Document:

Exhibit 4.3

 

WARRANT TO PURCHASE SHARES OF COMMON
STOCK OF POINT.360

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”) OR UNDER ANY
STATE SECURITIES OR “BLUE SKY” LAWS (“BLUE SKY LAWS”). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION
OR OTHER DISPOSITION OF THIS WARRANT OR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT OR ANY INTEREST THEREIN MAY BE MADE
EXCEPT (a) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY APPLICABLE BLUE SKY LAWS OR (b) IF THE CORPORATION
HAS BEEN FURNISHED WITH AN OPINION OF COUNSEL FOR THE HOLDER, WHICH OPINION AND COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE
CORPORATION, TO THE EFFECT THAT NO REGISTRATION IS REQUIRED BECAUSE OF THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER
THE 1933 ACT AND APPLICABLE BLUE SKY LAWS. 

 

THIS CERTIFIES THAT, for good and valuable
consideration Medley Opportunity Fund II LP (“Holder”), or the Holder’s registered assigns, is entitled
to subscribe for and purchase from Point.360, a California corporation (the “Corporation”), 340,000 fully paid
and nonassessable shares of the Common Stock of the Corporation at the price of $0.75 per share (the “Warrant Exercise
Price”), as adjusted pursuant to the provisions of this Warrant. This Warrant may be exercised at any time commencing
on July 8, 2015 (the “Initial Exercise Date”) to and including July 7, 2020 (the “Termination Date”).

 

The Warrant is issued pursuant to the Term
Loan Agreement entered into as of the date hereof between the Corporation and the Holder.

 

The shares which may be acquired upon exercise
of this Warrant are referred to herein as the “Warrant Shares.” As used herein, the term “Holder”
means the Holder, any party who acquires all or a part of this Warrant as a registered transferee of the Holder, or any record
holder or holders of the Warrant Shares issued upon exercise, whether in whole or in part, of the Warrant. The term “Common
Stock” means the common stock, no par value, of the Corporation. The term “exercise” shall include an exercise
for cash pursuant to Section 1(a) or a cashless exercise pursuant to Section 3(c).

 

This Warrant is subject to the following
provisions, terms and conditions:

 

1.           EXERCISE;
TRANSFERABILITY.

 

(a)          The
rights represented by this Warrant may be exercised by the Holder hereof, in whole or in part, by written notice of exercise (in
the form attached hereto) delivered to the Corporation at the principal office of the Corporation prior to the Termination Date
and accompanied or preceded by the surrender of this Warrant along with a check in payment of the Warrant Exercise Price for such
Warrant Shares or (ii) cashless exercise pursuant to Section 3(c).

 

    	 

    	 

    

  

(b)          Subject
to compliance with any applicable securities laws and the reasonable conditions and documentation required by the Corporation,
this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Corporation or its designated agent, together with a written
Assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment,
the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in
the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned, may
be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

2.           EXCHANGE
AND REPLACEMENT. Subject to the terms hereof, this Warrant is exchangeable upon the surrender hereof by the Holder to the Corporation
at its office for new Warrants of like tenor and date representing in the aggregate the right to purchase the number of Warrant
Shares purchasable hereunder, each of such new Warrants to represent the right to purchase such number of Warrant Shares (not to
exceed the aggregate total number purchasable hereunder) as shall be designated by the Holder at the time of such surrender. Upon
receipt by the Corporation of evidence reasonably satisfactory to it of the loss, theft, destruction, or mutilation of this Warrant,
and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (it being understood that a
written indemnification agreement or affidavit of loss of the Holder shall be sufficient indemnity), and upon surrender and cancellation
of this Warrant, if mutilated, the Corporation will make and deliver a new Warrant of like tenor, in lieu of this Warrant. This
Warrant shall be promptly canceled by the Corporation upon the surrender hereof in connection with any exchange or replacement.
The Corporation shall pay all expenses, taxes (other than stock transfer taxes), and other charges payable in connection with the
preparation, execution, and delivery of Warrants pursuant to this Section 2. If this Warrant shall have been exercised in part,
the Corporation shall, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares
called for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant.

 

3.           ISSUANCE
OF THE WARRANT SHARES.

 

(a)          The
Corporation agrees that the Warrant Shares shall be and are deemed to be issued to the Holder as of the close of business on the
date on which this Warrant shall have been exercised. Subject to the provisions of paragraph (b) of this Section 3, certificates
for the Warrant Shares so purchased shall be delivered to the Holder promptly after the date this Warrant shall have been exercised,
and, unless this Warrant has expired, a new Warrant representing the right to purchase the number of Warrant Shares, if any, with
respect to which this Warrant shall not then have been exercised shall also be delivered to the Holder.

 

(b)          Notwithstanding
the foregoing, however, the Corporation shall not be required to deliver any certificate for Warrant Shares upon exercise of this
Warrant except in accordance with exemptions from the applicable securities registration requirements or registrations under applicable
securities laws. Nothing herein shall obligate the Corporation to effect registrations under federal or state securities laws.
The Holder agrees to execute such documents and make such representations, warranties, and agreements as may be required solely
to comply with the exemptions relied upon by the Corporation, or the registrations made, for the issuance of the Warrant Shares.

 

    	 

    	 

    

  

(c)          Notwithstanding
any provisions herein to the contrary, in lieu of exercising this Warrant for cash, the Holder may from time to time, elect to
convert this Warrant, in whole or in part, into a number of Warrant Shares equal to:

 

X = Y (A-B)

A

 

		Where	X =        the number of Warrant Shares to be issued to the
Holder

 

 Y =       the number of Warrant Shares with respect to which this Warrant is being exercised

 

 A =      the fair market value of one Warrant Share (at the date of such calculation)

 

 B =       the Warrant Exercise Price (as adjusted to the date of such calculation)

 

For purposes of Rule
144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise
transaction pursuant to this Section 3(c) shall be deemed to have been acquired by the Holder, and the holding period for such
Warrant Shares shall be deemed to have commenced, on the Initial Exercise Date.

 

For purposes of this
Warrant, the fair market value of one share of Common Stock shall be:

 

i.            the
average daily Market Price (as defined below) during the period of the most recent ten (10) trading days, ending on the last business
day before the effective date of exercise of the Warrant, on which the national securities exchanges or over-the-counter market
in which the shares of Common Stock is quoted were open for trading. If the Common Stock is traded on a national securities exchange
or admitted to unlisted trading privileges on such an exchange, the Market Price as of a specified day shall be the last reported
sale price of Common Stock on such exchange on such date or if no such sale is made on such day, the mean of the closing bid and
asked prices for such day on such exchange (the “Market Price”); or

 

ii.         if
the Common Stock is not then listed or admitted to trading on any national securities exchange or over the counter market, the
fair market value shall be determined in good faith by the Board of Directors of the Corporation.

 

    	 

    	 

    

  

4.           COVENANTS
OF THE CORPORATION. The Corporation covenants and agrees that all Warrant Shares will, upon issuance, be duly authorized and
issued, fully paid, nonassessable and free from all taxes, liens and charges with respect to the issue thereof. The Corporation
further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Corporation
will at all times have authorized and reserved for the purpose of issue or transfer upon exercise of the subscription rights evidenced
by this Warrant a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant.
The Corporation will not take any action which would result in any adjustment of the Warrant Exercise Price if the total number
of shares of Common Stock issuable after such action upon exercise of all outstanding warrants, together with all shares of Common
Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and upon the conversion of all
convertible securities then outstanding, would exceed the total number of shares of Common Stock then authorized by the Corporation’s
Articles of Incorporation, as amended. The Corporation shall at all times in good faith assist in the carrying out of all such
terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in
this Warrant against impairment.

