Document:

October
      23, 2008

     

    Jonathan
      Cresswell (a/k/a Jack Cresswell)

    AMV
      Holding Limited

    65
      High
      Street

    Marlow

    Buckinghamshire,
      United Kingdom

     

    Re:
      Employment Agreement

     

    Dear
      Mr.
      Cresswell,

     

    I
      am
      writing to set out the terms of your employment with AMV Holding Limited (the
      “Company”).

     

    IT
      IS AGREED
      as
      follows:

     

    
      	
              1.

            	
              JOB
                TITLE, DUTIES AND CONDUCT

            

    

     

    
      	
              1.1.

            	
              You
                are employed as a joint managing director of the Company and you
                shall
                serve the Company in this, or an equivalent position, and in such
                other
                position or positions with the Company and its subsidiaries and affiliates
                consistent with your position as a joint managing director of the
                Company
                and shall perform such duties as the Chief Executive Officer of Twistbox
                Entertainment, Inc. (the “CEO”) or the Board of Directors of Mandalay
                Media, Inc. shall reasonably assign you from time to time. You shall
                report directly to the CEO or such other person as the Company shall
                determine from time to time.

            

    

     

    
      	
              1.2.

            	
              You
                shall devote substantially all of your business time and attention
                to the
                services required of you hereunder, and shall perform such services
                in a
                manner consistent with the duties of your position, provided the
                foregoing
                shall not prevent you from (i) serving on the board of directors
                of
                non-profit organizations and, with the prior written approval of
                the
                Board, other companies, (ii) participating in charitable, civic,
                educational, professional, community or industry affairs and (iii)
                managing your and your family’s passive personal investments; provided
                such activities in the aggregate do not interfere or conflict with
                your
                duties hereunder or create a potential business conflict. You shall
                be
                subject to the terms and conditions of any applicable policy of the
                Company regarding service on behalf of any other
                organization.

            

    

     

    
      	
              1.3.

            	
              During
                the Employment, you shall not become associated with any entity,
                whether
                as a principal, partner, employee, director, consultant, joint venturer,
                lender, investor, individual proprietor, shareholder or otherwise
                (other
                than as a holder of not in excess of 2% of the outstanding voting
                shares
                of any publicly held company), that is actively engaged or preparing
                to be
                actively engaged in any geographic area in any business which is
                in
                competition with a business conducted by the Company or any of its
                subsidiaries or affiliates at the time of the alleged competition.
                During
                the Employment, you shall not engage in any activity or activities
                preparatory to competing with the
                Company.

            

    

     

    
      	
              2.

            	
              DATE
                OF COMMENCEMENT 

            

    

     

    
      	 	
              Your
                employment with the Company will commence as of the date hereof (the
                “Commencement Date”) and shall be subject to earlier termination in
                accordance with its terms. 

            

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	 	
              No
                previous employment with a previous employer counts as part of your
                period
                of continuous employment which commenced on the Commencement
                Date.

            

    

     

    
      	
              3.

            	
              COMPENSATION

            

    

     

    
      	
              3.1.

            	
              Your
                base salary during the first Earn-Out Period (as defined in the Stock
                Purchase Agreement, by and among Mandalay Media, Inc., Nathaniel
                MacLeitch, Jack Cresswell and the shareholders of the Company signatories
                thereto, dated as of October 8, 2008 (the “Stock Purchase Agreement”),
                which will accrue from day to day, will be at the rate of £60,000 per
                annum payable monthly in arrears direct into your bank account on
                or
                before the last day of each calendar month. Where this falls on a
                weekend
                or public holiday, payment will be made on the last working day before
                that day. Within ten (10) days of the beginning of the second Earn-Out
                Period and the third Earn-Out Period, as applicable, you may provide
                the
                Company with a notice setting forth the base salary you wish to receive
                for such period, which shall be no greater than £100,000 per annum. In the
                event that you fail to provide the Company with such a notice within
                such
                ten day period, your base salary for such period shall be £60,000 per
                annum. After the expiration of the Earn-Out Term (as defined in the
                Stock
                Purchase Agreement), your base salary will be reviewed on an annual
                basis
                in March of each year. There is no obligation on the Company to increase
                the level of your base salary at a review. An increase awarded in
                one year
                will not influence or set a precedent in relation to future
                years.

            

    

     

    
      	
              3.2.

            	
              Following
                the expiration of the Earn-Out Term, you may then be eligible to
                receive a
                performance/merit bonus as determined by Company’s Board based upon
                several factors including the profitability of the Company, your
                performance and the achievement of the goals set by the Company’s Board
                during each fiscal year. Any bonus paid to you is entirely discretionary
                and there is no contractual entitlement to receive it nor shall it
                be
                deemed to become part of your contractual remuneration or salary
                for
                pension purposes or otherwise. In the event your employment is terminated
                or you are under notice of termination prior to the payment date
                (whether
                such notice is given by the Company or you) you will forfeit all
                and any
                rights and entitlements to a bonus and will not have any rights against
                the Company in respect of the loss of such entitlement. The Company
                reserves in its absolute discretion the right to terminate or amend
                any
                bonus scheme without notice to you. Receipt of a discretionary bonus
                one
                year creates neither right to nor expectation of any bonus in the
                next
                year.

            

    

     

    
      	
              3.3.

            	
              You
                authorise the Company at any time during your employment, or in any
                event
                on the termination of your employment, howsoever arising, to deduct
                from
                your salary and from any other sums reimbursable to you by the Company,
                any monies from time to time due from you to the Company including,
                but
                not limited to any outstanding loans, advances, payment for excess
                holiday, overpayment of wages and any other monies owed by you to
                the
                Company.

            

    

     

    
      	
              3.4.

            	
              You
                shall be entitled to participate in all bonus and benefit programs
                that
                the Company establishes and makes available to its executive employees,
                if
                any, to the extent that your position, tenure, salary, age, health
                and
                other qualifications make you eligible to participate, including,
                but not
                limited to, health care plans, life insurance plans, disability insurance,
                retirement plans, and all other benefit plans from time to time in
                effect.
                The Company shall pay for your participation in the health care plan
                that
                it currently has in place. The Company shall also reimburse you up
                to £500 per month for the lease of an automobile to be used in
                connection with your employment with the Company.
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              4.

            	
              LOCATION

            

    

     

    
      	 	
              Your
                principal place of work at the date of this letter is 65 High Street
                Marlow Bucks SL7 1AB, United Kingdom. You may also be required to
                travel
                within the UK and abroad in the course of your duties from time to
                time at
                the reasonable discretion of the
                Company.

            

    

     

    
      	
              5.

            	
              HOURS
                OF WORK

            

    

     

    
      	
              5.1.

            	
              Your
                normal hours of work are from 8:00 a.m. to 5:00 p.m. or 9.00 a.m.
                to 6.00
                p.m. Monday through Friday, inclusive. You are entitled to a one
                (1) hour
                lunch break. You may be required to work additional hours either,
                as and
                when requested by the Company, or when the proper performance of
                your work
                requires. You will not be entitled to be paid extra remuneration
                for any
                such additional hours worked in excess of your basic weekly
                hours.

            

    

     

    
      	
              5.2.

            	
              You
                agree that the limit in regulation 4(1), Working Time Regulations
                1998
                (“the Regulations”) does not apply during your employment and that if
                necessary for the proper performance of your duties you will work
                more
                than an average of 48 hours in each seven day period (as defined
                by and
                calculated in accordance with the Regulations). You can withdraw
                your
                agreement to the terms of this clause by giving to the Company three
                months’ written notice.

            

    

     

    
      	
              6.

            	
              HOLIDAY
                ENTITLEMENT

            

    

     

    
      	
              6.1.

            	
              Your
                annual holiday entitlement is twenty-five (25) days in the Company’s
                holiday year which runs from January to December, plus Bank Holidays
                in
                England and Wales. Your entitlement for a part year will be pro-rated
                according to your annual entitlement. You are entitled to your full
                remuneration and benefits during days taken as
                holiday.

            

    

     

    
      	
              6.2.

            	
              You
                are required to give at least two weeks’ notice of a proposed holiday. No
                more than 10 consecutive days’ holiday (plus weekends falling in between)
                may be taken at any one time. The provisions of regulations 15(1)
                to (4)
                of the Regulations do not apply to your employment. Unused holiday
                entitlement may not be carried over from one calendar year to the
                next
                without the prior written consent of the
                Company.

            

    

     

    
      	
              6.3.

            	
              Upon
                termination of employment, you will receive payment in respect of
                any
                days’ holiday which has accrued but has not been taken by the date your
                employment terminates. A pro-rated sum will be deducted in respect
                of any
                days you have taken in excess of your holiday entitlement from your
                last
                salary payment. For these purposes a day’s pay is calculated as 1/260 of
                your annual salary.

            

    

     

    
      	
              6.4.

            	
              During
                any period of notice (whether given by the Company or by you), no
                contractual holiday entitlement shall accrue, save that your entitlement
                to annual leave pursuant to regulation 13 of the Regulations shall
                continue to accrue during such
                period.

            

    

     

    
      	
              6.5.

            	
              The
                Company reserves the right, at its sole discretion, to require you
                to take
                or not to take all or part of any outstanding holiday during any
                notice
                period or period of Garden Leave.

            

    

     

    
      	
              7.

            	
              PENSION
                SCHEME

            

    

     

    
      	
              7.1.

            	
              The
                Company shall not be liable to pay or provide any pension to or for
                your
                benefit (without prejudice to the Company’s obligation (if any) pursuant
                to the Welfare Reform and Pensions Act 1999, the Finance Act 2000
                and the
                Stakeholder Pension Schemes Regulations 2000 to facilitate access
                to a
                stakeholder pension scheme) and you are encouraged to make your own
                pension arrangements.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              7.2.

            	
              The
                Company has not opted to treat your employment as contracted-out
                employment by reference to an occupational pension scheme and a
                contracting-out certificate issued in accordance with the Pension
                Schemes
                Act 1993 is not in force in respect of your
                employment.

            

    

     

    
      	
              8.

            	
              ABSENCE
                AND SICKNESS

            

    

     

    
      	
              8.1.

            	
              Any
                unauthorized absence requires you to notify the CEO (or his designated
                deputy) by 10.00 a.m. on the first day of any such unauthorized absence.
                If you are still off work on the third day you must contact the CEO
                to
                report on your progress. You must keep the CEO regularly informed
                of your
                absence and of the expected duration of your absence. Failure to
                notify
                the Company of your absence may render you subject to disciplinary
                action
                and may also bar you from receiving sick
                pay.

            

    

     

    
      	
              8.2.

