Document:

Exhibit 4.7

Exhibit 4.7

SUBSCRIPTION AGREEMENT

OF 

DOLPHIN DIGITAL MEDIA, INC.

(DPDM.OB)

 

 

 

Name of Investor: T Squared Investments LLC

SUBSCRIPTION AGREEMENT

July 29, 2009

Dolphin Digital Media, Inc.

804 Douglas Road

Executive Tower Building, Suite 365

Coral Gables, Florida 33134

1. Investment. Subject to and in reliance upon the representations, warranties, terms
and conditions of this Subscription Agreement (the “Agreement”), Dolphin Digital Media, Inc., a
Nevada corporation (the “Company”) hereby agrees, on the Purchase Date (as defined below), to sell,
assign, transfer and deliver to Investor (as defined below), and the undersigned (sometimes
referred to herein as “I” or the “Investor”) hereby agrees, on the Purchase Date (as defined
below), to purchase and accept from the Company convertible debt of the Company in the total amount
of Three Hundred Thousand Dollars ($300,000.00) (the “Convertible Debt”), with such Convertible
Debt converted into shares of Company stock at a conversion price of $0.39 per share. Such
Convertible Debt is due on July 29, 2015, holds a Zero Percent (0.0%) annual interest rate, and
cannot be pre-paid to the Investor without the consent of the Investor. The Company also agrees to
issue to the Investor a warrant in the amount of 384,615 shares, exercisable at $0.80 per share and
having a term of Three Years from the date set forth above, as set forth on Schedule I
attached hereto at the Purchase Price (as set forth below) and on the terms and conditions
described herein. The Convertible Debt and Warrants purchased by the Investor shall be herein
defined as the “Purchased Securities”.

For purposes of this Agreement, (i) “Purchase Date” shall be such date as determined by the Company
and Investor as the date upon which to consummate the purchase of the Purchased Securities as
evidenced by the execution of this Agreement; and (ii) “Purchase Price” shall be the $300,000.00 in
Convertible Debt. The minimum investment is fifty thousand dollars ($50,000). The maximum is three
million two hundred thousand dollars ($3,200,000), subject to waiver by the Company.

2. Payment. I hereby tender to the Company on the Purchase Date (i) the Purchase
Price in full by wire transfer of immediately available funds to the account designated to me by
the Company on Annex A hereto, (ii) one manually executed copy of this Subscription
Agreement and (iii) an executed copy of my Accredited Investor Questionnaire which is attached
hereto as Annex B.

 

 

 

I fully understand that the Company has a limited operating history and that the Purchased
Securities are a speculative investment which involve a high degree of risk of loss of
my entire investment. I fully understand the nature of the risks involved in purchasing the
Purchased Securities from the Company and I am qualified by my knowledge and experience to evaluate
investments of this type. I have carefully considered the potential risks relating to the Company
and purchasing the Purchased Securities from the Company and have, in particular, reviewed each of
the risks set forth in Annex C attached hereto and the SEC filings described in Annex
C attached hereto which may be obtained at www.sec.gov. Both my advisors and I have
had the opportunity to ask questions of and receive answers from representatives of the Company or
persons acting on its behalf concerning the Company and the terms and conditions of a proposed
investment in the Company and my advisors and I have also had the opportunity to obtain additional
information necessary to verify the accuracy of information furnished about the Company.
Accordingly, I have independently evaluated the risks of purchasing the Purchased Securities from
the Company.

3. Investor Representations and Warranties. I acknowledge, represent and warrant to,
and agree with, the Company as follows:

(a) I am aware that my investment involves a high degree of risk, certain of which risks are
disclosed in the Risk Factors attached hereto as Annex C. I am aware that the Company has
incurred significant losses during each fiscal year since its inception and will likely require
additional financing.

(b) I acknowledge and am aware that there is no assurance as to the future performance of the
Company.

(c) I acknowledge that there may be certain adverse tax consequences to me in connection with
my purchasing the Purchased Securities from the Company, and the Company has advised me to seek the
advice of experts in such areas prior to making this investment.

(d) I am purchasing the Purchased Securities from the Company for my own account for
investment and not with a view to or for sale in connection with the receipt of the Purchased
Securities, nor with any present intention of selling or otherwise disposing of all or any part of
the Purchased Securities. I agree that I must bear the economic risk of my investment for an
indefinite period of time because, among other reasons, none of the Purchased Securities have been
registered under the Securities Act of 1933, as amended (the “Securities Act”) or under the
securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise
disposed of unless they are subsequently registered under the Securities Act and under applicable
securities laws of certain states or an exemption from such registration is available. I
understand that the Company is under no obligation to register any of the Purchased Securities on
my behalf or to assist me in complying with any exemption from such registration under the
Securities Act or any state securities laws. I hereby authorize the Company to place a legend
denoting the foregoing restrictions on any of the Purchased Securities.

 

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(e) I am not a member of the National Association of Securities Dealers, Inc. (“NASD”); I am
not and have not, for a period of 12 months prior to the date of this Subscription Agreement, been
affiliated or associated with any company, firm, or other entity which is a
member of the NASD; and I do not own any stock or other interest in any member of the NASD
(other than interests acquired in open market purchases).

