Document:

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933.  THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT FOR DISTRIBUTION OR RESALE.  THEY MAY NOT BE SOLD,
ASSIGNED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OF 1933 OR THE TRANSACTION IS EXEMPT FROM SUCH REGISTRATION
REQUIREMENTS AND, IF THE CORPORATION REQUESTS, AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT.”

    

    This
warrant will be void after 5:00 p.m. New York time on December 31,
2012.

    

    WARRANT
AGREEMENT

    

    POW!
ENTERTAINMENT, INC.

    

    THIS CERTIFIES THAT, for value
received, Stanley L. Compton, Trustee of the Compton Family Trust dated April
11, 1988, or its assigns (the (“Holder”),
is entitled to subscribe for and purchase from POW! Entertainment, Inc., a
Delaware corporation (the “Company”),
up to three hundred and fifty thousand (350,000) shares of common stock of the
Company at the Exercise Price per Common Share and during the period hereinafter
set forth, subject, however, to the provisions and upon the terms and conditions
hereinafter set forth.

    

    1.           DEFINITIONS.
As used herein:

    

    “Affiliate” means, with
respect to any specified Person, any other Person who, directly or indirectly,
controls, is controlled by, or is under common control with such Person,
including, without limitation, any general partner, managing member, officer or
director of such Person.

    

    “Common Stock” or “Common
Shares” means the Company’s common stock, par value $.001 per share, and
any capital stock into which such Common Stock shall have been converted,
exchanged or reclassified following the date hereof.

    

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “Exercise Price” means the
amount required to purchase one (1) Common Share and shall be Nineteen and
Five-hundredths Cents ($0.1905) subject to adjustment as set forth
herein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Person” means any individual,
corporation, partnership, trust, limited liability company, association or other
entity.

    

    “Restricted Securities” means
the securities of the Company required to bear the legend set forth in Section 5.2
hereof.

    

    “SEC” means the Securities and
Exchange Commission.

    

    “SEC Rule 144” means Rule 144
promulgated by the SEC under the Securities Act.

    

    “Securities Act” means the Securities
Act of 1933 as amended and the rules and regulations promulgated
thereunder..

    

    2.           EXERCISE
OF WARRANT.

    

    2.1           Exercisability.  The
purchase rights represented by this Warrant may be exercised by Holder, in whole
or in part, but no less than 50,000 shares or the remaining unexercised balance
at any time, in any one exercise, at any time and from time to time, during the
period commencing on the date hereof (the “Commencement
Date”) until 5:00 p.m. New York time on December 31, 2012 (the “Expiration
Date”), by the presentation of this Warrant at the Company’s office (or
such office or agency of the Company as it may designate in writing to Holder
hereof by notice pursuant to Section 7 hereof),
and upon payment by Holder to the Company of the Exercise Price for the Common
Shares being purchased.  Payment of the Exercise Price shall be made
in cash, by check payable to the order of the Company, or by wire
transfer.  The Company agrees that Holder hereof shall be deemed the
record owner of the Common Shares purchased as of the close of business on the
date on which this Warrant shall have been presented and payment made for such
Common Shares as aforesaid, whether or not the Company or its transfer agent is
open for business. Certificates for the securities comprising the Common Shares
so purchased shall be delivered to Holder hereof within a reasonable time, not
exceeding fifteen (15) days, after the rights represented by this Warrant with
respect to such Common Shares shall have been so exercised.

    

    2.2 In
lieu of exercising this Warrant by paying the purchase price of the shares to be
purchased in cash, by wire transfer or by check pursuant to Section 2.1 above,
the Holder of this Warrant may elect to receive shares of Common Stock equal to
the value of this Warrant (or the portion thereof being exercised) by surrender
of this Warrant and the notice, duly completed and executed on behalf of the
Holder, at the principal office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the
address of the Holder appearing on the books of the Company), in which event the
Company shall issue to the Holder hereof a number of shares of Common Stock
computed using the Cashless Exercise Formula set forth in Annex A
hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.3
Reservation of Shares. The Company hereby agrees that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant all
shares of its Common Stock or other shares of capital stock of the Company from
time to time issuable upon exercise of this Warrant.  All such shares shall
be duly authorized and, when issued upon such exercise in accordance with the
terms of this Warrant, shall be validly issued, fully paid and non assessable,
free and clear of all liens, security interests, charges and other encumbrances
or restrictions on sale (other than as provided in the Company’s certificate of
incorporation and any restrictions on sale set forth herein or pursuant to
applicable federal and state securities laws) and free and clear of all
preemptive rights.

    

    3.           ANTI-DILUTION
PROVISIONS.  Any and all of the Common Shares which may be
acquired by Holder as a result of the exercise of this Warrant, shall be subject
to the anti-dilution adjustments set forth below.

    

    3.1          Dividends,
Splits, Reclassifications Etc.

     

    (a)           In
case shares of Common Stock are issued as a dividend or other distribution of
Common Stock is made, the Exercise Price in effect at the opening of business on
the business day next succeeding the date fixed for the determination of the
holders of Common Stock entitled to receive such dividend or other distribution
shall be decreased to an amount equal to the Exercise Price so in effect
multiplied by a fraction, the numerator of which shall be the number of shares
outstanding immediately before such dividend or distribution of Common Stock is
made and the denominator of which shall be the number of shares outstanding
immediately following the making of such dividend or distribution of Common
Stock , such decrease becoming effective immediately after the opening of
business on the business day next succeeding the date fixed for such
determination.

     

    (b)           In
case outstanding shares of Common Stock shall be subdivided into a greater
number of shares or outstanding shares shall be combined into a smaller number
of shares, the Exercise Price in effect at the opening of business on the
business day next succeeding the day upon which such subdivision or combination
becomes effective shall be increased or decreased, as the case may be, to an
amount equal to the Exercise Price so in effect multiplied by a fraction, the
numerator of which shall be the number of shares outstanding immediately before
such subdivision or combination becomes effective and the denominator of which
shall be the number of shares outstanding at the opening of business on the
business day next succeeding the day upon which such subdivision or combination
becomes effective.

