203, Attention: Chairman of the Board and Chief Legal Officer; and (b) if to the Executive, to his address
as reflected on the payroll records of the Company, or to such other address as either party shall request by notice to the other in accordance
with this provision.

 

14.       Benefits;
Binding Effect. This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and, where permitted and applicable, assigns, including, without limitation, any successor
to the Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise.

 

15.       Right
to Consult with Counsel; No Drafting Party. The Executive acknowledges having read and considered all of the provisions of this
Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, given this, the Executive agrees
that the obligations created hereby are not unreasonable. The Executive acknowledges that he has had an opportunity to negotiate any and
all of these provisions and no rule of construction shall be used that would interpret any provision in favor of or against a party
on the basis of who drafted the Agreement.

 

16.        Severability.
The invalidity of any one or more of the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement
shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally
on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses, provisions, sections or
articles contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase
or phrases, sentence or sentences, clause or clauses, provisions or provisions, section or sections or article or articles had not been
inserted. If such invalidity is caused by length of time or size of area, or both, the otherwise invalid provision will be considered
to be reduced to a period or area which would cure such invalidity.

 

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17.    Waivers.
The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed
as a waiver of any subsequent breach or violation.

 

18.      Damages;
Attorneys Fees. Nothing contained herein shall be construed to prevent the Company or the Executive from seeking and recovering
from the other damages sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement.
In the event that either party hereto seeks to collect any damages resulting from, or the injunction of any action constituting, a breach
of any of the terms or provisions of this Agreement, then the party found to be at fault shall pay all reasonable costs and attorneys'
fees of the other.

 

19.      Section Headings.
The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

20.     Rules of
Interpretation. Except as otherwise expressly provided in this Agreement, the following rules shall apply to this Agreement:
(a) words in the singular include the plural and words in the plural include the singular; (b) words importing the use of any
gender shall include all genders where the context or the party referred to so requires, and the rest of the sentence shall be construed
as if the necessary grammatical and terminological changes had been made; (c) the word “or” is not exclusive and “include”
and “including” are not limiting; (d) a reference to any agreement or other contract includes any permitted supplements
and amendments; (e) a reference to a section or paragraph in this Agreement shall, unless the context clearly indicates to the contrary,
refer to all sub-parts or sub-components of any said section or paragraph; and (f) words such as “hereunder”, “hereto”,
 “hereof”, and “herein”, and other words of like import shall, unless the context clearly indicates to the contrary,
refer to the whole of this Agreement and not to any particular clause hereof

 

21.      No
Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or
give any person other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives,
successors and permitted assigns, any rights or remedies under or by reason of this Agreement.

 

22.     No
Set-off or Mitigation. The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any compensation earned by the Executive as a result of his employment by another employer
or otherwise, or any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this Agreement.

 

23.     Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which taken together shall
constitute one and the same instrument. A signed copy of this Agreement (including any digital or electronic signature complying with
the U.S. federal ESIGN Act of 2000, e.g.,www.docusign.com) delivered by electronic mail or other means of electronic transmission
of a .pdf or similar file shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

		COMPANY:	

 

Loop Media, Inc.

 

By: _____________________

 

Name: Jon Niermann.

 

Title: Chief Executive
Officer and Chairman

 

		Date:	

 

		EXECUTIVE:	

 

By: _____________________________

 

Neil Watanabe

 

Chief Financial Officer

 

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EXHIBIT A

 

FORM OF AGREEMENT AND GENERAL RELEASE

 

THIS AGREEMENT AND GENERAL RELEASE (the “Agreement
and General Release”) is entered into on [•], 20[•], by and between Loop Media, Inc. (the “Company”)
and Jon Niermann (the “Executive”).

 

WHEREAS, Executive has been
employed by the Company and the parties wish to resolve all outstanding claims and disputes between them relating to such employment;

 

NOW, THEREFORE, in consideration
of the mutual promises, covenants and agreements set forth in this Agreement and General Release, the sufficiency of which the parties
acknowledge, it is agreed as follows:

 

1.            General
Release of Claims. In consideration for the Executive’s promises, covenants and agreements in this Agreement and General Release,
the Company agrees to make the payments provided under Section 5 of the employment agreement entered into by the Company and the
Executive on [DATE], 2021 (the “Employment Agreement”), in accordance with the terms and subject to the conditions of such
Employment Agreement.

 

In exchange for the payments described in Section 5
of the Employment Agreement, to which the Executive would not otherwise be entitled, the Executive (for himself and his heirs, executors,
administrators, beneficiaries, personal representatives and assigns) hereby completely, forever, irrevocably and unconditionally release
and discharge, to the maximum extent permitted by law, the Company, the Company’s past, present and future parent organizations,
subsidiaries and other affiliated entities, related companies and divisions and each of their respective past, present and future officers,
directors, employees, shareholders, trustees, members, partners, attorneys and agents (in each case, individually and in their official
capacities) and each of their respective employee benefit plans (and such plans’ fiduciaries, agents, administrators and insurers,
individually and in their official capacities), as well as any predecessors, future successors or assigns or estates of any of the foregoing
(the “Released Parties”) from any and all claims, actions, charges, controversies, causes of action, suits, rights,
demands, liabilities, obligations, damages, costs, expenses, attorneys’ fees, damages and obligations of any kind or character whatsoever,
that the Executive ever had, now has or may in the future claims to have by reason of any act, conduct, omission, transaction, agreement,
occurrence or any other matter whatsoever occurring up to and including the date that the Executive signs this Agreement. This general
release of claims includes, without limitation, any and all claims:

 

	·	of discrimination, harassment, retaliation, or wrongful termination;

 

	·	for breach of contract, whether oral, written, express or implied; breach of covenant of good faith and
fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent
or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business
practices; defamation; libel or slander; negligence; assault; battery; invasion of privacy; personal injury; compensatory or punitive
damages, or any other claim for damages or injury of any kind whatsoever;

 

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	·	for violation or alleged violation of any federal, state or municipal statute, rule, regulation or ordinance,
including, but not limited to, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act of 1990, Title
VII of the Civil Rights Act of 1964, the Civil Rights Acts of 1991, the Americans with Disabilities Act, the Fair Labor Standards Act,
the Equal Pay Act, the Lilly Ledbetter Fair Pay Act, the Fair Credit Reporting Act, the Worker Adjustment and Retraining Notification
Act, the Family & Medical Leave Act, the Sarbanes-Oxley Act of 2002, the federal False Claims Act, the Family First Coronavirus
Response Act, the New York State Human Rights Law, the New York City Human Rights Law, the New York Civil Rights Law, the New York Labor
Law, New York paid family leave law, the New York False Claims Act, any New York wage and hour laws, the California Fair Employment and
Housing Act, the Unruh Civil Rights Act, the California False Claims Act, the California Family Rights Act, the California New Parent
Leave Act, the California Labor Code, any California Industrial Welfare Commission
Wage Order, any California wage and hour law, in each case, as such laws have been or may be amended;

 

	·	for employee benefits, including, without limitation, any and all claims under the Employee Retirement
Income Security Act of 1974 (excluding COBRA);

 

	·	to any non-vested ownership interest in the Company, contractual or otherwise, including, but not limited
to, claims to stock or stock options or incentive units;

 

	·	arising out of or relating to any promise, agreement, offer letter, contract (whether oral, written, express
or implied), understanding, personnel policy or practice, or employee handbook;

 

	·	relating to or arising from the Executive’s employment with the Company, the terms and conditions
of that employment, and the termination of that employment, including, without limitation any and all claims for discrimination, harassment,
retaliation or wrongful discharge under any common law theory, public policy or any federal state or local statute or ordinance not expressly
listed above; and

 

	·	any and all claims for monetary recovery, including, without limitation, attorneys’ fees, experts’
fees, costs and disbursements.

 

The Executive expressly acknowledges that this
general release of claims includes any and all claims arising up to and including the date the Executive signs and returns this Agreement
and General Release which the Executive has or may have against the Released Parties, whether such claims are known or unknown, suspected
or unsuspected, asserted or un-asserted, disclosed or undisclosed. By signing this Agreement and General Release, the Executive expressly
waives any right to assert that any such claim, demand, obligation or cause of action has, through ignorance or oversight, been omitted
from the scope of this release and further waives any rights under statute or common law principles that otherwise prohibit the release
of unknown claims. The Executive expressly acknowledges that the Executive does not as of the date of execution of this Agreement and
General Release have any known or suspected claim(s) against any of the Released Parties the factual foundation for which involve(s) unlawful
discrimination or harassment.