 

5.           CERTAIN
ADJUSTMENTS. The provisions of this Warrant are subject to adjustment as provided in this Section 5.

 

(a)          The
Warrant Exercise Price shall be adjusted from time to time such that in case the Corporation shall hereafter:

 

(i)          pay
any dividends or make any other distribution on any class of stock of the Corporation payable in Common Stock or securities convertible
into Common Stock;

 

(ii)         subdivide
its then outstanding shares of Common Stock (by any stock split, recapitalization or otherwise) into a greater number of shares;
or

 

(iii)        combine
its then outstanding shares of Common Stock (by combination, reverse stock split or otherwise) into a smaller number of shares;

 

then, in any such event,
the Warrant Exercise Price in effect immediately prior to such event shall (until adjusted again pursuant hereto) be adjusted immediately
after such event to a price (calculated to the nearest full cent) determined by dividing (A) the number of shares of Common Stock
outstanding immediately prior to such event, multiplied by the then existing Warrant Exercise Price, by (B) the total number of
shares of Common Stock outstanding immediately after such event (including in each case the maximum number of shares of Common
Stock issuable in respect of any securities convertible into Common Stock). An adjustment made pursuant to this Subsection shall
become effective immediately after the effective date of the dividend, subdivision or combination. If, as a result of an adjustment
made pursuant to this Section 5, the Holder of any Warrant thereafter surrendered for exercise shall become entitled to receive
shares of two or more classes of capital stock or shares of Common Stock and other capital stock, the Board of Directors (whose
determination shall be conclusive) shall determine the allocation of the adjusted Warrant Exercise Price between or among shares
of such classes of capital stock or shares of Common Stock and other capital stock. All calculations under this Subsection shall
be made to the nearest cent or to the nearest 1/100 of a share, as the case may be. In the event that at any time as a result of
an adjustment made pursuant to this Section 5, the holder of any Warrant thereafter surrendered for exercise shall become entitled
to receive any shares of capital stock other than shares of Common Stock, thereafter the Warrant Exercise Price of such other shares
so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to Common Stock contained in this Section 5.

 

    	 

    	 

    

  

(b)          Upon
each adjustment of the Warrant Exercise Price pursuant to Section 5(a) above, the Holder of each Warrant shall thereafter (until
another such adjustment) be entitled to purchase at the adjusted Warrant Exercise Price the number of shares, calculated to the
nearest full share, obtained by multiplying the number of shares specified in such Warrant (as adjusted as a result of all adjustments
in the Warrant Exercise Price in effect prior to such adjustment) by the Warrant Exercise Price in effect prior to such adjustment
and dividing the product so obtained by the adjusted Warrant Exercise Price.

 

(c)          In
case of any (i) capital reorganization of the Company, (ii) reclassification of the stock of the Company, (iii) consolidation or
merger to which the Corporation is a party other than a merger or consolidation in which the Corporation is the continuing corporation,
or in case of any sale or conveyance to another corporation of the property of the Corporation as an entirety or substantially
as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected
in connection with a merger of a third corporation into the Corporation), or (iv) other similar transaction, there shall be no
adjustment under Subsection (a) of this Section 5 but the Holder of this Warrant shall have the right thereafter to receive upon
exercise of this Warrant the kind and amount of shares of stock and other securities and property which he would have owned or
have been entitled to receive immediately after such reorganization, reclassification, consolidation, merger, statutory exchange,
sale, or conveyance had such Warrant been exercised immediately prior to the effective date of such reorganization, reclassification,
consolidation, merger, statutory exchange, sale, or conveyance and, in any such case thereafter, appropriate adjustment shall be
made in the application of the provisions set forth in this Section 5 with respect to the rights and interests thereafter of any
Holders of the Warrant to the end that the provisions set forth in this Section 5 shall thereafter correspondingly be made applicable,
as nearly as may reasonably be, in relation to any shares of stock and other securities and property thereafter deliverable on
the exercise of the Warrant. The provisions of this Subsection shall similarly apply to successive consolidations, mergers, statutory
exchanges, sales or conveyances. The Corporation will not effect any such reorganization, reclassification, consolidation, merger
or sale unless, prior to the consummation thereof, the successor entity (if other than the Corporation) resulting from such reorganization,
reclassification, consolidation, merger or sale shall assume the obligation to deliver to such Holder such shares of stock, securities
or property as, in accordance with the foregoing provisions, such Holder may be entitled to purchase.

 

(d)          If
any event of the type contemplated by the provisions of this Section 5 but not expressly provided for by such provisions (including
without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features) occurs,
then the Board shall make an appropriate adjustment in the Warrant Exercise Price and the number of Warrant Shares issuable upon
exercise of this Warrant so as to protect the rights of the Holder in a manner consistent with the provisions of this Section 5.

 

    	 

    	 

    

  

(e)          Upon
any adjustment of the Warrant Exercise Price, then and in each such case, the Corporation shall give written notice thereof, by
first-class mail, postage prepaid, addressed to the Holder as shown on the books of the Corporation, which notice shall state the
Warrant Exercise Price resulting from such adjustment and the increase or decrease, if any, in the number of shares of Warrant
Shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation
and the facts upon which such calculation is based.

 

(f)          The
Corporation shall give notice to the Holder if at any time prior to the expiration or exercise in full of this Warrant, any of
the following events shall occur:

 

(i)          The
Corporation shall declare any dividend (or any other distribution in whatever form) on the Common Stock;

 

(ii)         The
Corporation shall authorize the issuance to all holders of Common Stock of any additional shares of Common Stock or of rights,
options or warrants to subscribe for or purchase Common Stock or any of any other subscription rights, options or warrants;

 

(iii)        A
dissolution, liquidation or winding up of the Corporation (other than in connection with a consolidation, merger, or sale or conveyance
of the property of the Corporation as an entirety or substantially as an entirety); or

 

(iv)        A
capital reorganization or reclassification of the Common Stock (other than a subdivision or combination of the outstanding Common
Stock and other than a change in the par value of the Common Stock) or any consolidation or merger of the Corporation with or into
another corporation (other than a consolidation or merger in which the Corporation is the continuing corporation and that does
not result in any reclassification or change of Common Stock outstanding) or any sale or conveyance to another corporation of the
property of the Corporation as an entirety or substantially an entirety.

 

Such notice shall be
given at least 10 business days prior to the date fixed as a record date or effective date or the date of closing of the Corporation’s
stock transfer books for the determination of the stockholders entitled to such dividend, distribution, or subscription rights,
or for the determination of the stockholders entitled to vote on such proposed merger, consolidation, sale, conveyance, dissolution,
liquidation or winding up. Such notice shall specify such record date or the date of the closing of the stock transfer books, as
the case may be.

 

6.           NO
VOTING RIGHTS. This Warrant shall not entitle the Holder to any voting rights or other rights as a shareholder of the Corporation.

 

    	 

    	 

    

  

7.           NOTICE
OF TRANSFER OF WARRANT OR RESALE OF THE WARRANT SHARES.

 

(a)          Subject
to the sale, assignment, hypothecation, or other transfer restrictions set forth in Section 1 hereof, the Holder, by acceptance
hereof, agrees to give written notice to the Corporation before transferring this Warrant or transferring any Warrant Shares of
such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly upon receiving such written
notice, the Corporation shall present copies thereof to the Corporation’s counsel. If in the opinion of such counsel the
proposed transfer may be effected without registration or qualification (under any federal or state securities laws), the Corporation,
as promptly as practicable, shall notify the Holder of such opinion, whereupon the Holder shall be entitled to transfer this Warrant
or to dispose of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice
delivered by the Holder to the Corporation; provided that an appropriate legend may be endorsed on this Warrant or the certificates
for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory
to the Corporation to prevent further transfers which would be in violation of Section 5 of the 1933 Act and applicable state securities
laws; and provided further that the prospective transferee or purchaser shall execute such documents and make such representations,
warranties, and agreements as may be required solely to comply with the exemptions relied upon by the Corporation for the transfer
or disposition of the Warrant or Warrant Shares.