     

    (c)           Whenever the Exercise Price is adjusted as set forth in
Section 3.1(a) or (b) (whether or not the Company then or thereafter elects to
issue additional Warrants in substitution for an adjustment in the number of
shares of Common Stock issuable upon the exercise of this Warrant), the number
of shares of Common Stock specified in the Warrant which the Holder may purchase
shall be adjusted by multiplying such number of shares of Warrant Stock
immediately prior to such adjustment by a fraction, of which the numerator shall
be the Exercise Price immediately prior to such adjustment and the denominator
shall be the Exercise Price immediately thereafter.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           If
the Company shall issue any securities by recapitalization or reclassification
of its Common Stock, each share of Common Stock which may be purchased upon the
exercise of this Warrant immediately prior thereto shall be replaced for the
purposes hereof by the securities issuable or distributable in respect to each
such share of Common Stock upon such recapitalization or reclassification an
appropriate adjustment of the Exercise Price and the number of shares which
Holder may acquire, effective immediately prior to such recapitalization or
reclassification shall be made, such  adjustment to become effective
immediately after the opening of business on the day on which such
recapitalization and reclassification shall become effective.  If, as
a result of an adjustment made pursuant to this Section 3.1(d), the
holders of the Common Stock shall become entitled to receive shares of two or
more classes of capital stock or shares of Common Stock and other capital stock
of the Company upon the exercise of this Warrant, Holder shall be entitled to
receive such securities as would the holder of such number of shares of Common
Stock as would at that time be obtainable upon the exercise of the Warrant to
purchase shares of Common Stock.

     

    3.2           Consolidations,
Mergers.  In case of any
consolidation or merger of the Company with or into another entity, or in case
of any sale, lease, mortgage, pledge, conveyance or other disposition to another
entity of all or substantially all the property of the
Company,  Holder shall have the right thereafter  to acquire
by exercise of the Warrant the kind and amount of shares, other securities, cash
and property receivable upon such transaction by a holder of the number of
shares of Common Stock issuable upon the exercise of the Warrant immediately
prior to such transaction, and any such resulting or surviving entity shall
expressly assume the obligation to deliver,  upon
the  exercise of the Warrant, such shares, other securities, cash or
property as Holder, shall be entitled to receive  pursuant to the
provisions hereof.

     

    3.3         
Adjustments
for Certain Below Exercise Price Issuances.

     

    (a)           Except
as hereinafter provided, if the Company shall at any time after the date hereof
issue or sell any shares of Common Stock, for a consideration per share less
than the Exercise Price in effect immediately prior to the issuance or sale of
such shares (a “Dilutive Issuance”), then, immediately upon the Dilutive Issuance,
the Exercise Price will be reduced (and in no event increased) to an Exercise Price equal to the
quotient obtained by dividing:

     

    (i) the
sum of (A) the product obtained by multiplying the number of shares of Common
Stock actually outstanding immediately prior to such Dilutive Issuance by the
Exercise Price then in effect, plus (B) the aggregate consideration, if any,
received by the Company upon such Dilutive Issuance; by

     

    (ii) the
sum of (A) the number of shares of Common Stock actually outstanding immediately
prior to such Dilutive Issuance, plus (B) the aggregate number of shares of
Common Stock issued by the Company in such Dilutive Issuance; provided that only one adjustment will
be made for each Dilutive Issuance.   

    

    (b)           The
provisions of this Section 3.3 shall not
apply to the following:

     

    (i)           Issuances
of shares of Common Stock issued upon exercise of stock options or shares of
Restricted Stock granted to key employees, directors and consultants of the
Company in general, but only to the extent that the total of the shares issued
pursuant to this Section 3.3(b)(i) do not exceed the lesser of (x) 3,000,000
shares, or (y) 3% of the Company’s shares outstanding at the time of the
calculation, and provided that in the case of the issuances of options granted
under this Section
3.3(b)(i), the price is no less than the market value of the Common Stock
at the time of the grant,.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (ii)           issuances
of restricted stock in payment for bona-fide services provided by consultants
and/or contractors to the Company and bona-fide purchases of goods by the
Company, but only to the extent that the total of the shares issued pursuant to
this Section 3.3(b)(ii) do not exceed the lesser of (x) 2,000,000 shares, or (y)
2% of the Company’s shares outstanding at the time of the calculation, and
provided that in the case of the issuances of restricted stock under this Section 3.3(b)(ii)
the imputed price is no less than the market value of the Common Stock at the
time of the grant,. .

     

    3.4           Calculation
of Adjustments.  For the purposes of any computation to be made
in accordance with the provisions of Section 3.3, the
following provisions shall be applicable:

     

    In case
of the issuance of shares of Common Stock upon conversion or exchange of any
obligations or of any shares of stock or other equity securities of the Company
that shall be convertible into or exchangeable for shares of Common Stock or
upon the exercise of rights or options to subscribe for or to purchase shares of
Common Stock, the amount of consideration received by the Company for such
shares of Common Stock shall be deemed to be the total of (i) the amount of the
consideration received by the Company upon the original issuance of such
obligations, shares, securities, rights or options, as the case may be, plus
(ii) the consideration, if any, other than such obligations, shares, securities,
rights or options, received by the Company upon such conversion, exchange, or
exercise except in adjustment of interest and dividends.

     

    (b)           The
number of Common Shares at any time outstanding shall not include any Common
Shares which are treasury shares of the Company, or the number of shares of
Common Stock deliverable in respect of the options, rights and convertible and
exchangeable securities referred to in Section
3.3(b);

     

    (c)           No
adjustment shall be made to the Exercise Price in case of the issuance of shares
of Common Stock upon conversion or exchange of any obligations or of any shares
of stock or equity securities of the Company that shall be convertible into or
exchangeable for shares of Common Stock or upon the exercise of rights or
options to subscribe for or to purchase shares of Common Stock for which an
adjustment in the Exercise Price has previously been made in accordance with
Section
3.3(a).