            	
              Absence
                through sickness or injury must be covered by a medical certificate.
                For
                the first seven days a self-certificate form (available from Human
                Resources) must be completed on your return to work and submitted
                to Human
                Resources For illness of more than seven days, a doctor’s certificate must
                be produced on the eighth day and should be submitted regularly for
                any
                period of sickness thereafter. On each occasion a medical certificate
                expires and you do not anticipate returning to work, you must notify
                the
                Head of Worldwide Sales on the first working day following the expiry
                of
                the medical certificate.

            

    

     

    
      	
              8.3.

            	
              Provided
                that you comply with your obligations under this clause 8, the Company
                may
                at its absolute discretion make full payment of salary while you
                are
                absent for sickness or injury for a maximum period of thirty (30)
                days in
                any twelve-month period and for any subsequent such absence in the
                same
                calendar year you will receive such pay (if any) as the Company may
                in its
                sole discretion deem appropriate. The foregoing is without prejudice
                to
                any entitlement to statutory sick pay (“SSP”) under the Social Security
                Contributions and Benefits Act 1992 (for which purpose Monday to
                Friday
                (inclusive) in each week shall be qualifying days). Any payment made
                in
                respect of a day of sickness shall count towards any entitlement
                to SSP
                and any other sickness or other benefit obtainable by you under any
                social
                security, national insurance or other legislation for the time being
                in
                force or any benefit received by you as a result of contributions
                paid by
                the Company to any health insurance scheme. Only SSP will be paid
                for any
                period of absence due to sickness during your probationary period
                and/or
                your notice period. The Company at all times reserves the right to
                withhold, discontinue or request repayment of any contractual sick
                pay:

            

    

     

    
      	 	
              8.3.1.

            	
              if
                it is satisfied that you have misrepresented your state of health
                or are
                in any way abusing the sickness scheme;
                or

            

    

     

    
      	 	
              8.3.2.

            	
              if
                an injury from an accident at work was caused by your misconduct
                at work;
                or

            

    

     

    
      	 	
              8.3.3.

            	
              if
                you fail to follow the Company’s absence rules;
                or

            

    

     

    
      	 	
              8.3.4.

            	
              if,
                in the opinion of a doctor nominated by the Company, you are well
                enough
                to work; or

            

    

     

    
      	 	
              8.3.5.

            	
              if
                you behave in a manner likely to impede your
                recovery.

            

    

     

    
      	
              8.4.

            	
              You
                agree to be examined by a medical practitioner nominated by the Company
                on
                the Company’s request, the cost of which will be borne by the Company. You
                shall authorise the medical practitioner carrying out the examination
                to
                disclose to or discuss with the Company and its advisers any matters
                arising from such examination.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              9.

            	
              PERIOD
                OF NOTICE AND TERMINATION OF EMPLOYMENT
                

            

    

     

    
      	
              9.1.

            	
              You
                will be required to give six (6) months notice in writing to terminate
                your employment. Notwithstanding anything to the contrary set forth
                herein
                or in the Stock Purchase Agreement, if you terminate your employment
                with
                the Company under this clause 9.1 prior to the expiration of the
                Earn-Out
                Term, you acknowledge and agree that neither the Company nor Mandalay
                Media, Inc. shall be obligated to pay you any portion of any Earn-Out
                Payment (as defined in the Stock Purchase Agreement) that might otherwise
                be payable for the Earn-Out Period (and any subsequent Earn-Out Periods)
                in which you are not fully employed by the Company during such Earn-Out
                Period.

            

    

     

    
      	
              9.2.

            	
              Should
                the Company wish to terminate your employment prior to the second
                anniversary of the Commencement Date, other than for the reasons
                set out
                in clause 9.4 below, you will be entitled to receive payments in
                the
                amount of your base salary then in effect up to the second anniversary
                of
                the Commencement Date, and you shall be entitled to six (6) months
                notice
                of such termination. 

            

    

     

    
      	
              9.3.

            	
              The
                Company shall be entitled at its sole discretion at any time to terminate
                your employment forthwith without notice in accordance with this
                clause
                9.3 and to make a payment of basic salary to you as set forth above
                in
                lieu of any notice period and to deduct tax and national insurance
                from
                any such payment, provided that if the Company shall decide not to
                make a
                payment to you under this clause, you shall not be entitled to enforce
                the
                payment as a contractual debt or as liquidated damages and your sole
                remedy will be in the form of damages in respect of any unexpired
                period
                of notice. Where you have received a payment in lieu of notice, you
                will
                not be entitled to any additional compensation in respect of holiday
                which
                would otherwise have accrued during your notice period. For the avoidance
                of doubt, you shall be entitled to receive your pro-rata share of
                any
                Earn-Out Payment made by Mandalay Media, Inc. unless you terminate
                your
                employment with the Company pursuant to clause 9.1.
                

            

    

     

    
      	
              9.4.

            	
              Notwithstanding
                the other provisions of this clause 9, your employment may be terminated
                by the Company by written notice having immediate effect and without
                notice or payment in lieu of notice or payment of any compensation
                or
                liquidated damages if you are guilty of gross misconduct or in any
                way
                fundamentally breach your employment contract with the Company. The
                following are examples of conduct that would entitle the Company
                to
                terminate your employment
                summarily:

            

    

     

    
      	 	
              9.4.1.

            	
              theft,
                fraud, intentionally providing false or misleading information or
                any act
                of dishonesty;

            

    

     

    
      	 	
              9.4.2.

            	
              any
                act or attempted act of violence or abusive behaviour towards people
                or
                property including causing deliberate damage to the Company’s
                property;

            

    

     

    
      	 	
              9.4.3.

            	
              indecent
                behaviour towards or harassment or bullying of fellow employees,
                suppliers, customers or clients;

            

    

     

    
      	 	
              9.4.4.

            	
              incapability
                through alcohol, non-prescribed drugs or other
                substances,

            

    

     

    
      	 	
              9.4.5.

            	
              wilful
                and persistent breach of health and safety
                regulations;

            

    

     

    
      	 	
              9.4.6.

            	
              a
                serious act of insubordination or wilful refusal to carry out reasonable
                requests;

            

    

     

    
      	 	
              9.4.7.

            	
              serious
                or persistent neglect of duties or a series of persistent breaches
                of the
                terms and conditions of your employment, other than a breach which
                is
                capable of remedy and is remedied forthwith by you at the Company’s
                request to the reasonable satisfaction of the
                Company;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              9.4.8.

            	
              failure
                to comply in any material respect with any policy, procedures or
                rules of
                any professional or regulatory body governing the business carried
                out by
                the Company including, without limitation, any policy in respect
                of equal
                opportunities and harassment, data protection and use of email and
                the
                internet;

            

    

     

    
      	 	
              9.4.9.

            	
              unauthorized
                use of or disclosure of confidential
                information;

            

    

     

    
      	 	
              9.4.10.

            	
              serious
                breach of the Company’s policies, procedures or rules contained in the
                Employee Handbook, which may be amended from time to
                time;

            

    

     

    
      	 	
              9.4.11.

            	
              falsifying
                records or expense claims;

            

    

     

    
      	 	
              9.4.12.

            	
              conviction
                of a criminal offence, other than a minor offence, arising from or
                related
                to your work for the Company;

            

    

     

    
      	 	
              9.4.13.

            	
              conviction
                of a criminal offence committed outside working hours which in the
                opinion
                of the Company acting reasonably adversely affects the Company’s business
                or reputation, or affects your suitability for the type of work which
                you
                perform or affects your acceptability to other
                employees;

            

    

     

    
      	 	
              9.4.14.

            	
              any
                act of gross misconduct or any other act or omission (whether or
                not
                during or in the context of your employment) which, in the opinion
                of the
                Company acting reasonably, brings or is likely or calculated to bring
                the
                name or reputation of the Company into disrepute or to materially
                prejudice the interests of the business of the
                Company;

            

    

     

    
      	 	
              9.4.15.

            	
              unauthorized
                signing of documentation committing the Company to any financial
                obligation or exceeding your authority in any other way;
                or

            

    

     

    
      	 	
              9.4.16.

            	
              misuse
                of the Company’s computer system or any other Company owned
                equipment.

            

    

     

    
      	
              9.5.

            	
              The
                Company shall have the right to suspend you (subject to the continued
                payment of salary and benefits) pending any investigation into any
                potential dishonesty, gross misconduct or any other circumstances
                which
                may give rise to a right to the Company to terminate your employment
                for
                such period as it thinks fit. 

            

    

     

    
      	
              10.

            	
              GARDEN
                LEAVE

            

    

     

    
      	
              10.1.

            	
              After
                notice of termination has been given by either party you may be required
                by the Company in its absolute discretion not to attend at your place
                of
                work or other offices of the Company at any time and not to perform
                any
                duties for the Company or to perform only such specific duties, projects
                or tasks as are expressly assigned to you by the Company, in any
                case for
                such period and at such place or places (including, without limitation
                your home) as the Company in its absolute discretion may decide.
                You will
                continue to receive your full pay and contractual benefits during
                any such
                period. Any period of Garden Leave will not exceed the period of
                notice
                the Company is required to give you pursuant to clause 9.2 of this
                agreement.

            

    

     

    
      	
              10.2.

            	
              During
                any such period you shall:

            

    

     

    
      	 	
              10.2.1.

            	
              if
                requested by the Company resign from any office which you may hold
                in the
                Company or which you hold as a nominee of the
                Company;

            

    

     

    
      	 	
              10.2.2.

            	
              notify
                the Company of any change of address or contact
                details;

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              10.2.3.

            	
              if
                requested by the Company return all of the Company’s property which is
                held by you or is under your control including without limitation
                all
                confidential information, documents, software and copies of documents
                and
                software;

            

    

     

    
      	 	
              10.2.4.

            	
              if
                requested by the Company, refrain from contacting employees, clients
                and
                professional contacts of the Company except where such employees,
                clients
                and professional contacts are personal friends of yours and you have
                contacted them in a social
                capacity;

            

    

     

    
      	 	
              10.2.5.

            	
              if
                requested by the Company cease to be an authorized signatory of the
                Company or hold a power of attorney for the
                Company.

            

    

     

    
      	
              10.3.

            	
              The
                Company reserves the right to require you to take holiday which is
                accrued
                up to the commencement of garden leave and which will accrue to the
                date
                your employment terminates during the period of garden leave on such
                day
                or days as the Company may specify. No contractual holiday entitlement
                shall accrue during such period itself, save that your entitlement
                to
                annual leave pursuant to regulation 13 of the Regulations shall continue
                to accrue during such period.

            

    

     

    
      	
              10.4.

            	
              During
                any such period referred to in clause 10.1, the Company shall be
                under no
                obligation to provide any work for you and you shall continue to
                be bound
                by the express and implied duties of your employment including, without
                limitation, by the duty of fidelity and good faith owed to the Company
                and, for the avoidance of doubt but without limitation, by the provisions
                of clause 18.

            

    

     

    
      	
              10.5.

