Document:

TERMINATION AGREEMENT

Exhibit 10.14

TERMINATION AGREEMENT

THIS TERMINATION AGREEMENT is made and entered into this 31st day of October, 2013, by and between Social Reality, Inc., a Delaware corporation with its principal place of business at 456 Seaton Street, Los Angeles, CA  90013 (the “Borrower”), TCA Global Credit Master Fund, LP, a Cayman Islands partnership with its principal place of business at 1404 Rodman Street, Hollywood, FL  33020 (the “Lender”) and Pearlman Schneider LLP (the “Escrow Agent”). 

W I T N E S S E T H:

WHEREAS, the Borrower and Lender are parties to that certain Credit Agreement dated as of December 31, 2012 made effective as of February 22, 2013 (the “Original Agreement”), as amended pursuant to the First Amendment to Credit Agreement effective June 11, 2013 (the “Amended Agreement”) (collectively, the “Credit Agreement”) pursuant to which the Lender extended a revolving credit facility to the Borrower.  

WHEREAS, the amounts borrowed by the Borrower pursuant to the Credit Agreement are evidenced by a convertible Replacement Revolving Note in the principal amount of $550,000 (the “Amended Revolving Note”) dated June 11, 2013 from Borrower to Lender.  

WHEREAS, as security for the repayment of the Amended Revolving Note, the Borrower granted the Lender a security interest in its assets which is evidenced by a Security Agreement dated as of December 31, 2012 and made effective February 22, 2013 (the “Security Agreement”).

WHEREAS, the Borrower has paid all amounts due under the Amended Revolving Note, including the Overpayment Amount (as hereinafter defined) and desires to terminate the Credit Agreement, the Security Agreement and all related transactions, agreements, and obligations between the parties.

WHEREAS, the Lender is the beneficiary of certain make-whole rights (the “Make-Whole Rights”) related to an aggregate of 174,010 shares of the Borrower’s Class A common stock (the “Shares”) pursuant to Section 2.2 (h) of the Original Agreement and Section 10 of the Amended Agreement.  

WHEREAS, the Borrower desires to redeem the Shares as hereinafter set forth in full and complete satisfaction of the Make Whole Rights and the Lender has agreed to redemption of the Shares by Borrower upon the terms and conditions of this Agreement.

WHEREAS, the Borrower and the Lender have asked the Escrow Agent to facilitate the redemption of the Shares, and the Escrow Agent has consented to act in such role pursuant to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, it is hereby agreed as follows:

1.

Recitals; Defined Terms.  The foregoing recitals are true and correct and are herein incorporated herein by reference.  Capitalized terms not otherwise defined herein shall have the same meaning as in the Credit Agreement.

1

2.

Redemption of the Shares.

a.

Subject to the terms and conditions hereinafter set forth, at the Closing (as hereinafter defined), the Borrower shall redeem the Shares from the Lender for total consideration of One Hundred and Seventy-five Thousand dollars ($175,000.00) (the “Purchase Price”).  The Purchase Price shall be paid at Closing (as hereinafter defined) through (i) the Lender retaining the Overpayment Amount (as hereinafter defined in Section 5), and (ii) the payment by the Borrower to Lender of an additional $160,321.08 (the “Purchase Funds”).  

b.

Simultaneous with the execution of this Agreement, the Borrower shall tender the Purchase Funds in immediately available funds to the Escrow Agent for deposit in the Escrow Account pursuant to the provisions of Section 3 hereof.

c.

Escrow Agent acknowledges having previously received from Lender for deposit in the Escrow Account, the stock certificates representing the Shares (the “Certificates”).  

d.

The Closing (as hereinafter defined) of the transactions contemplated by this Agreement shall take place following the satisfaction of all conditions set forth in Section 3 hereof.  At Closing and upon Lender’s receipt of cleared funds equaling the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with Section 17 below, all Make-Whole Rights shall have been satisfied in full and be of no further force or effect.

3.

Escrow and Escrow Agent.  The Borrower and the Lender hereby appoint the Escrow Agent as escrow agent upon the terms and conditions set forth herein, and the Escrow Agent hereby accepts such appointment.  

a.