     

    (d)           In
case the Company shall, at any time after date of this Warrant, grant options or
rights to subscribe for Common Shares, other than those excluded by Section 3.3(b) above,
or issue any securities, convertible into or exchangeable for Common Shares, for
a consideration per share less than the Exercise Price in effect immediately
prior to the issuance of such options or rights or convertible or exchangeable
securities, the Exercise Price in effect immediately prior to the issuance of
such options or rights or securities shall be reduced to a price determined by
making a computation in accordance with the provisions of Section 3.3, provided
that:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           the
aggregate maximum number of Common Shares deliverable under such options or
rights shall be considered to have been delivered at the time such options or
rights were issued, and for a consideration equal to the minimum purchase price
per share of Common Stock provided for in such options or rights, plus the
consideration (determined in the same manner as consideration received on the
issue or sale of Common Stock), if any, received by the Company for such options
or rights;

     

    (ii)           the
aggregate maximum number of shares of Common Stock deliverable upon conversion
of or exchange for any such securities shall be considered to have been
delivered at the time of issuance of such securities, and for a consideration
equal to the consideration (determined in the same manner as consideration
received on the issue or sale of Common Stock) received by the Company for such
securities, plus the consideration, if any, to be received by the Company upon
the exchange or conversion thereof;

     

    (iii)           on
the expiration of such options or rights or the termination of such right to
convert or exchange, the Exercise Price shall forthwith be readjusted to such
Exercise Price as would have been obtained had the adjustments made upon the
issuance of such options, rights or convertible or exchangeable securities been
made upon the basis of the delivery of only the shares of Common Stock actually
delivered or deliverable upon the exercise of such options or rights or upon
conversion or exchange of such securities; and

     

    (iv)           on
an adjustment in the exercise or conversion price or exchange ratio in such
options, rights or convertible or exchangeable securities, the Exercise Price
shall forthwith be readjusted to such Exercise Price as would have obtained had
the adjustments made upon the issuance of such options, rights or convertible or
exchangeable securities been made upon the basis of such adjusted exercise or
conversion price or exchange ratio.

     

    3.5           Treasurer's
Computation.  Whenever the
Exercise Price is adjusted as herein provided, the Treasurer of the Company
shall compute the adjusted Exercise Price and number of shares issuable under
the Warrant in accordance with the foregoing provisions and shall prepare a
written instrument setting forth such adjusted Exercise Price and showing in
detail the facts upon which such adjustment is based, including a statement of
the consideration received or to be received by the Company for any shares of
Common Stock issued or deemed to have been issued and included in the
computations of such adjustment, and such written instrument shall promptly be
delivered to Holder.

     

    3.6           Notice of
Certain Events.   In
case:  (a)  the Company shall declare a dividend (or any
other distribution) on the Common Stock payable otherwise than in shares of
Common Stock or in cash out of its capital surplus; or (b) of any
reclassification of the capital stock of the Company (other than a subdivision
or combination of outstanding shares of Common Stock); or (c) of any
consolidation or merger to which the Company is a party or of the sale, lease,
mortgage, pledge, conveyance or other disposition of all or substantially all of
the property of the Company; or (d) of the voluntary or involuntary dissolution,
liquidation or winding up of the Company; then the Company shall cause to be
mailed to Holder at least ten (10) days prior to the applicable record date
hereinafter specified, a notice stating (i) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights, or, if a record
is not to be taken, the date as of which the holder of record of common stock to
be entitled to such dividend,  distribution or rights are to be
determined, or  (ii)  the date  on which such
reclassification, consolidation, merger, sale, lease, mortgage, pledge,
conveyance, other disposition or liquidation is expected to become effective,
and the date as of which it is expected that holders of record of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reclassification, consolidation,
Liquidation, merger, sale, lease, mortgage, pledge, conveyance, or other
disposition.  Notwithstanding any other provision of this Agreement,
if the Company gives Holder notice of any event as provided in this Section 3.6,
Holder may in his exercise notice specify that the exercise is conditioned upon
the consummation of such transaction.  In which case, the exercise
shall not be deemed to be effective until immediately prior to the consummation
of such transaction and Holder shall not be deemed entitled to vote on any
matter.   However if Holder has elected to exercise pursuant to
Section 2.2 above then the “applicable date of valuation” as provided in Annex A
shall be the applicable record date for the transaction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.           NO RIGHTS
AS A STOCKHOLDER.   Until exercised, this Warrant shall
not entitle Holder hereof to any voting rights or any other rights as a
stockholder of the Company.

    

    5.           RESTRICTIONS
ON TRANSFERABILITY.

    

    5.1           The
sale, transfer, assignment and/or hypothecation of this Warrant are subject to
the following limitations and conditions:

     

    (a)  The
Company will be notified in advance of each transfer;

     

    (b)
Warrant may not be transferred to more than a total of five persons or entities,
each of which must be an accredited Investor, as that term is defined in the
Securities Act.

     

    (c) The
Common Stock issuable hereunder shall not be sold, transferred, assigned, or
hypothecated except in conformity with the applicable  provisions of
the Securities Act of 1933, as then in force (the “Securities
Act”), or any similar Federal statute then in force, and all applicable
“Blue
Sky” laws;

     

    (d)  Neither
this Warrant nor the securities issuable hereunder may be issued, sold,
transferred, assigned or hypothecated unless and until there has been
compliance, to the reasonable satisfaction of counsel to the Company, with all
legal requirements
applicable  to  the  issuance,  sale,  transfer,  assignment
or hypothecation of such securities;

     

    (e).  In
connection with any issuance, sale, transfer, assignment or hypothecation, the
holder of the Warrant, if requested by the Company, shall give assurance
satisfactory to counsel to the Company that the securities are being acquired
for investment and not with a view to resale or distribution thereof, and such
other assurance as the Company may deem desirable to assure compliance with all
applicable legal requirements, including but not limited to compliance with the
Act.

