Document:

EXECUTION COPY

 

LITIGATION WARRANT AGREEMENT

 

THIS WARRANT AGREEMENT
(this “Agreement”), dated as of August 19, 2013, is entered into by and between Piksel, Inc., a Delaware
corporation (the “Corporation”), and Continental Stock Transfer & Trust Company, a New York corporation
(the “Warrant Agent”).

 

WHEREAS, pursuant
to the terms and conditions of the Third Amended Plan of Reorganization, dated August 6, 2013, as the same may be amended,
modified or restated from time to time (the “Plan”) relating to the reorganization of the Corporation
under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”), the Corporation is issuing
warrants (each a “Warrant,” and collectively, the “Warrants”) to holders of
Allowed Subordinated Claims (as defined in the Plan) in Class 6 of the Plan in exchange for such Claims; pursuant to the Plan,
the Warrants shall be exercisable until the Expiration Date (as defined below) and will enable holders thereof to purchase up to
one (1) share of the Corporation’s Series A-2 Common Stock (as defined in the Plan) per dollar of such holder’s Allowed
Subordinated Claim at an exercise price of $0.205 per share (the “Exercise Price”);

 

WHEREAS, the Warrants
are being issued pursuant to an offering in reliance on the exemption afforded by section 1145 of the Bankruptcy Code from the
registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and of any
applicable state securities or “blue sky” laws;

 

WHEREAS, the Corporation
desires the Warrant Agent to act on behalf of the Corporation, and the Warrant Agent is willing to so act, in connection with the
issuance, registration and exercise of the Warrants;

 

WHEREAS, the Corporation
desires to provide for the form and provisions of the Warrant Certificate (as defined below) and the Warrants, the terms upon which
shall govern the Warrants issued by the Corporation and the respective rights, limitation of rights and immunities of the Corporation,
the Warrant Agent and the holders of the Warrants; and

 

WHEREAS, all acts
and things have been done and performed which are necessary to make the Warrants evidenced by the Warrant Certificate, when executed
on behalf of the Corporation and countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and
legal obligations of the Corporation, and to authorize the execution and delivery of this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

    	1

    	 

    

 

 

1.                 
Appointment of Warrant Agent. The Corporation hereby appoints the Warrant Agent to act as agent for the Corporation
in connection with the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance
with the terms and conditions set forth in this Agreement.

 

2.                 
Warrants.

 

2.1             
Form of Warrant. Each warrant certificate (the “Warrant Certificate”) shall be (a) issued
in registered form only, (b) in substantially the form of Exhibit A hereto, the provisions of which are incorporated
herein and (c) signed by, or bear the facsimile signature of, the Chief Executive Officer or the Chief Financial Officer and the
Secretary of the Corporation. In the event the person whose signature or facsimile signature has been placed upon any Warrant Certificate
shall have ceased to serve in the capacity in which such person signed the Warrant Certificate before such Warrant Certificate
is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance.

 

2.2             
Effect of Countersignature. Unless and until the Warrant Certificate is countersigned by the Warrant Agent pursuant
to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.3             
Registration.

 

2.3.1       
Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the
registration of the issuance of the Warrant Certificates. Upon the issuance of the Warrant Certificates, the Warrant Agent shall
issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Corporation.

 

2.3.2       
Registered Holder. The Corporation and the Warrant Agent may deem and treat the person in whose name such Warrant
Certificate shall be registered upon the Warrant Register (the “registered holder”) as the absolute owner of such Warrant
Certificate and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the Warrant
Certificate made by anyone other than the Corporation or the Warrant Agent), for the purpose of any exercise thereof, and for all
other purposes, and neither the Corporation nor the Warrant Agent shall be affected by any notice to the contrary.

 

3.                 
Terms and Exercise of Warrants.

 

3.1             
Exercise Price. Each Warrant Certificate shall, when countersigned by the Warrant Agent, entitle the registered holder
thereof, subject to the provisions of such Warrant Certificate and of this Warrant Agreement, to purchase from the Corporation
the number of shares of Series A-2 Common Stock stated therein at the Exercise Price until the Expiration Date.

 

3.2             
Duration of Warrants. A Warrant may be exercised at any time on any Business Day (as defined below) only during the
period (“Exercise Period”) commencing on the date such Warrant is issued or instructed to be issued by
the Corporation (the “Issuance Date”) and terminating at 5:00 P.M., New York City time on the date that
is thirty (30) days from the Issuance Date (the “Expiration Date”). Each Warrant not exercised on or
before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement
shall cease at the close of business on the Expiration Date. As used herein, the term “Business Day”
means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required
by law or executive order to remain closed.

 

    	2

    	 

    

 

 

3.3             
Exercise of Warrants.

 

3.3.1       
Payment. Subject to the provisions of the Warrant Certificate and this Warrant Agreement, a Warrant, when the Warrant
Certificate is countersigned by the Warrant Agent and surrendered at the office of the Warrant Agent, or at the office of its successor
as Warrant Agent, in the Borough of Manhattan, City and State of New York, with the election form attached to the Warrant Certificate,
attached hereto as Exhibit B, duly executed, and by paying in full the Exercise Price for each full share of Series
A-2 Common Stock as to which the Warrant is exercised, and any and all applicable taxes due in connection with the exercise of
the Warrant, by certified or official bank check or by bank wire transfer in immediately available funds, in each case payable
to the order of the Warrant Agent (or as otherwise agreed to by the Corporation). To the extent applicable, the aggregate Exercise
Price shall be rounded up to the nearest penny.