 

(b)          If,
in the opinion of the Corporation’s counsel, the proposed transfer or disposition of the Warrant or such Warrant Shares described
in the written notice given pursuant to this Section 7 may not be effected without registration or qualification of this Warrant
or such Warrant Shares, the Corporation shall promptly give written notice thereof to the Holder, and the Holder will limit its
activities in respect to such transfer or disposition as, in the opinion of such counsel, are permitted by law.

 

8.           FRACTIONAL
SHARES. Fractional shares shall not be issued upon the exercise of this Warrant, but in any case where the Holder would, except
for the provisions of this Section, be entitled under the terms hereof to receive a fractional share, the Corporation shall, upon
the exercise of this Warrant for the largest number of whole shares then called for, pay to Holder a sum in cash equal to such
fraction multiplied by the Market Price on the day prior to the date of exercise of this Warrant in lieu of such fractional share.

 

9.           REPRESENTATIONS
OF HOLDER. The holder of this Warrant, by the acceptance hereof, represents that it is acquiring this Warrant and the Warrant
Shares for its own account and not with a view toward, or for resale in connection with, the public sale or distribution of this
Warrant or the Warrant Shares, except pursuant to sales registered or exempted under the 1933 Act. The holder of this Warrant further
represents, by acceptance hereof, that, as of this date, the holder is an “accredited investor” as that term is defined
in Rule 501(a) of Regulation D promulgated by the Securities and Exchange Commission under the 1933 Act. Upon exercise
of this Warrant, the holder shall, if requested by the Corporation, confirm in writing, in a form satisfactory to the Corporation,
representations concerning the matters described in this Section 9.

 

    	 

    	 

    

  

10.         MISCELLANEOUS.

 

(a)          NOTICES.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not,
then on the next business day, or (c) two (2) business days after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Corporation at the address as
set forth on the signature page hereof, to the Holder at the Holder’s address as appearing on the Corporation’s records,
or at such other address as the Corporation or Holder may designate by ten (10) days advance written notice to the other party
hereto.

 

(b)          ATTORNEYS’
FEES. If any action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party
shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which such party
may be entitled.

 

(c)          AMENDMENTS
AND WAIVERS. This Warrant may be amended or modified only upon the written consent of both Holder and the Corporation. This
Warrant and any provision hereof may be waived only by an instrument in writing signed by the party against which enforcement of
the same is sought.

 

(d)          SEVERABILITY.
If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from
this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

(e)          GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with the laws of the State of California, without
giving effect to its conflicts of laws principles.

 

(f)          BINDING
EFFECT. This Warrant shall be binding upon any entity succeeding the Corporation by merger, consolidation or acquisition of
all or substantially all of the Corporation’s assets. All of the covenants and agreements of the Corporation shall inure
to the benefit of the successors and assigns of the Holder hereof.

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
Point.360 has caused this Warrant to be signed by its duly authorized officer and this Warrant to be dated as of July ___, 2015.

  

	 	POINT.360
	 	 	 
	 	By:	/s/ Haig S. Bagerdjian
	 	 	Name:	Haig S. Bagerdjian
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	 	Point.360
	 	 	2701 Media Center Drive
	 	 	Los Angeles, CA 90065
	 	 	 	 
	 	MEDLEY OPPORTUNITY FUND II LP

	 	 
	 	By:	/s/ Richard T. Allorto

	 	 	Name:	Richard T. Allorto

	 	 	Title:	Chief Financial Officer

 

    	 

    	 

    

 

NOTICE OF EXERCISE

(To be signed only upon exercise of the
Warrant)

 

To: Point.360

 

The undersigned hereby irrevocably elects
to exercise the attached Warrant to purchase for cash, ____________ of the shares issuable upon the exercise of such Warrant pursuant
to Section 1(a), and requests that certificates for such shares (together with a new Warrant to purchase the number of shares,
if any, with respect to which this Warrant is not exercised) shall be issued in the name of:

 

The undersigned hereby irrevocably elects
to convert the attached Warrant into shares pursuant to Section 3(c) of the attached Warrant. This conversion is exercised with
respect to ____________ of the shares issuable upon the exercise of such Warrant. The undersigned requests that certificates for
such shares (together with a new Warrant to purchase the number of shares, if any, with respect to which this Warrant is not exercised)
shall be issued in the name of:

 

[Strike paragraph above that does not
apply.]

 

	NAME:______________________________	 	 
	 	 	 
	SOC. SEC. or	 	 
	TAX I.D. NO.	 	 
	 	 	 
	ADDRESS:	 	 
	 	 	 
	 	 	 
	 	 	 
	Accredited Investor.  The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.	 	 
	 	 	 
	Date:____________________________, 201__	 	 
	 	 	Signature*

 

*  The signature on the Notice
of Exercise of Warrant must correspond to the name as written upon the face of the Warrant in every particular without alteration
or enlargement or any change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate
your position(s) and title(s) with such entity.Exhibit 4.4

 

REGISTRATION RIGHTS AGREEMENT

 

By and Among

 

POINT.360,

 

MEDLEY CAPITAL CORPORATION,

 

MEDLEY OPPORTUNITY FUND II LP,

 

MAIN STREET CAPITAL CORPORATION

 

AND

 

CONGRUENT CAPITAL OPPORTUNITIES FUND
II, LP

 

 

 

Dated as of July 8, 2015

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I    DEFINITIONS; RULES OF CONSTRUCTION	1
	 	 	 
	SECTION 1.01.	Definitions	1
	SECTION 1.02.	Rules of Construction	3
	 	 	 
	ARTICLE II   REPRESENTATIONS AND WARRANTIES	3
	 	 	 
	SECTION 2.01.	Authority; Enforceability	3
	SECTION 2.02.	Consent	4
	 	 	 
	ARTICLE III   REGISTRATION RIGHTS	4
	 	 	 
	SECTION 3.01.	Company Registration	4
	SECTION 3.02.	Demand Registration Rights	5
	SECTION 3.03.	Registration Procedures	6
	SECTION 3.04.	Registration Expenses	10
	SECTION 3.05.	Indemnification	10
	SECTION 3.06.	Holdback Agreements	12
	SECTION 3.07.	Participation in Registrations	13
	SECTION 3.08.	Rule 144	13
	 	 	 
	ARTICLE IV   MISCELLANEOUS	14
	 	 	 
	SECTION 4.01.	Notices	14
	SECTION 4.02.	Binding Effect; Benefits	15
	SECTION 4.03.	Amendment	15
	SECTION 4.04.	Assignability	15
	SECTION 4.05.	Governing Law; Submission to Jurisdiction	15
	SECTION 4.06.	Enforcement	15
	SECTION 4.07.	Severability	15
	SECTION 4.08.	Additional Securities Subject to Agreement	15
	SECTION 4.09.	Section and Other Headings	16
	SECTION 4.10.	Counterparts	16
	SECTION 4.11.	Waiver of Jury Trial	16
	SECTION 4.12.	Further Assurances	16
	SECTION 4.13.	Entire Agreement	16

 

    	-i-

    	 

    

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of 8, 2015, by and among Point.360, a California corporation (the “Company”), Medley Capital Corporation,
a Delaware Corporation, Medley Opportunity Fund II LP, a Delaware limited partnership, Main Street Equity Interests, Inc., a Delaware
corporation, and Congruent Credit Opportunities Fund II, LP, a [   ] limited partnership (such parties individually,
a “Stockholder” and, collectively, the “Stockholders”).