(f) I recognize that the Purchased Securities, as an investment, involve a high degree of risk
including, but not limited to, the risk of economic losses from operations of the Company and the
total loss of my investment. I believe that an investment in the Purchased Securities is suitable
for me based upon my investment objectives and financial needs, and I have adequate means for
providing for my current financial needs and contingencies and have no need for liquidity with
respect to my investment in the Purchased Securities.

(g) I have been given access to full and complete information regarding the Company and the
Purchased Securities and have utilized such access to my satisfaction for the purpose of obtaining
information, and I have either met with or been given reasonable opportunity to meet with officers
of the Company for the purpose of asking questions and receiving answers from, such officers
concerning the terms and conditions of the issuance of the Purchased Securities and the business
and operations of the Company and to obtain any additional information, to the extent reasonably
available.

(h) I have such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of purchasing the Purchased Securities, and thereby investing in
the Purchased Securities and have obtained, in my judgment, sufficient information from the Company
to evaluate the merits and risks of an investment in the Purchased Securities. I have not utilized
any person as my purchaser representative as defined in Regulation D promulgated by the Securities
Exchange Commission pursuant to the Securities Act in connection with evaluating such merits and
risks.

(i) I have relied solely upon my own investigation in making a decision to invest in the
Purchased Securities.

(j) I have received no representation or warranty from the Company or any of its respective
officers, directors, employees, consultants or agents in respect of my investment in the Purchased
Securities and I have received no information (written or otherwise) from them relating to the
Company or its business other than the information contained in the SEC filings described on
Annex D attached hereto. I am not participating in the offer as a result of or subsequent
to: (i) any advertisement, article, notice or other communication published in any newspaper,
magazine or similar media or broadcast over television or radio or (ii) any seminar or meeting
whose attendees have been invited by any general solicitation or general advertising.

(k) I have had full opportunity to ask questions and to receive satisfactory answers
concerning the offering and other matters pertaining to my investment and all such questions have
been answered to my full satisfaction.

 

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(l) I have been provided an opportunity to obtain any additional information concerning the
Purchased Securities and the Company and all other information to the extent the Company possesses
such information or can acquire it without unreasonable effort or expense.

(m) I am an “accredited investor” as defined in Section 2(15) of the Securities Act and in
Rule 501 promulgated thereunder.

(n) I understand that (i) the Purchased Securities have not been registered under the
Securities Act, or the securities laws of any state in reliance on specific exemptions from
registration, (ii) no securities administrator of any state or the federal government has
recommended or endorsed the offering of the Purchased Securities or made any finding or
determination relating to the fairness of an investment in the Company and (iii) the Company is
relying on my representations, warranties and agreements for the purpose of determining whether
this transaction meets the requirements of the exemptions afforded by the Securities Act and
certain state securities laws.

(o) I understand that since neither the offer nor sale of the Purchased Securities has been
registered under the Securities Act or the securities laws of any state, the Purchased Securities
may not be sold, assigned, pledged or otherwise disposed of unless they are so registered or an
exemption from such registration is available.

(p) I have been urged to seek independent advice from my professional advisors relating to the
suitability of an investment in the Company in view of my overall financial needs and with respect
to the legal and tax implications of such investment.

(q) If the undersigned is a corporation, company, trust, employee benefit plan, individual
retirement account, Keogh Plan, or other tax-exempt entity, it is authorized and qualified to
become an investor in the Company and the person signing this Subscription Agreement on behalf of
such entity has been duly authorized by such entity to do so.

(r) The information contained in my Accredited Investor Questionnaire, as well as any
information which I have furnished to the Company with respect to my financial position and
business experience, is correct and complete as of the date of this Subscription Agreement and, if
there should be any material change in such information prior to the consummation of the
transactions contemplated hereby, I will furnish such revised or corrected information to the
Company.

I hereby acknowledge and am aware that except for any rescission rights that may be provided
under applicable laws, I am not entitled to cancel, terminate or revoke this subscription, and any
agreements made in connection herewith shall survive my death or disability.

 

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5. Indemnification. I hereby agree to indemnify and hold harmless the Company and its
officers, directors, shareholders, employees, agents, and attorneys against any and all losses,
claims, demands, liabilities, and expenses (including reasonable legal or other expenses, including
reasonable attorneys’ fees) incurred by each such person in connection with defending or
investigating any such claims or liabilities, whether or not resulting in any liability to such
person, to which any such indemnified party may become subject under the Securities
Act, under any other statute, at common law or otherwise, insofar as such losses, claims,
demands, liabilities and expenses (a) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact made by me and contained in this Subscription Agreement
or my Accredited Investor Questionnaire, or (b) arise out of or are based upon any breach by me of
any representation, warranty, or agreement made by me contained herein.

6. Severability. In the event any parts of this Subscription Agreement are found to
be void, the remaining provisions of this Subscription Agreement shall nevertheless be binding with
the same effect as though the void parts were deleted.

7. Choice of Law and Jurisdiction; Arbitration. This Subscription Agreement will be
deemed to have been made and delivered in the state of the Investor’s residence as set forth on the
signature page hereto and will be governed as to validity, interpretation, construction, effect and
in all other respects by the internal laws of the State of Nevada.

8. Counterparts. This Subscription Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. The execution of this Subscription Agreement may be by actual or
facsimile signature.