 

3.3.2       
Issuance of Certificates.

 

(a)               
As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Exercise Price,
the Corporation shall issue to the registered holder of such Warrant a certificate or certificates representing the number of full
shares of Series A-2 Common Stock to which he, she or it is entitled, registered in the name or names that the Warrant being so
exercised is registered. Such Series A-2 Common Stock issuable upon the exercise of the Warrants shall result in holders thereof
receiving a pro rata portion of the Series A-2 Common Stock, with the pro rata portion based on a fraction (expressed as a percentage),
the numerator of which shall be the dollar amount of the Holder’s Allowed Subordinated Claim (not satisfied by Available
Cash (as defined in the Plan)) and the denominator of which shall be the aggregate number of issued and then-outstanding shares
of Class A2 Common Stock, inclusive of the shares to be issued to exercising holders of the Litigation Warrants. Warrants may not
be exercised by, or securities issued to, any registered holder in any state in which such exercise or issuance would be unlawful.

 

(b)              
In no event shall the Corporation be required to “net cash settle” the exercise of any Warrants.

 

3.3.3       
Valid Issuance. All shares of Series A-2 Common Stock issued upon the proper exercise of a Warrant in conformity
with this Agreement shall be validly issued, fully paid and nonassessable.

 

3.3.4       
Date of Issuance. Each person in whose name any such certificate for shares of Series A-2 Common Stock is issued
shall for all purposes be deemed to have become the holder of record of such shares on the date on which the Warrant was exercised
and payment of the Exercise Price was made; provided, that such date is no later than the Expiration Date, but irrespective
of the date of delivery of such certificate, except that, if the date of such exercise and payment is a date when the stock transfer
books of the Corporation are closed, such person shall be deemed to have become the holder of such shares at the close of business
on the next succeeding date on which the stock transfer books are open.

 

    	3

    	 

    

 

 

3.4             
No Anti-Dilution Protection. Shares of Series A-2 Common Stock issuable upon the exercise of any Warrants shall be
subject to dilution as set forth in the Plan, including, without limitation, by the exercise of Litigation Warrants (as defined
in the Plan). To the extent such Litigation Warrants are exercised, the proceeds from such exercise shall be distributed on a pro
rata basis to each holder of Series A-2 Common Stock immediately prior to such exercise in accordance with the Corporation’s
Amended and Restated Certificate of Incorporation. The term pro rata as used herein shall mean a fraction (expressed as
a percentage), the numerator of which shall be the number of shares held by a then Series A-2 Common Stock holder and the denominator
of which shall be the aggregate number of outstanding shares of Series A-2 Common Stock (exclusive of the shares to be issued to
such exercising Litigation Warrant holder). For the avoidance of doubt, the exercising holder of such Litigation Warrants shall
not be entitled to proceeds from the exercise of such holder’s Litigation Warrants.

 

4.                 
Other Provisions Relating to Rights of Holders of Warrants.

 

4.1             
No Rights as Stockholder. A Warrant does not entitle the registered holder thereof to any of the rights of a stockholder
of the Corporation, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election of
directors of the Corporation or any other matter.

 

4.2             
Lost, Stolen, Mutilated or Destroyed Warrants. If any Warrant Certificate is lost, stolen, mutilated or destroyed,
the Corporation and the Warrant Agent may, on such terms as to indemnity or otherwise as they may in their discretion impose (which
terms shall, in the case of a mutilated Warrant Certificate, include the surrender thereof), issue a new Warrant Certificate of
like denomination, tenor and date as the Warrant Certificate so lost, stolen, mutilated or destroyed. Any such new Warrant Certificate
shall constitute a substitute contractual obligation of the Corporation, whether or not the allegedly lost, stolen, mutilated or
destroyed Warrant Certificate shall be at any time enforceable by anyone.

 

4.3             
Reservation of Common Stock. The Corporation shall at all times reserve and keep available a number of its authorized
but unissued shares of Series A-2 Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants
issued pursuant to this Agreement.

 

4.4             
Securities Law Compliance.

 

(a)               
The Warrants (including any Series A-2 Common Stock issued upon exercise thereof) are issued pursuant to an exemption from
the registration requirements of Section 5 of the Securities Act provided by section 1145 of the Bankruptcy Code. Any Warrant or
underlying share of Series A-2 Common Stock that is received, purchased or owned by any “underwriter” as defined in
section 1145(b)(1) of the Bankruptcy Code, may not be resold by such holder, and such holder may not be able to transfer any Warrants
or Series A-2 Common Stock issuable upon exercise of any Warrant in the absence of an exemption from registration under the Securities
Act and state securities laws.

 

    	4

    	 

    

 

 

(b)              
In the event that an exemption under section 1145 of the Bankruptcy Code with respect to Warrants or shares of Series A-2
Common Stock underlying the Warrants is not effective or available, or because such exercise would be unlawful with respect to
a registered holder in any state, the registered holder shall not be entitled to exercise such Warrants and such Warrants may have
no value and expire worthless.

 

4.5             
Limitation on Monetary Damages. In no event shall the registered holder of a Warrant be entitled to receive damages,
monetary or otherwise, for failure to settle any Warrant exercise if the Series A-2 Common Stock issuable upon exercise of the
Warrants is not exempt from registration pursuant to section 1145 of the Bankruptcy Code or has not been registered with the Securities
and Exchange Commission pursuant to an effective registration statement or if a current prospectus is not available for delivery
by the Warrant Agent.

 

4.6             
No Warrant Transfers. Notwithstanding anything to the contrary herein, no Warrant shall be transferable to any person
or any entity, and any attempt to so transfer or any purported transfer shall be void ab initio.