    

    Upon any
transfer complying with the terms of this Section 5.1, the term Holder shall
apply to each respective transferee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.2           Holder
agrees to comply in all respects with the provisions of this Section
5.  Before any proposed sale, pledge, or transfer of any
Restricted Securities, unless there is in effect a registration statement under
the Securities Act covering the proposed transaction, Holder thereof shall give
notice to the Company of his intention to effect such sale, pledge, or
transfer.  Each such notice shall describe the manner and
circumstances of the proposed sale, pledge, or transfer in sufficient detail
and, if reasonably requested by the Company, shall be accompanied at Holder’s
expense by either (i) a written opinion of legal counsel, whose legal opinion
shall be reasonably satisfactory to the Company, addressed to the Company, to
the effect that the proposed transaction may be effected without registration
under the Securities Act; or (ii) any other evidence reasonably satisfactory to
counsel to the Company to the effect that the proposed sale, pledge, or transfer
of the Restricted Securities may be effected without registration under the
Securities Act, whereupon Holder shall be entitled to sell, pledge, or transfer
such Restricted Securities in accordance with the terms of the notice given by
Holder to the Company.   The Company will not require such a
legal opinion or other evidence in any transaction in compliance with SEC Rule
144.  Each certificate or instrument evidencing the Restricted
Securities transferred as above provided shall bear, except if such transfer is
made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in
Section 6,
except that such certificate shall not bear such restrictive legend if, in the
opinion of counsel for Holder and the Company, such legend is not required in
order to establish compliance with any provisions of the Securities
Act.

    

    6.           LEGEND.  This
Warrant and the securities to be issued upon exercise of this Warrant shall bear
a restrictive legend containing the following language:

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933.  THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT FOR DISTRIBUTION OR RESALE.  THEY MAY NOT BE SOLD,
ASSIGNED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OF 1933 OR THE TRANSACTION IS EXEMPT FROM SUCH REGISTRATION
REQUIREMENTS AND, IF THE COMPANY REQUESTES, AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.”

    

    7.           NOTICES.  All
notices required hereunder shall be given by first-class mail, postage prepaid,
if given by Holder addressed to the Company at 9440 Santa Monica Boulevard,
Suite 620, Beverly Hills, California 90210 or such other address as the Company
may designate in writing to Holder; and if given by the Company, addressed to
Holder at the address of Holder shown on the books of the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.           GOVERNING
LAW.    The validity, construction and enforcement of
this Warrant shall be governed in all respects by the laws of the State of
Delaware, without giving effect to any principle of conflicts of laws
thereunder, and jurisdiction is hereby vested in the courts of said State in the
event of the institution of any legal action under this Warrant.

    

    9.           NO
IMPAIRMENT.   The Company shall not, by amendment of its
Certificate of Incorporation or Bylaws, or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities, or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but shall at
all times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may reasonably be requested by
the Holder in order to protect the exercise rights of the Holder against
dilution or other impairment, consistent with the tenor and purpose of this
Warrant.

     

    10.           CUMULATIVE
REMEDIES.   Except to the extent expressly provided herein to
the contrary, the rights and remedies provided in this Warrant are cumulative
and are not exclusive of, and are in addition to and not in substitution for,
any other rights or remedies available at law, in equity or
otherwise.

     

    11.           EQUITABLE
RELIEF.   Each of the Company and the Holder acknowledges that
a breach or threatened breach by such party of any of its obligations under this
Warrant would give rise to irreparable harm to the other party hereto for which
monetary damages would not be an adequate remedy and hereby agrees that in the
event of a breach or a threatened breach by such party of any such obligations,
the other party hereto shall, in addition to any and all other rights and
remedies that may be available to it in respect of such breach, be entitled to
equitable relief, including a restraining order, an injunction, specific
performance and any other relief that may be available from a court of competent
jurisdiction.

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly
authorized officers under its corporate seal, and to be dated as of January 1,
2010.

    

     

    
      
        
          
            
              
                	 
      	
                        POW!
      ENTERTAINMENT, INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	 
      
	 
      	 
      	
                        Gill
      Champion, Chief Operating
      Officer

                      

              

            

          

        

      

      

      
        	
                ATTEST:

              
	 
      
	
                ____________________________

              
	
                Assistant
      Secretary

              

 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
A

    CASHLESS
EXERCISE FORMULA

    

    The
Cashless Exercise Formula to be used to determine the number of shares that the
Company shall issue upon the exercise of all or a portion of the Warrant shall
be, as of the applicable exercise date, as follows:

    

    
      
        
          
            	 
      	 
      	
                    Y
      (A-B)

                  
	
                    X
      =

                  	 
      	
                        
      A

                  

          

        

      

    

     

    
      	
              Where:

            	
              X

            	
              =

            	
              The
      number of shares of Common Stock to be issued to the Holder of this
      Warrant pursuant to Section 2.2.

            
	 
      	 
      	 
      	 
      
	 
      	
              Y

            	
              =

            	
              The
      number of shares of Common Stock purchasable under this Warrant or, if
      only a portion of this Warrant is being exercised, the portion of this
      Warrant being exercised.

            
	 
      	 
      	 
      	 
      
	 
      	
              A

            	
              =

            	
              The
      Fair Market Value of one share of Common Stock; and

            
	 
      	 
      	 
      	 
      
	 
      	
              B

            	
              =

            	
              The
      Exercise Price per share (as adjusted to the date of such
      calculations).

            

    

     

    For
purposes of the Cashless Exercise Formula and  Section 2.2, the “Fair
Market Value” of a share of Common Stock as of a particular date shall
mean:

     

    (a)       
  If the Common Stock is traded on a securities exchange or The
Nasdaq National Market, the Fair Market Value shall be deemed to be the average
of the closing sale prices of the Common Stock of the Company on such exchange
or market over the five (5) business days ending immediately prior to the
applicable date of valuation;

     

    (b)         
If the Common Stock is traded over-the-counter, but not on The Nasdaq
National Market, the Fair Market Value shall be deemed to be the average of the
closing bid prices over the 30-day period ending immediately prior to the
applicable date of valuation;

     

    (c)         
If the Common Stock is traded on the Pink Sheets, but not
over-the-counter, the Fair Market Value shall be deemed to be the average of the
last reported price for the last 30-days on which a sale occurred prior to the
applicable date of valuation;

     

    (d)       
  If there is no
active public market for the Common Stock, the Fair Market Value shall be the
value thereof, as determined in good faith by the Board of Directors of the
Company, upon due consideration of the proposed determination thereof of the
Holder; provided, however, that if the Board and the Holder are unable to agree
on the fair market value per share of the Common Stock within a reasonable
period of time (not to exceed five (5) calendar days from the Company’s receipt
of the exercise notice), such fair market value shall be determined by a
nationally recognized investment banking, accounting or valuation firm jointly
selected by the Board and the Holder. The determination of such firm shall be
final and conclusive, and the fees and expenses of such valuation firm shall
be  borne by the Company and Holder equally.Unassociated Document

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933.  THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT FOR DISTRIBUTION OR RESALE.  THEY MAY NOT BE SOLD,
ASSIGNED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OF 1933 OR THE TRANSACTION IS EXEMPT FROM SUCH REGISTRATION
REQUIREMENTS AND, IF THE CORPORATION REQUESTS, AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT.