9. Benefit. This Subscription Agreement shall be binding upon and inure to the
benefit of the parties hereto.

10. Notices and Addresses. All notices, offers, acceptance and any other acts under
this Subscription Agreement (except payment) shall be in writing, and shall be sufficiently given
if delivered to the addresses in person, by Federal Express or similar courier delivery, or, if
mailed, postage prepaid, by certified mail, return receipt requested, as follows:

	 	 	 
	Investor:

	 	At the address designated on the signature page of this Subscription
Agreement.
	 
	 	 
	the Company:

	 	Dolphin Digital Media, Inc.
	 

	 	804 Douglas Road
	 

	 	Executive Tower Building, Suite 365
	 

	 	Coral Gables, Florida 33134
	 

	 	Tel: (305) 774-0407

or to such other address as any of them, by notice to the others may designate from time to time.
The transmission confirmation receipt from the sender’s facsimile machine shall be conclusive
evidence of successful facsimile delivery.

 

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11. Oral Evidence. This Subscription Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior oral and
written agreements between the parties hereto with respect to the subject matter hereof.
This Subscription Agreement may not be changed, waived, discharged, or terminated orally but,
rather, only by a statement in writing signed by the party or parties against whom enforcement or
the change, waiver, discharge or termination is sought.

12. Section Headings. Section headings herein have been inserted for reference only
and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in
whole or in part, any of the terms or provisions of this Subscription Agreement.

13. Survival of Representations, Warranties and Agreements. The representations,
warranties and agreements contained herein shall survive the delivery of, and the payment for, the
Purchased Securities.

14. Acceptance of Purchase. The Company may accept this Subscription Agreement by
executing a copy hereof as provided and notifying the Investor within a reasonable time thereafter.

RESIDENTS OF ALL STATES: THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED AND
SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF
THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER
REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS
OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THIS SUBSCRIPTION AGREEMENT. ANY REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

 

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PLEASE RETURN THIS SIGNATURE PAGE VIA FAX TO:

DOLPHIN ENTERTAINMENT CAPITAL, INC.

FAX NUMBER (305) 774-0405

Dated: July 29, 2009

Manner in Which Title to the Securities is to be Held. (check one)

o Individual Ownership

o Community Property

o Joint Tenant with Right of Survivorship (both parties must sign)

þ Partnership

o Tenants in common

o Corporation

o Trust

o Other (Please indicate)

	 	 	 	 	 	 	 	 	 
	INDIVIDUAL INVESTORS:	 	ENTITY INVESTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas Sauve	 	 
	 	 	 	 	 	 	 
	Signature (Individual)

	 	 	 	Name:
	 	Thomas Sauve	 	 
	 

	 	 	 	Title:
	 	Managing Member,	 	 
	 

	 	 	 	 	 	T Squared Investments LLC	 	 
	Signature (Joint)

	 	 	 	 	 	 	 
	(all record holders must sign)
	 	 	 	 	 	 	 	 

	 	 	 
	 

Name(s) Typed or Printed

	 	 
	 
	 	 
	Address to Which Correspondence

	 	Address to Which Correspondence
	Should be Directed

	 	Should be Directed
	 

	 	T Squared Investments LLC
	 

	 	1325 Sixth Ave., Fl. 27
	 

	 	New York, NY 10019
	 

	 	26-0147159
	Tax Identification or

	 	Tax Identification or
	Social Security Number

	 	Social Security Number

The foregoing subscription is accepted and the Company hereby agrees to be bound by its terms.

	 	 	 	 	 
	 	DOLPHIN DIGITAL MEDIA, INC.

 	 
	Dated:  July 29, 2009 	By:  	/s/
Bill O’Dowd	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

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ANNEX A

DESIGNATED ACCOUNT WIRE INSTRUCTIONS

	 	 	 
	Name of Bank:

	 	Wachovia
	 
	 	 
	Address of Bank:

	 	2555 Ponce De Leon Blvd.
	 

	 	Coral Gables, FL 33134
	 
	 	 
	Name of Account:

	 	Logica Holdings, Inc.
	 
	 	 
	Address of Company:

	 	804 Douglas Road
	 

	 	Suite 365
	 

	 	Coral Gables, FL 33134
	 
	 	 
	ABA Number:

	 	063-000-021
	 
	 	 
	Account Number:

	 	200-004-428-2332

 

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ANNEX B

ACCREDITED INVESTOR QUESTIONNAIRE

 

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ACCREDITED INVESTOR QUESTIONNAIRE

Purpose of this Questionnaire

Certain securities (the “Purchased Securities”) of Dolphin Digital Media, Inc., a Nevada
corporation (the “Company”), are being offered without registration under the Securities Act of
1933, as amended (the “Securities Act”), or the securities laws of any state, in reliance on the
exemptions contained in Sections 4(2) and 4(6) of the Securities Act and on similar exemptions
under applicable state laws. Under Sections 4(2) and 4(6) and/or certain state laws, the Company
may be required to determine that an individual or an individual together with a “purchaser
representative” or each individual equity owner of an investing entity meets certain suitability
requirements before selling the Purchased Securities to such individual or entity. THE COMPANY
MAY, AT ITS ELECTION, NOT SELL THE PURCHASED SECURITIES TO A SUBSCRIBER WHO HAS NOT THOROUGHLY
FILLED OUT A QUESTIONNAIRE. IN THE CASE OF AN INVESTOR THAT IS A PARTNERSHIP, TRUST, OR
CORPORATION, EACH EQUITY OWNER MUST COMPLETE A QUESTIONNAIRE. This Questionnaire does not
constitute an offer to sell or a solicitation of an offer to buy the Purchased Securities or any
other security.