 

5.                 
Concerning the Warrant Agent and Other Matters.

 

5.1             
Payment of Taxes. The Corporation shall from time to time promptly pay all taxes and charges that may be imposed
upon the Corporation or the Warrant Agent in respect of the issuance or delivery of shares of Series A-2 Common Stock upon the
exercise of Warrants, but the Corporation shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

5.2             
Resignation, Consolidation or Merger of Warrant Agent.

 

5.2.1       
Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign
its duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing
(a “Resignation Notice”) to the Corporation. Upon receipt by the Corporation of a Resignation Notice,
or if the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Corporation shall appoint
in writing a successor Warrant Agent in place of the Warrant Agent. If the Corporation shall fail to make such appointment within
a period of thirty (30) days after it has received a Resignation Notice from the Warrant Agent, then the holder of any Warrant
may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent
at the Corporation’s cost. Any successor Warrant Agent, whether appointed by the Corporation or by such court, shall be a
corporation organized and existing under the laws of the State of New York, in good standing and having its principal office in
the Borough of Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject
to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with
all the authority, powers, rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect as if originally
named as Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the
predecessor Warrant Agent shall execute and deliver, at the expense of the Corporation, an instrument transferring to such successor
Warrant Agent all the authority, powers and rights of such predecessor Warrant Agent hereunder; and upon request of any successor
Warrant Agent the Corporation shall make, execute, acknowledge and deliver any and all instruments in writing for more fully and
effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties and
obligations.

 

    	5

    	 

    

 

 

5.2.2       
Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Corporation shall
give notice thereof to the predecessor Warrant Agent and the transfer agent for the Series A-2 Common Stock not later than the
effective date of any such appointment.

 

5.2.3       
Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which
it may be consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party
shall be the successor Warrant Agent under this Agreement without any further act.

 

5.3             
Fees and Expenses of Warrant Agent.

 

5.3.1       
Remuneration. The Corporation agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant
Agent hereunder and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur
in the execution of its duties hereunder.

 

5.3.2       
Further Assurances. The Corporation agrees to perform, execute, acknowledge and deliver or cause to be performed,
executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required
by the Warrant Agent for the carrying out or performing of the provisions of this Agreement.

 

5.4             
Liability of Warrant Agent.

 

5.4.1       
Reliance on Corporation Statement. Whenever in the performance of its duties under this Warrant Agreement the Warrant
Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Corporation prior to taking
or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer or Chief Financial
Officer of the Corporation and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken
or suffered in good faith by it pursuant to the provisions of this Agreement.

 

5.4.2       
Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad
faith. The Corporation agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments,
costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

 

    	6

    	 

    

 

 

5.4.3       
Exclusions. The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with
respect to the validity or execution of any Warrant (except its countersignature of the Warrant Certificate); nor shall it be responsible
for any breach by the Corporation of any covenant or condition contained in this Agreement or in any Warrant; nor shall it by any
act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Series A-2
Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Series A-2 Common Stock will
when issued be valid and fully paid and nonassessable.

 

5.5             
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform
the same upon the terms and conditions herein set forth and, among other things, shall account promptly to the Corporation with
respect to Warrants exercised and concurrently account for, and pay to the Corporation, all moneys received by the Warrant Agent
for the purchase of shares of Series A-2 Common Stock through the exercise of Warrants.

 

6.                 
Miscellaneous Provisions.

 

6.1             
Successors. All the covenants and provisions of this Agreement by or for the benefit of the Corporation or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns.

 

6.2             
Notices. Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant
Agent or by the holder of any Warrant to or on the Corporation shall be delivered by hand or sent by registered or certified mail
or overnight courier service, addressed (until another address is filed in writing by the Corporation with the Warrant Agent) as
follows:

 

Piksel, Inc.

26 West 17th Street, 2nd Floor

New York, New York 10011

Attn: Fabrice Hamaide

Facsimile: (212) 206-7059

 

with a copy to:

 

Bracewell & Giuliani LLP

1251 Avenue of the Americas

New York, New York 10020

Attn: Jennifer Feldsher and Robert
Burns

Facsimile: (212) 508-6101

 

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Any notice, statement or
demand authorized by this Agreement to be given or made by the holder of any Warrant or by the Corporation to or on the Warrant
Agent shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another
address is filed in writing by the Corporation with the Warrant Agent) as follows:

 

Continental Stock Transfer & Trust
Company

17 Battery Place, 8th Floor

New York, NY 10004

Attn:Margaret Villani

 

Any notice, sent pursuant to this Warrant
Agreement shall be effective, if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight
courier, on the next Business Day of the delivery to the courier, and if sent by registered or certified mail on the third day
after registration or certification thereof.

 

6.3             
Legend for Underlying Series A-2 Common Stock. Each Stock Certificate shall bear the following legend:

 

“THE SECURITIES
REPRESENTED BY THIS STOCK CERTIFICATE HAVE BEEN ISSUED PURSUANT TO SECTION 1145 OF THE U.S. BANKRUPTCY CODE AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY APPLICABLE STATE SECURITIES
LAWS. SUCH SECURITIES MAY NOT BE SOLD, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH SECTION 1145 OF THE BANKRUPTCY
CODE OR, IF APPLICABLE, THERE IS AN OPINION FROM COUNSEL TO THE COMPANY THAT SUCH SALE, ASSIGNMENT OR OTHER TRANSFER MAY BE MADE
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE STATUTES.”

 

6.4             
Applicable Law. The validity, interpretation and performance of this Agreement and of the Warrants shall be governed
in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in
the application of the substantive laws of another jurisdiction. The Corporation hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Agreement shall be brought and enforced in the courts of the State of
New York, Borough of Manhattan or the United States District Court for the Southern District of New York, and irrevocably submits
to such jurisdiction, which jurisdiction shall be exclusive. The Corporation hereby waives any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Corporation may be served
by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the
address set forth in Section 6.4 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon
the Corporation in any action, proceeding or claim.

 

6.5             
Persons Having Rights Under this Agreement. Nothing in this Agreement expressed in, and nothing that may be implied
from, any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other
than the parties hereto and the registered holders of the Warrants, any right, remedy or claim under or by reason of this Warrant
Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises
and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto and their
successors and assigns and of the registered holders of the Warrants.