 

WHEREAS, on July 8, 2015, the Company and
the Stockholders entered into a Sale Agreement pursuant to Article 9 of the Uniform Commercial Code (the "Sale Agreement")
(Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Sale Agreement);
and

 

WHEREAS, the Company and the Stockholders
desire to enter into this Agreement to provide for certain registration rights with respect to the Common Stock (as defined below),
now or hereafter held by the Stockholders.

 

NOW, THEREFORE, the parties mutually agree
as follows:

 

ARTICLE
I

 

DEFINITIONS;
RULES OF CONSTRUCTION

 

SECTION
1.01.         Definitions. The following terms, as used herein, have
the following meanings:

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used with respect to any Person means
the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing. No Person shall be deemed to be an Affiliate of another Person solely by virtue of the fact that
both Persons own shares of the Company’s Capital Stock.

 

“Agreement” has the meaning
set forth in the preamble.

 

“Board” means the Board
of Directors of the Company.

 

“Business Day” means each
day that is not a day on which banking institutions in the City of New York are authorized or obligated by law or executive order
to close.

 

“Capital Stock” means,
with respect to any Person, any and all shares, interests, participations, rights in or other equivalents (however designated)
of such Person’s capital stock, and any debt, rights, warrants or options exercisable or exchangeable for or convertible
into such capital stock.

 

    	 

    	 

    

 

“Commission” means the
Securities and Exchange Commission.

 

“Common Stock” means the
Common Stock, no par value per share, of the Company.

 

“Company” has the meaning
set forth in the preamble.

 

“Demand Holder” has the
meaning set forth in Section 3.02(a).

 

“Demand Registration” has
the meaning set forth in Section 3.02(a).

 

“Effectiveness Period”
has the meaning set forth in Section 3.02(a).

 

“Exchange Act” means the
Securities Exchange Act of 1934.

 

“Lock-up Period” has the
meaning set forth in Section 3.06(a).

 

“Person” means an individual,
a corporation, a general or limited partnership, a limited liability company, a joint stock company, an association, a trust or
any other entity or organization, including a government, a political subdivision or an agency or instrumentality thereof.

 

“Piggyback Holder” has
the meaning set forth in Section 3.01(a).

 

“Piggyback Notice” has
the meaning set forth in Section 3.01(a).

 

“Piggyback Registration”
has the meaning set forth in Section 3.01(a).

 

“Qualified Public Offering”
means a bona fide initial public offering of Common Stock pursuant to an effective registration statement filed under the Securities
Act (excluding registration statements filed on Form S-8, any similar successor form or another form used for a purpose similar
to the intended use for such forms).

 

“Registrable Securities”
means (a) the Common Shares owned by any Stockholder at the time of determination, (b) the Warrant Shares and (c) any
other Capital Stock issued or issuable with respect to such Common Shares and Warrant Shares by way of a stock split, stock dividend,
reclassification, subdivision or reorganization, recapitalization or similar event. A Registrable Security shall cease to be a
Registrable Security when (i) a registration statement with respect to the offering of such security by the holder thereof
shall have been declared effective under the Securities Act and such security shall have been disposed of by such holder pursuant
to such registration statement, (ii) such security may be sold to the public, without registration under the Securities Act,
pursuant to Rule 144 (or any other similar provision then in force) promulgated under the Securities Act without regard to the
volume and manner requirements thereunder, or (iii) such security shall have been otherwise transferred by the holder thereof
and a certificate for such security not bearing a legend restricting further transfer shall have been delivered by the Company
or its transfer agent and any subsequent transfer of such security shall not require registration or qualification under the Securities
Act or any similar state law then in force.

 

    	2

    	 

    

 

“Registration” means a
Piggyback Registration or Demand Registration.

 

“Request Notice” has the
meaning set forth in Section 3.02(a).

 

“Securities Act” means
the Securities Act of 1933.

 

“Stockholder” and “Stockholders”
has the meaning set forth in the preamble.

 

SECTION
1.02.         Rules of Construction. Any provision of this Agreement
that refers to the words “include,” “includes” or “including” shall be deemed to be followed
by the words “without limitation.” References to “dollars” or “$” shall mean
dollars in lawful currency of the United States of America. References to numbered or letter articles, sections and subsections
refer to articles, sections and subsections, respectively, of this Agreement unless expressly stated otherwise. All references
to this Agreement include, whether or not expressly referenced, the exhibits and schedules attached hereto. References to a Section,
paragraph, Exhibit or Schedule shall be to a Section or paragraph of, or Exhibit or Schedule to, this Agreement unless otherwise
indicated. The words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
The word “or” when used in this Agreement is not exclusive. Any agreement, instrument, law or statute defined
or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument, or statute
as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. References to a Person are also to its permitted successors and assigns. In the event that any claim is made
by any Person relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular Person or its counsel.

 

ARTICLE
II

 

REPRESENTATIONS
AND WARRANTIES

 

Each of the parties hereby severally represents
and warrants to each of the other parties as follows:

 

SECTION
2.01.         Authority; Enforceability. Such party (a) has the legal
capacity or organizational power and authority to execute, deliver and perform its obligations under this Agreement and (b) is
duly organized and validly existing and in good standing under the laws of its jurisdiction of organization. This Agreement has
been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable
against it in accordance with the terms of this Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and other laws affecting the rights of creditors generally and to the exercise of judicial discretion in accordance with general
principles of equity (whether applied by a court of law or of equity).

 

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SECTION
2.02.         Consent. No consent, waiver, approval, authorization,
exemption, registration, license or declaration is required to be made or obtained by such party, other than those that have been
made or obtained on or prior to the date hereof, in connection with (a) the execution or delivery of this Agreement or (b) the
consummation of any of the transactions contemplated hereby.

 

ARTICLE
III

 

REGISTRATION
RIGHTS

 

SECTION
3.01.         Company Registration.

 

(a)          Right
to Piggyback on Registration of Stock. Subject to Section 3.01(c), if at any time or from time to time following the
Qualified Public Offering the Company proposes to register shares of Common Stock under the Securities Act in connection with a
public offering of such Common Stock on any form other than Form S-4 or Form S-8 or any similar successor forms or another form
used for a purpose similar to the intended use for such forms (a “Piggyback Registration”), whether for its
own account or for the account of one or more stockholders of the Company, the Company shall give each Stockholder written notice
(a “Piggyback Notice”) of such proposal (i) at least 10 days prior to the filing of the registration statement
with the Commission in connection with such Piggyback Registration and (ii) within 10 Business Days after the Company’s receipt
of any notice of an exercise of demand registration rights in accordance with Section 3.02. Upon the written request of
any Stockholder (the “Piggyback Holder”) given within 10 Business Days after receipt of any Piggyback Notice,
the Company shall cause to be registered under the Securities Act all of the Registrable Securities held by such Stockholder that
the Stockholder has requested to be registered; provided, that if, at any time after the delivery of a Piggyback Notice
and prior to the effective date of the registration statement filed in connection with such Piggyback Registration, the Company
shall determine for any reason not to register or to delay registration of all such shares of Common Stock, the Company may, at
its election, give written notice of such determination to each Piggyback Holder and, (x) in the case of a determination not
to register any of such shares of Common Stock, shall be relieved of its obligation to register any Registrable Securities in connection
with such Piggyback Registration (but not from any obligation of the Company to pay the registration expenses in connection therewith);
and (y) in the case of a determination to delay the Piggyback Registration, shall be permitted to delay registering any Registrable
Securities for the same period as the delay in the Piggyback Registration. No registration effected under this Section 3.01
shall relieve the Company of its obligation to effect any Demand Registration under Section 3.02. The Company shall
not include any Registrable Securities owned by any holder of the Company’s Capital Stock in the Qualified Public Offering
unless the Stockholders are provided the right to include Registrable Securities in such Qualified Public Offering in accordance
with the terms and provisions of this Section 3.01.