 

Further
Release By the Executive Of the Released Parties. The Executive expressly acknowledges that, in further consideration
of the severance payment and opportunity to receive such payment set forth in the Employment Contract, the Executive waives all rights
afforded by Section 1542 of the Civil Code of the State of California (“Section 1542”), or any other law
or statute of similar effect in any jurisdiction with respect to the released Claims, with respect to the Released Parties. Section 1542
states: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, THAT IF KNOWN BY HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.” Notwithstanding the provisions of Section 1542 and for the purpose of implementing a full and complete release
of all Claims, the Executive expressly acknowledges and agrees that this Agreement and General Release releases all Claims existing or
arising prior to the Executive’s execution of this Agreement and General Release which the Executive has or suspects he may have
against the Released Parties whether such claims are known or unknown and suspected or unsuspected by him and the Executive forever waives
all inquiries and investigations into any and all such claims. The Executive understands and acknowledges that the significance and consequence
of this waiver of Civil Code §1542, is that even if the Executive should suffer additional injuries or damages arising out of the
released Claims, the Executive will not be permitted to make any claim for those injuries or damages.

 

    19

     

    

 

This
general release of claims does not apply to, waive or affect: any rights or claims that may arise after the date the
Executive signs and returns this Agreement and General Release; any claim for workers’ compensation benefits (but it does
apply to, waive and affect claims of discrimination and/or retaliation on the basis of having made a workers’ compensation
claim); claims for unemployment benefits or any other claims or rights that by law cannot be waived in a private agreement between
an employer and employee; or the Executive’s rights to any vested benefits to which the Executive is entitled under the terms
of the applicable employee benefit plan (the “Excluded Claims”). This general release of claims also does
not apply to, waive, affect, limit or interfere with the Executive’s preserved rights described in section 9
below.

 

2.            Waiver
of Claims under ADEA; Time to Consider/Revoke. The Executive acknowledges, understands and agrees that the general release of claims
in section 1 above includes, but is not limited to, a waiver and release of all claims that the Executive may have under the
Age Discrimination in Employment Act of 1967, as amended (the “ADEA”) arising up to and including the date that
the Executive signs and returns this Agreement and General Release. As required by the Older Workers Benefit Protection Act of 1990, the
Executive is hereby advised that:

 

	·	the Executive is not waiving any rights or claims under the ADEA that may arise after the date the Executive
signs this Agreement and General Release; and nothing in this Agreement and General Release prevents or precludes the Executive from challenging
(or seeking a determination of) the validity of the waiver under the ADEA.

 

The
Executive acknowledges that (i) he has been given at least twenty-one (21) calendar days (forty-five (45) days if
required under applicable law) to consider this Agreement and General Release and that modifications hereof which are mutually agreed
upon by the parties hereto, whether material or immaterial, do not restart the twenty-one day period; (ii) he has seven (7) calendar
days from the date he executes this Agreement and General Release in which to revoke it; and (iii) this Agreement and General Release
will not be effective or enforceable nor the amounts set forth in Section 1 paid unless the seven-day revocation period ends without
revocation by the Executive. Revocation can be made by delivery and receipt of a written notice of revocation to [INSERT NAME/TITLE AND
ADDRESS], by midnight on or before the seventh calendar day after the Executive signs the Agreement and General Release.

 

The Executive acknowledges that he has been advised
to consult with an attorney of his choice with regard to this Agreement and General Release. The Executive hereby acknowledges that he
understands the significance of this Agreement and General Release, and represents that the terms of this Agreement and General Release
are fully understood and voluntarily accepted by him.

 

3.            No
Pending Claims. The Executive represents and warrants that he has no charges, lawsuits, or actions pending in his name against any
of the Released Parties relating to any claim that has been released in this Agreement and General Release. The Executive also represents
and warrants that he has not assigned or transferred to any third party any right or claim against any of the Released Parties that he
has released in this Agreement and General Release.

 

4.            Covenant
not to Sue. Except as provided in section 9 below, the Executive covenants and agrees that he will not report, institute or
file a charge, lawsuit or action (or encourage, solicit, or voluntarily assist or participate in, the reporting, instituting, filing or
prosecution of a charge, lawsuit or action by a third party) against any of the Released Parties with respect to any claim that has been
released in this Agreement and General Release.

 

    20

     

    

 

5.            Cooperation
with Investigations/Litigation. The Executive agrees, at the Company’s request, to reasonably cooperate, by providing truthful
information, documents and testimony, in any Company investigation, litigation, arbitration, or regulatory proceeding regarding events
that occurred during his employment with the Company. The Executive’s requested cooperation may include, for example, making himself
reasonably available to consult with the Company’s counsel, providing truthful information and documents, and to appear to give
truthful testimony. The Company will, to the extent permitted by applicable law and court rules, reimburse the Executive for reasonable
out-of-pocket expenses that he incurs in providing any requested cooperation, so long as he provides advance written notice to the Company
of such request for reimbursement and provide satisfactory documentation of the expenses. Nothing in this section is intended to, and
shall not, preclude or limit the Executive’s preserved rights described in section 9 below.

 

6.            Confidentiality
of this Agreement and General Release; Non-Disparagement. The Executive agrees that he will not disclose to others the existence or
terms of this Agreement and General Release, except to his immediate family, attorneys and bona fide financial advisors and then only
after securing the agreement of such individual(s) to maintain the confidentiality of this Agreement and General Release. The Executive
also agrees that he will not at any time make any disparaging or derogatory statements concerning the Company or its business, products
and services. However, nothing in this section is intended to, and shall not, restrict or limit the Executive from exercising his preserved
rights described in section 9 or restrict or limit him from providing truthful information in response to a subpoena, other legal
process or valid governmental inquiry. To the extent required by law, nothing in this section is intended to, and shall not, restrict
or limit the Executive from testifying in an administrative, legislative, or judicial proceeding concerning alleged criminal conduct or
alleged sexual harassment on the part of the Company, or on the part of the agents or employees of the Company, when the Executive has
been required or requested to attend the proceeding pursuant to a court order, subpoena, or written request from an administrative agency
or the legislature.

 

7.            Non-Disclosure/Affirmation
of Continuing Obligations. The Executive acknowledges and agrees that the confidentiality, intellectual property assignment, non-competition,
non-solicitation and other restrictive covenants contained in the Employment Agreement (the “Restrictive Covenants”)
shall remain in full force and effect in accordance with their terms, and Executive hereby reaffirms Executive’s agreement to comply
with such Restrictive Covenants.

 

8.            Return
of Company Documents and Other Property. The Executive confirms that he has returned to the Company any and all Company documents,
materials and information (whether in hardcopy, on electronic media or otherwise) related to Company business and/or containing any non-public
information concerning the Company or its clients, as well as all equipment, keys, access cards, credit cards, computers, computer hardware
and software, electronic devices and any other Company property in his possession, custody or control. The Executive also represents and
warrants that he has not retained copies of any Company documents, materials or information (whether in hardcopy, on electronic media
or otherwise). The Executive also agrees that he will disclose to the Company all passwords necessary or desirable to enable the Company
to access all information which he has password-protected on any of its computer equipment or on its computer network or system.

 

9.            Preserved
Rights: This Agreement and General Release is not intended to, and shall not, in any way prohibit, limit or otherwise interfere with

 

(a)            the
Executive’s protected rights under federal, state or local employment discrimination laws (including, without limitation, the ADEA
and Title VII) to communicate or file a charge with, initiate, testify, assist, comply with a subpoena from, or participate in any manner
in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission (“EEOC”) or similar federal, state
or local government body or agency charged with enforcing employment discrimination laws; provided, however, the Executive shall not be
entitled to any relief or recovery (whether monetary or otherwise), and the Executive hereby waives any and all rights to relief or recovery,
under, or by virtue of, any such filing of a charge with, or investigation, hearing or proceeding conducted by, the EEOC or any other
similar federal, state or local government agency relating to any claim that has been released in this Agreement and General Release;
or

 

    21

     

    

 

(b)            the
Executive’s protected right to test in any court, under the Older Workers Benefit Protection Act, or like statute or regulation,
the validity of the waiver of rights under ADEA in this Agreement and General Release; or

 

(c)            the
Executive’s protected right to disclose any facts necessary to receive unemployment insurance, Medicaid, or other public benefits
to which he is entitled; or

 

(d)            the
Executive’s right to enforce the terms of this Agreement and General Release and to exercise his rights relating to any other Excluded
Claims.