Instructions

One (1) copy of this Questionnaire should be completed, signed, dated, and delivered
to:

Joshua M. Gold, Esq.

Dolphin Digital Media, Inc.

804 Douglas Road, Suite 365

Coral Gables, FL 33134

Fax: (305) 774-0405

Please feel free to contact Mr. Gold directly at (862) 216-6343 if you have any questions with
respect to the Questionnaire.

Please Answer All Questions

If the appropriate answer is “None” or “Not Applicable,” so state. Please print or type your
answers to all questions. Attach additional sheets if necessary to complete your answers to any
item.

Your answers will be kept strictly confidential at all times; however, the Company may present
this Questionnaire to such parties as it deems appropriate, including its counsel, in order to
assure itself that the offer and sale of the Purchased Securities will not result in a violation of
the registration provisions of the Securities Act or a violation of the securities laws of any
state.

 

 

 

1. Please provide the following personal information:

	 	 	 	 	 
	Name: T Squared Investments LLC

	 	Age: n/a

Residence Address

(including zip code): 1325 Sixth Ave., Fl. 27, NY, NY 10019

Telephone Numbers:

Residence:
n/a

Business: 212-763-8616

2. I am an accredited investor (as defined in Rule 501(a) of Reg. D) because (check each
appropriate description):

	 	o	 	I am a natural person whose individual net worth, or joint net worth with my
spouse, exceeds $1,000,000.

	 	o	 	I am a natural person who had individual income exceeding $200,000 in each of the
two most recent years or joint income with my spouse exceeding $300,000 in each of
those years and I have a reasonable expectation of reaching the same income level in
the current year.

	 	o	 	I am a broker-dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934.

	 	o	 	I am an organization described in Section 501(c)(3) of the Internal Revenue Code,
not formed for the specific purpose of acquiring the Securities, with total assets
exceeding $5,000,000.

	 	o	 	I am a corporation, Massachusetts or similar business trust or partnership, not
formed for the specific purpose of acquiring the Securities, with total assets
exceeding $5,000,000.

	 	o	 	I am a trust, not formed for the specific purpose of acquiring the Securities,
with total assets exceeding $5,000,000 and whose purchase is
directed by a “sophisticated person,” as defined in Rule 506(b)(2)(ii) of Reg. D.
(For the purposes of this questionnaire, a “sophisticated person” means any person
who has such knowledge and experience in financial and business matters that he or
she is capable of evaluating the merits and risks of the prospective investment.)

 

 

 

	 	o	 	I am an employee benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974 and (i) investment decisions for such plan are made by a
plan fiduciary, as defined in Section 3(21) of such Act, which is a bank, savings and
loan association, insurance company or registered investment advisor or (ii) such plan
has total assets exceeding $5,000,000 or (iii) if a self directed plan, investment
decisions are made solely by accredited investors.

	 	þ	 	I am an entity in which all of the equity owners are accredited investors.

	 	o	 	I am an accredited investor for the following reasons:

3. Check, if appropriate:

	 	þ	 	I hereby represent and warrant that I have such knowledge and experience in
financial and business matters that I am capable of evaluating the merits and risks of
any prospective investment in the Company.

4 If you did not check the box to Question 3, please answer the following additional
questions:

4.1 Please describe any pre-existing personal or business relationship that you have with the
Company or any of its officers and directors.

 

 

 

Entity is prior investors in the Company

4.2 Please describe any business or financial experience that you have had that would allow
the Company to reasonably conclude that you are capable of protecting your interests in connection
with your prospective investment in the Company. If none, so state.

Entity is an investment advisor

4.3 If your answer to Question 4.2 above was “None,” in order to evaluate the merits and risks
of the investment, will you be relying upon the advice of any other person(s) who will be acting as
your purchaser representative(s)?

Yes o

No o

If “yes,” please identify each such person and indicate his or her business address and
telephone number in the space below (each such person must complete, and you must review and
acknowledge, a separate purchaser representative questionnaire which will be supplied at your
request and which must be returned to the Company prior to the sale of any Purchased Securities to
you).

5. By signing this Questionnaire, I hereby confirm the following statements:

I am aware that the offering of the Purchased Securities pursuant to the accompanying
Subscription Agreement which I hereby acknowledge as received and reviewed, will involve an
investment in securities for which no market currently exists, thereby requiring any investment to
be maintained for an indefinite period of time, and I have no need to liquidate the investment.

I acknowledge that any delivery to me of any documentation relating to the Purchased
Securities prior to the determination by the Company of my suitability as an investor shall not
constitute an offer of the Purchased Securities until such determination of suitability shall be
made, and I agree that I shall promptly return all such documentation to the Company upon request.

 

 

 

Neither I nor any of my associates or affiliates: (i) are a member or a person associated with
a member firm of the NASD, (ii) own any stock or other securities of any NASD member, or (iii) made
subordinated loans to any NASD member.

My answers to the foregoing questions are true and complete to the best of my information and
belief, and I will promptly notify the Company of any changes in the information I have provided.