 

(b)          Selection
of Underwriters. If any Piggyback Registration involves an underwritten primary offering of the Company’s securities,
the Board shall have the right to select any underwriter or underwriters to manage such Piggyback Registration.

 

    	4

    	 

    

 

 

(c)          Priority
on Piggyback Registrations. In the event that the Piggyback Registration is an underwritten offering, the Company shall so
advise the Stockholders as part of the Piggyback Notice and the registration rights provided in Section 3.01(a) shall
be subject to the condition that if the managing underwriter or underwriters of a Piggyback Registration advise the Company that
in its or their opinion the number of Registrable Securities proposed to be sold in such Piggyback Registration exceeds the number
that can be sold without materially and adversely affecting the marketability, proposed offering price, timing, distribution method
or probability of success of the offering, the Company and the Stockholders, as the case may be, will include in such Registration
only the number of Registrable Securities which, in the opinion of such underwriter or underwriters, can be sold in such offering
without such material adverse effect. Except in the case of a Demand Registration, which shall be governed by Section 3.02(f),
the shares of Common Stock so included in such Piggyback Registration shall be apportioned as follows: (i) first, to any shares
of Common Stock that the Company proposes to sell and, (ii) second, pro rata among shares of the Registrable Securities
included in such Piggyback Registration, in each case according to the total number of shares of the Registrable Securities requested
for inclusion by the Piggyback Holders, or in such other proportions as shall mutually be agreed to among the Piggyback Holders.

 

SECTION
3.02.         Demand Registration Rights.

 

(a)          Right
to Demand. Subject to Section 3.02(b) below, at any time that the Company is eligible to file a registration statement
on Form S-3 (or any successor form) under the Securities Act, one or more Stockholders (collectively, the “Demand Holder”)
holding not less than 50% of the Registrable Securities held by all Stockholders, may make a written request, which request will
specify the aggregate number of Registrable Securities to be registered on Form S-3 (or such successor form) and will also specify
the intended methods of disposition thereof (the “Request Notice”) to the Company for registration with the
Commission under and in accordance with the provisions of the Securities Act of all or part of the Registrable Securities then
owned by the Demand Holder (a “Demand Registration”).

 

The Company shall not be obligated to maintain
a registration statement pursuant to a Demand Registration effective for more than (x) three years or (y) such shorter period when
all of the Registrable Securities covered by such registration statement have been sold pursuant thereto (the “Effectiveness
Period”). Upon any such request for a Demand Registration, the Company will deliver any Piggyback Notices required by
Section 3.01 and thereupon the Company will, subject to Section 3.01(c) and 3.02(f), use commercially
reasonable efforts to effect the prompt registration under the Securities Act of:

 

(i)          the
Registrable Securities which the Company has been so requested to register by the Demand Holder as contained in the Request Notice;
and

 

(ii)         all
other Registrable Securities which the Company has been requested to register by the Piggyback Holders;

 

all to the extent required to permit the disposition of the
Registrable Securities so to be registered in accordance with the intended method or methods of disposition of each seller of such
Registrable Securities.

 

    	5

    	 

    

 

 

(b)          Number
of Demand Registrations. The Company will not be required to effect more than an aggregate of one Demand Registration.

 

(c)          Effective
Registration. A registration will not count as a Demand Registration if such registration is interfered with by any stop order,
injunction or other order or requirement of the Commission or other governmental agency or court for any reason (other than as
a result of any act by the Demand Holder) and the Company fails to have such stop order, injunction or other order or requirement
removed, withdrawn or resolved to the Demand Holder’s satisfaction.

 

SECTION
3.03.         Registration Procedures. It shall be a condition precedent
to the obligations of the Company to take any action pursuant to this Article III that the Stockholders requesting inclusion
in any Registration shall furnish to the Company such information regarding them, the Registrable Securities held by them, the
intended method of disposition of such Registrable Securities, and such agreements regarding indemnification, disposition of such
Registrable Securities and other matters referred to in and consistent with this Article III, as the Company shall reasonably
request and as shall be required in connection with the action to be taken by the Company (such intended method of distribution
may include a distribution to, and resale by, the partners of the holders of any Registrable Securities). With respect to any Registration
which includes Registrable Securities held by a Stockholder, the Company will, subject to Sections 3.01 and 3.02:

 

(a)          As
promptly as possible (in the case of a Demand Registration, no more than 30 days after the Company’s receipt of a Request
Notice), prepare and file with the Commission a registration statement on the appropriate form prescribed by the Commission for
such intended method of disposition and use its commercially reasonable efforts to cause such registration statement to become
effective as soon as practicable thereafter; provided, that before filing a registration statement or prospectus or any
amendments or supplements thereto, the Company shall furnish to counsel representing the Stockholders selling Registrable Securities
under such Registration copies of all documents proposed to be filed, which documents shall be subject to the review and reasonable
comments of such counsel; provided, further, that the Company shall not be obligated to maintain such Registration
effective for a period longer than the Effectiveness Period;

 

(b)          Prepare
and file with the Commission such amendments and post-effective amendments to such registration statement and any documents required
to be incorporated by reference therein as may be necessary to keep the registration statement effective for a period of not less
than the Effectiveness Period (but not prior to the expiration of the time period referred to in Section 4(3) of the Securities
Act and Rule 174 thereunder, if applicable); cause the prospectus to be supplemented by any required prospectus supplement, and
as so supplemented to be filed pursuant to Rule 424 under the Securities Act and comply with the Securities Act in a timely manner;
and comply with the provisions of the Securities Act applicable to it with respect to the disposition of all Registrable Securities
covered by such registration statement during the applicable period in accordance with the intended method or methods of disposition
by the sellers thereof set forth in such registration statement or supplement to the prospectus;

 

    	6

    	 

    

 

 

(c)          Promptly
incorporate in a prospectus supplement or post-effective amendment such information as the underwriter(s) or the Demand Holder
reasonably request to be included therein relating to the plan of distribution with respect to such Registrable Securities; and
make all required filings of such prospectus supplements or post-effective amendments as soon as practical after being notified
of the matters to be incorporated in such supplement or amendment;

 

(d)          Furnish
to such Stockholder, without charge, such number of conformed copies of the registration statement and any post-effective amendment
thereto, as such Stockholder may reasonably request, and such number of copies of the prospectus (including each preliminary prospectus)
and any amendments or supplements thereto, and any documents incorporated by reference therein, as the Stockholder or underwriter
or underwriters, if any, may request in order to facilitate the disposition of the securities being sold by the Stockholder (it
being understood that the Company consents to the use of the prospectus and any amendment or supplement thereto by the Stockholder
covered by the registration statement and the underwriter or underwriters, if any, in connection with the offering and sale of
the securities covered by the prospectus or any amendments or supplements thereto);

 