 

10.            No
Admission. Nothing contained in this Agreement and General Release will constitute or be treated as an admission by the Executive,
the Company or any of the other Released Parties of any liability, wrongdoing or violation of law.

 

11.            Miscellaneous

 

(a)            This
Agreement and General Release shall inure to the benefit of the Company and the other Released Parties and shall be binding upon the Company
and its successors and assigns. This Agreement and General Release also shall inure to the benefit of, and be binding upon, the Executive
and his heirs, executors, administrators, trustees and legal representatives. This Agreement and General Release is personal to the Executive
and he may not assign or delegate his rights or duties under this Agreement and General Release, and any such assignment or delegation
will be null and void.

 

(b)            The
provisions of this Agreement and General Release are severable. If any provision in this Agreement and General Release is held to be invalid,
illegal or unenforceable, the remaining provisions of this Agreement and General Release will remain in full force and effect and the
invalid, illegal and unenforceable provision shall be reformed and construed so that it will be valid, legal and enforceable to the maximum
extent permitted by law.

 

(c)            The
Company and the Executive shall each bear their own costs, fees (including, without limitation, attorney’s fees) and expenses in
connection with the negotiation, preparation and execution of this Agreement and General Release.

 

(d)            The
failure of the Company to seek enforcement of any provision of this Agreement and General Release in any instance or for any period of
time shall not be construed as a waiver of such provision or of the Company’s right to seek enforcement of such provision in the
future.

 

(e)            Given
the full and fair opportunity provided to each party to consult with their respective counsel regarding terms of this Agreement and General
Release, ambiguities shall not be construed against either party by virtue of such party having drafted the subject provision.

 

(f)            The
headings in this Agreement and General Release are included for convenience of reference only and shall not affect the interpretation
of this Agreement and General Release.

 

    22

     

    

 

(g)            This
Agreement and General Release may be executed in counterparts, each of which shall be deemed an original but all of which together will
constitute one and the same instrument. This Agreement and General Release, or a signature page thereto intended to be attached to
a copy of this Agreement and General Release, signed and transmitted by facsimile machine, telecopier or other electronic means (including
via transmittal of a “pdf” file) shall be deemed and treated as an original document. The signature of any person thereon,
for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding
effect as an original signature on an original document. At the request of any party hereto, any facsimile, telecopy or other electronic
document is to be re-executed in original form by the persons who executed the facsimile, telecopy of other electronic document. No party
hereto may raise the use of a facsimile machine, telecopier or other electronic means or the fact that any signature was transmitted through
the use of a facsimile machine, telecopier or other electronic means as a defense to the enforcement of this Agreement and General Release.

 

(h)            All
matters affecting this Agreement and General Release, including the validity thereof, are to be governed by, and interpreted and construed
in accordance with, the laws of the State of California applicable to contracts executed in and to be performed in that State.

 

13.            Opportunity
to Review. The Executive represents and warrants that he:

 

		·	has had sufficient opportunity to consider this Agreement and General Release;

 

		·	has carefully read this Agreement and General Release and understand all of its terms;

 

		·	is not incompetent and has not had a guardian, conservator or trustee appointed for him;

 

		·	has entered into this Agreement and General Release of his own free will and volition and that, except
for the promises expressly made by the Company in this Agreement and General Release, no other promises or agreements of any kind have
been made to him by any person or entity whatsoever to cause him to sign this Agreement and General Release;

 

		·	understands that he is responsible for his own attorneys’ fees and costs;

 

		·	has been advised and encouraged by the Company to consult with his own independent counsel before signing
this Agreement and General Release;

 

		·	has had the opportunity to review this Agreement and General Release with counsel of his choice or has
chosen voluntarily not to do so;

 

		·	was given at least twenty-one (21) days (forty-five (45) days if required under applicable law) to
review this Agreement and General Release before signing it and understood that he was free to use as much or as little of the review
period as he wished or considered necessary before deciding to sign it; and

 

		·	understands that this Agreement and General Release is valid, binding, and enforceable against the Executive
and the Company according to its terms.

 

[SIGNATURE PAGE FOLLOWS THIS PAGE]

 

    23

     

    

 

IN WITNESS WHEREOF, the Executive has executed this Agreement and General
Release on the date set forth below.

 

	Witness:	 	 
	 	 	 
	 	 	 
	 	 	
    Neil Watanabe

    [Address]

 

Agreed to and accepted on ________________________.

 

	 	LOOP MEDIA, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    24Exhibit 10.4

 

 

 

CONFIDENTIAL

 

September 29, 2021

 

Jim Cerna

Loop Media, Inc.

700 N Central Avenue, Suite 430

Glendale, CA 91203

 

Dear Jim:

 

This letter confirms our conversations
regarding the details of your ongoing employment and engagement with Loop Media, Inc. (the “Company”) as you transition
from the role of Chief Financial Officer (“CFO”), effective September 29, 2021, and assist in certain of the Company’s
strategic initiatives and sets forth the terms and conditions of that employment and/or engagement.

 

Effective September 30,
2021, your new role will be as Head of Strategic Initiatives at a rate of $17,500 per month, subject to periodic review and adjustment
by the Company in its discretion. Among other things, your role will be to assist in the Company’s transition to a new CFO and to
assist the Company in evaluating certain strategic business opportunities. The time period for the transition (the “Transition
Period”) is expected to be 60 days. During the Transition Period, you will use your best good faith efforts to assist with the
transition to the new CFO, including providing historical insight and other information for purposes of any potential up list of the Company
to a national securities exchange and the preparation of any periodic reports. If the Company determines you have acted in a manner that
is unprofessional, uncooperative or otherwise engage in conduct that constitutes cause in the Company’s discretion, the Company
reserves the right to end your employment sooner.

 

During the Transition Period,
you will be entitled to participate in all of its then-current customary employee benefit plans and programs, and in all events subject
to eligibility requirements, enrollment criteria, and the other terms and conditions of such plans and programs. The Company reserves
the right to change or rescind its benefit plans and programs and alter employee contribution levels in its discretion.

 

By executing this letter
below, you reaffirm that during your employment thus far, and continuing through the Transition Period, you shall not use or
disclose, in whole or in part, the Company’s or its clients’ trade secrets, confidential and proprietary information,
including client lists and information, to any person, firm, corporation, or other entity for any reason or purpose whatsoever other
than in the course of your employment with the Company or with the prior written permission of the Company’s CEO.

 

     

     

    

 

From the end of the Transition
Period to June 1, 2022 and conditioned upon you signing the Company’s form of transition and separation and general release
agreement (the “Separation Agreement”) and complying with all of its terms, the Company agrees to allow you
to continue receiving your regular base salary and benefits, but working a reduced work schedule, during which you will provide strategic
assistance and support to the Company as referenced in the Separation Agreement.

 

You also will be required
to execute the non-disclosure and invention assignment agreement (the “Non-Disclosure and Invention Assignment Agreement”)
in substantially the form annexed to this letter as Exhibit A, and the Loop Media, Inc. Insider Confidentiality and Insider
Trading Compliance Certificate (the “Insider Trading Compliance Certificate”) in the form annexed to this letter
as Exhibit B, the terms of which are in addition to the terms of this letter.

 

Please sign your name at the
end of this letter to signify your understanding and acceptance of these terms and that no one at the Company has made any other representation
or warranty to you.

 

	 	Sincerely,
	 	 
	 	By:	 
	 	Name:
Jon Niermann
	 	Title: CEO

 

	Agreed to and Accepted by:	 	 
	 	 	 
		 	Date:	9/29/2021
	Jim Cerna	 	 

 

 

    -2- 

     

    

 

EXHIBIT A

 

Loop Media, Inc. Non-Disclosure and Invention
Assignment Agreement

 

(see attached)

 

    -3- 

     

    

 

LOOP MEDIA, INC.