 

    	8

    	 

    

 

 

6.6             
Examination of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the
office of the Warrant Agent in the Borough of Manhattan, City and State of New York, for inspection by the registered holder of
any Warrant. The Warrant Agent may require any such holder to submit his, her or its Warrant for inspection by it.

 

6.7             
Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and
the same instrument.

 

6.8             
Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement
and shall not affect the interpretation thereof.

 

6.9             
Amendments. This Agreement may be amended by the parties hereto without the consent of any registered holder.

 

6.10         
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

 

[Signature page follows]

 

    	9

    	 

    

 

IN WITNESS WHEREOF, this
Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

 

	 	PIKSEL, INC.
	 	 
	 	By: 	/s/ Fabrice Hamaide
	 	Name:	Fabrice Hamaide
	 	Title:	CFO

 

	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 
	 	By:	/s/ Margaret Villani
	 	Name:	Margaret Villani
	 	Title:	Vice President

 

 

    	10

    	 

    

EXHIBIT A

 

Form of Warrant Certificate

 

 

    	11

    	 

    

 

 

    	12

    	 

    

 

EXHIBIT B

 

Form of Election Form

 

PIKSEL, INC. (f/k/a KIT digital, Inc.)

 

SHARES OF SERIES A-2 COMMON STOCK

ISSUABLE UPON EXERCISE OF NON-TRANSFERABLE

WARRANTS TO EXERCISE FOR SUCH SHARES

 

ELECTION FORM

 

I (We) acknowledge
receipt of your letter and the enclosed materials relating to the offering of shares of series A-2 common stock, par value $0.0001
per share (the “Shares”) of Piksel, Inc. (the “Company”), issuable upon the exercise of warrants
(“Warrants”). 

 

In this form, I hereby
elect to exercise the Warrants to purchase Shares distributed with respect to the Allowed Subordinated Claim (as defined in the
Plan), pursuant to the terms and subject to the conditions set forth in the Warrant Agreement, dated as of August 19, 2013, by
and between the Company and Continental Stock Transfer & Trust Company, and as described in that certain Third Amended Plan
of Reorganization, dated August 6, 2013, filed by KIT digital, Inc. (the “Plan”).

 

	BOX 1.  ̈	I do not elect to exercise my Warrants. 
	 	 
	BOX 2.  ̈	
        I elect to exercise my Warrants in full
        and purchase Shares as set forth below:

          

	 	
        Dollar
        value of Allowed 

        Subordinated
        Claim
	
        warrant

        ratio
	
        exercise

        price
	
         

        payment

	Warrant Exercise	_________________   x	      1.0       x	      $0.205         =	$____________

 

	FORM OF PAYMENT: 
	 ̈	Payment in the following amount is enclosed: $____________.
	 	 
	 ̈	Payment by wire transfer in accordance with the following instructions: JPMorgan Chase, Account Name: CST AAF Piskel, Inc. Warrant, ABA # 021000021, Account # 475580893

 

 

Dated: ______________ __, 2013

 

 

Name __________________________

(Please Print)

 

/ / / / - / / /- / / / /  /

(Insert Social Security or Other Identifying
Number of Holder)

 

Address________________________

________________________

 

Signature _______________________

 

 

This Warrant may only
be exercised by presentation to the Warrant Agent at the following location:

 

Continental Stock Transfer & Trust
Company

17 Battery Place, 8th Floor

New York, NY 10004

Attn: Corporate Actions Department

 

Telephone Number for Confirmation: (800)
509-5586

 

    	13

    	 

    

 

The method of delivery of this Election
Form is at the option and risk of the exercising holder and the delivery of this Election Form will be deemed to be made only when
actually received by the Warrant Agent and must be received prior to 5:00 p.m., New York City time, on [__________], 2013 (the
“Expiration Date”). If delivery is by mail, registered mail with return receipt requested, properly insured,
is recommended. In all cases, sufficient time should be allowed to assure timely delivery and clearance of payment prior to 5:00
p.m. New York City time, on the Expiration Date.

 

 

 

 

______________________________

Signature

 

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

 

 

 

    	14THE SECURITIES REPRESENTED BY THIS WARRANT
HAVE BEEN ISSUED PURSUANT TO SECTION 1145 OF THE U.S. BANKRUPTCY CODE AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT") OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, ASSIGNED
OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH SECTION 1145 OF THE BANKRUPTCY CODE OR, IF APPLICABLE, THERE IS AN OPINION FROM
COUNSEL TO THE COMPANY THAT SUCH SALE, ASSIGNMENT OR OTHER TRANSFER MAY BE MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE STATUTES.

 

Date of Issuance: August 16, 2013

 

WARRANT TO PURCHASE

 

SHARES OF SERIES A-1 COMMON STOCK OF

 

PIKSEL, INC.

 

(fka KIT DIGITAL, INC.)

 

(Void after August 16, 2023)

 

This certifies that
[_____________], a Delaware limited liability company, or assigns (“Holder”), for value received, is entitled
to purchase from PIKSEL, INC., a Delaware corporation, formerly named KIT DIGITAL, INC. (“Company”), [_____________]
([_____________]) fully paid and nonassessable shares of Company’s Series A-1 common stock (the “Stock”),
for cash, at a purchase price per share (the “Stock Purchase Price”) equal to $1.098. Holder may also exercise
this Warrant on a cashless or “net issuance” basis under certain circumstances as described in Section 1(b) below,
and this Warrant shall be deemed to have been exercised in full on such basis on the Expiration Date (hereinafter defined), to
the extent not fully exercised prior to such date.