    

    This
warrant will be void after 5:00 p.m. New York time on March 14,
2015.

    

    WARRANT
AGREEMENT

    

    POW!
ENTERTAINMENT, INC.

    

    THIS CERTIFIES THAT, for value
received, ________________ or his assigns (the (“Holder”),
is entitled to subscribe for and purchase from POW! Entertainment, Inc., a
Delaware corporation (the “Company”),
up to six hundred and fifty thousand (650,000) shares of common stock of
the Company at the Exercise Price per Common Share and during the period
hereinafter set forth, subject, however, to the provisions and upon the terms
and conditions hereinafter set forth.

    

    1.           DEFINITIONS.
As used herein:

    

    “Affiliate” means, with
respect to any specified Person, any other Person who, directly or indirectly,
controls, is controlled by, or is under common control with such Person,
including, without limitation, any general partner, managing member, officer or
director of such Person.

    

    “Common Stock” or “Common
Shares” means the Company’s common stock, par value $.001 per share, and
any capital stock into which such Common Stock shall have been converted,
exchanged or reclassified following the date hereof.

    

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    “Exercise Price” means the
amount required to purchase one (1) Common Share and shall be Forty Cents
($0.40) subject to adjustment as set forth herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    “Person” means any individual,
corporation, partnership, trust, limited liability company, association or other
entity.

    

    “Restricted Securities” means
the securities of the Company required to bear the legend set forth in Section 5.2
hereof.

    

    “SEC” means the Securities and
Exchange Commission.

    

    “SEC Rule 144” means Rule 144
promulgated by the SEC under the Securities Act.

    

    “Securities Act” means the Securities
Act of 1933 as amended and the rules and regulations promulgated
thereunder..

    

    2.           EXERCISE
OF WARRANT.

    

    2.1           Exercisability.  The
purchase rights represented by this Warrant may be exercised by Holder, in whole
or in part, but no less than 50,000 shares or the remaining unexercised balance
at any time, in any one exercise, at any time and from time to time, during the
period commencing on the date hereof (the “Commencement
Date”) until 5:00 p.m. New York time on March 14, 2015 (the “Expiration
Date”), by the presentation of this Warrant at the Company’s office (or
such office or agency of the Company as it may designate in writing to Holder
hereof by notice pursuant to Section 7 hereof),
and upon payment by Holder to the Company of the Exercise Price for the Common
Shares being purchased.  Payment of the Exercise Price shall be made
in cash, by check payable to the order of the Company, or by wire
transfer.  The Company agrees that Holder hereof shall be deemed the
record owner of the Common Shares purchased as of the close of business on the
date on which this Warrant shall have been presented and payment made for such
Common Shares as aforesaid, whether or not the Company or its transfer agent is
open for business. Certificates for the securities comprising the Common Shares
so purchased shall be delivered to Holder hereof within a reasonable time, not
exceeding fifteen (15) days, after the rights represented by this Warrant with
respect to such Common Shares shall have been so exercised.

    

    2.2 In
lieu of exercising this Warrant by paying the purchase price of the shares to be
purchased in cash, by wire transfer or by check pursuant to Section 2.1 above,
the Holder of this Warrant may elect to receive shares of Common Stock equal to
the value of this Warrant (or the portion thereof being exercised) by surrender
of this Warrant and the notice, duly completed and executed on behalf of the
Holder, at the principal office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the
address of the Holder appearing on the books of the Company), in which event the
Company shall issue to the Holder hereof a number of shares of Common Stock
computed using the Cashless Exercise Formula set forth in Annex A
hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.3
Reservation of Shares. The Company hereby agrees that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant all
shares of its Common Stock or other shares of capital stock of the Company from
time to time issuable upon exercise of this Warrant.  All such shares shall
be duly authorized and, when issued upon such exercise in accordance with the
terms of this Warrant, shall be validly issued, fully paid and non assessable,
free and clear of all liens, security interests, charges and other encumbrances
or restrictions on sale (other than as provided in the Company’s certificate of
incorporation and any restrictions on sale set forth herein or pursuant to
applicable federal and state securities laws) and free and clear of all
preemptive rights.

    

    3.           ANTI-DILUTION
PROVISIONS.  Any and all of the Common Shares which may be
acquired by Holder as a result of the exercise of this Warrant, shall be subject
to the anti-dilution adjustments set forth below.

    

    3.1         Dividends,
Splits, Reclassifications Etc.

     

    (a)           In
case shares of Common Stock are issued as a dividend or other distribution of
Common Stock is made, the Exercise Price in effect at the opening of business on
the business day next succeeding the date fixed for the determination of the
holders of Common Stock entitled to receive such dividend or other distribution
shall be decreased to an amount equal to the Exercise Price so in effect
multiplied by a fraction, the numerator of which shall be the number of shares
outstanding immediately before such dividend or distribution of Common Stock is
made and the denominator of which shall be the number of shares outstanding
immediately following the making of such dividend or distribution of Common
Stock , such decrease becoming effective immediately after the opening of
business on the business day next succeeding the date fixed for such
determination.

     

    (b)           In
case outstanding shares of Common Stock shall be subdivided into a greater
number of shares or outstanding shares shall be combined into a smaller number
of shares, the Exercise Price in effect at the opening of business on the
business day next succeeding the day upon which such subdivision or combination
becomes effective shall be increased or decreased, as the case may be, to an
amount equal to the Exercise Price so in effect multiplied by a fraction, the
numerator of which shall be the number of shares outstanding immediately before
such subdivision or combination becomes effective and the denominator of which
shall be the number of shares outstanding at the opening of business on the
business day next succeeding the day upon which such subdivision or combination
becomes effective.