            	
              During
                any such period referred to in clause 10.1, the Company shall be
                entitled
                to make such reasonable announcements or statements to employees,
                clients
                and professional contacts of the Company and other third parties
                concerning you as may be
                appropriate.

            

    

     

    
      	
              11.

            	
              CONFIDENTIALITY

            

    

     

    
      	
              11.1.

            	
              You
                will not (except in the proper course of your duties) either during
                or
                after the termination of your employment, directly or indirectly
                make use
                of, communicate or divulge to any person or corporate body and shall
                use
                your best endeavours to prevent the publication or disclosure of
                secret or
                confidential information including, without limitation, any trade
                secrets,
                customer names, customer lists, customer profiles, prospective customer
                lists, mailing lists, receipts, documentation, computer programs,
                drawings, designs, information regarding product development, existing
                projects, marketing plans, sales plans, information relating to the
                Company’s strategy, plans, or employees, manufacturing, marketing and/or
                distribution systems plans, management organization information (including
                data and other information relating to members of the Board and
                management), operating policies or manuals, business plans, financial
                records or other financial, commercial, business or technical information
                relating to the Company or any of its subsidiaries or affiliates
                or
                information designated as confidential or proprietary that the Company
                or
                any of its subsidiaries or affiliates may receive belonging to suppliers,
                customers or others who do business with the Company or any of its
                subsidiaries or affiliates (collectively, “Confidential Information”)
                unless such Confidential Information has been previously disclosed
                to the
                public by the Company or has otherwise become available to the public
                (other than by reason of Employee’s breach of this clause 11.1).
                

            

    

     

    
      	
              11.2.

            	
              If
                your job involves the handling of personal data on employees, it
                is a
                further condition that you must not reveal any of it to others, whether
                employees or not, without proper authorisation from the
                CEO.

            

    

     

    
      	
              11.3.

            	
              A
                breach of the above may result in disciplinary
                action.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
              11.4.

            	
              For
                the avoidance of doubt, the termination of this contract or variation
                of
                any of its terms or conditions for any reason shall not affect the
                obligations of confidentiality set out above, except that they shall
                cease
                to apply to any information or knowledge which may subsequently come
                into
                the public domain other than by way of unauthorised disclosure in
                breach
                of the above obligations.

            

    

     

    
      	
              11.5.

            	
              All
                programmes and information about the Company’s affairs held on a computer
                owned by you shall be deleted on the termination of your employment
                and if
                requested by the Company you will make the computer available for
                inspection by the Company to ensure that this has been effectively
                carried
                out.

            

    

     

    
      	
              12.

            	
              RETURN
                OF COMPANY’S PROPERTY AND REPAYMENT OF SUMS DUE TO THE
                COMPANY

            

    

     

    
      	 	
              On
                the termination of your employment for whatever reason, or at any
                time on
                the request of the Company, you must immediately return to the Company
                in
                accordance with its instructions all equipment, Confidential Information,
                correspondence, records plans, statistics, specifications, magnetic
                disks,
                tapes or other software storage media, models, notes, papers, reports
                and
                other documents and any copies thereof and any other property belonging
                to
                the Company whether in hard copy or in electronic or machine readable
                form
                (including but not limited to Company car, keys, credit and charge
                cards
                and passes which may be in your possession or under your control.
                All
                programmes and information about the Company’s affairs held on a computer
                owned by you shall be deleted on the termination of your employment
                and if
                requested by the Company you will make the computer available for
                inspection to the Company to ensure that this has been effectively
                carried
                out. You will provide details of any password used by you to access
                the
                computer system or PC of any member of the Company and will not retain
                any
                copies thereof. If you have a loan you will be required to repay
                it in
                full before your employment ends. If you owe any money to the Company
                then
                the Company has the right to deduct such sums from any payment due
                to you.
                This is without prejudice to the Company’s other remedies to recover any
                sums due from you to the Company. No outstanding payments will be
                made to
                you until the requirements in this clause are met. You will, if so
                required by the Company, confirm in writing that you have complied
                with
                your obligations under this clause.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	
              13.

            	
              RESTRICTIVE
                COVENANTS

            

    

     

    
      	
              13.1.

            	
              In
                this clause the words and expressions set out below shall have the
                following meanings:

            

    

     

    
      	
              “Customer”

            	 	
              means
                any person, firm or company who was at any time during the Relevant
                Period
                a customer or client of the Company or any Relevant Group Company
                and with
                or for whom you or any person reporting to you had dealings, was
                responsible or acted or in respect of whom you had access to Confidential
                Information during the Relevant Period (other than at a de minimis
                level);

               

            
	
              “Effective
                Date”

            	 	means
              the Termination Date or (if earlier) the date on which you commence
              Garden
              Leave;
	 	 	 
	
              “Group
                Company”

               

            	 	
              means
                any holding company for the time being of the Company or any subsidiary
                for the time being of the Company or any such holding company (for
                which
                purpose “holding company” and “subsidiary” shall have the meaning set out
                in section 736, Companies Act 1985 as amended);

               

            
	
              “Key
                Employee”

               

            	 	
              means
                any person who was an employee, director or consultant employed or
                engaged
                by the Company or any Relevant Group Company at the Effective Date
                or at
                any time in the Relevant Period and in each case who worked or provided
                services in an executive or senior managerial capacity and with or
                for
                whom you or any person reporting directly to you dealt personally
                (other
                than at a de minimis level) or had material involvement with or in
                respect
                of whom you had access to Confidential Information, during the Relevant
                Period.;

               

            
	
              “Minority
                Investor”

               

            	 	
              means
                a person who is the beneficial owner of shares or other securities
                of any
                company whose shares are quoted on any Recognised Investment Exchange
                which when aggregated with shares or other securities beneficially
                owned
                by his or her spouse, children, step children, parents and parents’
                children total no more than one per cent. of any single class of
                shares or
                other securities in such company;

               

            
	
              “Prospective
                Customer”

               

            	 	
              means
                any person, firm or company who was at any time during the period
                of 6
                months immediately preceding the Effective Date in negotiations with
                the
                Company or any Relevant Group Company with a view to such person,
                firm or
                company dealing with the Company or any Relevant Group Company as
                a
                customer or client and with or for whom you or any person reporting
                directly to you had dealings , was responsible or acted (other than
                at a
                de minimis level) or about whom you had access to Confidential Information
                during the said period;

               

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              “Prospective
                Supplier”

               

            	 	
              means
                any person, firm or company who was at any time during the period
                of 6
                months immediately preceding the Effective Date in negotiations with
                the
                Company or any Relevant Group Company with a view to such person,
                firm or
                company dealing with the Company or any Relevant Group Company as
                a
                supplier of goods or services and with or for whom you or any person
                reporting to you had dealings, was responsible or acted (other than
                at a
                de minimis level) or about whom you had access to Confidential Information
                during the said period.

               

            
	
              “Recognised
                Investment Exchange”

               

            	 	
              has
                the meaning given to it in section 285, Financial Services and Markets
                Act
                2000;

               

            
	
              “Relevant
                Capacity”

            	 	
              means
                either alone or jointly with another or others, whether as principal,
                agent, consultant, director, partner, shareholder, independent contractor,
                employee or in any other capacity, whether directly or indirectly
                through
                any other person, firm or company, and whether for your own benefit
                or
                that of others;

            
	 	 	 
	“Relevant
              Group Company”	 	means
              any Group Company to which you have rendered services or which you
              had
              management or operational responsibility during the course of your
              employment at any time during the Relevant Period; 
	 	 	 
	“Relevant
              Period”	 	means
              the twelve-month period ending with the Effective Date; 
	 	 	 
	
              “Restricted
                Area”

               

            	 	
              means
                England and such other countries in which the Company or any Relevant
                Group Company carried on any Restricted Business at the Effective
                Date;

               

            
	
              “Restricted
                Business”

               

            	 	
              means
                the business of providing targeted branded mobile phone content services
                and mobile and voice chat and community services direct to customers
                and
                offering an adult television channel; 

               

            
	
              “Supplier”

               

            	 	
              means
                any person, firm or company who at any time during the Relevant period
                was
                a supplier of goods or services to the Company or any Relevant Group
                Company and with or for whom you or any person reporting directly
                to you
                had dealings, was responsible or acted (other than at a de minimis
                level)
                or about whom you had access to Confidential Information, during
                the
                Relevant Period.

               

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
              13.2.

            	
              You
                shall not in a Relevant Capacity (save as a Minority Investor or
                with the
                express written consent of the
                Board):

            

    

     

    
      	 	
              13.2.1.

            	
              for
                the period of 9 months from the Effective Date take any steps preparatory
                to or be engaged or concerned or interested in or carry on any business
                within the Restricted Area which competes with (or will within such
                period
                compete with) the Restricted
                Business;

            

    

     

    
      	 	
              13.2.2.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date (whether orally or by way of letters, circulars
                or
                otherwise) canvass, solicit, interfere with or endeavour to entice
                away
                from the Company or any Relevant Group Company the custom or business
                of
                any Customer;

            

    

     

    
      	 	
              13.2.3.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date (whether orally or by way of letters, circulars
                or
                otherwise) canvass, solicit, interfere with or endeavour to entice
                away
                from the Company or any other Group Company the custom or business
                of any
                Prospective Customer;

            

    

     

    
      	 	
              13.2.4.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date have any business dealings with or act for
                or
                provide services to any Customer;

            

    

     

    
      	 	
              13.2.5.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date have any business dealings with or act for
                or
                provide services to any Prospective
                Customer;

            

    

     

    
      	 	
              13.2.6.

            	
              for
                the period of 12 months from the Effective Date solicit or endeavour
                to
                entice away from the Company or any Relevant Group Company or offer
                employment to any Key Employee, or do any act which may encourage
                any Key
                Employee to terminate his employment, appointment or contract with
                the
                Company or any Relevant Group
                Company;

            

    

     

    
      	 	
              13.2.7.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date (whether orally or by way of letters, circulars
                or
                otherwise) canvass, solicit, interfere with or seek to disrupt, or
                endeavour to entice away from the Company or any Relevant Group Company
                the goods or services provided to the Company or any Relevant Group
                Company by any Supplier;

            

    

     

    
      	 	
              13.2.8.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date (whether orally or by way of letters, circulars
                or
                otherwise) canvass, solicit, interfere with or seek to disrupt, or
                endeavour to entice away from the Company or any Relevant Group Company
                the goods or services provided to the Company or any Relevant Group
                Company by any Prospective
                Supplier;

            

    

     

    
      	 	
              13.2.9.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date have any business dealings with any
                Supplier;

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	 	
              13.2.10.

            	
              so
                as to compete with the Restricted Business for the period of 12 months
                from the Effective Date have any business dealings with any Prospective
                Supplier; or

            

    

     

    
      	 	
              13.2.11.