I also understand and agree that, although the Company will use its best efforts to keep the
information provided in answers to this Questionnaire strictly confidential, the Company may
present this Questionnaire and the information provided in answers to it to such parties as it may
deem advisable if called upon to establish the availability under any federal or state securities
laws of an exemption from registration of the private placement or if the contents thereof are
relevant to any issue in any action, suit, or proceeding to which the Company is a party or by
which it or they are or may be bound.

I realize that this Questionnaire does not constitute an offer by the Company to sell the
Purchased Securities but is merely a request for information.

	 	 	 
	Thomas Sauve
	 	 
	 

Printed Name

	 	 

	 	 	 
	 

Signature

	 	 

	 	 	 
	26-0147159
	 	 
	 

Social Security Number or

	 	 
	Employee Identification Number:
	 	 

Date and Place Executed:

Date:

Place: Corporate offices of T Squared Investments LLC

 

 

 

ANNEX C

RISK FACTORS

The Securities to be issued by the Company are speculative and involve a high degree of
risk. Each investor is urged to carefully read the “Risk Factors” set forth below. As used
herein, the terms “we”, “the Company” and “our” refer to Dolphin Digital Media, Inc.

There Are Risks Associated With Our Stock Trading On The NASD OTC Bulletin Board Rather Than A
National Exchange.

There are significant consequences associated with our stock trading on the NASD OTC Bulletin
Board rather than a national exchange. The effects of not being able to list our securities on a
national exchange include:

	 	•	 	Limited release of the market prices of our securities;

	 
	 	•	 	Limited news coverage of us;

	 
	 	•	 	Limited interest by investors in our securities;

	 
	 	•	 	Volatility of our stock price due to low trading volume;

	 
	 	•	 	Increased difficulty in selling our securities in certain states due to “blue
sky” restrictions; and

	 
	 	•	 	Limited ability to issue additional securities or to secure additional financing.

“Penny Stock” Regulations May Impose Certain Restrictions On The Marketability of Our Securities.

The Securities and Exchange Commission (the “Commission”) has adopted regulations which
generally define “penny stock” to be any equity security that has a market price (as defined) less
than $5.00 per share, subject to certain exceptions. The Company’s Common Stock is presently
subject to these regulations which impose additional sales practice requirements on broker-dealers
who sell such securities to persons other than established customers and accredited investors
(generally those with assets in excess of $1,000,000 or annual income exceeding $200,000, or
$300,000 together with their spouse). For transactions covered by these rules, the broker-dealer
must make a special suitability determination for the purchase of such securities and have received
the purchaser’s written consent to the transaction prior to the purchase. Additionally, for any
transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the
transaction, of a risk disclosure document mandated by the Commission relating to the penny stock
market. The broker-dealer must also disclose the commission payable to both the broker-dealer and
the registered representative,
current quotations for the securities and, if the broker-dealer is the sole market maker, the
broker-dealer must disclose this fact and the broker-dealer’s presumed control over the market.
Finally, monthly statements must be sent disclosing recent price information for the penny stock
held in the account and information on the limited market in penny stocks. Consequently, the
“penny stock” rules may restrict the ability of broker-dealers to sell the Company’s securities and
may negatively affect the ability of purchasers of the Company’s shares of Common Stock to sell
such securities.

 

 

 

Limited Trading Market; Restrictions on Transferability. The Company’s shares of Common Stock
trade on the OTC Bulletin Board with limited daily trading volume. However, the Purchased
Securities have not been registered under the Securities Act, and accordingly, are subject to
restrictions on transferability and resale and may not be transferred or sold except as permitted
under the Securities Act and applicable state securities laws, pursuant to registration or
exemption therefrom. Investors should be aware that they will be required to bear the financial
risk of this investment for an indefinite period of time.

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATES AND ARE BEING OFFERED AND SOLD IN RELIANCE ON
EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES ARE
SUBJECT TO RESTRICTION ON TRANSFERABILITY AND RESALE AND MAY NOT BE PLEDGED, TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY
STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING
AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE
OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

IT IS INTENDED THAT THE PURCHASED SECURITIES OFFERED HEREBY WILL BE MADE AVAILABLE ONLY TO
ACCREDITED INVESTORS, AS DEFINED IN SECTION 2(15) OF THE SECURITIES ACT AND RULE 501 THEREUNDER.
THE SECURITIES OFFERED HEREBY ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS FOR NON-PUBLIC OFFERINGS.
SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH THE OFFERING WILL BE MADE AND
RESTRICT SUBSEQUENT TRANSFER OF THE SECURITIES.

INVESTMENT IN THE SECURITIES OFFERED HEREBY SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD TO
SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS WILL BE REQUIRED TO REPRESENT THAT THEY ARE
FAMILIAR WITH AND UNDERSTAND THE
TERMS OF THIS OFFERING, AND THAT THEY HAVE SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS
MATTERS THAT THEY ARE CAPABLE OF EVALUATING THE MERITS AND RISKS OF THIS INVESTMENT.