     

    (c)           Whenever the Exercise Price is adjusted as set forth in
Section 3.1(a) or (b) (whether or not the Company then or thereafter elects to
issue additional Warrants in substitution for an adjustment in the number of
shares of Common Stock issuable upon the exercise of this Warrant), the number
of shares of Common Stock specified in the Warrant which the Holder may purchase
shall be adjusted by multiplying such number of shares of Warrant Stock
immediately prior to such adjustment by a fraction, of which the numerator shall
be the Exercise Price immediately prior to such adjustment and the denominator
shall be the Exercise Price immediately thereafter.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           If
the Company shall issue any securities by recapitalization or reclassification
of its Common Stock, each share of Common Stock which may be purchased upon the
exercise of this Warrant immediately prior thereto shall be replaced for the
purposes hereof by the securities issuable or distributable in respect to each
such share of Common Stock upon such recapitalization or reclassification an
appropriate adjustment of the Exercise Price and the number of shares which
Holder may acquire, effective immediately prior to such recapitalization or
reclassification shall be made, such  adjustment to become effective
immediately after the opening of business on the day on which such
recapitalization and reclassification shall become effective.  If, as
a result of an adjustment made pursuant to this Section 3.1(d), the
holders of the Common Stock shall become entitled to receive shares of two or
more classes of capital stock or shares of Common Stock and other capital stock
of the Company upon the exercise of this Warrant, Holder shall be entitled to
receive such securities as would the holder of such number of shares of Common
Stock as would at that time be obtainable upon the exercise of the Warrant to
purchase shares of Common Stock.

     

    3.2           Consolidations,
Mergers.  In case of any
consolidation or merger of the Company with or into another entity, or in case
of any sale, lease, mortgage, pledge, conveyance or other disposition to another
entity of all or substantially all the property of the
Company,  Holder shall have the right thereafter  to acquire
by exercise of the Warrant the kind and amount of shares, other securities, cash
and property receivable upon such transaction by a holder of the number of
shares of Common Stock issuable upon the exercise of the Warrant immediately
prior to such transaction, and any such resulting or surviving entity shall
expressly assume the obligation to deliver,  upon
the  exercise of the Warrant, such shares, other securities, cash or
property as Holder, shall be entitled to receive  pursuant to the
provisions hereof.

     

    3.3          Adjustments
for Certain Below Exercise Price Issuances.

     

    (a)           Except
as hereinafter provided, if the Company shall at any time after the date hereof
issue or sell any shares of Common Stock, for a consideration per share less
than the Exercise Price in effect immediately prior to the issuance or sale of
such shares (a “Dilutive Issuance”), then, immediately upon the Dilutive Issuance,
the Exercise Price will be reduced (and in no event increased) to an
Exercise Price equal to the quotient obtained by dividing:

     

    (i) the
sum of (A) the product obtained by multiplying the number of shares of Common
Stock actually outstanding immediately prior to such Dilutive Issuance by the
Exercise Price then in effect, plus (B) the aggregate consideration, if any,
received by the Company upon such Dilutive Issuance; by

     

    (ii) the
sum of (A) the the number of shares of Common Stock actually outstanding
immediately prior to such Dilutive Issuance, plus (B) the aggregate number of
shares of Common Stock issued by the Company in such Dilutive Issuance; provided
that only one adjustment will be made for each Dilutive
Issuance.   

    

    (b)          The
provisions of this Section 3.3 shall not
apply to the following:

     

    (i)           Issuances
of shares of Common Stock issued upon exercise of stock options or shares of
Restricted Stock granted to key employees, directors and consultants of the
Company in general provided that in the case of the issuances of options granted
under this Section
3.3(b)(i), the price is no less than the market value of the Common Stock
at the time of the grant,.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)           issuances
of restricted stock in payment for bona-fide services provided by consultants
and/or contractors to the Company and bona-fide purchases of goods by the
Company provided that in the case of the issuances of restricted stock under
this Section
3.3(b)(ii) the imputed price is no less than the market value of the
Common Stock at the time of the grant.

     

    3.4           Calculation
of Adjustments.  For the purposes of any computation to be made
in accordance with the provisions of Section 3.3, the
following provisions shall be applicable:

     

    In case
of the issuance of shares of Common Stock upon conversion or exchange of any
obligations or of any shares of stock or other equity securities of the Company
that shall be convertible into or exchangeable for shares of Common Stock or
upon the exercise of rights or options to subscribe for or to purchase shares of
Common Stock, the amount of consideration received by the Company for such
shares of Common Stock shall be deemed to be the total of (i) the amount of the
consideration received by the Company upon the original issuance of such
obligations, shares, securities, rights or options, as the case may be, plus
(ii) the consideration, if any, other than such obligations, shares, securities,
rights or options, received by the Company upon such conversion, exchange, or
exercise except in adjustment of interest and dividends.

     

    (b)           The
number of Common Shares at any time outstanding shall not include any Common
Shares which are treasury shares of the Company, or the number of shares of
Common Stock deliverable in respect of the options, rights and convertible and
exchangeable securities referred to in Section
3.3(b);

     

    (c)           No
adjustment shall be made to the Exercise Price in case of the issuance of shares
of Common Stock upon conversion or exchange of any obligations or of any shares
of stock or equity securities of the Company that shall be convertible into or
exchangeable for shares of Common Stock or upon the exercise of rights or
options to subscribe for or to purchase shares of Common Stock for which an
adjustment in the Exercise Price has previously been made in accordance with
Section
3.3(a).