 

This Warrant is issued
pursuant to the certain Third Amended Plan of Reorganization of KIT DIGITAL, INC. (the “Plan”) filed August
4, 2013 and confirmed by Order entered on August 7, 2013 in Case No. 13-11298 (REG) in the United States Bankruptcy Court for the
Southern District of New York. The Company is the reorganized debtor under the Plan. Capitalized terms used herein and not otherwise
defined in this Warrant shall have the meanings ascribed to them in the Plan, unless the context would otherwise require. Notwithstanding
anything to the contrary in this Warrant, at such time as the Company, pursuant to its Amended and Restated Certificate of Incorporation
and/or the Plan, reclassifies its shares of Series A-1 and Series A-2 Common Stock as Class A Common Stock, this Warrant shall
be exercisable for shares of Class A Common Stock and the term “Stock” as used in this Warrant shall mean and refer
to Class A Common Stock.

 

This Warrant may be
exercised at any time or from time to time up to and including 5:00 p.m. (Pacific Time) on August 16, 2023 (the “Expiration
Date”), upon surrender to Company at its principal office at 26 West 17th Street, 2nd Floor, New
York, NY 10011 (or at such other location as Company may advise Holder in writing) of this Warrant properly endorsed with the Form
of Subscription attached hereto duly completed and signed and upon payment in cash or by check of the aggregate Stock Purchase
Price for the number of shares for which this Warrant is being exercised determined in accordance with the provisions hereof. The
Stock Purchase Price and the number of shares purchasable hereunder are subject to further adjustment as provided in Section 4
of this Warrant

 

This Warrant is subject to the following
terms and conditions:

 

    	 

    	 

    

 

		1.	Exercise; Issuance of Certificates; Payment for Shares.

 

(a)          Unless
an election is made pursuant to clause (b) of this Section 1, this Warrant shall be exercisable at the option of Holder, at any
time or from time to time, on or before the Expiration Date for all or any portion of the shares of Stock (but not for a fraction
of a share) which may be purchased hereunder for the Stock Purchase Price multiplied by the number of shares to be purchased. Company
agrees that the shares of Stock purchased under this Warrant shall be and are deemed to be issued to Holder as the record owner
of such shares as of the close of business on the date on which the Form of Subscription attached hereto shall have been delivered
and payment made for such shares. Subject to the provisions of Section 2, certificates for the shares of Stock so purchased, together
with any other securities or property to which Holder is entitled upon such exercise, shall be delivered to Holder by Company,
at Company’s expense, within a reasonable time after the rights represented by this Warrant have been so exercised. Except
as provided in clause (b) of this Section 1, in case of a purchase of less than all the shares which may be purchased under this
Warrant, Company shall cancel this Warrant and execute and deliver a new warrant or warrants of like tenor for the balance of the
shares purchasable under this Warrant surrendered upon such purchase to Holder within a reasonable time. Each stock certificate
so delivered shall be in such denominations of Stock as may be requested by Holder and shall be registered in the name of Holder
or such other name as shall be designated by Holder, subject to the limitations contained in Section 2.

 

(b)          If
a registration statement to register the resale by Holder of the shares of Stock underlying this Warrant is not on file with and
has not been declared effective by the United States Securities and Exchange Commission (the “SEC”), Holder,
in lieu of exercising this Warrant by the cash payment of the Stock Purchase Price pursuant to clause (a) of this Section 1, may
elect, at any time that an effective registration statement is not in effect, to surrender this Warrant and receive that number
of shares of Stock computed using the following formula:

 

 

	Where:  	X	=	the number of shares of Stock to be issued to Holder.
	 	 	 	 
	 	Y	=	the number of shares of Stock that Holder would otherwise have been entitled to purchase hereunder pursuant to Section 1(a) (or such lesser number of shares as Holder may designate in the case of a partial exercise of this Warrant).
	 	 	 	 
	 	A	=	the Per Share Price (as defined in Section 1(c) below) of one (1) share of Stock at the time the net issuance election under this Section 1(b) is made.
	 	 	 	 
	 	B	=	the Stock Purchase Price then in effect.

 

Election to exercise
under this Section 1(b) may be made by delivering a signed form of subscription to Company via facsimile, to be followed by delivery
of this Warrant. Notwithstanding anything to the contrary contained in this Warrant, if as of the close of business on the last
business day preceding the Expiration Date this Warrant remains unexercised as to all or a portion of the shares of Stock purchasable
hereunder, then effective as 9:00 a.m. (Pacific Standard Time) on the Expiration Date, Holder shall be deemed, automatically and
without need for notice to the Company, to have elected to exercise this Warrant in full pursuant to the provisions of this Section
1(b), and upon surrender of this Warrant shall be entitled to receive that number of shares of Stock computed using the above formula,
provided that the application of such formula as of the Expiration Date yields a positive number for “X”.

 

(c)          For
purposes of Section 1(b), “Per Share Price” means:

 

    	2

    	 

    

 

 

(i)          If
Company’s common stock is traded on a securities exchange or actively traded over-the-counter:

 

(1)         If
Company’s common stock is traded on a securities exchange, the Per Share Price shall be deemed to be the closing price of
Company’s common stock as quoted on any exchange, as published on Yahoo! Finance (or a successor thereto or
equivalent publisher) for the trading day immediately prior to the date of Holder’s election hereunder.

 

(2)         If
Company’s common stock is actively traded over-the-counter, the Per Share Price shall be deemed to be the closing bid or
sales price, whichever is applicable, of Company’s common stock for the trading day immediately prior to the date of the
Holder’s election hereunder.

 

(ii)         If
(i) is not applicable, the Per Share Price shall be determined in good faith by the Board of Directors of Company based on relevant
facts and circumstances at the time of the net exercise under Section 1(b), including in the case of a Change of Control (as defined
in Section 4.3(a) hereof), the consideration receivable by the holders of the Stock in such Change of Control and the liquidation
preference (including any declared but unpaid dividends), if any, then applicable to the Stock.