            	
              for
                the period of 12 months from the Effective Date do or say anything
                likely
                or calculated to lead any person, firm or company to cease or not
                to offer
                to the Company or any other Group Company any rights of purchase,
                sale or
                agency; or

            

    

     

    
      	 	
              13.2.12.

            	
              encourage,
                assist or procure any other person, firm, company or other organisation
                to
                do anything which, if done by you, would be a breach of any of your
                obligations under clauses 13.2.1 to 13.2.11
                above.

            

    

     

    
      	
              13.3.

            	
              You
                shall not at any time (whether during the employment or thereafter)
                use
                any name (whether as part of a corporate name or otherwise) which
                is used
                by the Company or any other Group Company at the Termination Date
                or any
                other name which is likely to cause confusion with any such name
                in the
                minds of members of the public.

            

    

     

    
      	
              13.4.

            	
              You
                shall not at any time after the Termination Date represent yourself
                as
                being employed by or otherwise connected with the Company or any
                other
                Group Company.

            

    

     

    
      	
              13.5.

            	
              You
                shall at the request of the Company enter into a direct agreement
                or
                undertaking with any other Group Company by which you will accept
                restrictions corresponding to the restrictions contained in this
                clause.

            

    

     

    
      	
              13.6.

            	
              You
                acknowledge that the provisions of this clause constitute severable
                undertakings given for the benefit of the Company and all other Group
                Companies and may be enforced by the Company on its own behalf or
                on
                behalf of any other Group Company.

            

    

     

    
      	
              13.7.

            	
              Before
                accepting any employment, appointment or engagement with any third
                party
                either during your employment or at any time during the period of
                6 months
                after the Termination Date you shall draw the provisions of this
                clause to
                the attention of such third party.

            

    

     

    
      	
              13.8.

            	
              Each
                of the restrictions contained at clauses 13.2 to 13.4 constitutes
                an
                entirely separate and independent restriction and is considered by
                the
                parties each of whom has taken independent legal advice to be reasonable
                and necessary for the protection of the legitimate interests of the
                Company and Group but if any such restriction or part thereof shall
                be
                found void, invalid, illegal or unenforceable by any court of competent
                jurisdiction but would be valid if some words were deleted therefrom,
                or
                the period thereof reduced, or area covered or range of activities
                reduced, such restriction shall apply with such modification as may
                be
                necessary to make it valid and effective.

            

    

     

    
      	
              13.9.

            	
              In
                the event of any clause contained in this Agreement or any part thereof
                being declared invalid or unenforceable by any court of competent
                jurisdiction, all other clauses or parts thereof contained in this
                Agreement shall remain in full force and effect and shall not be
                affected
                thereby.

            

    

     

    
      	
              14.

            	
              DISCIPLINARY
                PROCEDURE AND GRIEVANCE
                PROCEDURES

            

    

     

    
      	 	
              The
                Company’s Disciplinary Procedure and Grievance Procedure are available
                from the Company. This sets out the guidelines for dealing with
                disciplinary and grievance issues. However, these procedures will
                not form
                part of your contract of employment.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
              15.

            	
              SAFEGUARDING
                INFORMATION AND COMMUNICATION
                SYSTEMS

            

    

     

    
      	
              15.1.

            	
              The
                Company regards the integrity of its computer system as central to
                the
                success of the business. Its policy is to take any measures it considers
                necessary to ensure that all aspects of the system are fully
                protected.

            

    

     

    
      	
              15.2.

            	
              Misuse
                of the computer is a serious disciplinary offence. The following
                are
                examples of misuse:

            

    

     

    
      	 	
              15.2.1.

            	
              fraud
                and theft;

            

    

     

    
      	 	
              15.2.2.

            	
              system
                sabotage;

            

    

     

    
      	 	
              15.2.3.

            	
              introduction
                of viruses and time bombs;

            

    

     

    
      	 	
              15.2.4.

            	
              using
                unauthorized software;

            

    

     

    
      	 	
              15.2.5.

            	
              obtaining
                unauthorised access;

            

    

     

    
      	 	
              15.2.6.

            	
              using
                the system for private work or game
                playing;

            

    

     

    
      	 	
              15.2.7.

            	
              breaches
                of the Data Protection Act;

            

    

     

    
      	 	
              15.2.8.

            	
              sending
                abusive, rude, discriminatory or defamatory messages via electronic
                mail;
                and

            

    

     

    
      	 	
              15.2.9.

            	
              hacking.

            

    

     

    
      	
              15.3.

            	
              This
                list is not exhaustive. Depending on the circumstances of each case,
                misuse of the computer system is likely to be considered a gross
                misconduct offence, punishable by dismissal. Misuse amounting to
                criminal
                conduct will be reported to the police. You agree to indemnify the
                Company
                during and after your employment against all liability resulting
                from your
                breach of this clause.

            

    

     

    
      	
              15.4.

            	
              If
                you suspect that a fellow employee is abusing the computer system
                should
                raise the matter with the CEO.

            

    

     

    
      	
              15.5.

            	
              Company
                communication systems, which include telephone, fax, electronic mail
                and
                the Internet, must be used only for legitimate business purposes.
                It is
                accepted that you may from time to time need to make some personal
                use of
                these facilities but this and any form of non-business use of these
                facilities must be kept to a minimum. Personal use of Company facilities
                will be acceptable only provided that the frequency and duration
                of such
                usage does not interfere with the performance of your duties. The
                cost
                incurred through the personal use of Company and Group Company facilities
                may be re-charged to you and deducted from your salary at the Company’s
                discretion. The Company reserves the right to monitor all e-mail/internet
                activity by you for the purposes of ensuring compliance with the
                Company’s
                policies and procedures and of ensuring compliance with relevant
                regulatory requirements and you hereby consent to such
                monitoring.

            

    

     

    
      	
              16.

            	
              INTELLECTUAL
                PROPERTY

            

    

     

    
      	
              16.1.

            	
              You
                acknowledge that because of the nature of your duties and the particular
                responsibilities arising as a result of such duties that you owe
                to the
                Company, you have a special obligation to further the interests of
                the
                Company. 

            

    

     

    
      	
              16.2.

            	
              You
                shall promptly disclose to the Company any idea or invention created
                in
                the manner prescribed by sections 39(1) and 39(2) of the Patents
                Act 1977.
                Any such inventions will then be dealt with in accordance with the
                provisions expressed in that Act. 

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              16.3.

            	
              You
                acknowledge that all trade marks, registered designs, design rights,
                copyright, database rights and other intellectual property rights
                (together, where registerable with the right to apply for registration
                of
                the same, aside from those described in clause 18.2), whether in
                existence
                now or coming into existence at any time in the future, will, on
                creation
                either during the normal course of employment or by using materials,
                tools
                or knowledge made available through your employment, vest in and
                be the
                exclusive property of the Company or any of Group Company which the
                Company shall nominate and if required to do so (whether during or
                after
                the termination of your employment), you shall execute all instruments
                and
                do all things necessary to vest ownership in the above rights in
                the
                Company as sole beneficial owner. Where the same does not automatically
                vest by Act of Parliament, you shall immediately assign the same
                to the
                Company. You irrevocably waive all your rights pursuant to sections
                77 to
                83 inclusive of the Copyright Designs and Patents Act 1988 and any
                statutory amendment thereto.

            

    

     

    
      	
              16.4.

            	
              You
                appoint the Company to be your attorney in your name and on your
                behalf to
                execute any such instrument or do any such thing necessary for the
                purpose
                of giving to the Company or its nominee, the full benefit of the
                provisions of this clause 18 and acknowledge in favour of any third
                party
                that a certificate in writing signed by any director or secretary
                of the
                Company, that any instrument or act falls within the authority conferred
                shall be conclusive evidence that such is the
                case.

            

    

     

    
      	
              17.

            	
              WHOLE
                AGREEMENT

            

    

     

    
      	
              17.1.

            	
              This
                letter constitutes the whole agreement between the parties. All other
                agreements (if any) for service between the Company and you are hereby
                abrogated and superseded and any sum or sums paid to you by way of
                remuneration under any such other agreements after the commencement
                of the
                employment shall be deemed to have been received by you on account
                of the
                remuneration payable to you under this letter. You have not been
                induced
                to enter into an agreement in the form of this letter in reliance
                on, nor
                have you been given any warranty, representation, statement, agreement
                or
                undertaking of any nature whatsoever other than as are expressly
                set out
                in this letter and, to the extent that any of them have been, you
                unconditionally and irrevocably waive any claims, rights or remedies
                which
                you might otherwise have had in relation
                thereto.

            

    

     

    
      	
              17.2.

            	
              There
                is no collective agreement which directly affects the terms and conditions
                of employment contained in this
                letter.

            

    

     

    
      	
              18.

            	
              RETIREMENT

            

    

     

    
      	 	
              Your
                normal retirement age will be 65. 

            

    

     

    
      	
              19.

            	
              EXCLUSIVITY
                OF SERVICE

            

    

     

    
      	
              19.1.

            	
              Unless
                prevented by ill health and except during holiday taken in accordance
                with
                clause 6 you are required to devote your full working time, attention
                and
                abilities to your job duties during working hours and to act in the
                best
                interests of the Company at all
                times.

            

    

     

    
      	
              19.2.

            	
              You
                must not during your employment (including, without limitation, any
                period
                of garden leave) without the written consent of the Company carry
                on or be
                or plan or attempt to be in any way directly or indirectly engaged,
                concerned or interested in any other business or undertaking (whether
                alone or on your own behalf or on behalf of or in association or
                in
                conjunction with any other person and whether as an employee or in
                any
                other capacity) where this is or is likely to compete with, or be
                in
                conflict with, the business of the Company or where this may affect
                the
                efficient discharge of your duties. You must therefore notify the
                Head of
                Worldwide Sales if you wish to enter into any other employment or
                acquire
                any other business interest during the course of your
                employment.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
              20.

            	
              POLICIES
                AND PROCEDURES

            

    

     

    
      	 	
              You
                agree to comply with the rules, policies and procedures of the Company
                in
                force from time to time.

            

    

     

    
      	
              21.

            	
              DATA
                PROTECTION

            

    

     

    
      	
              21.1.

            	
              You
                hereby explicitly consent to the processing of personal data, (including
                any sensitive personal data, held or obtained or collected by the
                Company
                in relation to your employment) and the transfer of this data outside
                the
                EEA for the operation, administration or security arrangements and
                legitimate interests of the Company and in order to fulfil the Company’s
                obligations to you.

            

    

     

    
      	
              21.2.

            	
              You
                agree to fully observe and perform the obligations imposed on individuals
                contained in the Data Protection Act 1998 (“the Act”) and any codes of
                practice or guidance issued under the Act and the Company’s data
                protection policy in force from time to time in relation to any personal
                data including sensitive personal data that may come into your possession
                whilst employed by the Company. Breach of this clause may constitute
                a
                disciplinary offence.