 

 

 

NO SECURITIES MAY BE RESOLD OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS, IN THE OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION UNDER THE APPLICABLE FEDERAL AND STATE SECURITIES
LAWS IS NOT REQUIRED OR COMPLIANCE IS MADE WITH SUCH REGISTRATION REQUIREMENTS. THE OFFEREE, BY
ACCEPTING DELIVERY OF THESE MATERIALS, AGREES TO RETURN THE OFFERING MATERIALS AND ALL ACCOMPANYING
OR RELATED DOCUMENTS TO THE COMPANY UPON REQUEST IF THE OFFEREE DOES NOT AGREE TO PURCHASE ANY OF
THE SHARES OFFERED HEREBY.

THESE MATERIALS ARE SUBMITTED IN CONNECTION WITH THE PRIVATE OFFERING OF THE SECURITIES AND DO NOT
CONSTITUTE AN OFFER OR SOLICITATION BY ANYONE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR
SOLICITATION IS NOT AUTHORIZED. ANY REPRODUCTION OR DISTRIBUTION OF THE SUBSCRIPTION AGREEMENT IN
WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF ITS CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT OF
THE COMPANY, IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING RESTRICTIONS MAY PLACE
HIMSELF AND THE COMPANY IN VIOLATION OF FEDERAL OR STATE SECURITIES LAWS.

EACH OFFEREE MAY, IF HE OR SHE SO DESIRES, MAKE INQUIRIES OF MANAGEMENT OF THE COMPANY WITH RESPECT
TO THE COMPANY’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL
INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE
INFORMATION CONTAINED HEREIN AND TO MAKE AN INVESTMENT DECISION (TO THE EXTENT THAT THE COMPANY
POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE). IN
CONNECTION WITH SUCH INQUIRY, ANY DOCUMENTS WHICH ANY OFFEREE WISHES TO REVIEW WILL BE MADE
AVAILABLE FOR INSPECTION AND COPYING OR PROVIDED, UPON REQUEST, SUBJECT TO THE OFFEREES AGREEMENT
TO MAINTAIN SUCH INFORMATION IN CONFIDENCE AND TO RETURN THE SAME TO THE COMPANY IF THE RECIPIENT
DOES NOT PURCHASE THE SECURITIES OFFERED HEREUNDER. ANY SUCH INQUIRIES OR REQUESTS FOR ADDITIONAL
INFORMATION OR DOCUMENTS SHOULD BE MADE IN WRITING TO THE COMPANY AT THE COMPANY’S ADDRESS.

 

 

 

ANNEX D

SEC FILINGS

Annual Report on Form 10-K for the fiscal year ended December 31, 2008, filed on April 14, 2009
with the Securities and Exchange Commission.

 

 

 

SCHEDULE I

PURCHASED SECURITIESExhibit 4.8

Exhibit 4.8

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS
AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
THERETO IS EFFECTIVE UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR
(2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

 

Dolphin Digital Media, Inc.

COMMON STOCK PURCHASE WARRANT “D”

	 	 	 	 	 	 	 
	Number of Shares:

	 	 	231,000	 	 	Holder: T Squared Investments LLC
	 

	 	 	 	 	 	c/o T Squared Capital LLC
	Original Issue Date:

	 	 	July 29, 2009
	 	 	Attn: Thomas M. Sauve
	 

	 	 	 	 	 	Title: Managing Member
	Expiration Date:

	 	 	July 29, 2014
	 	 	1325 Sixth Avenue, Floor 27
	 

	 	 	 	 	 	New York, NY 10019
	Exercise Price per Share:

	 	 	$0.0001	 	 	Tel: 212-763-8615
	 

	 	 	 	 	 	Fax: 212-671-1403

Dolphin Digital Media, Inc., a company organized and existing under the laws of the State of
Nevada (the “Company”), hereby certifies that, for value received, T Squared Investments
LLC, or its registered assigns (the “Warrant Holder”), is entitled, subject to the terms
set forth below, to purchase from the Company up to Two Hundred Thirty-One Thousand (231,000)
shares (as adjusted from time to time as provided in Section 7, the “Warrant Shares”) of
common stock, $0.015 par value (the “Common Stock”), of the Company at a price of
One-Hundredth of One Cent ($0.0001) per Warrant Share (as adjusted from time to time as provided in
Section 7, the “Exercise Price”), at any time and from time to time from and after the date
thereof and through and including 5:00 p.m. New York City time on July 29, 2014 (the “Expiration
Date”), and subject to the following terms and conditions:

1. Registration of Warrant. The Company shall register this Warrant upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Warrant Holder hereof from time to time. The Company may deem and treat the registered
Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Warrant Holder, and for all other purposes, and the
Company shall not be affected by notice to the contrary.

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC
PAGE 1 OF 9

 

 

 

2. Investment Representation. The Warrant Holder by accepting this Warrant represents
that the Warrant Holder is acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any offering or distribution and that
the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant
Shares in violation of applicable securities laws. The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that they have not been
registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and
may not be sold by the Warrant Holder except pursuant to an effective registration statement or
pursuant to an exemption from registration requirements of the 1933 Act and in accordance with
federal and state securities laws. If this Warrant was acquired by the Warrant Holder pursuant to
the exemption from the registration requirements of the 1933 Act afforded by Regulation S
thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by
or on behalf of a Person during the one year distribution compliance period (as defined in
Regulation S) following the date hereof. “Person” means an individual, partnership, firm,
limited liability company, trust, joint venture, association, corporation, or any other legal
entity.