NON-DISCLOSURE AND INVENTION ASSIGNMENT AGREEMENT

 

This Non-Disclosure and Invention
Assignment Agreement (“Agreement”) is made by and between Loop Media, Inc. (hereinafter referred to as “Employer”
or “Company”), and Jim Cerna (hereinafter referred to as “Employee”).

 

RECITALS

 

		A.	Employer desires to employ Employee and Employee desires to become employed by the Company.

 

		B.	Employee will, by virtue of her/his employment with Employer, become privy to Employer’s “Confidential
Information” (defined below).

 

		C.	Employee’s position, duties, compensation, and benefits will be communicated orally or set forth
under separate writing and may change from time to time in the sole discretion of the Company. The terms of Sections 2-8 and 13 of this
Agreement shall survive the termination of Employee’s employment with the Company.

 

		D.	Employer would not agree to employ Employee absent Employee’s execution of this Agreement agreeing
to abide by the restrictive covenants herein.

 

NOW, THEREFORE, in consideration
of Employer’s hiring Employee as an at-will Employee and Employee’s execution of this Agreement, Employee and Employer agree
as follows:

 

AGREEMENT

 

		1.	Exclusive Employment

 

During her/his employment
with Employer, Employee shall devote her/his full professional time and attention exclusively to rendering services to Employer. Employee
will at all times exercise a duty of loyalty to Employer, act in good faith, as an honest and prudent person, in a manner that he believes
is in the best interests of the Employer and in a manner that will promote the Company’s goodwill. Employee shall not work for,
or be connected with, or concerned in, any other business, directly or indirectly, alone or in association with, others without the prior
approval of the Company. Employee may, however, accept service as a board member of charitable or community organizations where such service
will be beneficial to the community, to Employer or to Employee’s personal development. Additionally, Employee shall not be prohibited
from making passive investments in other noncompeting businesses, provided such investments do not require Employee’s participation
in management or operations.

 

		2.	Confidential Information

 

Employee hereby understands
and acknowledges that because of Employee's experience with and relationship to the Company, in the course of her/his Term of Employment
he will acquire knowledge and will have access to and learn about confidential, secret and proprietary documents, materials, data, and
other information, in tangible and intangible form, of and relating to the Company and its businesses ("Confidential Information").
Employee further understands and acknowledges that this Confidential Information and the Company's ability to reserve it for the exclusive
knowledge and use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure
of the Confidential Information by Employee might cause the Company to incur financial costs, loss of business advantage, liability under
confidentiality agreements with third parties, civil damages and criminal penalties.

 

For purposes of this
Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public, in spoken,
printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods,
policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of
agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs,
computer software, source codes, object codes, applications, operating systems, software design, web design, databases, device
configurations, embedded data, compilations, metadata, technologies, manuals, records, articles, systems, content, sources of
content, vendor information, financial information, results, accounting information, accounting records, legal information,
marketing information, advertising information, pricing information, credit information, payroll information, personnel information,
employee lists, content provider lists, vendor lists, developments, reports, internal controls, security procedures, graphics,
drawings, sketches, market studies, sales information, revenue, costs, notes, communications, algorithms, product plans, service
plans, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries,
experimental processes, experimental results, specifications, distributor lists, customer information, customer lists, client
information and client lists of the Company or its businesses or any existing or prospective customer, content provider, investor or
other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.

 

    -4- 

     

    

 

Employee understands and acknowledges
that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified
as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context
and circumstances in which the information is known or used.

 

Employee understands and acknowledges
that Confidential Information developed by him in the course of her/his employment by the Company shall be subject to the terms and conditions
of this Agreement as if the Company furnished the same Confidential Information to Employee in the first instance. Confidential Information
shall not include information that is generally available to and known by the public at the time of disclosure to Employee, provided that
such disclosure is through no direct or indirect fault of Employee or person(s) acting on Employee's behalf.

 

For purposes of this Agreement,
all information regarding specific prospective and existing customers and clients of the Company and other individuals and businesses
with whom the Company does business is collectively referred to as "Customer/Client Information" and includes, but is
not limited to, names, phone numbers, addresses, email addresses, order history, order preferences, chain of command, pricing information,
and other information identifying facts and circumstances specific to the customer/client and relevant to sales/services. All books, records,
accounts and information relating in any manner to the Customer/Client Information, whether prepared by Employee or otherwise coming into
Employee's possession, shall be the exclusive property of the Company and shall be returned immediately to the Company on termination
of Employee's employment hereunder or on the Company's request at any time.

 

Upon termination of Employee’s
employment with Employer or at any time sooner upon demand, regardless of whether such termination is voluntary, involuntary, or with
or without cause, all records containing Confidential Information, including, but not limited to, all notes, memos, plans, records, letters,
emails, reports, magnetic tapes, magnetic diskettes and other tangible materials, including copies thereof in Employee’s possession,
whether prepared by Employee or by others, shall be left with Employer.

 

All Confidential Information
is the property of Employer. No license or other rights to Confidential Information are granted or implied by this Agreement.

 

		3.	Disclosure and Use Restrictions.

 

Employee covenants and agrees
to treat all Confidential Information as strictly confidential, and:

 

		(a)	not to directly or indirectly disclose, publish, communicate, or make available Confidential Information,
or allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including
other employees of the Company) not having a need to know and authority to know and to use the Confidential Information in connection
with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the
performance of any of Employee's authorized employment duties to the Company; and

 

		(b)	not to access or use any Confidential Information, and not to copy any documents, records, files, media,
or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from
the premises or control of the Company, except as required in the performance of any of Employee's authorized employment duties to the
Company. Employee understands and acknowledges that Employee's obligations under this Agreement regarding any particular Confidential
Information begin immediately and shall continue during and after Employee's employment by the Company until the Confidential Information
has become public knowledge other than as a result of Employee's breach of this Agreement or a breach by those acting in concert with
Employee or on Employee's behalf.

 

    -5- 

     

    

 

Nothing in this
Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation,
or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure
does not exceed the extent of disclosure required by such law, regulation, or order. Employee shall promptly provide written notice
of any such order to an authorized officer of the Company.

 

Nothing in this Agreement
prohibits or restricts Employee (or Employee's attorney) from initiating communications directly with, responding to an inquiry from,
or providing testimony before the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other
self-regulatory organization, or any other federal or state regulatory authority regarding a possible securities law violation. In addition,
pursuant to the Defend Trade Secrets Act, 18 USC Sections 1833(b)(1) or (2): (a)  Employee will not be held criminally or civilly
liable under any federal or state trade secret law for the disclosure of a trade secret if (i) Employee makes such disclosure in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and such disclosure is
made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) Employee makes such disclosure in
a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal; and (b) if an individual
files a lawsuit for retaliation by an employer for reporting suspected violation of law, the individual may disclose the trade secret
to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (i)  files any
document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order.

 

		4.	Duration of Confidentiality Obligations

 

Employee understands and acknowledges
that her/his obligations under this Agreement with regard to any particular Confidential Information shall commence immediately upon Employee
first having access to such Confidential Information (whether before or after he begins employment by the Company) and shall continue
during and after her/his employment by the Company until such time as such Confidential Information has become public knowledge other
than as a result of Employee's breach of this Agreement or breach by those acting in concert with the Employee or on Employee's behalf.

 

		5.	Intellectual Property

 

Employer owns all Intellectual
Property, hereinafter defined, and Works, hereinafter defined, which Employee has made, conceived, developed, discovered, reduced to practice,
or has fixed in a tangible medium of expression, and all Intellectual Property and Works that Employee shall make, conceive, develop,
discover, reduce to practice or fix in a tangible medium of expression, alone or with others, either (a) during Employee’s
employment by Employer (including past employment by Employer, and whether or not during working hours), or (b) within one year after
Employee’s employment ends if the Intellectual Property or Works results from any work Employee performed for Employer or involved
the use or assistance of Employer’s facilities, materials, personnel, or Confidential Information.

 

Employee will promptly disclose
to Employer, will hold in trust for Employer’s sole benefit, will assign to Employer and hereby does assign to Employer, all Intellectual
Property and Works described in the prior paragraph, including all copyrights (including renewal rights), patent rights, and trade secret
rights therein, including those vested and contingent. Employee will waive and hereby does waive any moral rights Employee has or may
have in the Intellectual Property and Works described in the prior paragraph. Employee agrees that all Works Employee produces within
the scope of her/his employment (which shall include all Works Employee produces related to Employer’s business, whether or not
done during regular working hours) shall be considered “works made for hire” so that Employer will be considered the author
of the Works under the federal copyright laws. At Employer’s direction and expense Employee will execute all documents and take
all actions necessary or convenient for Employer to document, obtain, maintain, or assign its rights to these Intellectual Property and
Works. Employer shall have full control over all applications for patents or other legal protection of all Intellectual Property and Works.