            

    

     

    
      	
              21.3.

            	
              The
                Company may from time to time need to make your records available
                to its
                professional advisers, including its lawyers, accountants or auditors
                and
                to legal and regulatory authorities, such as the Inland Revenue or
                the
                FSA, and to other parties which provide products or services to the
                Company, such as its pension
                administrators.

            

    

     

    
      	
              21.4.

            	
              You
                should immediately notify Human Resources in writing of any changes
                to
                your personal details. Such changes may include but are not limited
                to:

            

    

     

    
      	 	
              21.4.1.

            	
              your
                name, change of address or telephone
                number;

            

    

     

    
      	 	
              21.4.2.

            	
              date
                of marriage, divorce or births in your immediate
                family;

            

    

     

    
      	 	
              21.4.3.

            	
              examination
                passes;

            

    

     

    
      	 	
              21.4.4.

            	
              change
                of life assurance beneficiary;

            

    

     

    
      	 	
              21.4.5.

            	
              change
                of address, telephone number, etc. of next of kin or emergency
                contact;

            

    

     

    
      	 	
              21.4.6.

            	
              bank
                details;

            

    

     

    
      	 	
              21.4.7.

            	
              arrest,
                prosecution or conviction for a criminal
                offence;

            

    

     

    
      	 	
              21.4.8.

            	
              any
                disciplinary action taken against you by a professional or regulatory
                body
                or if you become bankrupt, apply for or have made against you a receiving
                order, make any composition with your creditors or commit any act
                of
                bankruptcy. 

            

    

     

    
      	
              22.

            	
              EQUAL
                OPPORTUNITIES POLICY

            

    

     

    
      	 	
              The
                Company has an equal opportunities policy which will be given to
                you on
                joining. You will take the benefit of this policy, but you are also
                required to observe its terms (although these do not form part of
                your
                contract of employment).

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
              23.

            	
              AMENDMENTS
                AND WAIVERS

            

    

     

    
      	
              23.1.

            	
              No
                amendment to the provisions of this letter shall be effective unless
                in
                writing and signed by both parties hereto or their duly authorized
                representatives.

            

    

     

    
      	
              23.2.

            	
              All
                rights, remedies and powers conferred upon the parties hereto are
                cumulative and shall not be deemed or construed to be exclusive of
                any
                other rights, remedies or powers now or hereafter conferred upon
                the
                parties hereto or either of them by law or
                otherwise.

            

    

     

    
      	
              23.3.

            	
              Any
                failure at any time to insist upon or enforce any such right, remedy
                or
                power shall not be construed as a waiver
                thereof.

            

    

     

    
      	
              24.

            	
              WARRANTY
                AND UNDERTAKING

            

    

     

    
      	
              24.1.

            	
              You
                represent and warrant that you are not a party to any agreement,
                contract
                (whether of employment or otherwise) or understanding, which requires
                you
                to preserve the confidentiality of any information, client lists,
                trade
                secrets or other confidential information or which would in any way
                restrict or prohibit him from or conflict with or be breached by
                your
                undertaking or performing any of the duties of the employment in
                accordance with the terms and conditions of this
                Agreement.

            

    

     

    
      	
              24.2.

            	
              You
                undertake that forthwith upon receiving from any person, firm or
                company
                an offer of employment, agency, consultancy, partnership or joint
                venture,
                or an approach which may result in such an offer being received,
                during
                the employment or whilst any of the restrictions in this Agreement
                continue in force you will forthwith notify the Company and provide
                the
                person, firm or company making the offer with a full and accurate
                copy of
                this Agreement.

            

    

     

    
      	
              25.

            	
              NOTICES

            

    

     

    
      	 	
              Any
                notice required or desired to be delivered under this Agreement shall
                be
                in writing and shall be delivered personally, by courier service,
                by
                registered mail, return receipt requested, or by telecopy and shall
                be
                effective upon actual receipt when delivered or sent by telecopy
                and upon
                mailing when sent by registered mail, and shall be addressed as follows
                (or to such other address as the party entitled to notice shall hereafter
                designate in accordance with the terms hereof):

            

    

     

    
      	 	
              If
                to the Company: 

            

    

     

    AMV
      Holding Limited

    65
      High
      Street

    Marlow

    Buckinghamshire,
      United Kingdom

     

    
      	 	
              If
                to Employee:

            

    

     

    Jonathan
      Cresswell (a/k/a Jack Cresswell)

    AMV
      Holding Limited

    65
      High
      Street

    Marlow

    Buckinghamshire,
      United Kingdom

     

    
      	
              26.

            	
              POST-TERMINATION
                PROVISIONS

            

    

     

    
      	 	
              Any
                provision of this letter which contemplates or is capable of operation
                after the termination of the employment shall apply notwithstanding
                termination of the employment for whatever reason including, without
                limitation, an unlawful termination by the
                Company.

            

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
              27.

            	
              GOVERNING
                LAW

            

    

     

    
      	
              27.1.

            	
              This
                letter shall be governed by and construed in all respects in accordance
                with the laws of England.

            

    

     

    
      	
              27.2.

            	
              Each
                of the parties hereto hereby irrevocably submits to the exclusive
                jurisdiction of the English Courts.

            

    

     

    We
      hope
      you find this offer acceptable. Please confirm your agreement to these terms
      of
      employment by signing the enclosed copy of this document and returning it to
      the
      Company’s General Counsel.

    
       

      
        	
                Yours
                  sincerely

              	 
	 	 
	
                On
                  behalf of the Company

              	 

      

       

      
        	
                By:

              	
                /s/
                  James Lefkowitz

              	 
	 	 	 
	
                Name:

              	
                James
                  Lefkowitz

              	 
	 	 	 
	
                Title:

              	
                Director

              	 

      

       

      Personal ID Number:
                                                                       

       

      I
        confirm
        my agreement to the above terms of employment.

       

      
        	
                By:

              	
                /s/
                  Jonathan Cresswell

              	 
	 	 	 
	
                Name:

              	
                Jonathan
                  Cresswell (a/k/a Jack Cresswell)

              	 

      

       

      Personal
        ID Number:
                                                              

       

    

    
      
        
        

      

      
        17SECURITIES
      PURCHASE AGREEMENT

    

    This
      Securities Purchase Agreement, dated as of October 23, 2008 (this “Agreement”),
      is
      entered into by and among Mandalay Media, Inc., a Delaware corporation with
      headquarters located at c/o Trinad Capital, L.P., 2121 Avenue of the Stars,
      Suite 2550, Los Angeles, California 90067 (the “Company”),
      and
      the investors listed on the Schedule of Investors attached hereto as
Exhibit A
      (each
      individually, an “Investor”
and
      collectively, the “Investors”).

    

    BACKGROUND

     

    WHEREAS,
      the Company is offering in a private placement (the “Offering”)
      to
“accredited investors” (as such term is defined in Regulation D (“Regulation
      D”)
      promulgated under the Securities Act of 1933, as amended (the “Securities
      Act”)),
      the
      opportunity to purchase a minimum of 1,685,393 shares (the “Minimum
      Shares”)
      and a
      maximum of up to an aggregate of 3,370,786 shares (the “Maximum
      Shares”)
      of its
      common stock, $0.0001 par value per share (the “Common
      Stock”),
      at a
      purchase price of $2.67 per share (the “Purchase
      Price”)
      and,
      in connection therewith and in consideration thereof, warrants to purchase
      Common Stock in the form attached hereto as Exhibit
      B
      (the
“Warrants”);
      

    

    WHEREAS,
      the Investors desire to purchase that number of shares of Common Stock (the
      “Shares”)
      and
      Warrants to purchase that number of shares of Common Stock (the “Warrant
      Shares”)
      (the
      Shares and Warrants together, the “Securities”)
      as are
      set forth on Exhibit
      A
      hereto,
      subject to the terms and conditions set forth herein;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual representations
      and
      covenants hereinafter set forth, the parties hereto agree as
      follows:

    

    1. Sale
      of Securities.

    

    1.1 Sale
      of Securities; Subscription for Securities.
      Subject
      to the terms and conditions of this Agreement, at the applicable Closing (as
      hereinafter defined), the Company will sell and issue to each of the Investors,
      and each of the Investors will purchase, that number of Shares and Warrants
      to
      purchase that number of Warrant Shares as set forth opposite such Investor’s
      name on Exhibit A
      in
      exchange for the “Aggregate Purchase Price” set forth opposite such Investor’s
      name on Exhibit
      A
      (the
“Aggregate
      Purchase Price”).

    

    To
      purchase the Securities, this Agreement must be duly executed by each Investor
      and the Aggregate Purchase Price delivered by each Investor in the form of
      wire
      transfer to (i) the account designated in the escrow agreement entered into
      by
      and among the Company, the Initial Closing Investors (as hereinafter defined)
      and American Stock Transfer Company, LLC as escrow agent (the “Escrow
      Agent”),
      attached hereto as Exhibit
      K
      (the
“Escrow
      Agreement”),
      provided,
      that
      the
      amount to be delivered by VAC (as hereinafter defined) shall be net of any
      reasonable legal expenses of VAC incurred in the negotiation and preparation
      of
      this Agreement and the transactions contemplated hereby, in any event not to
      exceed $100,000, or (ii) the account designated in writing to each Investor
      by
      the Company at any Closing subsequent to the Initial Closing. The Investors
      participating in the Initial Closing are referred to herein as the “Initial
      Closing Investors.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2 Use
      of
      Proceeds.
      The
      Company will use the net proceeds from the sale of the Securities to fund the
      business of the Company and for working capital and general corporate purposes,
      including potential acquisitions.

    

    2. The
      Closing.
      The
      initial closing hereunder shall occur upon the delivery by each of the Initial
      Closing Investors of the Aggregate Purchase Price sufficient to purchase the
      Minimum Shares and Warrants issued in connection therewith to the account
      designated in the Escrow Agreement, and shall take place at such time and place
      as the Company may designate which shall be no later than the first business
      day
      following the satisfaction or waiver of all the conditions set forth in Section
      5 and Section 6 of this Agreement (the “Initial Closing,”
and
      the date on which the Initial Closing occurs, the “Initial
      Closing Date”).
      Following the Initial Closing Date, the Company may hold additional closings
      (each, with the Initial Closing, a “Closing,”
and
      each such date, with the Initial Closing Date, a “Closing
      Date”)
      at
      such places and times as designated by the Company, until the earlier of (i)
      such time as the Company has sold up to the Maximum Shares and the Warrants
      issued in connection therewith or (ii) forty-five (45) days after the Initial
      Closing Date.

    

    Within
      three business days following the release by the Escrow Agent to the Company
      of
      the Aggregate Purchase Price sufficient to purchase the Minimum Shares, the
      Company shall deliver to each Initial Closing Investor (i) a certificate for
      the
      Shares being purchased by such Initial Closing Investor and (ii) Warrants for
      the Warrant Shares being purchased by such Initial Closing Investor, registered
      in the name of such Initial Closing Investor.