(e)          Notify
such Stockholder, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, when the
Company becomes aware of the happening of any event as a result of which the prospectus included in such registration statement
(as then in effect) contains any untrue statement of material fact or omits to state a material fact necessary to make the statements
therein (in the case of the prospectus or any preliminary prospectus, in light of the circumstances under which they were made)
not misleading and, as promptly as practicable thereafter, prepare and file with the Commission and furnish a supplement or amendment
to such prospectus so that, as thereafter delivered to the investors of such securities, such prospectus will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading;

 

(f)          Provide
a CUSIP number for all Registrable Securities no later than the effective date of the Registration and provide the applicable transfer
agent and registrar for all such Registrable Securities with printed certificates representing the Registrable Securities that
are in a form eligible for deposit with The Depositary Trust Company not later than the effective date of the registration statement;

 

(g)          Use
its commercially reasonable efforts to cause all securities included in such registration statement to be listed, by the date of
the first sale of securities pursuant to such registration statement, on any national securities exchange, quotation system or
other market on which the Common Stock is then listed or proposed to be listed by the Company, if any, or, failing that, to arrange
for at least two market makers to register as such with respect to such securities with the Financial Industry Regulatory Authority;

 

(h)          At
any time that a shelf registration statement covering Registrable Securities is effective, upon receipt of a notice from a Stockholder
stating that it intends to transfer all or part of its Registrable Securities included by it on the shelf registration statement,
amend or supplement the shelf registration statement as may be necessary to enable such Registrable Securities to be distributed
pursuant to such shelf registration statement; 

 

    	7

    	 

    

 

 

(i)          After
the filing of a registration statement, (i) notify each Stockholder holding Registrable Securities covered by such registration
statement of any stop order issued or, to the Company’s knowledge, threatened by the Commission and of the receipt by the
Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the
applicable securities or blue sky laws of any jurisdiction, (ii) take all reasonable actions to obtain the withdrawal of any
order suspending the effectiveness of the registration statement or the qualification of any Registrable Securities at the earliest
possible moment, and (iii) make available for inspection by any seller of Registrable Securities, any underwriter participating
in any disposition pursuant to such registration statement, and any attorney, accountant, or other agent retained by any such seller
or underwriter, all financial and other records, pertinent corporate and business documents and properties of the Company as shall
be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors,
employees, agents, representatives, and independent accountants to supply all such information reasonably requested by any such
seller, underwriter, attorney, accountant, or agent in connection with such registration statement;

 

(j)          In
connection with the preparation and filing of each Registration, give each holder of Registrable Securities included in such Registration,
the underwriter(s) and their respective counsel, accountants and other representatives and agents the opportunity to participate
in the preparation of each registration statement, each prospectus included therein or filed with the Commission, and each amendment
thereof or supplement thereto and comparable statements under the securities or blue sky laws of any jurisdiction and give each
of the foregoing Persons access to the books and records, pertinent corporate and business documents and properties of the Company
and its subsidiaries and such opportunities to discuss the business and affairs of the Company and its subsidiaries with the respective
directors, officers, employees, agents, representatives and the independent public accountants who have certified the Company’s
consolidated financial statements, and supply all other information and respond to all other inquiries requested by such holders,
underwriter(s), counsel, accountants and other representatives and agents as shall be necessary or appropriate, in the opinion
of such holders or underwriter(s), to conduct a reasonable investigation within the meaning of the Securities Act, and the Company
shall not file any registration statement or amendment thereto or any prospectus or supplement thereto to which such holder or
such underwriter(s) shall object;

 

(k)          Cause
its employees to participate in “road shows” and other presentations as reasonably requested by the underwriters in
connection with such Registration;

 

(l)           Deliver
promptly to counsel representing the Stockholders selling Registrable Securities under such Registration and each underwriter,
if any, participating in the offering of the Registrable Securities, copies of all correspondence between the Commission and the
Company, its counsel or auditors, and all memoranda relating to discussions with the Commission or its staff with respect to such
Registration; and

 

    	8

    	 

    

 

 

(m)          On
or prior to the date on which the registration statement is declared or otherwise becomes effective, use commercially reasonable
efforts to (i) register or qualify, and cooperate with such underwriter or underwriters, if any, and their counsel in connection
with the registration or qualification of, the securities covered by the registration statement for offer and sale under the securities
or blue sky laws of each state and other jurisdiction of the United States as the managing underwriter or underwriters, if any,
requests in writing, to use commercially reasonable efforts to keep each such registration or qualification effective, including
through new filings, or amendments or renewals, during the Effectiveness Period and do any and all other acts or things necessary
or advisable to enable the disposition in all such jurisdictions of the Registrable Securities covered by the applicable registration
statement; provided, that the Company will not be required to qualify generally to do business in any jurisdiction where
it is not then so qualified or to take any action which would subject it to general service of process in any such jurisdiction
where it is not then so subject, and (ii) enter into and perform its obligations under such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the holders of a majority of the Registrable Securities included
in the Request Notice, in the case of a Demand Registration, or the holders of a majority of the Registrable Securities being sold
or the underwriters, if any, in the case of a Piggyback Registration, reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities (including effecting a stock split, combination of shares, recapitalization, or reorganization);

 

(n)          Otherwise
use its reasonable efforts to take all other steps necessary to effect the registration of such Registrable Securities contemplated
hereby.

 

The Stockholders, upon receipt of any notice
from the Company of the happening of any event of the kind described in subsection (e) of this Section 3.03, will forthwith
discontinue disposition of the Registrable Securities until the Stockholders’ receipt of the copies of the supplemented or
amended prospectus contemplated by subsection (e) of this Section 3.03 or until it is advised in writing by the Company
that the use of the prospectus may be resumed, and has received copies of any additional or supplemental filings which are incorporated
by reference in the prospectus, and, if so directed by the Company, each Stockholder will, or will request the managing underwriter
or underwriters, if any, to, deliver, to the Company (at the Company’s sole expense) all copies, other than permanent file
copies then in such Stockholder’s possession, of the prospectus covering such securities current at the time of receipt of
such notice.

 

No holder of Registrable Securities shall
be required to make any representations or warranties to or agreements with the Company, other than representations and warranties
regarding such holder, such holder’s ownership of and title to the Registrable Securities to be sold in such offering, and
its intended method of distribution and any liability of any such holder under such underwriting agreement shall be limited to
liability arising from breach of its representations and warranties therein and shall be limited to an amount equal to the net
amount received by such holder from the sale of Registrable Securities pursuant to such registration statement.

 

    	9

    	 

    

 

 

SECTION
3.04.         Registration Expenses.

 

(a)          Subject
to Section 3.04(b), in the case of any Registration, all expenses incurred by the Company in performing or complying with
its obligations pursuant to Sections 3.01, 3.02 and 3.03 of this Agreement, including all Commission
and stock exchange or Financial Industry Regulatory Authority registration and filing fees and expenses, fees and expenses of compliance
with securities or blue sky laws (including reasonable fees and disbursements of counsel for the Company in connection with blue
sky qualifications of the Registrable Securities), rating agency fees, printing expenses, messenger, telephone and delivery expenses,
and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

(b)          Each
Stockholder that participates in any Registration shall promptly reimburse the Company for the expenses incurred by the Company
with respect to such Registration, on a pro rata basis according to such Stockholder’s number of Registrable Securities
included in such Registration, up to a total aggregate amount of $100,000 for all Registrations, provided that if the Company is
not reimbursed by any such Stockholder after five-days' written notice from the Company to such Stockholder of its portion of the
Company's reimbursable expenses, the Company's obligations to the Stockholders hereunder shall terminate unless the Company is
reimbursed in full by any Stockholder after fifteen-days' written notice from the Company to the Stockholders.

 

SECTION
3.05.         Indemnification.