3. Validity of Warrant and Issue of Shares. The Company represents and warrants that
this Warrant has been duly authorized and validly issued and warrants and agrees that all of Common
Stock that may be issued upon the exercise of the rights represented by this Warrant will, when
issued upon such exercise, be duly authorized, validly issued, fully paid and non-assessable and
free from all taxes, liens and charges with respect to the issue thereof. The Company further
warrants and agrees that during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved a sufficient number of
Common Stock to provide for the exercise of the rights represented by this Warrant.

4. Registration of Transfers and Exchange of Warrants.

a. Subject to compliance with the legend set forth on the face of this Warrant, the Company
shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 12. Upon any such registration or
transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any
such new warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred
shall be issued to the transferee and a New Warrant evidencing the remaining portion of this
Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance of such
transferee of all of the rights and obligations of a Warrant Holder of a Warrant.

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 2 OF 9

 

 

 

b. This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office
of the Company specified in or pursuant to Section 9 for one or more New Warrants, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder. Any such New Warrant will be dated the date of such exchange.

5. Exercise of Warrants.

a. Upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly
completed and signed to the Company, at its address set forth in Section 12, and upon payment and
delivery of the Exercise Price per Warrant Share multiplied by the number of Warrant Shares that
the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America,
in cash or by certified or official bank check or checks, to the Company, all as specified by the
Warrant Holder in the Form of Election to Purchase, the Company shall promptly (but in no event
later than 7 business days after the Date of Exercise (as defined herein)) issue or cause to be
issued and cause to be delivered to or upon the written order of the Warrant Holder and in such
name or names as the Warrant Holder may designate (subject to the restrictions on transfer
described in the legend set forth on the face of this Warrant), a certificate for the Warrant
Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act. Any
person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become
holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.

b. A “Date of Exercise” means the date on which the Company shall have received (i) this
Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto
(or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the
Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

c. This Warrant shall be exercisable at any time and from time to time for such number of
Warrant Shares as is indicated in the attached Form of Election To Purchase. If less than all of
the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company
shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase
the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.

d. (i) Notwithstanding anything contained herein to the contrary but subject to Section 6, the
holder of this Warrant may, at its election exercised in its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to
the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive
upon such exercise the “Net Number” of shares of Common Stock determined according to the following
formula (a “Cashless Exercise”):

Net Number = (A x (B - C))/B

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 3 OF 9

 

 

 

(ii) For purposes of the foregoing formula:

A= the total number shares with respect to which this Warrant is then being exercised.

B= the last reported sale price (as reported by Bloomberg) of the Common Stock on the trading
day immediately preceding the date of the Exercise Notice.

C= the Warrant Exercise Price then in effect at the time of such exercise.

e. The holder of this Warrant agrees not to elect a Cashless Exercise for a period of one (1)
year. The holder of this Warrant also agrees not to elect a Cashless Exercise so long as there is
an effective registration statement for the Warrant Shares.

6. Maximum Exercise. The Warrant Holder shall not be entitled to exercise this
Warrant on a Date of Exercise in connection with that number of shares of Common Stock which would
be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the
Warrant Holder and its affiliates on an exercise date, and (ii) the number of shares of Common
Stock issuable upon the exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial ownership by the
Warrant Holder and its affiliates of more than 9.9% of the outstanding shares of Common Stock on
such date. This Section 6 may be waived or amended only with the consent of the Holder and the
Board of Directors of the Company. For the purposes of the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and Regulation 13d-3 there under.

7. Adjustment of Exercise Price and Number of Shares. The character of the shares of
stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price
therefore, are subject to adjustment upon the occurrence of the following events, and all such
adjustments shall be cumulative:

a. Adjustment for Stock Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price
of this Warrant and the number of shares of Common Stock or other securities at the time issuable
upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend, stock
split, combination of shares, reclassification, recapitalization or other similar event affecting
the number of outstanding shares of stock or securities.

b. Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any consolidation or
merger of the Company with or into any other corporation, entity or person, or any other corporate
reorganization, in which the Company shall not be the continuing or surviving entity of such
consolidation, merger or reorganization (any such transaction being hereinafter referred to as a
“Reorganization”), then, in each case, the holder of this Warrant, on exercise hereof at
any time after the consummation or effective date of such Reorganization (the “Effective
Date”), shall receive, in lieu of the shares of stock or other securities at any time issuable
upon the exercise of the Warrant issuable on such exercise prior to the Effective Date,
the stock and other securities and property (including cash) to which such holder would have
been entitled upon the Effective Date if such holder had exercised this Warrant immediately prior
thereto (all subject to further adjustment as provided in this Warrant).

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 4 OF 9

 

 

 

c. Certificate as to Adjustments. In case of any adjustment or readjustment in the price or
kind of securities issuable on the exercise of this Warrant, the Company will promptly give written
notice thereof to the holder of this Warrant in the form of a certificate, certified and confirmed
by the Board of Directors of the Company, setting forth such adjustment or readjustment and showing
in reasonable detail the facts upon which such adjustment or readjustment is based.

ii. The Company sells grants or issues any shares, options, warrants, or any instrument
convertible into shares or equity in any form below the exercise price per share of the warrant. In
the event the Company sells, grants or issues any shares, options, warrants, or any instrument
convertible into shares or equity in any form below the current exercise price per share of the
warrant, then the current exercise price per share for the warrant that are outstanding shall be
reduced to such lower price per share. Such reduction shall be made at the time such transaction is
executed.