    

    Within
      three business days following each Closing subsequent to the Initial Closing,
      the Company shall deliver to each Investor (i) a certificate for the Shares
      being purchased by such Investor and (ii) Warrants for the Warrant Shares being
      purchased by such Investor, registered in the name of such Investor, against
      payment of the Aggregate Purchase Price therefor in accordance with Section
      1.1
      above. 

    

    Each
      Investor hereby authorizes and directs the Company to deliver the Securities
      to
      be issued to such Investor pursuant to this Agreement directly to the
      residential or business address indicated on such Investor’s signature page
      hereto.

    

    3. Representations
      of the Company.
      A
      Schedule of Exceptions, attached hereto as Exhibit
      C
      (each, a
“Schedule
      of Exceptions”),
      shall
      be delivered to the Investors in connection with each Closing. The Schedule
      of
      Exceptions shall be arranged in sections corresponding to the numbered and
      lettered sections and subsections contained in this Section 3, and the
      disclosures in any section or subsection of the Schedule of Exceptions shall
      qualify other sections and subsections in this Section 3 to the extent it is
      reasonably apparent from a reading of the disclosure that such disclosure is
      applicable to such other sections and subsections. Except as set forth in the
      Schedule of Exceptions delivered to the Investors at the applicable Closing,
      the
      Company hereby represents and warrants to the Investors as
      follows:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.1 Organization,
      Good Standing and Qualification.
      Each of
      the Company and its subsidiaries has been duly incorporated and organized,
      and
      is validly existing in good standing, under the laws of its state of
      incorporation and qualified to do business in any state or other jurisdiction
      in
      which the nature of the business conducted or property owned by it makes such
      qualification necessary except where the failure to be so qualified or in good
      standing, as the case may be, would not reasonably be expected to individually
      or in the aggregate, (i) materially and adversely affect the legality, validity
      or enforceability of any Transaction Document (as hereinafter defined), (ii)
      have or result in a material adverse effect on the results of operations,
      assets, business, prospects or financial condition of the Company or any Company
      subsidiary or (iii) materially and adversely impair the Company’s ability
      to perform its obligations under any of the Transaction Documents (any of (i),
      (ii) or (iii), a “Material
      Adverse Effect”).

    

    3.2 Corporate
      Power and Authority.
      The
      Company has all requisite corporate power and authority to execute, deliver,
      and
      perform, this Agreement, the Escrow Agreement and the Warrants (together, the
      “Transaction
      Documents”),
      to
      sell and issue the Securities (including the underlying Warrant Shares)
      hereunder, and to own and operate its properties and assets and to carry on
      its
      business as currently conducted and as presently proposed to be
      conducted.

    

    3.3 Authorization
      and Enforcement.
      The
      execution and delivery of the Transaction Documents and the consummation of
      the
      transactions contemplated hereby and thereby have been duly authorized by all
      necessary corporate action on the part of the Company, its officers, directors
      and stockholders. Each of the Transaction Documents has been duly executed
      and
      delivered by the Company and, assuming that this Agreement constitutes a valid
      and binding agreement of the other parties hereto, each such Transaction
      Document constitutes a legal, valid and binding obligation of the Company,
      enforceable against the Company in accordance with its terms, subject to
      applicable bankruptcy, insolvency, reorganization, moratorium or other similar
      laws now or hereafter in effect relating to creditors’ rights and remedies
      generally and subject, as to enforceability, to general principles of equity,
      regardless of whether enforceability is considered in a proceeding at law or
      in
      equity.

    

    3.4 Subsidiaries.
      The
      Company does not presently own or control, directly or indirectly, any interest
      in any other corporation, partnership, trust, joint venture, association, or
      other entity other than the subsidiaries scheduled on Section 3.4 of the
      Schedule of Exceptions. Except as set forth in Section 3.4 of the Schedule
      of
      Exceptions, the Company owns, directly or indirectly, all of the capital stock
      or comparable equity interests of each subsidiary free and clear of any liens
      and all the issued and outstanding shares of capital stock or comparable equity
      interest of each subsidiary are, to the extent applicable, validly issued,
      fully
      paid, non-assessable and free of preemptive and similar rights.

    

    3.5 No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents, and the
      consummation of the transactions contemplated hereby and thereby will not result
      in any violation or default under, or result in a violation or breach of, with
      or without the passage of time or the giving of notice or both, (i) the
      Company’s or any Company subsidiary’s certificate or articles of incorporation,
      bylaws or other organizational or charter documents, (ii) any judgment, order
      or
      decree of any court or arbitrator to which the Company or any Company subsidiary
      is a party or is subject, (iii) any agreement or contract of the Company or
      any
      Company subsidiary, or (iv) to the Company’s knowledge, a violation of any
      statute, law, regulation or order, or an event which results in the creation
      of
      any lien upon any asset of the Company or any Company subsidiary, in any such
      case which would have a Material Adverse Effect.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.6 Valid
      Issuance of Securities.

    

    (a) The
      Shares, if and when issued and delivered in accordance with the terms of this
      Agreement for the consideration expressed herein, will be duly and validly
      issued and outstanding, fully paid, and non-assessable and will be free of
      restrictions on transfer other than restrictions on transfer under applicable
      state and federal securities laws.

    

    (b) The
      Warrants have been duly and validly authorized by the Company and, if and when
      paid for and then issued in accordance with the terms of this Agreement for
      the
      consideration expressed herein, will be validly executed and delivered by the
      Company. The Warrant Shares have been duly and validly authorized and reserved
      for issuance upon exercise of the Warrants and when issued upon such exercise
      in
      accordance with the Warrants, will be duly and validly issued and outstanding,
      fully paid and non-assessable and will be free of restrictions on transfer
      other
      than restrictions on transfer under applicable state and federal securities
      laws.

    

    (c) Assuming
      the truth and accuracy of the representations made by each Investor in Section
      4
      hereof, the offer and sale of the Securities solely to each Investor in
      accordance with this Agreement and (assuming no change in currently applicable
      law, no transfer of Securities by any holder thereof and no commission or other
      remuneration is paid or given, directly or indirectly, for soliciting the
      issuance of Warrant Shares upon exercise of the Warrants) the issuance of the
      Warrant Shares on a cashless basis are exempt from the registration and
      prospectus delivery requirements of the Securities Act and the securities
      registration and qualification requirements of the currently effective
      provisions of the securities laws of the State of California and the states
      in
      which the Investor is a resident based upon its address set forth on the
      Schedule of Investors attached hereto as Exhibit
      A.

    

    3.7 Capitalization.
      The
      capitalization of the Company immediately prior to the Initial Closing consists
      of the following:

    

    (a) Common
      Stock. A total of 100,000,000 shares of Common Stock are authorized, of which
      37,338,554 shares are issued and outstanding.

    

    (b) Preferred
      Stock. A total of 1,000,000 shares of preferred stock, par value $0.0001 per
      share (the “Preferred
      Stock”),
      are
      authorized, of which 100,000 shares are designated as Series A Convertible
      Preferred Stock, par value $0.0001 per share, all of which are issued and
      outstanding. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c) Options.
      A total of 7,000,000 shares of Common Stock are reserved for issuance to
      employees, consultants and directors pursuant to the Company’s 2007 Employee
      Director and Consultant Stock Plan (the “Plan”),
      of
      which options to purchase 6,201,864 Common Stock are issued and outstanding,
      and
      an additional 2,463,422 shares of Common Stock are reserved for issuance under
      the Twistbox Entertainment, Inc. 2006 Stock Incentive Plan. 798,136 shares
      of
      Common Stock remain available for future issuance under the Plan.

    

    (d) Warrants.
      A total of 2,495,243 shares of Common Stock are reserved for issuance pursuant
      to outstanding warrants.

    

    (e) Senior
      Secured Note. A portion of the principal amount due under the $16.5 million
      senior secured note issued by Twistbox Entertainment, Inc. to
      ValueAct Smallcap Master Fund, L.P., due January 30, 2010, as amended, may
      be repaid by the Company in shares of Common Stock. 

    

    (f) Except
      as
      set forth in this Section 3.7, there are no outstanding options, warrants,
      rights (including conversion or preemptive rights) or agreements for the
      purchase or acquisition from the Company of any shares of its capital stock
      or
      any securities convertible into or ultimately exchangeable or exercisable for
      any shares of the Company’s capital stock. Apart from the exceptions noted
      herein or in the Schedule of Exceptions, no shares of the Company’s outstanding
      capital stock, or stock issuable upon exercise or exchange of any outstanding
      options, warrants or rights, or other stock issuable by the Company, are subject
      to any preemptive rights, rights of first refusal or other rights to purchase
      such stock (whether in favor of the Company or any other person), pursuant
      to
      any agreement or commitment of the Company. The Company has not made any
      representations regarding equity incentives to any officer, employee, director
      or consultant that are inconsistent with the share amounts and terms set forth
      in the Company’s board or director meeting minutes and/or actions by written
      consent of the Company’s board of directors.

    

    (g) The
      outstanding shares of the capital stock of the Company (i) are duly authorized
      and validly issued, fully paid and nonassessable, and have been approved by
      all
      requisite stockholder action, and (ii) assuming the accuracy of the
      representations and warranties and the compliance with the covenants made by
      the
      original purchasers of such shares, were issued in compliance with all
      applicable state and federal laws concerning the issuance of
      securities.

    

    3.8 Consents.
      No
      consent, approval, order or authorization of, or registration, qualification,
      designation, declaration or filing with, (i) any federal, state or local
      governmental authority having jurisdiction over the Company or any Company
      subsidiary, or (ii) any other person or entity, is required on the part of
      the
      Company or any Company subsidiary in order to enable the Company or any Company
      subsidiary to execute, deliver and perform its obligations under this Agreement
      and the other Transaction Documents to which it is a party except (A) where
      the
      failure to obtain the same would not have a Material Adverse Effect, (B) for
      such qualifications or filings under applicable securities laws as may be
      required in connection with the transactions contemplated by this Agreement
      and
      (C) for such board of director and stockholder consents that have been obtained
      prior to the Closing. All such qualifications and filings will, in the case
      of
      qualifications, be effective on the Closing and will, in the case of filings,
      be
      made within the time prescribed by law.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.9 Absence
      of Litigation.
      There
      is no action, suit, proceeding, claim, arbitration or investigation pending
      (or,
      to the Company’s knowledge, currently threatened) against the Company or any
      Company subsidiary, its respective activities or its respective properties
      before any court or governmental agency. There is no action, suit, proceeding
      or
      investigation by the Company or any Company subsidiary currently pending or
      which the Company or any Company subsidiary intends to initiate.