 

(a)          Indemnification
by the Company. The Company agrees to indemnify and hold harmless each Stockholder, the underwriters selling such Stockholder’s
Registrable Securities and their respective officers, directors, Affiliates and agents and each Person who controls (within the
meaning of the Securities Act or the Exchange Act) any of them, including any general partner or manager of any thereof, against
all losses, claims, damages, liabilities and expenses (including reasonable out-of-pocket counsel fees and disbursements) arising
out of or based upon any untrue or alleged untrue statement of a material fact contained in any registration statement, prospectus
or preliminary prospectus, or any amendment thereof or supplement thereto, in which such Stockholder participates in an offering
of Registrable Securities or in any document incorporated by reference therein or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus or any
preliminary prospectus, in the light of the circumstances under which they were made) not misleading, and shall reimburse such
Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating such loss, claim, damage
or liability, except insofar as the same are caused by or contained in any information with respect to such Stockholder furnished
in writing to the Company by such Stockholder expressly for use therein. The indemnification provided under this Section 3.05(a)
shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer,
director or controlling person of such indemnified party and shall survive the transfer of the Registrable Securities.

 

    	10

    	 

    

 

 

(b)          Indemnification
by the Stockholders. In connection with any registration statement in which a Stockholder is participating, each such Stockholder
will furnish to the Company in writing such information and affidavits with respect to such Stockholder as the Company reasonably
requests for use in connection with any registration statement or prospectus covering the Registrable Securities of such Stockholder
and to the extent permitted by law agrees to indemnify and hold harmless the Company, its directors, officers and agents and each
Person who controls (within the meaning of the Securities Act or the Exchange Act) the Company, against any losses, claims, damages,
liabilities and expenses arising out of or based upon any untrue statement of a material fact or any omission to state a material
fact required to be stated therein or necessary to make the statements in the registration statement, prospectus or preliminary
prospectus (in the case of the prospectus or preliminary prospectus, in light of the circumstances under which they were made)
not misleading, to the extent, but only to the extent, that such untrue statement or omission is made in reliance on and in conformity
with the information or affidavit with respect to such Stockholder so furnished in writing by such Stockholder expressly for use
in the registration statement or prospectus; provided, that the obligation to indemnify shall be several, not joint and
several, among such Stockholders and the liability of each such Stockholder shall be in proportion to and limited to the net amount
received by such Stockholder from the sale of Registrable Securities pursuant to such registration statement in accordance with
the terms of this Agreement. The indemnity agreement contained in this Section 3.05(b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent
of such Stockholder. The Company and the holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise
expressly agreed to in writing by such holders, the only information furnished or to be furnished to the Company for use in any
registration statement or prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials
associated therewith are statements specifically relating to (i) the beneficial ownership of shares of Common Stock by such
holder and its Affiliates, (ii) the name and address of such holder and (iii) any additional information about such holder
or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such
document.

 

(c)          Conduct
of Indemnification Proceedings. Any Person entitled to indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party’s
reasonable judgment a conflict of interest may exist between such indemnified and indemnifying parties with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.
The failure to so notify the indemnifying party shall not relieve the indemnifying party from any liability hereunder with respect
to the action, except to the extent that such indemnifying party is materially prejudiced by the failure to give such notice; provided,
that any such failure shall not relieve the indemnifying party from any other liability which it may have to any other party or
to such indemnified party other than pursuant to this Section 3.05. No indemnifying party in the defense of any such claim
or litigation, shall, except with the consent of such indemnified party, which consent shall not be unreasonably withheld, consent
to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses
of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party there may be one or more legal or equitable defenses available to such indemnified party which
are in addition to or may conflict with those available to any other of such indemnified parties with respect to such claim, in
which event the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel or counsels.

 

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(d)          Contribution.
If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) of this Section 3.05 is unavailable
to an indemnified party as contemplated by the preceding paragraphs (a) and (b) of this Section 3.05 or is insufficient
to hold such indemnified party harmless, then the indemnifying party shall contribute to the amount paid or payable by the indemnified
party as a result of such loss, claim, damage or liability (i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnified party and the indemnifying party, or (ii) if the allocation provided by the preceding clause (i) is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
the preceding clause (i) but also the relative fault of the indemnified party and the indemnifying party, as well as any other
relevant equitable considerations. The relative fault of the Company on the one hand and of the sellers of Registrable Securities
and any other sellers participating in the registration statement on the other hand shall be determined by reference to, among
other things, whether the untrue or alleged omission to state a material fact relates to information supplied by the Company or
by the sellers of Registrable Securities or other sellers participating in the registration statement and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. In no event shall the
liability of any such Stockholder be greater in amount than the amount of net proceeds received by such Stockholder upon such sale
or the amount for which such indemnifying party would have been obligated to pay by way of indemnification if the indemnification
provided in paragraph (b) of this Section 3.05 had been available.

 

SECTION
3.06.         Holdback Agreements.

 

(a)          Whenever
the Company proposes to register any of its equity securities under the Securities Act in an underwritten offering for its own
account (other than on Form S-4 or S-8 or any similar successor form or another form used for a purpose similar to the intended
use of such forms) or is required to use its reasonable efforts to effect the registration of any Registrable Securities under
the Securities Act pursuant to Section 3.01 or 3.02, upon the request of the managing underwriter of such offering,
each holder of Registrable Securities agrees by acquisition of such Registrable Securities, without the consent of the managing
underwriter for such offering, not to effect any sale or distribution, including any sale pursuant to Rule 144 under the Securities
Act, or to request registration under Section 3.02 of any Registrable Securities for the time period reasonably requested
by the managing underwriter for the underwritten offering; provided, that in no event shall such period exceed 180 days
(the “Lock-up Period”) after the effective date of the registration statement relating to such Registration,
except (i) as part of such Registration or (ii) in the case of a private sale or distribution, unless the transferee agrees in
writing to be subject to this Section 3.06. If requested by such managing underwriter, each holder of Registrable Securities
agrees to execute a holdback agreement, in customary form, consistent with the terms of this Section 3.06(a); provided,
that the form of the lock-up shall be substantially identical as to each similarly situated Stockholder; provided, further,
that if the Company releases any holder of Registrable Securities from such holdback agreement, it shall similarly release all
other holders of Registrable Securities on a pro rata basis. Notwithstanding the foregoing, no Stockholder shall be subject to
a Lock-up Period in excess of 180 days in any calendar year due to the registration of any Registrable Securities pursuant to Section 3.02.

 

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(b)          The
Company agrees not to effect any sale or distribution of any of its equity securities or securities convertible into or exchangeable
or exercisable for any such equity securities within the Lock-up Period (except as part of such underwritten Registration or pursuant
to registrations on Form S-8, S-4 or any successor forms thereto), except that such restriction shall not prohibit any such sale
or distribution after the effective date of the registration statement (i) pursuant to any stock option, warrant, stock purchase
plan or agreement or other benefit plans approved by the Board to officers, directors or employees of the Company or its subsidiaries;
(ii) pursuant to Section 4(2) of the Securities Act; or (iii) as consideration to any third party seller in connection
with the bona fide acquisition by the Company or any subsidiary of the Company of the assets or securities of any Person in any
transaction approved by the Board. In addition, upon the request of the managing underwriter, the Company shall use commercially
reasonable efforts to cause each holder of its equity securities or any securities convertible into or exchangeable or exercisable
for any of such securities whether outstanding on the date of this Agreement or issued at any time after the date of this Agreement
(other than any such securities acquired in a public offering), to agree not to effect any such public sale or distribution of
such securities during such period, except as part of any such registration if permitted, and to cause each such holder to enter
into a similar agreement to such effect with such managing underwriter. Notwithstanding the foregoing, the Company shall not be
subject to a Lock-up Period in excess of 180 days in any calendar year due to the registration of any Registrable Securities pursuant
to Section 3.02.