 

		2.	Limitation on Transfer.

 

(a)          This
Warrant and the Stock shall not be transferable except upon the conditions specified in this Section 2, which conditions are intended
to ensure compliance with the provisions of the Securities Act. Each holder of this Warrant or the Stock issuable hereunder will
cause any proposed transferee of the Warrant or Stock to agree to take and hold such securities subject to the provisions and upon
the conditions specified in this Section 2.

 

(b)          Each
certificate representing (i) this Warrant, (ii) the Stock and (iii) any other securities issued in respect of the Stock upon any
stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of this Section 2 or unless such securities have been registered under the Securities Act or sold under Rule 144) be
stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required under applicable
state securities laws):

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO SECTION 1145 OF THE U.S. BANKRUPTCY CODE AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD,
ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH SECTION 1145 OF THE BANKRUPTCY CODE OR, IF APPLICABLE, THERE IS AN
OPINION FROM COUNSEL TO THE COMPANY THAT SUCH SALE, ASSIGNMENT OR OTHER TRANSFER MAY BE MADE PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE STATUTES.

 

(c)          Holder
and each person to whom this Warrant is subsequently transferred represents and warrants to Company (by acceptance of such transfer)
that it will not transfer this Warrant or securities issuable upon exercise hereof, except pursuant to (i) an effective registration
statement under the Securities Act, (ii) Rule 144 under the Securities Act (or any other rule under the Securities Act relating
to the disposition of securities), or (iii) an opinion of counsel, reasonably satisfactory to counsel for Company, that an exemption
from such registration is available.

 

    	3

    	 

    

 

3.          Shares
to be Fully Paid; Reservation of Shares. Company covenants and agrees that all shares of Stock which may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable
and free from all preemptive rights of any stockholder and free of all taxes, liens and charges with respect to the issue thereof.
Company further covenants and agrees that during the period within which the rights represented by this Warrant may be exercised,
Company 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 authorized but unissued Stock, or other securities and property,
when and as required to provide for the exercise of the rights represented by this Warrant. Company will take all such action as
may be necessary to assure that such shares of Stock may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any domestic securities exchange upon which the Stock may be listed. Company will not take
any action which would result in any adjustment of the Stock Purchase Price (as described in Section 4 hereof) (i) if the total
number of shares of Stock issuable after such action upon exercise of all outstanding warrants, together with all shares of Stock
then outstanding and all shares of 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 Stock then authorized by Company’s Certificate of
Incorporation, or (ii) if the par value per share of the Stock would exceed the Stock Purchase Price.

 

4.          Adjustment
of Stock Purchase Price and Number of Shares. The Stock Purchase Price and the number of shares purchasable upon the exercise
of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section
4. Upon each adjustment of the Stock Purchase Price, Holder shall thereafter be entitled to purchase, at the Stock Purchase Price
resulting from such adjustment, the number of shares obtained by multiplying the Stock Purchase Price in effect immediately prior
to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product
thereof by the Stock Purchase Price resulting from such adjustment.

 

4.1           Subdivision
or Combination of Stock. In case Company shall at any time subdivide its outstanding shares of Stock into a greater number
of shares, the Stock Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely,
(i) in case the outstanding shares of Stock of Company shall be combined into a smaller number of shares or (ii) the number of
outstanding Shares shall be reduced due to Company repurchasing outstanding Shares, the Stock Purchase Price in effect immediately
prior to such combination shall be proportionately increased.

 

4.2           Dividends
in Stock or Property, Reclassification. If at any time or from time to time the holders of Stock (or any shares of stock or
other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without
payment therefor,

 

(a)          Stock,
or any shares of stock or other securities whether or not such securities are at any time directly or indirectly convertible into
or exchangeable for Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way
of dividend or other distribution,

 

(b)          any
cash paid or payable otherwise than as a cash dividend, or

 

(c)          Stock
or other or additional stock or other securities or property (including cash) by way of spin off, split-up, reclassification, combination
of shares or similar corporate rearrangement, (other than shares of Stock issued as a stock split, adjustments in respect of which
shall be covered by the terms of Section 4.1 above),

 

then and in each such
case, Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Stock
receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to in clauses (b) and (c) above) which such Holder would hold on the date of such
exercise had it been the holder of record of such Stock as of the date on which holders of Stock received or became entitled to
receive such shares and/or all other additional stock and other securities and property.

 

    	4

    	 

    

 

 

4.3           Change
of Control.

 

(a)          In
the event of a Change of Control (as hereinafter defined), this Warrant shall be exercised by Holder
pursuant to Section 1(a) or 1(b) immediately prior to the closing thereof (and if Holder fails to so exercise by such time then
this Warrant shall be automatically exercised in accordance with Section 1(b) hereof immediately prior to the closing of such transaction).
“Change of Control” shall mean any sale or other disposition of all or substantially all of the assets
of Company, or any reorganization, privatization, consolidation, or merger of Company where the holders of Company’s securities
before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction.

 

(b)          [Intentionally
Omitted].

 

4.4           Issuance
of Litigation Warrant Shares. Solely to the extent an adjustment would not or does not occur under Section 4.2 hereof, in accordance
with the anti-dilution provisions of Section 5.09 of the Plan, simultaneous with the issuance of any Series A-2 Common Stock pursuant
to the exercise of Litigation Warrants, the number of shares of Stock exercisable under this Warrant shall be increased by an amount
that will enable Holder to acquire upon full exercise of this Warrant immediately after such issuance of Series A-2 Common Stock
the same percentage of Common Stock of Company (on a fully diluted basis) as Holder had the right to purchase under this Warrant
immediately prior to the issuance of such shares of Series A-2 Common Stock.