The Purchase Funds and Certificates are sometimes hereinafter referred to as the “Escrow Property”.  The Purchase Funds shall not bear interest and no investment of the Escrow Property shall be made while held by the Escrow Agent.

b.

At such time as the Escrow Agent shall have received (i) a duly executed Agreement from the Lender, (ii) the Certificates (which Escrow Agent hereby acknowledges having previously received), (iii) a duly executed Agreement from the Borrower, and (iv) Purchase Funds from the Borrower, the Escrow Agent shall promptly disburse the Purchase Funds to the Lender and the Certificates to the Borrower and the Lender shall be entitled to the Overpayment Amount through a transfer of such amount from the Lock Box Account to the Lender (the “Closing”).  If the Closing shall not have occurred within seven (7) business days from the date of the execution of this Agreement by all parties and the delivery of the Escrow Property to the Escrow Agent, the Escrow Agent shall release the Escrow Property to the party which deposited same into the Escrow Account, all rights to the Overpayment Amount shall remain with the Borrower and all rights held by the Lender related to the Shares shall be retained by it.  Upon disbursement of the Escrow Property as set forth in this Section 3, the obligations of the Escrow Agent under this Agreement shall terminate.

c.

At any time, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in any court it deems appropriate, to determine ownership or disposition of the Escrow Property or it may deposit the Escrow Property with the clerk of any appropriate court or it may retain the Escrow Property pending receipt of a final, non-appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Property are to be disbursed and delivered.  During the pendency of any such action, the Escrow Agent may suspend the performance of any of its obligations under this Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent shall have been 

2

appointed (as the case may be).  The Escrow Agent shall have no liability to the Borrower, the Lender or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of funds held in the Escrow Account or any delay in or with respect to any other action required or requested of Escrow Agent, except for actions or omissions of Escrow Agent that constitute gross negligence or willful misconduct.  

d.

The acceptance by the Escrow Agent of its duties as such under this Agreement is subject to the following terms and conditions, which all parties to this Agreement hereby agree shall govern and control with respect to the rights, duties, liabilities and immunities of the Escrow Agent:

i.

The Escrow Agent shall not be liable for any error in judgment or mistake of law or fact, or for any action taken or omitted to be taken by it, or any action suffered by it to be taken or omitted by it, in good faith and in the exercise of its own best judgment.  The Escrow Agent shall not be liable for any delay in delivering Escrow Property as required hereby, absent its own gross negligence or willful misconduct.

ii.

The Escrow Agent may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent other than itself), statement, instrument, report or other paper or document (not only as to its due execution and validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  

iii.

The Escrow Agent shall be indemnified and held harmless by the Lender and the Borrower, upon demand by the Escrow Agent, from and against any claims, demands, losses, damages, liabilities, costs and expenses, including counsel fees and disbursements, (collectively, “Damages”) suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim, or in connection with any claim or demand, which in any way directly or indirectly arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, the monies or other property held by it hereunder or any such Damages.  The obligations of the Lender and the Borrower under this Section 3 shall survive any termination of this Agreement and the resignation or removal of the Escrow Agent.

iv.

The Escrow Agent may resign at any time and be discharged from its duties as Escrow Agent hereunder by its giving the other parties hereto prior written notice of at least seven (7) business days.  As soon as practicable after its resignation, the Escrow Agent shall turn over to a successor escrow agent appointed by the other parties hereto, jointly, all of the Escrow Property held hereunder upon presentation of the document appointing the new escrow agent and its acceptance thereof.  If no new escrow agent is so appointed within the seven (7) day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Property with any court it deems appropriate.

4.

Termination of Credit Agreement.  Upon Lender’s receipt of good and cleared funds representing the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with Section 17 below, the revolving credit facility granted to the Borrower by the Lender pursuant to the terms of the Credit Agreement, the Credit Agreement, including the Make Whole Rights, and the Amended Revolving Note and all other Loan Documents are hereby terminated in their entirety and neither party shall have any obligation to the other party thereunder, except for obligations or indemnities that specifically survive termination of the Credit Agreement and other Loan Documents.  Within seven (7) business days from the date Lender receives good and cleared funds representing the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with 

3

Section 17 below, the Lender shall execute and file UCC-3 Termination Statements in all jurisdictions in which UCC-1 Financing Statements were filed in respect to the Credit Agreement, the Amended Revolving Note and/or the Security Agreement.