    

    3.10 Compliance.
      Neither
      the Company nor any Company subsidiary (i) is in violation of any term of its
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents, (ii) is in violation of any material term or provision of
      any
      indebtedness, instrument, judgment or decree or any material agreement and
      (iii)
      to its knowledge, is in violation of any order, statute, rule or regulation
      applicable to the Company where such violation would have a Material Adverse
      Effect.

    

    3.11 Title
      to Assets.
      The
      Company and each Company subsidiary owns and has good and marketable title
      to
      its respective tangible properties and assets, free and clear of all mortgages,
      deeds of trust, liens, encumbrances and security interests except for statutory
      liens for the payment of current taxes that are not yet delinquent and liens,
      encumbrances and security interests which arise in the ordinary course of
      business and which do not affect material properties and assets of the Company
      or any Company subsidiary. All facilities, machinery, equipment, fixtures,
      vehicles and other properties owned, leased or used by the Company or any
      Company subsidiary are in good operating condition and repair, ordinary wear
      and
      tear excepted.

    

    3.12 Indebtedness.
      Except
      as scheduled on Section 3.12 of the Schedule of Exceptions, neither the Company
      nor any Company subsidiary has (i) any indebtedness for borrowed money or for
      the deferred purchase price of property or services (other than current trade
      liabilities incurred in the ordinary course of business consistent with past
      practice and payable in accordance with customary practices), (ii) any other
      indebtedness that is evidenced by a note, bond, debenture or similar instrument,
      (iii) any obligations under financing leases, (iv) any obligations in respect
      of
      acceptances issued or created, (v) any liabilities secured by any lien on any
      property or (vi) any guarantee obligations.

    

    3.13 No
      General Solicitation; Brokers or Finders.
      Except
      as provided in Section 10 of this Agreement, neither the Company, nor any of
      its
      affiliates, nor any person or entity acting on its or their behalf, has (i)
      engaged in any form of general solicitation or general advertising (within
      the
      meaning of Regulation D) in connection with the offer or sale of the Securities
      or (ii) any liability to pay any fees or commissions to any broker, finder
      or
      agent with respect to the transactions contemplated by this Agreement or any
      of
      the other Transaction Documents.

    

    3.14 Private
      Placement.
      None of
      the Company, the Company subsidiaries, any of their affiliates, or any person
      or
      entity acting on their behalf has, directly or indirectly, at any time within
      the past six (6) months, made any offer or sale of any security or solicitation
      of any offer to buy any security under circumstances that would (i) eliminate
      the availability of the exemption from registration under Regulation D under
      the
      Securities Act in connection with the offer and sale by the Company of the
      Securities as contemplated hereby or (ii) cause the offering of the Securities
      pursuant to the Transaction Documents to be integrated with prior offerings
      by
      the Company for purposes of any applicable law, regulation or stockholder
      approval provisions, including, without limitation, under the rules and
      regulations of any securities exchange, market or trading or quotation facility
      on which the Common Stock is listed or quoted.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.15 Registration
      Rights.
      Except
      as contemplated by this Agreement, the Company is not under any obligation
      to
      register under the Securities Act any of its currently outstanding securities
      or
      any securities issuable upon exercise or conversion of its currently outstanding
      securities nor is the Company obligated to register or qualify any such
      securities under any state securities or blue sky laws.

    

    3.16 Disclosure.
      This
      Agreement, the exhibits hereto, the other Transaction Documents and any
      certificate expressly delivered by the Company or any Company subsidiary to
      the
      Investors or their attorneys or agents in connection herewith or therewith
      or
      with the transactions contemplated hereby or thereby, taken as a whole, neither
      contain any untrue statement of a material fact nor, to the Company’s knowledge,
      omit to state a material fact necessary in order to make the statements
      contained herein or therein not misleading.

    

    4. Representations
      of the Investors.
      Each of
      the Investors severally represents and warrants to the Company as
      follows:

    

    4.1 Authorization.
      This
      Agreement constitutes the Investor’s valid and legally binding obligation,
      enforceable against the Investor in accordance with its terms except as may
      be
      limited by (i) applicable bankruptcy, insolvency, reorganization or other laws
      of general application relating to or affecting the enforcement of creditors’
rights generally and (ii) the effect of rules of law governing the availability
      of equitable remedies. The Investor represents that it has full power and
      authority to execute and deliver the Transaction Documents to which it is a
      party and perform its obligations thereunder.

    

    4.2 Regulation D.

    

    (a) The
      Investor understands and acknowledges that (i) the Securities acquired pursuant
      to this Agreement have not been registered under the Securities Act and are
      being sold in reliance upon an exemption from registration afforded by
      Regulation D and that such Securities have not been registered with any
      state securities commission or authority, (ii) pursuant to the requirements
      of
      Regulation D, the Securities may not be transferred, sold or otherwise
      exchanged unless in compliance with the provisions of Regulation D and/or
      pursuant to registration under the Securities Act, or pursuant to an available
      exemption thereunder and (iii) other than as set forth in Section 7 of this
      Agreement, the Company is under no obligation to register the Securities under
      the Securities Act or any state securities law, or to take any action to make
      any exemption from any such registration provisions available.

    

    (b) The
      Investor is an “accredited investor” within the meaning of Rule 501 of
      Regulation D, is knowledgeable, sophisticated and experienced in making, and
      is
      qualified to make, decisions with respect to investment shares representing
      an
      investment decision like that involved in the purchase of the
      Securities.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c) The
      Securities to be purchased by the Investor hereunder will be acquired for
      investment for the Investor’s own account, not as a nominee or agent, and not
      with a view to the public resale or distribution thereof with the meaning of
      the
      Securities Act, and the Investor has no present intention of selling, granting
      any participation in, or otherwise distributing the same. If not an individual,
      the Investor also represents that the Investor has not been formed for the
      specific purpose of acquiring the Securities. The Investor recognizes that
      an
      investment in the Securities involves a high degree of risk, including a risk
      of
      total loss of the Investor. The Investor understands, acknowledges and agrees
      that it must bear the economic risk of its investment in the Securities for
      an
      indefinite period of time and has knowledge and experience in financial and
      business matters such that it is capable of evaluating the risks of the
      investment in the Securities and the Investor understands, acknowledges and
      agrees that prior to any such offer or sale, the Company may require, subject
      to
      the fulfillment of the Company’s obligations under Section 7 of this Agreement,
      as a condition to effecting a transfer of the Securities, an opinion of counsel,
      acceptable to the Company, as to the registration or exemption therefrom under
      the Securities Act and any state securities acts, if applicable.

    

    (d) At
      no
      time was the Investor presented with or solicited by any publicly issued or
      circulated newspaper, mail, radio, television or other form of general
      advertising or solicitation in connection with the offer, sale and purchase
      of
      the Securities. To the knowledge of such Investor, such Investor has received
      or
      has had full access to all the information it requested in connection with
      its
      investment decision with respect to the Securities to be purchased by such
      Investor under this Agreement, including without limitation, the Company’s
      filings with the United States Securities and Exchange Commission. Investor
      further has had a reasonable opportunity to ask questions of and receive answers
      from the directors, officers and management of the Company concerning the
      Company and the transactions contemplated by this Agreement and the Company’s
      business, management and financial affairs.

    

    (e) The
      Investor acknowledges that the Securities will bear a legend in substantially
      the following form:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
      OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR MANDALAY MEDIA, INC. SHALL HAVE RECEIVED AN OPINION
      OF
      ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
      UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (f) Neither
      the Investor, nor
      any
      affiliate of the Investor or any person acting on his, her or its behalf, has
      recently sold shares of unregistered Common Stock of the Company.

    

    5. Conditions
      to the Closing.

    

    5.1 Conditions
      to the Obligations of the Company.
      The
      obligations of the Company under Section 1 of this Agreement are subject to
      the fulfillment, or waiver, of the following conditions on or before the
      Closing:

    

    (a) The
      representations and warranties of the Investors contained in Section 4
      shall be true on and as of the date hereof and the Closing Date with the same
      effect as though such representations and warranties had been made on and as
      of
      such date (except that any representation or warranty expressly stated to have
      been made or given as of a specific date need be true only as of such
      date).

    

    (b) The
      Investors shall have delivered payment to the Company for the Securities
      pursuant to this Agreement.

    

    (c) The
      Investors shall have duly executed and delivered the Transaction Documents
      to
      which they are parties.

    

    5.2. Conditions
      to the Obligations of Each of the Investors.
      The
      obligations of each of the Investors under Section 1 of this Agreement are
      subject to the fulfillment, or waiver, of the following conditions on or before
      each Closing:

    

    (a) The
      representations and warranties of the Company contained in Section 3 shall
      be true on and as of the date hereof and the Closing Date with the same effect
      as though such representations and warranties had been made on and as of such
      date (except that any representation or warranty expressly stated to have been
      made or given as of a specific date need be true only as of such
      date).

    

    (b) The
      Company shall have obtained all governmental, regulatory or third party consents
      and approvals, if any, necessary for the sale of the Securities.

    

    (c) The
      Company shall have performed and complied with all agreements, obligations
      and
      conditions contained in this Agreement that are required to be performed or
      complied with by it on or prior to the Closing Date.

    

    (d) The
      Company shall have duly executed and delivered to each Investor such other
      documents relating to the transaction contemplated by this Agreement as such
      Investor or its counsel may reasonably request.

    

    (e) The
      Company shall have delivered to each Investor an officer’s certificate duly
      executed by the Company’s Chief Executive Officer certifying to the fulfillment
      of the conditions specified in Sections 5.2(a) through 5.2(c).

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    6. Additional
      Conditions to the Initial Closing.

    

    6.1 Conditions
      to the Obligations of the Initial Closing Investors.
      In
      addition to the conditions set forth in Section 5.2, the obligations of the
      Initial Closing Investors under Section 1 of this Agreement are subject to
      the fulfillment, or the waiver, of the following conditions on or before the
      Initial Closing.

    

    (a) The
      Company shall have duly executed and delivered to ValueAct SmallCap Master
      Fund,
      L.P. (“VAC”)
      the
      allonge to the warrant to purchase 1,092,621 shares of Common Stock in the
      form
      as set forth on Exhibit
      D
      hereto.

    

    (b) The
      Company shall have duly executed and delivered to VAC the allonge to the warrant
      to purchase 1,092,622 shares of Common Stock in the form as set forth on
Exhibit
      E
      hereto.

    

    (c) The
      Company shall have delivered to VAC a duly executed copy of that certain
      promissory note issued by the Company to the shareholders of AMV Holdings
      Limited, Jack Creswell and Nathan MacLeitch in the form as set forth on
Exhibit
      F
      hereto.

    

    (d) AMV
      Holding Limited shall have duly executed and delivered to VAC that certain
      debenture in the form as set forth on Exhibit
      G
      hereto.