 

4.5           Notice
of Adjustment. Upon any adjustment of the Stock Purchase Price, and/or any increase or decrease in the number of shares purchasable
upon the exercise of this Warrant Company shall give written notice thereof, by first class mail, postage prepaid, addressed to
the registered holder of this Warrant at the address of such holder as shown on the books of Company. The notice, which may be
substantially in the form of Exhibit “A” attached hereto, shall be signed by Company’s chief financial
officer and shall state the Stock Purchase Price resulting from such adjustment and the increase or decrease, if any, in the number
of 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.

 

4.6           Other
Notices. If at any time:

 

(a)          Company
shall declare any cash dividend upon its Stock;

 

(b)          Company
shall declare any dividend upon its Stock payable in stock or make any special dividend or other distribution to the holders of
its Stock;

 

(c)          Company
shall offer for subscription pro rata to the holders of its Stock any additional shares of stock of any class or other rights;

 

(d)          there
shall be any capital reorganization or reclassification of the capital stock of Company, or consolidation or merger of Company
with, or sale of all or substantially all of its assets to, another entity;

 

(e)          there
shall be a voluntary or involuntary dissolution, liquidation or winding-up of Company; or

 

(f)          Company
shall take or propose to take any other action, notice of which is actually provided to holders of the Stock;

 

    	5

    	 

    

 

then, in any one or more of said cases,
Company shall give, by first class mail, postage prepaid, addressed to Holder of this Warrant at the address of such Holder as
shown on the books of Company, (i) at least 20 days’ prior written notice of the date on which the books of Company shall
close or a record shall be taken for such dividend, distribution or subscription rights or for determining rights to vote in respect
of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, or other action
and (ii) in the case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up,
or other action, at least 20 days’ written notice of the date when the same shall take place. Any notice given in accordance
with the foregoing clause (i) shall also specify, in the case of any such dividend, distribution or subscription rights, the date
on which the holders of Stock shall be entitled thereto. Any notice given in accordance with the foregoing clause (ii) shall also
specify the date on which the holders of Stock shall be entitled to exchange their Stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, or other action
as the case may be.

 

4.7           Certain
Events. If any change in the outstanding Stock of Company or any other event occurs as to which the other provisions of this
Section 4 are not strictly applicable or if strictly applicable would not fairly effect the adjustments to this Warrant in accordance
with the essential intent and principles of such provisions, then the Board of Directors of Company shall make in good faith an
adjustment in the number and class of shares issuable under this Warrant, the Stock Purchase Price and/or the application of such
provisions, in accordance with such essential intent and principles, so as to protect such purchase rights as aforesaid. The adjustment
shall be such as will give Holder of this Warrant upon exercise for the same aggregate Stock Purchase Price the total number, class
and kind of shares as Holder would have owned had this Warrant been exercised prior to the event and had Holder continued to hold
such shares until after the event requiring adjustment.

 

5.          Issue
Tax. The issuance of certificates for shares of Stock upon the exercise of this Warrant shall be made without charge to Holder
of this Warrant for any issue tax in respect thereof; provided, however, that Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of
the then Holder of this Warrant being exercised.

 

6.          Closing
of Books. Company will at no time close its transfer books against the transfer of this Warrant or of any shares of Stock issued
or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

7.          No
Voting or Dividend Rights; Limitation of Liability. Nothing contained in this Warrant shall be construed as conferring upon
Holder hereof the right to vote or to consent as a stockholder in respect of meetings of stockholders for the election of directors
of Company or any other matters or any rights whatsoever as a stockholder of Company. No dividends or interest shall be payable
or accrued in respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to
the extent that, this Warrant shall have been exercised. No provisions hereof, in the absence of affirmative action by Holder to
purchase shares of Stock, and no mere enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability
of such Holder for the Stock Purchase Price or as a stockholder of Company, whether such liability is asserted by Company or by
its creditors.

 

8.          [Intentionally
Omitted.]

 

9.          Registration
Rights. Company agrees to make Holder a party, with respect to the shares of Stock issuable upon exercise of this Warrant,
to the next registration rights agreement that Company enters into with any of its security holders after the date of this Warrant
so that Holder will be entitled to the same registration rights on the same terms that Company provides to such security holders.
Company shall take such action as may be reasonably necessary to assure that the granting of such registration rights to Holder
does not violate the provisions of any of Company’s charter documents or the rights of prior grantees of registration rights.

 

    	6

    	 

    

 

10.         Rights
and Obligations Survive Exercise of Warrant. The rights and obligations of Company, of Holder of this Warrant and of the holder
of shares of Stock issued upon exercise of this Warrant, contained in Sections 6 and 9 shall survive the exercise of this Warrant.

 

11.         Modification
and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.

 

12.         Notices.
Any notice, request or other document required or permitted to be given or delivered to Holder or Company shall be deemed to have
been given (i) upon receipt if delivered personally or by courier (ii) upon confirmation of receipt if by facsimile or (iii) three
business days after deposit in the US mail, with postage prepaid and certified or registered, to each such Holder at its address
as shown on the books of Company or to Company at the address indicated therefor in the first paragraph of this Warrant.

 

13.         Binding
Effect on Successors. All of the obligations of Company relating to the Stock issuable upon the exercise of this Warrant shall
survive the exercise and termination of this Warrant. All of the covenants and agreements of Company shall inure to the benefit
of the permitted successors and assigns of Holder hereof.

 

14.         Descriptive
Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the laws of the State of California.

 

15.         Lost
Warrants or Stock Certificates. Company represents and warrants to Holder hereof that upon receipt of evidence reasonably satisfactory
to Company of the loss, theft, destruction, or mutilation of any Warrant or stock certificate and, in the case of any such loss,
theft or destruction, upon receipt of an indemnity reasonably satisfactory to Company, or in the case of any such mutilation upon
surrender and cancellation of such Warrant or stock certificate, Company at its expense will make and deliver a new Warrant or
stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate.