     

    (d)           In
case the Company shall, at any time after date of this Warrant, grant options or
rights to subscribe for Common Shares, other than those excluded by Section 3.3(b) above,
or issue any securities, convertible into or exchangeable for Common Shares, for
a consideration per share less than the Exercise Price in effect immediately
prior to the issuance of such options or rights or convertible or exchangeable
securities, the Exercise Price in effect immediately prior to the issuance of
such options or rights or securities shall be reduced to a price determined by
making a computation in accordance with the provisions of Section 3.3, provided
that:

     

    (i)           the
aggregate maximum number of Common Shares deliverable under such options or
rights shall be considered to have been delivered at the time such options or
rights were issued, and for a consideration equal to the minimum purchase price
per share of Common Stock provided for in such options or rights, plus the
consideration (determined in the same manner as consideration received on the
issue or sale of Common Stock), if any, received by the Company for such options
or rights;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii)           the
aggregate maximum number of shares of Common Stock deliverable upon conversion
of or exchange for any such securities shall be considered to have been
delivered at the time of issuance of such securities, and for a consideration
equal to the consideration (determined in the same manner as consideration
received on the issue or sale of Common Stock) received by the Company for such
securities, plus the consideration, if any, to be received by the Company upon
the exchange or conversion thereof;

     

    (iii)           on
the expiration of such options or rights or the termination of such right to
convert or exchange, the Exercise Price shall forthwith be readjusted to such
Exercise Price as would have been obtained had the adjustments made upon the
issuance of such options, rights or convertible or exchangeable securities been
made upon the basis of the delivery of only the shares of Common Stock actually
delivered or deliverable upon the exercise of such options or rights or upon
conversion or exchange of such securities; and

     

    (iv)           on
an adjustment in the exercise or conversion price or exchange ratio in such
options, rights or convertible or exchangeable securities, the Exercise Price
shall forthwith be readjusted to such Exercise Price as would have obtained had
the adjustments made upon the issuance of such options, rights or convertible or
exchangeable securities been made upon the basis of such adjusted exercise or
conversion price or exchange ratio.

     

    3.5     
    Treasurer's
Computation.  Whenever the
Exercise Price is adjusted as herein provided, the Treasurer of the Company
shall compute the adjusted Exercise Price and number of shares issuable under
the Warrant in accordance with the foregoing provisions and shall prepare a
written instrument setting forth such adjusted Exercise Price and showing in
detail the facts upon which such adjustment is based, including a statement of
the consideration received or to be received by the Company for any shares of
Common Stock issued or deemed to have been issued and included in the
computations of such adjustment, and such written instrument shall promptly be
delivered to Holder.

     

    3.6         Notice of
Certain Events.   In
case:  (a)  the Company shall declare a dividend (or any
other distribution) on the Common Stock payable otherwise than in shares of
Common Stock or in cash out of its capital surplus; or (b) of any
reclassification of the capital stock of the Company (other than a subdivision
or combination of outstanding shares of Common Stock); or (c) of any
consolidation or merger to which the Company is a party or of the sale, lease,
mortgage, pledge, conveyance or other disposition of all or substantially all of
the property of the Company; or (d) of the voluntary or involuntary dissolution,
liquidation or winding up of the Company; then the Company shall cause to be
mailed to Holder at least ten (10) days prior to the applicable record date
hereinafter specified, a notice stating (i) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights, or, if a record
is not to be taken, the date as of which the holder of record of common stock to
be entitled to such dividend,  distribution or rights are to be
determined, or  (ii)  the date  on which such
reclassification, consolidation, merger, sale, lease, mortgage, pledge,
conveyance, other disposition or liquidation is expected to become effective,
and the date as of which it is expected that holders of record of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reclassification, consolidation,
Liquidation, merger, sale, lease, mortgage, pledge, conveyance, or other
disposition.  Notwithstanding any other provision of this Agreement,
if the Company gives Holder notice of any event as provided in this Section 3.6,
Holder may in his exercise notice specify that the exercise is conditioned upon
the consummation of such transaction.  In which case, the exercise
shall not be deemed to be effective until immediately prior to the consummation
of such transaction and Holder shall not be deemed entitled to vote on any
matter.   However if Holder has elected to exercise pursuant to
Section 2.2 above then the “applicable date of valuation” as provided in Annex A
shall be the applicable record date for the transaction.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.           NO RIGHTS
AS A STOCKHOLDER.   Until exercised, this Warrant shall
not entitle Holder hereof to any voting rights or any other rights as a
stockholder of the Company.

    

    5.           RESTRICTIONS
ON TRANSFERABILITY.

    

    5.1           The
sale, transfer, assignment and/or hypothecation of this Warrant are subject to
the following limitations and conditions:

     

    (a)  The
Company will be notified in advance of each transfer;

     

    (b)
Warrant may not be transferred to more than a total of five persons or entities,
each of which must be an accredited Investor, as that term is defined in the
Securities Act.

     

    (c) The
Common Stock issuable hereunder shall not be sold, transferred, assigned, or
hypothecated except in conformity with the applicable  provisions of
the Securities Act of 1933, as then in force (the “Securities
Act”), or any similar Federal statute then in force, and all applicable
“Blue
Sky” laws;

     

    (d)  Neither
this Warrant nor the securities issuable hereunder may be issued, sold,
transferred, assigned or hypothecated unless and until there has been
compliance, to the reasonable satisfaction of counsel to the Company, with all
legal requirements
applicable  to  the  issuance,  sale,  transfer,  assignment
or hypothecation of such securities;

     

    (e).  In
connection with any issuance, sale, transfer, assignment or hypothecation, the
holder of the Warrant, if requested by the Company, shall give assurance
satisfactory to counsel to the Company that the securities are being acquired
for investment and not with a view to resale or distribution thereof, and such
other assurance as the Company may deem desirable to assure compliance with all
applicable legal requirements, including but not limited to compliance with the
Act.

    

    Upon any
transfer complying with the terms of this Section 5.1, the term Holder shall
apply to each respective transferee.
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.2           Holder
agrees to comply in all respects with the provisions of this Section
5.  Before any proposed sale, pledge, or transfer of any
Restricted Securities, unless there is in effect a registration statement under
the Securities Act covering the proposed transaction, Holder thereof shall give
notice to the Company of his intention to effect such sale, pledge, or
transfer.  Each such notice shall describe the manner and
circumstances of the proposed sale, pledge, or transfer in sufficient detail
and, if reasonably requested by the Company, shall be accompanied at Holder’s
expense by either (i) a written opinion of legal counsel, whose legal opinion
shall be reasonably satisfactory to the Company, addressed to the Company, to
the effect that the proposed transaction may be effected without registration
under the Securities Act; or (ii) any other evidence reasonably satisfactory to
counsel to the Company to the effect that the proposed sale, pledge, or transfer
of the Restricted Securities may be effected without registration under the
Securities Act, whereupon Holder shall be entitled to sell, pledge, or transfer
such Restricted Securities in accordance with the terms of the notice given by
Holder to the Company.   The Company will not require such a
legal opinion or other evidence in any transaction in compliance with SEC Rule
144.  Each certificate or instrument evidencing the Restricted
Securities transferred as above provided shall bear, except if such transfer is
made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in
Section 6,
except that such certificate shall not bear such restrictive legend if, in the
opinion of counsel for Holder and the Company, such legend is not required in
order to establish compliance with any provisions of the Securities
Act.