 

    -6- 

     

    

 

“Intellectual Property”
means discoveries, developments, concepts, designs, ideas, improvements to existing technology, processes, procedures, machines, products,
services, manufacturing, teaching methods, compositions of matter, formulas, algorithms, computer programs and techniques, and all other
matters ordinarily intended by the word “intellectual property,” whether or not patentable or copyrightable. “Intellectual
Property” also includes all records and expressions of those matters. “Works” means original works of authorship,
including interim work product, modifications and derivative works, and all similar matters, whether or not copyrightable.

 

Pursuant to California Labor
Code Section 2870, Employee understands that this Agreement does not apply to any Intellectual Property of Employee’s for which
no equipment, supplies, facilities, or trade secret information of Employer was used and which was developed entirely on Employee’s
own time, unless (a) the Intellectual Property relates directly to Employer’s business or actual or demonstrably anticipated
research or development, or (b) the Intellectual Property results from any work Employee performed for Employer. Employee agrees
that the foregoing exclusions are intended to meet the Company’s obligations to comply with the requirements of California Labor
Code Section 2870, and understands that the provisions of this Agreement requiring assignment of Intellectual Property to the Company
do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870.

 

Employee understands that
all Intellectual Property that Employee is currently developing and all Intellectual Property belonging to Employee and made by Employee
prior to and not connected with her/his employment with Employer may be excluded from this Agreement, provided that all such Intellectual
Property is fully and accurately disclosed in Exhibit A attached to this Agreement. If Employee has not identified any Intellectual
Property on Exhibit A, Employee represents that there are no such Intellectual Properties. Unless otherwise agreed to in writing
by Employer and Employee, Employee will be deemed to grant Employer a royalty-free, unrestricted license in any Intellectual Property
and Works of Employee that he brings to Employer that are used in the course of Employer’s business or that are incorporated into
any Intellectual Property or Works that belong to Employer.

 

		6.	Definition of Company

 

The term "Company"
also shall include any existing or future subsidiaries of the Company that are operating during the time periods described herein and
any other entities that directly or indirectly, through one or more intermediaries, control, are controlled by or are under common control
with the Company during the periods described herein.

 

		7.	Acknowledgment by Employee

 

Employee acknowledges and
confirms that the terms of this Agreement are reasonably necessary to protect the legitimate business interests of the Company, and are
not overbroad, overlong, or unfair and are not the result of overreaching, duress or coercion of any kind.

 

Employee further acknowledges
and confirms that the compensation payable to Employee under this Agreement is in consideration for the duties and obligations of Employee
hereunder, including the restrictive covenants contained in this Agreement, and that such compensation is sufficient, fair and reasonable.

 

Employee further acknowledges
and confirms that her/his full, uninhibited and faithful observance of each of the covenants contained in this Agreement will not cause
her/him any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained herein will not impair her/his
ability to obtain employment commensurate with her/his abilities and on terms fully acceptable to him or otherwise to obtain income required
for the comfortable support of him and her/his family and the satisfaction of the needs of her/his creditors.

 

Employee acknowledges and
confirms that the Confidential Information is such as would cause the Company serious injury or loss if he were to use such Confidential
Information to the benefit of a competitor or were to compete with the Company in violation of the terms of this Agreement.

 

Employee further acknowledges
that the restrictive covenants contained in this Agreement are intended to be, and shall be, for the benefit of and shall be enforceable
by, the Company's successors and assigns.

 

    -7- 

     

    

 

Employee expressly agrees
that upon any breach or violation of the provisions of this Agreement, the Company shall be entitled, as a matter of right, in addition
to any other rights or remedies it may have, to: (a) temporary and/or permanent injunctive relief in any court of competent jurisdiction
as described herein; and (b) such damages or other relief as are provided at law or in equity without being required to post a bond
or other security.

 

Employee acknowledges that
the existence of any claim or cause of action against the Company or its affiliates, whether predicated upon this Agreement or otherwise,
shall not constitute a defense to the enforcement of the restrictions contained in this Agreement.

 

		8.	No Guarantee of Employment

 

Employee understands this
Agreement is not a guarantee of continued employment and that her/his employment with Employer is at will. Employee further understands
and agrees that her/his employment is terminable at any time by Employer or Employee, with or without cause or prior notice.

 

		9.	Extension of Time

 

If Employee shall be in violation
of any provision of this Agreement, then each time limitation set forth in this Agreement shall be extended for a period of time equal
to the period of time during which such violation or violations occur. If the Company seeks injunctive relief from such violation in any
court, then the covenants set forth in this Agreement shall be extended for a period of time equal to the pendency of such proceeding
including all appeals by Employee.

 

		10.	No Conflicting Agreements

 

Employee is not a party to
any agreements, such as a noncompetition agreement, that limit her/his ability to perform her/his duties for Employer.

 

		11.	Use of Third-Party Information

 

Employee hereby represents,
warrants and covenants that he will not, during the period of her/his employment with the Company and in the course of carrying out her/his
responsibilities to the Company, make any improper use or disclosure of information to which any third party has a rightful claim of ownership
or that is subject to an ongoing obligation of confidentiality to any third party, particularly any prior employers of Employee. Employee
further represents, warrants and covenants that he will not bring onto the premises of the Company or share with any other Employee or
agent of the Company any manuals, procedures, data, documents, or other such information acquired in connection with Employee’s
previous employment unless he has written permission from such previous employer to do so.

 

		12.	Successor in Interest

 

This Agreement shall be binding
upon and inure to the benefit of any successor in interest of Employer. This Agreement may not be assigned by Employee.

 

		13.	Governing Law

 

This Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of California, without regard to principles of conflict
of laws.

 

		14.	Jurisdiction and Venue

 

The parties acknowledge that
a substantial portion of the negotiations, anticipated performance and execution of this Agreement occurred or shall occur in Los Angeles
County, California, and that, therefore, without limiting the jurisdiction or venue of any other federal or state courts, each of the
parties irrevocably and unconditionally: (a) agrees that any suit, action or legal proceeding arising out of or relating to this
Agreement which is expressly permitted by the terms of this Agreement to be brought in a court of law, shall be brought in the courts
of record of the State of California in Los Angeles County or the court of the United States, Central District of California; (b) consents
to the jurisdiction of each such court in any such suit, action or proceeding; (c) waives any objection which it or he may have
to the laying of venue of any such suit, action or proceeding in any of such courts; and (d) agrees that service of any court papers
may be effected on such party by mail, as provided in this Agreement, or in such other manner as may be provided under applicable laws
or court rules in such courts.

 

    -8- 

     

    

 

		15.	Entire Agreement

 

This Agreement constitutes
the entire agreement between the parties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede
all prior agreements, understandings and arrangements, both oral and written, between Employee and the Company (or any of its affiliates)
with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed by both the Company
and Employee.

 

		16.	Notices

 

All notices required or permitted
to be given hereunder shall be in writing and shall be personally delivered by courier, sent by registered or certified mail, return receipt
requested or sent by confirmed electronic transmission addressed as set forth herein. Notices personally delivered, sent by facsimile
or e-mail or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing
shall be deemed given upon the earlier of receipt by the addressee, as evidenced by the return receipt thereof, or three days after deposit
in the U.S. mail. Notice shall be sent: (a) if to the Company, addressed to 700 N. Central Ave., Suite 430, Glendale, California
91203, Attention: Chairman of the Board and General Counsel; and (b) if to Employee, to her/his address as reflected on the payroll
records of the Company, or to such other address as either party shall request by notice to the other in accordance with this provision.

 

		17.	Right to Consult with Counsel; No Drafting Party

 

Employee acknowledges having
read and considered all of the provisions of this Agreement carefully, and having had the opportunity to consult with counsel of her/his
own choosing, and, given this, Employee agrees that the obligations created hereby are not unreasonable. Employee acknowledges that he
has had an opportunity to negotiate any and all of these provisions and no rule of construction shall be used that would interpret
any provision in favor of or against a party on the basis of who drafted the Agreement.