    

    (e) AMV
      Holding Limited shall have duly executed and delivered to VAC that certain
      guarantee in the form as set forth on Exhibit
      H
      hereto.

    

    (f) AMV
      Holding Limited, Nathaniel MacLeitch in his capacity as Junior Agent (as defined
      therein) and the Junior Lenders (as defined therein) shall have duly executed
      and delivered to VAC that certain priority deed in the form as set forth on
      Exhibit
      I
      hereto.   

    

    (g) The
      Company and Twistbox Entertainment, Inc. shall have duly executed and delivered
      to VAC that certain Second Amendment and Waiver to the Senior Secured Note
      due
      January 10, 2010 in the form as set forth on Exhibit
      J
      hereto.

    

    (h) The
      Company shall have delivered to the Initial Closing Investors an officer’s
      certificate duly executed by the Company’s Chief Executive Officer certifying to
      the completion of the acquisition by the Company of 100% of the share capital
      of
      AMV Holdings Limited and 80% of the share capital of Fierce Media
      Limited.

    

    (i) The
      Company shall have duly executed and delivered to each Initial Closing Investor
      the Escrow Agreement in the form as set forth on Exhibit
      K
      hereto.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    7.Covenants
      of the Company.

     

    7.1 Piggyback
      Registration Rights. If
      at any
      time the Company shall determine to register under the Securities Act any of
      its
      securities (other than on Form S-8 or Form S-4 or their then equivalents and
      other than shares to be issued solely (i) in connection with any acquisition
      of
      any entity or business, (ii) upon the exercise of stock options, or (iii)
      pursuant to employee benefit plans), it shall send to each holder of Registrable
      Shares (as defined below), including each holder who has the right to acquire
      Registrable Shares, written notice of such determination and, if within thirty
      (30) days after receipt of such notice, such holder shall so request in writing,
      the Company shall use its commercially reasonable efforts to include in such
      registration statement all or any part of the Registrable Shares such holder
      requests to be registered therein; provided that, if, in connection with any
      offering involving an underwriting of Common Stock to be issued by the Company,
      the managing underwriter shall prohibit the inclusion of shares of Common Stock
      by selling holders in such registration statement or shall impose a limitation
      on the number of shares of such Common Stock which may be included in any such
      registration statement because, in its judgment, such limitation is necessary
      to
      effect an orderly public distribution, and such limitation is imposed pro rata
      with respect to all securities whose holders have a contractual, incidental
      (“piggyback”)
      right
      to include such securities in the registration statement and as to which
      inclusion has been requested pursuant to such right and there is first excluded
      from such registration statement all shares of Common Stock sought to be
      included therein by (i) any holder thereof not having any such contractual,
      incidental registration rights, and (ii) any holder thereof having contractual,
      incidental registration rights subordinate and junior to the rights of the
      holders of Registrable Shares, the Company shall then be obligated to include
      in
      such registration statement only such limited portion (which may be none) of
      the
      Registrable Shares with respect to which such holder has requested inclusion
      hereunder. “Registrable
      Shares”
means
      the Shares and the Warrant Shares; provided, however, that any of such shares
      shall cease to be Registrable Shares upon any sale of such shares pursuant
      to
      (i) a registration statement filed under the Securities Act, or (ii) Rule 144
      promulgated under the Securities Act.

    

    7.2 Reservation
      of Common Stock.
      The
      Company shall reserve and maintain, from its duly authorized shares of Common
      Stock, a sufficient number of shares of Common Stock for issuance hereunder
      and
      upon exercise of all of the Warrants to be issued hereunder. In the event that
      at any time the then authorized shares of Common Stock are insufficient for
      the
      Company to satisfy its obligations in full under the Transaction Documents,
      the
      Company shall promptly take such actions as may be required to increase the
      number of authorized shares.

    

    8. Transfer
      of Securities.
      Each
      Investor is aware that the Company will make a notation in its appropriate
      records and issue “stop transfer” instructions to its transfer agent with
      respect to the restrictions on the transferability of such
      Securities.

    

    9. Anti-Dilution.
      The
      Shares are subject to standard anti-dilution provisions in the event of forward
      or reverse stock splits or recapitalizations. For example, if the Company
      engages in a two for one reverse stock split, a holder of 100,000 Shares will
      be
      affected as follows:

    

    Pre-Split
      Ownership:

    

    100,000
      Shares

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    Post-Split
      Ownership:

    

    50,000
      Shares

    

    10. Broker’s
      Fees.
      The
      Investor is aware that, in connection with the Offering, the Company may pay
      a
      broker’s fee or fees totaling cash fees of 6% of the gross proceeds received by
      the Company from the Offering above an aggregate of $4,500,000.

    

    11. Miscellaneous.
      

    

    11.1 Termination.
      This
      Agreement may be terminated by the Company or any Investor, by written notice
      to
      the other parties, if the Initial Closing has not been consummated within 60
      days from the date hereof, provided that no such termination will affect the
      right of any party to sue for any breach by the other party (or
      parties).

    

    11.2 Successors
      and Assigns.
      This
      Agreement and any rights and obligations hereunder may not be transferred or
      assigned by either party without the prior written consent of the other party.
      This Agreement shall inure to the benefit of, and be binding upon the Company
      and the Investors and their respective heirs, legal representatives and
      permitted assigns.

    

    11.3 Survival.
      All
      representations, warranties, covenants and agreements contained herein shall
      survive the Closing.

    

    11.4 Notices.
      All
      notices or other communications hereunder shall be in writing and shall be
      deemed to have been duly given if delivered personally or mailed by certified
      or
      registered mail, return receipt requested, postage prepaid, as follows:

    

    (a) If
      to the
      Company, to Mandalay Media, Inc., c/o Trinad Capital L.P., 2121 Avenue of the
      Stars, Suite 2550, Los Angeles, CA 90067, Attention: Chief Financial Officer,
      or
      to such other address as the Company shall have designated to the Investors
      in
      writing.

    

    (b) If
      to an
      Investor, at his, her or its address set forth on Exhibit A,
      or at
      such other address or addresses as may have been furnished to the Company in
      writing by such Investor. 

    

    11.5 Entire
      Agreement.
      This
      Agreement and the Warrant, together with all schedules and exhibits thereto,
      embody the entire agreement and understanding between the parties hereto with
      respect to the subject matter hereof and supersede all prior agreements and
      understandings, oral or written, relating to such subject matter, which the
      parties acknowledge have been merged into such documents, exhibits and
      schedules. At or after the Closing, and without further consideration, the
      Company and each Investor will execute and deliver such further documents as
      may
      be reasonably requested in order to give effect to the intention of the parties
      under the Transaction Documents.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    11.6 Amendments
      and Waivers.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance and either
      retroactively or prospectively) with the written consent of (i) the Company,
      (ii) VAC and (iii) the other Investors holding a majority of the Shares and
      Warrant Shares on an as-converted basis issued hereunder. Subject to the
      preceding sentence, any amendment or waiver effected in accordance with this
      Section 11.6 shall be binding upon all parties to this Agreement including,
      without limitation, any Investor who may not have executed such amendment or
      waiver.

    

    11.7 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, but all of which together shall be one and the same
      document. 

    

    11.8 Section
      Headings.
      The
      section headings are for the convenience of the parties and in no way alter,
      modify, amend, limit, or restrict the contractual obligations of the parties.
      

    

    11.9 Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

    

    11.10 Governing
      Law; Venue; Waiver of Jury Trial.
      ALL
      QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION
      OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS
      5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL
      PRACTICE LAWS AND RULES 327(b). EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE
      EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY
      OF
      NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
      OR
      IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED
      HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION
      DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY
      SUIT,
      ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
      JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS
      IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS
      AND
      CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
      MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY
      (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES
      TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
      AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
      SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER
      PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY
      JURY.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    

    11.11 Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever an Investor exercises
      a right, election, demand or option owed to such Investor by the Company under
      a
      Transaction Document and the Company does not timely perform its related
      obligations within the periods therein provided, then, prior to the performance
      by the Company of the Company’s related obligation, such Investor may rescind or
      withdraw, in its sole discretion from time to time upon written notice to the
      Company, any relevant notice, demand or election in whole or in part without
      prejudice to its future actions and rights.

    

    11.12 Replacement
      of Securities.
      If any
      certificate or instrument evidencing any Securities is mutilated, lost, stolen
      or destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      the execution by the holder thereof of a customary lost certificate affidavit
      of
      that fact and an agreement to indemnify and hold harmless the Company for any
      losses in connection therewith. The applicants for a new certificate or
      instrument under such circumstances shall also pay any reasonable third-party
      costs associated with the issuance of such replacement Securities.

    

    11.13 No
      Promotion.
      Except
      as otherwise required by law, the Company agrees that it will not, without
      the
      prior written consent of VAC in each instance, (i) use in advertising,
      publicity, press release or otherwise the name of VAC or any affiliate of VAC
      (each a “VAC
      Entity”),
      or
      any partner or employee of any VAC Entity, nor any trade name, trademark, trade
      device, service mark, symbol or any abbreviation, contraction or simulation
      thereof owned by any VAC Entity or (ii) represent, directly or indirectly,
      that
      any product or any service provided by the Company has been approved or endorsed
      by any VAC Entity. This provision shall survive termination of the Transaction
      Documents.

    

    [Signature
      page to follow]

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
      Agreement to be duly executed by their respective authorized signatories as
      of
      the date first written above.

    

    
      	 	
              COMPANY:

            
	 	 
	 	
              MANDALAY
                MEDIA, INC.

            
	 	 
	 	
              By:

            	
              /s/
                James Lefkowitz

            
	 	 	
              Name:
                

            	
              James
                Lefkowitz

            
	 	 	
              Title:
                

            	
              President

            

    

    

    [Signature
      page to Securities Purchase Agreement]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	 	
              INVESTOR:

               

              VALUEACT
                SMALLCAP MASTER FUND, L.P.,

            
	 	
              By
                VA Smallcap Partners, LLC, its General Partner

            
	 	 
	 	
              By:
                

            	
              /s/
                David Lockwood

            
	 	
              Name:
                

            	
              David
                Lockwood

            
	 	
              Title:
                

            	
              Managing
                Member

            
	 	 	 
	 	
              TRINAD
                CAPITAL MASTER FUND, LTD.

            
	 	 
	 	
              By:

            	
              /s/
                Robert Ellin

            
	 	
              Name:
                

            	
              Robert
                Ellin

            
	 	
              Title:

            	
              Director

            
	 	 	 
	 	 	 
	 	
              GUBER
                FAMILY TRUST

            
	 	 
	 	
              By:
                

            	
              /s/
                Peter Guber

            
	 	
              Name:
                

            	
              Peter
                Guber

            
	 	
              Title:
                

            	
              Trustee

            

    

    

    [Signature
      page to Securities Purchase Agreement]

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