    

    6.           LEGEND.  This
Warrant and the securities to be issued upon exercise of this Warrant shall bear
a restrictive legend containing the following language:

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933.  THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT FOR DISTRIBUTION OR RESALE.  THEY MAY NOT BE SOLD,
ASSIGNED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OF 1933 OR THE TRANSACTION IS EXEMPT FROM SUCH REGISTRATION
REQUIREMENTS AND, IF THE COMPANY REQUESTES, AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.”

    

    7.           NOTICES.  All
notices required hereunder shall be given by first-class mail, postage prepaid,
if given by Holder addressed to the Company at 9440 Santa Monica Boulevard,
Suite 620, Beverly Hills, California 90210 or such other address as the Company
may designate in writing to Holder; and if given by the Company, addressed to
Holder at the address of Holder shown on the books of the Company.

    

    8.           GOVERNING
LAW.    The validity, construction and enforcement of
this Warrant shall be governed in all respects by the laws of the State of
Delaware, without giving effect to any principle of conflicts of laws
thereunder, and jurisdiction is hereby vested in the courts of said State in the
event of the institution of any legal action under this Warrant.

    

    9.           NO
IMPAIRMENT.   The Company shall not, by amendment of its
Certificate of Incorporation or Bylaws, or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities, or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but shall at
all times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may reasonably be requested by
the Holder in order to protect the exercise rights of the Holder against
dilution or other impairment, consistent with the tenor and purpose of this
Warrant.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10.           CUMULATIVE
REMEDIES.   Except to the extent expressly provided herein to
the contrary, the rights and remedies provided in this Warrant are cumulative
and are not exclusive of, and are in addition to and not in substitution for,
any other rights or remedies available at law, in equity or
otherwise.

     

    11.           EQUITABLE
RELIEF.   Each of the Company and the Holder acknowledges that
a breach or threatened breach by such party of any of its obligations under this
Warrant would give rise to irreparable harm to the other party hereto for which
monetary damages would not be an adequate remedy and hereby agrees that in the
event of a breach or a threatened breach by such party of any such obligations,
the other party hereto shall, in addition to any and all other rights and
remedies that may be available to it in respect of such breach, be entitled to
equitable relief, including a restraining order, an injunction, specific
performance and any other relief that may be available from a court of competent
jurisdiction.

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly
authorized officers under its corporate seal, and to be dated as of March 15,
2010.

    

    
      
        
          
            
              	 
      	
                      POW!
      ENTERTAINMENT, INC.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                       

                    
	 
      	 
      	
                      Gill
      Champion, Chief Operating
      Officer

                    

            

          

        

      

    

    

    
      	
              ATTEST:

            
	 
      
	
              ____________________________

            
	
              Secretary

            

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
A

    CASHLESS
EXERCISE FORMULA

    

    The
Cashless Exercise Formula to be used to determine the number of shares that the
Company shall issue upon the excercise of all or a portion of the Warrant shall
be, as of the applicable exercise date, as follows:

    

    
      
        
          	 
      	 
      	
                  Y
      (A-B)

                
	
                  X
      =

                	 
      	
                      
      A

                

        

      

    

     

    
      	
              Where:

            	
              X

            	
              =

            	
              The
      number of shares of Common Stock to be issued to the Holder of this
      Warrant pursuant to Section 2.2.

            
	 
      	 
      	 
      	 
      
	 
      	
              Y

            	
              =

            	
              The
      number of shares of Common Stock purchasable under this Warrant or, if
      only a portion of this Warrant is being exercised, the portion of this
      Warrant being exercised.

            
	 
      	 
      	 
      	 
      
	 
      	
              A

            	
              =

            	
              The
      Fair Market Value of one share of Common Stock; and

            
	 
      	 
      	 
      	 
      
	 
      	
              B

            	
              =

            	
              The
      Exercise Price per share (as adjusted to the date of such
      calculations).

            

    

     

    For
purposes of the Cashless Exercise Formula and  Section 2.2, the “Fair
Market Value” of a share of Common Stock as of a particular date shall
mean:

     

    (a)          
If the Common Stock is traded on a securities exchange or The Nasdaq
National Market, the Fair Market Value shall be deemed to be the average of the
closing sale prices of the Common Stock of the Company on such exchange or
market over the five (5) business days ending immediately prior to the
applicable date of valuation;

     

    (b)          
If the Common Stock is traded over-the-counter, but not on The Nasdaq
National Market, the Fair Market Value shall be deemed to be the average of the
closing bid prices over the 30-day period ending immediately prior to the
applicable date of valuation;

     

    (c)          
If the Common Stock is traded on the Pink Sheets, but not
over-the-counter, the Fair Market Value shall be deemed to be the average of the
last reported price for the last 30-days on which a sale occured prior to the
applicable date of valuation;

     

    (d)       
  If there is no
active public market for the Common Stock, the Fair Market Value shall be the
value thereof, as determined in good faith by the Board of Directors of the
Company, upon due consideration of the proposed determination thereof of the
Holder; provided, however, that if the Board and the Holder are unable to agree
on the fair market value per share of the Common Stock within a reasonable
period of time (not to exceed five (5) calendar days from the Company’s receipt
of the exercise notice), such fair market value shall be determined by a
nationally recognized investment banking, accounting or valuation firm jointly
selected by the Board and the Holder. The determination of such firm shall be
final and conclusive, and the fees and expenses of such valuation firm shall
be  borne by the Company and Holder equally.

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