 

		18.	Severability

 

The invalidity of any one
or more of the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall not affect the enforceability
of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law,
and, in the event that any one or more of the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement
shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences,
clause or clauses, provisions or provisions, section or sections or article or articles had not been inserted. If such invalidity is caused
by length of time or size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area which
would cure such invalidity.

 

		19.	Waivers

 

The waiver by either party
hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent
breach or violation.

 

		20.	Damages; Attorneys Fees

 

Nothing contained herein shall
be construed to prevent the Company or Employee from seeking and recovering from the other damages sustained by either or both of them
as a result of its or her/his breach of any term or provision of this Agreement. In the event that either party hereto seeks to collect
any damages resulting from, or the injunction of any action constituting, a breach of any of the terms or provisions of this Agreement,
then the prevailing party shall pay all reasonable costs and attorneys' fees of the other.

 

    -9- 

     

    

 

		21.	Section Headings

 

The section and paragraph
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

 

		22.	Rules of Interpretation

 

Except as otherwise expressly
provided in this Agreement, the following rules shall apply to this Agreement: (a) words in the singular include the plural
and words in the plural include the singular; (b) words importing the use of any gender shall include all genders where the context
or the party referred to so requires, and the rest of the sentence shall be construed as if the necessary grammatical and terminological
changes had been made; (c) the word “or” is not exclusive and “include” and “including” are not
limiting; (d) a reference to any agreement or other contract includes any permitted supplements and amendments; (e) a reference
to a section or paragraph in this Agreement shall, unless the context clearly indicates to the contrary, refer to all sub-parts or sub-components
of any said section or paragraph; and (f) words such as “hereunder”, “hereto”, “hereof”, and
 “herein”, and other words of like import shall, unless the context clearly indicates to the contrary, refer to the whole of
this Agreement and not to any particular clause hereof

 

		23.	Counterparts

 

This Agreement may be executed
in counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.
A signed copy of this Agreement (including any digital or electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g.,
www.docusign.com) delivered by electronic mail or other means of electronic transmission of a .pdf or similar file shall be deemed to
have the same legal effect as delivery of an original signed copy of this Agreement.

 

This Agreement has been duly
signed by the parties.

 

 

	 	 	LOOP MEDIA, INC. 
	 	 	 
	By  	 	 	By  	 
		Jim Cerna	 	 Jon Niermann 
		 	Chief Executive Officer
	 	 	 
	DATED:   	 	 	DATED:   	 

 

    -10- 

     

    

 

 

EXHIBIT A 

PRIOR INTELLECTUAL
PROPERTY

 

    -11-

     

    

 

EXHIBIT B

 

Loop Media, Inc.
Insider Confidentiality and Insider Trading Compliance Certificate

 

(see attached)

 

    -12-

     

    

 

Loop Insider

Confidentiality and Insider Trading

Compliance Certificate

 

Loop Media, Inc.
(the “Company”) has adopted policies to help protect confidential information and prevent the improper insider
trading or tipping. These policies are attached to this certificate and include:

 

		·	LOOP
                                            Employee Confidentiality Policy (the “Confidentiality Policy”)

		·	LOOP
                                            Insider Trading Conduct Policy (the “Insider Trading Policy”)

 

This certificate
is required to be provided by all officers, directors, employees, advisors, and consultants, as well as any outsiders whom the Compliance
Officer may designate as insiders because they have access to material nonpublic information concerning the Company.

 

I hereby acknowledge
that I have received the Confidentiality Policy and the Insider Trading Policy and have reviewed and understand each of such Policies
and agree to comply with the terms thereof.

 

Acknowledged and
Agreed,

	 	 
	 	 
	Signature	 
	 	 
	JIM CERNA 	 
	Name	 
	 	 
	 	 
	Date	 

 

    -13-

     

    

 

LOOP Employee
Confidentiality Policy

 

Policy Brief &
Purpose

 

We designed our
company confidentiality policy to explain how we expect our employees to treat confidential information. Employees will unavoidably receive
and handle personal and private information about clients, partners, and our company. We want to make sure that this information is well-protected.

 

We must protect
this information for two reasons. It may:

 

		●	Be
                                            legally binding (e.g. sensitive customer data)

		●	Constitute
                                            the backbone of our business, providing a competitive edge

 

Scope

 

This policy affects
all employees, including board members, investors, contractors and volunteers, who may have access to confidential information.

 

Policy elements

 

Confidential and
proprietary information is secret, valuable, expensive and/or easily replicated. Common examples of confidential information are:

 

		●	Unpublished
                                            financial information

		●	Data
                                            of Customers/Partners/Vendors/Labels

		●	Patents,
                                            formulas or new technologies

		●	Customer
                                            lists (existing and prospective)

		●	Data
                                            entrusted to our company by external parties

		●	Pricing/marketing
                                            and other undisclosed strategies

		●	Documents
                                            and processes explicitly marked as confidential

		●	Unpublished
                                            goals, forecasts and initiatives marked as confidential

 

Employees may have
various levels of authorized access to confidential information.

 

What employees
should do:

 

		●	Lock
                                            or secure confidential information at all times

		●	Shred
                                            confidential documents when they’re no longer needed

		●	Make
                                            sure they only view confidential information on secure devices

		●	Only
                                            disclose information to other employees when necessary/authorized

		●	Keep
                                            confidential documents inside our company's premises or your home

 

What employees
shouldn't do:

 

		●	Use
                                            confidential information for personal benefit or profit

		●	Disclose
                                            confidential information to anyone outside of our company

		●	Replicate
                                            confidential documents/files and store them on insecure devices

 

When employees
stop working for our company or at any time sooner upon demand, they are obliged to return any confidential files and delete them from
their personal devices.

 

Confidentiality
Measures

 

We'll take measures
to ensure that confidential information is well protected. We will:

 

		●	Store
                                            and lock paper documents

		●	Encrypt
                                            electronic information and safeguard databases

		●	Ask
                                            employees to sign non-compete and/or non-disclosure agreements

		●	Require
                                            authorization by senior management to allow employees to access certain confidential information

 

    -14-

     

    

 

Disciplinary
Consequences

 

Employees who do
not respect our confidentiality policy will face disciplinary and, possibly, legal action.

 

We will investigate
every breach of this policy. We will terminate any employee who willfully or regularly breaches our confidentiality guidelines for personal
profit. We may also have to punish any unintentional breach of this policy depending on its frequency and seriousness. We will terminate
employees who repeatedly disregard this policy, even when they do so unintentionally.

 

This policy is
binding even after separation of employment.

 

Nothing in this
Policy shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, pursuant
to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed
the extent of disclosure required by such law, regulation or order. Employee shall promptly provide written notice of any such order
to an authorized officer of the Company. Nothing in this Policy prohibits or restricts Employee from initiating communications directly
with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission (SEC), the Financial Industry
Regulatory Authority (FINRA), or any other self-regulatory organization, or any other federal or state regulatory authority regarding
this Policy or its underlying facts or circumstances. Employee further acknowledges that pursuant to the Defend Trade Secrets Act, 18
USC Sections 1833(b)(1) or (2): (a)  Employee will not be held criminally or civilly liable under any federal or state trade
secret law for the disclosure of a trade secret if (i) Employee makes such disclosure in confidence to a federal, state, or local
government official, either directly or indirectly, or to an attorney and such disclosure is made solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) Employee makes such disclosure in a complaint or other document filed in
a lawsuit or other proceeding if such filing is made under seal; and (b) if an individual files a lawsuit for retaliation by an
employer for reporting suspected violation of law, the individual may disclose the trade secret to the attorney of the individual and
use the trade secret information in the court proceeding, if the individual (i)  files any document containing the trade secret
under seal; and (ii) does not disclose the trade secret, except pursuant to court order.

 

    -15-

     

    

 

LOOP Insider
Trading Conduct Policy

 

Purpose

 

Anyone who has
knowledge of material nonpublic information may be considered an “Insider” for purposes of the federal securities
laws prohibiting insider trading. As a result, it is a violation of the policy of Loop Media, Inc. (the “Company”)
and the federal securities laws for any officer, director, employee, advisor, or consultant of the Company to:

 

		·	trade
                                            in securities of the Company while aware of “material nonpublic information”
                                            concerning the Company or

		·	communicate,
                                            “tip” or disclose material nonpublic information to outsiders so
                                            that they may trade in securities of the Company based on that information.