 

SECTION
3.07.         Participation in Registrations. No Stockholder may participate
in any Registration hereunder that is underwritten unless such Stockholder (a) agrees to sell its securities on the basis provided
in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements (provided, that
such underwriting arrangements shall not limit any of such Stockholder’s rights under this Agreement), and (b) completes
and executes all questionnaires, powers of attorney, underwriting agreements and other documents customarily required under the
terms of such underwriting arrangements.

 

SECTION
3.08.         Rule 144. The Company shall file any reports required
to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder,
and it will take such further action as any holder may reasonably request to enable such holder to sell Registrable Securities
without registration under the Securities Act as permitted by (i) Rules 144 under the Securities Act, or (ii) any similar
rules or regulation hereafter adopted by the Commission. Upon the request of a holder of Registrable Securities, the Company, at
the holder's own expense, will deliver to such holder: (x) a written statement as to whether it has complied with the requirements
that would make the exemption provided by such Rule or Rules available to such holder (and such holder shall be entitled to rely
on the accuracy of such written statement); (y) a copy of the most recent annual or quarterly report of the Company; and (z) such
other reports and documents as such holder may reasonably request in order to avail itself of any rule or regulation of the Commission
allowing it to sell Registrable Securities without registration.

 

 

    	13

    	 

    

 

 

ARTICLE
IV

 

MISCELLANEOUS

 

SECTION
4.01.         Notices. Except as otherwise specified herein, all notices
and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail,
return receipt requested, postage prepaid or otherwise delivered by hand, messenger, facsimile transmission or electronic mail
and shall be given to such party at its address or facsimile number set forth on the signature pages hereof or such other address
or facsimile number as such party may hereafter specify in writing in accordance with this Section 4.01; provided,
that:

 

(a)          unless
otherwise specified by a Stockholder in a notice delivered by such Stockholder in accordance with this Section 4.01,
any notice required to be delivered to such Stockholder shall be properly delivered if delivered to the address set forth below
such Stockholder’s signature hereto

 

with a copy (which shall not constitute
notice) to:

 

Proskauer Rose LLP

One International Place

Boston, MA 02110

Fax: (617) 526-9899

Email: sellis@proskauer.com; ppossinger@proskauer.com;
mmano@proskauer.com

Attention: Steven Ellis, Paul Possinger and Michael
Mano

 

(b)          unless
otherwise specified by the Company in a notice delivered by the Company in accordance with this Section 4.01, any notice
required to be delivered to the Company shall be properly delivered if delivered to:

 

Point.360

2701 Media Center Drive

Los Angeles, CA 90065

Fax: (818) 847-2503

Email: asteel@point360.com

Attention: Alan Steel, Chief Financial Officer

 

with a copy (which shall not constitute notice) to:

 

TroyGould PC

1801 Century Park East, 16th Floor

Los Angeles, CA 90067

Fax: (310) 201-4746

Email: wgould@troygould.com

Attention: William D. Gould, Esq.

 

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SECTION
4.02.         Binding Effect; Benefits. This Agreement shall be binding
upon and inure to the benefit of the parties to this Agreement and their respective successors and permitted assigns. Except as
set forth in Section 3.05, nothing in this Agreement, express or implied, is intended or shall be construed to give
any Person other than the parties to this Agreement or their respective successors or permitted assigns any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision contained herein.

 

SECTION
4.03.         Amendment. This Agreement may not be amended, restated,
modified or supplemented in any respect and the observance of any term of this Agreement may not be waived except by a written
instrument executed by the parties hereto.

 

SECTION
4.04.         Assignability. Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be assignable by either the Company or any Stockholder except
as otherwise expressly stated hereunder.

 

SECTION
4.05.         Governing Law; Submission to Jurisdiction. This Agreement
shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to its
principles of conflict of laws. The parties hereto irrevocably submit, in any legal action or proceeding relating to this Agreement,
to the jurisdiction of the courts of the United States located in the State of New York or in any New York state court located
in New York county and consent that any such action or proceeding may be brought in such courts and waive any objection that they
may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought
in an inconvenient forum.

 

SECTION
4.06.         Enforcement. The parties hereto agree that irreparable
damage (for which monetary damages, even if available, would not be an adequate remedy) would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms on a timely basis or were otherwise breached.
It is accordingly agreed that the Stockholders shall be entitled to an injunction, specific performance and other equitable relief
to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court identified
in Section 4.05 above without the need to post bond, this being in addition to any other remedy to which they are entitled
at law or in equity.

 

SECTION
4.07.         Severability. If any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

 

SECTION
4.08.         Additional Securities Subject to Agreement. All shares
of Capital Stock that any Stockholder hereafter acquires by means of a stock split, stock dividend, distribution, exercise of options
or warrants or otherwise (other than pursuant to a public offering) whether by merger, consolidation or otherwise (including shares
of a surviving corporation into which the shares of Capital Stock are exchanged in such transaction) will be subject to the provisions
of this Agreement to the same extent as if held on the date of the this Agreement.

 

    	15

    	 

    

 

 

SECTION
4.09.         Section and Other Headings. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

 

SECTION
4.10.         Counterparts. This Agreement may be executed in any number
of counterparts, each of which may be executed by less than all of the parties hereto, each of which shall be enforceable against
the parties actually executing such counterparts, and all of which together shall constitute one instrument.

 

SECTION
4.11.         Waiver of Jury Trial. Each party to this Agreement hereby
irrevocably and unconditionally waives to the fullest extent permitted by applicable law all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to the actions of the parties
hereto pursuant to this Agreement or in the negotiation, administration, performance or enforcement of this Agreement.

 

SECTION
4.12.         Further Assurances. Each party shall perform any further
acts and execute and deliver any further documents that may be reasonably necessary or advisable to carry out the provisions of
this Agreement.

 

SECTION
4.13.         Entire Agreement. This Agreement supersedes all prior
agreements, whether written or oral, between the parties with respect to its subject matter (including this Agreement) and constitutes
(along with the exhibits and other documents delivered pursuant to this Agreement) a complete and exclusive statement of the terms
of the agreement between the parties with respect to its subject matter.

 

[SIGNATURE PAGES FOLLOW]

 

    	16

    	 

    

 

IN WITNESS WHEREOF, the Company and each
Stockholder have executed this Agreement as of the day and year first above written.

 

	 	POINT.360
	 	 	 
	 	By:	/s/ Haig S. Bagerdjian
	 	 	Name: Haig S. Bagerdjian
	 	 	Title:  Chief Executive Officer
	 	 	 
	 	MEDLEY CAPITAL CORPORATION
	 	 	 
	 	By:	/s/ Richard T. Allorto
	 	 	Name: Richard T. Allorto
	 	 	Title: Chief Financial Officer
	 	 	 
	 	MEDLEY OPPORTUNITY FUND II LP
	 	 	 
	 	By:	/s/ Richard T. Allorto
	 	 	Name: Richard T. Allorto
	 	 	Title: Chief Financial Officer
	 	 	 
	 	MAIN STREET EQUITY INTERESTS, INC.
	 	 	 
	 	By:	/s/ Nick Meserve
	 	 	Name: Nick Meserve
	 	 	Title: Managing Director
	 	 	 
	 	CONGRUENT CREDIT OPPORTUNITIES FUND II, LP
	 	 	 
	 	By:	/s/Matthew Killebrew
	 	 	Name: Matthew Killebrew
	 	 	Title: Authorized Signatory

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