 

16.         Fractional
Shares. No fractional shares shall be issued upon exercise of this Warrant. Company shall, in lieu of issuing any fractional
share, pay the holder entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective Stock Purchase
Price.

 

17.         [Intentionally
Omitted]

 

18.         Additional
Representations and Covenants of Company. Company hereby represents, warrants and agrees as follows:

 

18.1         Corporate
Power. Company has all requisite corporate power and corporate authority to issue this Warrant and to carry out and perform
its obligations hereunder.

 

18.2         Authorization.
All corporate action on the part of Company, its directors and stockholders necessary for the authorization, execution, delivery
and performance by Company of this Warrant has been taken. This Warrant is a valid and binding obligation of Company, enforceable
against Company in accordance with its terms.

 

18.3         Offering.
Pursuant to the Plan and Section 1145 of the federal Bankruptcy Code, the offer, issuance and sale of this Warrant by Company to
Holder is, and the issuance of Stock to Holder upon exercise of this Warrant will be, exempt from the registration requirements
of the Securities Act, and are exempt from the qualification requirements of any applicable state securities laws.

 

    	7

    	 

    

 

18.4         Stock
Issuance. Upon exercise of this Warrant, Company will use its commercially reasonable efforts to cause stock certificates representing
the shares of Stock purchased pursuant to the exercise to be issued in the names of Holder, its permitted nominees or assignees,
as appropriate at the time of such exercise.

 

18.5         Certificates
and Bylaws. Company has provided Holder with true and complete copies of Company’s Amended and Restated Certificate of
Incorporation, Amended and Restated Bylaws, and each Certificate of Designation or other charter document setting, forth any rights,
preferences and privileges of Company’s capital stock, each as amended and in effect on the date of issuance of this Warrant.

 

18.6         Financial
and Other Reports. From time to time up to the earlier of the Expiration Date or the complete exercise of this Warrant, Company
shall furnish to Holder (i) upon delivery to Company’s Board of Directors, as of the close of each fiscal year of Company,
an audited balance sheet and statement of changes in financial position at and as of the end of such fiscal year, together with
an audited statement of income for such fiscal year; and (ii) within 45 days after the close of each fiscal quarter of Company,
an unaudited balance sheet and statement of cash flows at and as of the end of such quarter, together with an unaudited statement
of income for such quarter and a capitalization table. In addition, Company agrees to provide Holder at any time and from time
to time, and at Holder’s cost and expense, with such information as Holder may reasonably request for purposes of Holder’s
compliance with regulatory, accounting and reporting requirements applicable to Holder. Notwithstanding the foregoing, Company
shall not be required to furnish to Holder the financial information described in this Section 18.6 in the event such financial
information has been previously filed with the SEC via EDGAR.

 

[remainder of this
page intentionally left blank; signature page follows]

 

    	8

    	 

    

 

[Signature page to Warrant]

 

IN WITNESS WHEREOF, Company has caused this
Warrant to be duly executed by its officer, thereunto duly authorized as of the date of issuance set forth on the first page hereof.

 

	PIKSEL, INC.	 
	 	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

    	 

    	 

    

 

FORM OF SUBSCRIPTION

 

(To be signed only upon exercise of Warrant)

 

To:_____________________________

 

		 ̈	The undersigned, the holder of the within Warrant, hereby irrevocably elects to exercise the purchase
right represented by such Warrant for, and to purchase thereunder, (1) See Below ________________ (_____) shares (the “Shares”)
of Stock of __________ and herewith makes payment of _____________ Dollars ($________) therefor, and requests that the certificates
for such shares be issued in the name of, and delivered to, _________, whose address is ___________.

 

		 ̈	The undersigned hereby elects to convert ______ percent (__%) of the value of the Warrant pursuant
to the provisions of Section 1(b) of the Warrant.

 

The undersigned acknowledges that it has
reviewed the representations and warranties contained in Section 17 of this Warrant and by its signature below hereby makes such
representations and warranties to Company.

 

	 	Dated	 
	 	 	 
	 	Holder:  	 
	 	 	 
	 	By:	 
	 	 	 
	 	Its:	 
	 	 	 
	 	(Address)
	 	 
	 	 
	 	 
	 	 

 

		(1)	Insert here the number of shares called for on the face of the Warrant (or, in the case of a partial
exercise, the portion thereof as to which the Warrant is being exercised), in either case without making any adjustment for additional
Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of the Warrant, may
be issuable upon exercise.

 

    	 

    	 

    

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned, the
holder of the within Warrant, hereby sells, assigns and transfers all of the rights of the undersigned under the within Warrant,
with respect to the number of shares of Stock covered thereby set forth herein below, unto:

 

	Name of Assignee	 	Address	 	No. of Shares

 

	 	Dated	 
	 	 	 
	 	Holder:  	 
	 	 	 
	 	By:	 
	 	 	 
	 	Its:	 

 

    	 

    	 

    

 

EXHIBIT “A”

 

[On letterhead of Company]

 

Reference is hereby
made to that certain Warrant dated August 16, 2013, issued by PIKSEL, INC., a Delaware corporation (the “Company”),
to [_____________], a Delaware limited liability company (the “Holder”).

 

[IF APPLICABLE] Notice
is hereby given pursuant to Section 4.5 of the Warrant that the following adjustment(s) have been made to the Warrant: [describe
adjustments, setting forth details regarding method of calculation and facts upon which calculation is based].

 

This certifies that
Holder is entitled to purchase from Company __________________________ (____________) fully paid and nonassessable shares of Company's
_________ Stock at a price of _________________________ Dollars ($__________) per share (the “Stock Purchase Price”).
The Stock Purchase Price and the number of shares purchasable under the Warrant remain subject to adjustment as provided in Section
4 of the Warrant.

 

Executed this ___ day of ________________,
20_____.

 

	 	PIKSEL, INC.
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:

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