 

To prevent even
the appearance of improper insider trading or tipping, the Company has adopted this Insider Trading Policy (“Policy”)
for all of its officers, directors, employees, advisors or consultants and their family members, as well as for others who have access
to information through business relationships with the Company.

 

The consequences
of prohibited insider trading or tipping can be severe. Violation of this Policy by any Insider may result in disciplinary action by
the Company up to and including immediate termination for cause. Moreover, persons violating insider trading or tipping rules may
be required to:

 

		·	disgorge
                                            the profit made or the loss avoided by the trading, whether received by the insider or someone
                                            receiving a tip

		·	 pay
                                            significant civil penalties, and

		·	pay
                                            a criminal penalty and serve time in jail

 

In addition to
individual sanctions, the Company may also be required to pay civil or criminal penalties.

 

Scope

 

A.
  Covered Persons

 

This
Policy covers all directors, officers and employees, advisors or consultants of the Company and their respective family members and any
outsiders whom the Compliance Officer (referenced below) may designate as Insiders because they have access to material nonpublic information
concerning the Company (“Insiders”).

 

B.
  Covered Transactions

 

The Policy
applies to any and all transactions in the Company's securities. For purposes of the Policy, the Company's securities include its common
stock, options to purchase or sell common stock and any other type of securities that the Company may issue, such as preferred stock,
convertible debentures, warrants and exchange-traded options or other derivative securities and short sales (collectively, “Company
Securities”). Transactions in Company Securities include not only market transactions, but also private sales of Company
Securities, pledges of Company Securities to secure a loan or margin account, as well as charitable donations of Company Securities.

 

Policy Delivery

 

The Policy will
be delivered to all Insiders. Upon first receiving a copy of the Policy or any revised versions, each recipient must sign an acknowledgment
that he or she has received a copy of the Policy and agrees to comply with the Policy's terms.

 

    -16-

     

    

 

Section 16
Persons and Designated Employees

 

A.
  Section 16 Persons.

 

Each
member of the Company's Board of Directors (“Board”) and those officers of the Company designated by the Board
to be Section 16 officers of the Company are subject to the reporting provisions and trading restrictions of Section 16 of
the Securities Exchange Act of 1934 and the underlying rules and regulations promulgated by the U. S. Securities and Exchange Commission
(“SEC”) (“Section 16 Persons”). Section 16 Persons must obtain prior approval
of all trades in Company Securities from the Company's Compliance Officer in accordance with the procedures set below.

 

B.
  Designated Employees.

 

In addition
to Section 16 Persons, the Compliance Officer may designate additional officers and employees as “Designated Employees.”
Designated Employees are those officers or employees or outside consultants or contractors that the Company considers, because of their
duties, to have regular access to material nonpublic information. In addition to the Policy's general proscription against insider trading
or tipping, Designated Employees must comply with additional trading restrictions detailed below.

 

Definition of
 “Material Nonpublic Information”

 

Material
Information

 

“Material
Information” is any information about the Company that a reasonable investor would consider important in making an investment
decision to buy or sell the Company's Securities. If an investor would want to buy or sell securities based in part on the information,
the information should be considered material. In simple terms, material information is any type of information that could reasonably
be expected to affect the price of Company Securities. While it is not possible to identify all information that would be deemed “material,”
the following types of information ordinarily would be considered material:

 

• financial
performance, especially quarterly and year-end earnings; 

• significant
changes in financial performance outlook or liquidity of the Company as a whole or of a reporting segment of the Company's business; 

• company
projections that significantly differ from external expectations; 

• potential
mergers and acquisitions or the sale of significant Company assets or subsidiaries; 

• new
major contracts, orders, suppliers, customers or finance sources, or the loss thereof; 

• major
discoveries or significant changes or developments in products or product lines, research or technologies; 

• approvals
or denials of requests for regulatory approval by government agencies of products, patents or trademarks; 

• significant
changes or developments in supplies or inventory, including significant product defects, recalls or product returns; 

• significant
pricing changes; 

• stock
splits, public or private securities/debt offerings or changes in Company dividend policies or amounts; 

• significant
changes in management; 

• significant
labor disputes or negotiations, including possible strikes; 

• actual
or potential exposure to major litigation, or the resolution of such litigation; 

• possible
proxy contests; 

• imminent
or potential changes in the Company's credit rating by a rating agency; 

• voluntary
calls of debt or preferred stock of the Company; 

• the
contents of forthcoming publications that may affect the market price of Company Securities; 

• statements
by stock market analysts regarding the Company and/or its securities; 

• significant
changes in sales volumes, market share, production scheduling, product pricing or mix of sales; 

 

    -17-

     

    

 

• analyst
upgrades or downgrades of a Company Security; 

• significant
changes in accounting treatment, write-offs or effective tax rate; 

• impending
bankruptcy or financial liquidity problems of the company or one of its subsidiaries or significant business partners; 

• gain
or loss of a substantial customer or supplier; or 

• a
significant cybersecurity incident experienced by the company that has not yet been made public.

  

Nonpublic
Information

 

Information
is considered “nonpublic” until it has not been widely disseminated to the public through SEC filings, major
newswire services, national news services and financial news services and there has been sufficient time for the market to digest that
information. For the purposes of this Policy, information will be considered public after the close of trading on the second full business
day after the Company's widespread public release of the information. Thus, no transaction should take place until the third business
day after the disclosure of the material information.

 

Statement of
Company Policy and Procedures

 

Prohibited
Activities

 

No Insider
may trade in Company Securities while aware of material nonpublic information concerning the Company.

 

No Insider
may trade in Company Securities during any special trading blackout periods as designated by the Compliance Officer. The deviation of
any blackout period as well as those Insiders subject to the blackout shall be determined by the Compliance Officer. Moreover, the Insider
will not disclose to any person the applicability of a special blackout period without prior permission of the Compliance Officer.

 

No Section 16
Person or Designated Employee may trade in Company Securities without prior written approval of the Compliance Officer under the procedures
set forth below. To the extent possible, Section 16 Persons and Designated Employees should retain all records and documents that
support their reasons for making each trade.

 

No Section 16
Person or Designated Employee may trade in Company Securities outside of the applicable “trading windows” described
below.

 

The Compliance
Officer may not trade in Company Securities unless the trade(s) have been approved by the Chief Financial Officer or Chief Executive
Officer in accordance with the procedures set forth below.

 

No Insider
may “tip” or disclose material nonpublic information concerning the Company to any outside person, including family members,
even if that person is expected to hold such “tip” in confidence, unless required as part of that Insider's regular duties
for the Company or authorized by the Compliance Officer. In the case of inadvertent disclosure to an outside person, the Insider must
advise the Compliance Officer as soon as the inadvertent disclosure has been discovered. To protect against inadvertent disclosures,
all inquiries from outsiders regarding material nonpublic information about the Company must be forwarded to the Compliance Officer or
the Head of Investor Relations.

 

No Insider
may give trading advice of any kind about the Company to anyone, whether or not such Insider is aware of material nonpublic information
about the Company.

 

No Insider
may trade in any interest or position relating to the future price of Company Securities, such as a put, call or short sale.

 

    -18-

     

    

 

Without
the specific prior approval of the Compliance Officer, the Chief Executive Officer or the Board of Directors, no Insider shall accept
outside employment, as a consultant, independent contractor or employee, where the Insider is being compensated for the Insider's knowledge
of the Company or the industry or potential products of the Company.

 

Without
the specific prior approval of the Compliance Officer, the Chief Executive Officer or the Board of Directors, no Insider shall respond
to market rumors or otherwise make any public statements regarding the Company or its prospects. This includes responding to or commenting
on Internet-based bulletin boards or social media platforms. If you become aware of any rumors or false statements, you should report
them to the Compliance Officer.

 

Trading
Windows and Blackout Periods

 

Provided
that no other restrictions on trading in Company Securities apply, Section 16 Persons and Designated Employees may trade in Company
Securities during and only during the period beginning at the close of trading three full trading days following the Company's widespread
public release of quarterly or year-end earnings and ending on the last trading day of the second month following the end of the preceding
quarter.