8. Fractional Shares. The Company shall not be required to issue or cause to be
issued fractional Warrant Shares on the exercise of this Warrant. The number of full Warrant
Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of
the aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented. If
any fraction of a Warrant Share would, except for the provisions of this Section 8, be issuable on
the exercise of this Warrant, the Company shall, at its option, (i) pay an amount in cash equal to
the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable,
up to the next whole number.

9. Sale or Merger of the Company. Upon a Change in Control, the restriction contained
in Section 6 shall immediately be released and the Warrant Holder will have the right to exercise
this Warrant concurrently with such Change in Control event. For purposes of this Warrant, the
term “Change in Control” shall mean a consolidation or merger of the Company with or into another
company or entity in which the Company is not the surviving entity or the sale of all or
substantially all of the assets of the Company to another company or entity not controlled by the
then existing stockholders of the Company in a transaction or series of transactions.

10. Notice of Intent to Sell or Merge the Company. The Company will give Warrant
Holder ten (10) business days notice before the event of a sale of all or substantially all of the
assets of the Company or the merger or consolidation of the Company in a transaction in which the
Company is not the surviving entity.

11. Issuance of Substitute Warrant. In the event of a merger, consolidation,
recapitalization or reorganization of the Company or a reclassification of Company shares of stock,
which results in an adjustment to the number of shares subject to this Warrant and/or the
Exercise Price hereunder, the Company agrees to issue to the Warrant Holder a substitute
Warrant reflecting the adjusted number of shares and/or Exercise Price upon the surrender of this
Warrant to the Company.

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 5 OF 9

 

 

 

12. Notice. All notices and other communications hereunder shall be in writing and
shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii)
on the date initially received if delivered by facsimile transmission followed by registered or
certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv)
on the third business day after it is mailed by registered or certified mail, return receipt
requested with postage and other fees prepaid as follows:

If to the Company:

Dolphin Digital Media, Inc

804 Douglas Road, Suite 365

Coral Gables, Florida 33134

Attn. Bill O’Dowd

If to the Warrant Holder:

T Squared Investments LLC

c/o T Squared Capital LLC

1325 Sixth Avenue, Floor 28

New York, New York 10019

Attn: Thomas M. Sauve

13. Miscellaneous.

a. This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. This Warrant may be amended only by a writing signed
by the Company and the Warrant Holder.

b. Nothing in this Warrant shall be construed to give to any person or corporation other than
the Company and the Warrant Holder any legal or equitable right, remedy or cause of action under
this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the
Warrant Holder.

c. This Warrant shall be governed by, construed and enforced in accordance with the internal
laws of the State of New York without regard to the principles of conflicts of law thereof.

d. The headings herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 6 OF 9

 

 

 

e. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this
Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a commercially reasonably
substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this
Warrant.

f. The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights
of a shareholder of the Company, either at law or equity, and the rights of the Warrant Holder are
limited to those expressed in this Warrant.

[SIGNATURES ON FOLLOWING PAGE]

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 7 OF 9

 

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the authorized
officer as of the date first above stated.

Dolphin Digital Media Inc, a Nevada corporation

	 	 	 	 	 	 	 
	By:
	 	/s/ Bill O’Dowd	 	 
	 	 	 	 	 
	 

	 	Name:	 	Bill O’Dowd	 	 
	 

	 	 	 	 

	 	 
	 
	 	Its:
	 	Chief Executive Officer	 	 

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 8 OF 9

 

 

 

FORM OF ELECTION TO PURCHASE

(To be executed by the Warrant Holder to exercise the right to purchase shares of Common Stock
under the foregoing Warrant)

To: Dolphin Digital Media Inc.:

In accordance with the Warrant enclosed with this Form of Election to Purchase, the undersigned
hereby irrevocably elects to purchase                      shares of Common Stock (“Common Stock”), $.001
par value, of the Company and encloses the warrant and $_____ for each Warrant Share being purchased
or an aggregate of $                     in cash or certified or official bank check or checks, which
sum represents the aggregate Exercise Price (as defined in the Warrant) together with any
applicable taxes payable by the undersigned pursuant to the Warrant.

The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of:

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

(Please print name and address)

	 	 
	 
	 	 
	 

(Please insert Social Security or Tax Identification Number)

	 	 

If the number of shares of Common Stock issuable upon this exercise shall not be all of the shares
of Common Stock which the undersigned is entitled to purchase in accordance with the enclosed
Warrant, the undersigned requests that a New Warrant (as defined in the Warrant) evidencing the
right to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby
be issued in the name of and delivered to:

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

(Please print name and address)

	 	 

Dated:                     

Name of Warrant Holder:

	 	 	 	 	 	 	 
	(Print)
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	(By:)
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	(Name:)	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	(Title:)	 	 	 	 
	 

	 	 	 	 

	 	 

Signature must conform in all respects to name of Warrant Holder as specified on the face of the
Warrants.

WARRANT AGREEMENT BETWEEN DOLPHIN DIGITAL MEDIA INC

AND T SQUARED INVESTMENTS LLC

PAGE 9 OF 9

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