 

Notwithstanding
the above provisions, any Section 16 Person or Designated Employee who is aware of material nonpublic information concerning the
Company may not trade in Company Securities even during a trading window until two business days after such material nonpublic information
has been subject to the Company's widespread public release of the information.

 

No Insiders
identified by the Compliance Officer as being subject to a special blackout period may trade in Company Securities during such special
blackout period. The Compliance Officer may, following consultation with the Chief Financial Officer or Chief Executive Officer, declare
such special blackout periods from time-to-time as conditions warrant. No Insider, whether or not subject to a special black out period,
may disclose to any outside third party that a special blackout period has been designated.

 

Procedures
for Approving Trades by Section 16 Individuals

 

No Section 16
Person or Designated Employee may trade in Company Securities until:

 

		·	the
                                            Section 16 Person or Designated Employee seeking to trade has notified the Compliance
                                            Officer in writing before at least one business prior to the proposed trade and the amount
                                            and nature of the proposed trade; and

		·	the
                                            Section 16 Person or Designated Employee seeking to trade has certified in writing to
                                            the Compliance Officer before no more than one business day prior to the proposed trade(s) that
                                            he or she is not aware of material nonpublic information concerning the Company.

 

If the
Compliance Officer desires to complete any trades involving Company Securities, he or she must first obtain the approval of the Chief
Executive Officer or the Chief Financial Officer of the Company.

 

The existence
of the foregoing approval procedures does not in any way obligate the Compliance Officer (or, in the case of any trade by the Compliance
Officer, the Chief Executive Officer or the Chief Financial Officer of the Company) to approve any trades requested by Section 16
Persons or the Compliance Officer.

 

All trades
approved under this section must be exercised within 2 days of the approval (the “Approval Period”). Provided,
however, if the Insider comes into possession of material nonpublic information before trading, the Insider may not trade. Trades not
exercised within the Approval Period require new approval from the Compliance Officer.

 

    -19-

     

    

 

Exceptions to
Application of Policy

 

Employee
Benefit Plans

 

The trading
prohibitions and restrictions set forth in this Policy do not apply to periodic contributions by the Company or employees to the any
Loop Stock Purchase Plan (“SPP”) pursuant to the terms and conditions of those plans, if any. However, no officer or employee
may alter his or her instructions regarding the purchase or sale of Company Securities in such plans:

 

		·	while
                                            aware of material nonpublic information;

		·	in
                                            the case of Section 16 Persons or Designated Employees, prior to receiving approval
                                            of the purchase or sale as described above; and

		·	in
                                            the case of Section 16 Persons and Designated Employees, while any applicable trading
                                            window is closed or applicable special blackout period is in effect.

 

Stock
Option Plans.

 

Insiders
may exercise company stock options where no company stock is sold in the market. Cashless sales—e.g., “cashless sales”
where company stock is sold to pay for exercising the options—are considered under this Policy to be transactions in Company Securities
and must comply with the provisions of this Policy, including the applicability of any prior approval, trading window or blackout period
requirements as they may apply to an Insider. No cashless sale is permitted when the insider is in possession of material, nonpublic
information, except as provided below.

 

Rule 10b5-1
Plans

 

Exchange
Act Rule 10b5- l was adopted by the SEC to protect persons from insider trading liability for transactions under a written trading
plan previously established at a time when the insider did not possess material nonpublic information. Under a properly established 10b5-1
plan with respect to securities (a “10b5-1 Plan”), Insiders may complete transactions in Company Securities at
any time, including during blackout periods and outside trading windows or even when the Insider possesses material nonpublic information.
Thus a 10b5-1 Plan offers an opportunity for Insiders to establish a systematic program of transactions in Company Securities over periods
of time that might include periods in which such transactions would otherwise be prohibited under the federal securities laws or this
policy. A variety of arrangements can be structured to meet the requirements of Rule 10b5-1. In particular, a 10b5-1 Plan can take
the form of a blind trust, other trust, pre-scheduled stock option exercises and sales, pre-arranged trading instructions and other brokerage
and third-party arrangements over which the Insider has no control once the plan takes effect.

 

Insiders
who desire to implement a 10b5-1 Plan must first obtain approval of the plan by the Compliance Officer. To be eligible for approval,
the 10b5-1 Plan:

 

		·	must
                                            be established during a trading window (and not during any black out period);

		·	must
                                            be in writing;

		·	must
                                            either irrevocably set forth the future date or dates on which purchase or sale of securities
                                            are to be made, the prices at which the securities are to be purchased or sold, the broker
                                            who will be responsible for effecting the transactions (or method of transaction if not through
                                            a broker), or provide a formula for determining the price of the securities to be purchased
                                            or sold and the date or dates on which the transactions are to be completed;

		·	may
                                            not permit the direct or indirect exercise of any influence over the timing or terms of the
                                            purchase or sale by the Insider; and

		·	may
                                            not take effect until 60 days after the plan is approved by the Compliance Officer.

 

The Compliance
Officer will maintain a copy of all 10b5-1 Plans.

 

The Insider
must provide the Compliance Officer written notice of any termination or modification (in which case, the modification must be approved
in writing by the Compliance Officer prior to effectiveness and may not take effect until 60 days after the plan is approved by the Compliance
Officer.

 

    -20-

     

    

 

Reporting
of Violations

 

Any Insider
who violates this Policy or any federal, state or self regulatory organization (“SRO”) rule or law governing
insider trading or tipping, or knows of any such violation by any other Insider, must report the violation immediately to the Compliance
Officer. Upon receipt of notice of a potential violation of this Policy, the Compliance Officer:

 

		·	shall
                                            make inquiry either through the office of the General Counsel or with assistance of outside
                                            counsel, to determine whether a violation may have occurred;

		·	shall
                                            report the potential violation of this Policy to the Board of Directors if the Compliance
                                            Officer concludes a violation occurred or if the Compliance Officer is unable to conclude
                                            that no violation occurred; and

		·	upon
                                            determining that any such violation has occurred, in consultation with the Company's Disclosure
                                            Committee and, where appropriate, the Chair of the Board, will determine whether the Company
                                            should release any material nonpublic information.

 

If the
Compliance Officer or Board of Directors determines that a violation of the Policy occurred, they may discipline the Insider, including
immediate termination. The Board of Directors may also report the violation to federal or state law enforcement agencies and/or applicable
SRO.

 

VIII. Inquiries

 

Please direct all
inquiries regarding any of the provisions or procedures of this Policy to the Compliance Officer.

 

Insider Trading
Compliance Officer

 

The Company has
designated Patrick J. Sheil, as its Insider Trading Compliance Officer. The Insider Trading Compliance Officer, in consultation with
the Company's Chief Financial Officer and/or Chief Executive Officer, will review and either approve or prohibit all proposed trades
by Section 16 Persons in accordance with the procedures set forth above.

 

In addition to
the trading approval duties described above, the duties of the Insider Trading Compliance Officer shall include the following:

 

		·	administering
                                            this Policy and monitoring and enforcing compliance with all Policy provisions and procedures;

		·	with
                                            the assistance of Human Resources, overseeing the training of new and existing officers,
                                            directors, employees and others on the requirements of this Policy;

		·	responding
                                            to all inquiries relating to this Policy and its procedures;

		·	designating
                                            and announcing special trading blackout periods during which Insiders, that the Insider Trading
                                            Compliance Officer determines, may not trade in Company Securities;

		·	providing
                                            copies of this Policy and other appropriate materials to all current and new directors, officers,
                                            employees and such other persons whom the Insider Trading Compliance Officer determines may
                                            regularly have access to material nonpublic information concerning the Company, and assuring
                                            that human resources has collected and maintained the required certification of employee
                                            receipt of the Policy;

		·	administering,
                                            monitoring and enforcing compliance with all federal, state and SRO insider trading statutes,
                                            regulations and rules;

		·	proposing
                                            recommendations for revisions to the Policy to the Board of Directors as necessary to reflect
                                            changes in insider trading laws, regulations or rules of any federal or state governmental
                                            body or SRO; and

		·	maintaining
                                            as Company records originals or copies of all documents required by the provisions of this
                                            Policy or the procedures set forth herein, and copies of all required SEC reports relating
                                            to insider trading.

  

The Insider Trading
Compliance Officer may designate one or more individuals who may perform the Compliance Officer's duties in the event that the Insider
Trading Compliance Officer is unable or unavailable to perform such duties.

 

    -21-

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