5.

Overpayment Amount.  The Lender has advised the Borrower that there is $14,678.92 in cleared funds in the Lock-Box Account which represents an overpayment of all amounts due under the Amended Revolving Note and the Revolving Loans (the “Overpayment Amount”).  

6.

Termination of Lock Box Account.  Other than the Overpayment Amount, the disbursement of which shall be governed by Section 3(b) of this Agreement, any payments by the Borrower’s Customers which shall be deposited in the Lock Box Account after Lender’s receipt of good and cleared funds representing the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with Section 17 below, shall be the sole property of the Borrower and Lender shall cause such amounts to be promptly transferred to the Borrower without deduction.

7.

Intentionally Left Blank.

8.

General Release.  

a.

Effective upon Lender’s receipt of good and cleared funds representing the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with Section 17 below, the Lender, its officers, directors, employees, agents, partners and affiliates (collectively, the “First Party”) do hereby release the Borrower, its officers, directors, employees, agents and affiliates (collectively, the “Second Party”) of and from any and all manner of action and actions, cause and causes of actions, rights, liens, agreements, contracts, covenants, obligations, suits, claims, debts, dues, sums of monies, costs, expenses, attorneys’ fees, judgments, orders and liabilities, accounts, covenants, controversies, promises and damages of whatever kind and nature in law or equity or otherwise whether now known or unknown, including specifically any and all claims arising out of the Credit Agreement and other Loan Documents, which the First Party ever had, now has or may have had against the Second Party, now or by reason of any matter, cause or thing whatsoever, from the beginning of the world to the date of this Agreement, expressly including, but not limited to, all indebtedness of any kind.

b.

The Second Party does hereby release and forever discharge the First Party from any and all manner of action and actions, cause and causes of actions, rights, liens, agreements, contracts, covenants, obligations, suits, claims, debts, dues, sums of monies, costs, expenses, attorneys’ fees, judgments, orders and liabilities, accounts, covenants, controversies, promises, damages, of whatever kind and nature in law or equity or otherwise whether now known or unknown, including specifically, any and all claims arising out of the Credit Agreement and other Loan Documents, which the Second Party ever had, now has or may have had against the First Party, now or by reason of any matter, cause or thing whatsoever, from the beginning of the world to the date of this Agreement.

c.

In further consideration of the aforesaid, the parties hereto do hereby agree that they will forever refrain from and desist from, directly or indirectly, instituting or asserting any claim against the other party for any of the matters covered by the releases set forth in Sections 8(a) and 8(b) above which in any way arise from or pertain to the aforesaid facts and circumstances.  In executing this Agreement, the parties hereto state and represent that they understand the terms are contractual and not merely a recital.  The parties hereto further acknowledge, understand and agree that this Agreement shall bind them and their heirs, next of kin, executors, administrators, successors or assigns, and shall inure to the benefit of the parties released herein and their agents, servants, employees, representatives, subsidiaries, insurers, sureties, successors or assigns.

4

9.

Representation and Warranties.  

a.

The Borrower represents and warrants to the Lender that the Borrower has full power and authority to execute this Agreement and consummate the transactions contemplated hereby, and this Agreement is binding on the Borrower and enforceable in accordance with its terms.  The execution and delivery of this Agreement and consummation of the transactions contemplated hereby do not violate or conflict with or constitute a default under any contract, agreement or commitment of any to which the Borrower is a party or by which the Borrower is bound, or to the Borrower’s knowledge, any existing applicable law, rule, regulation, judgment, order or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Borrower or any of its property.

b.

The Lender represents and warrants to the Borrower that the Lender has full power and authority to execute this Agreement and consummate the transactions contemplated hereby, and this Agreement is binding on the Lender and enforceable in accordance with its terms.  The execution and delivery of this Agreement and consummation of the transactions contemplated hereby do not violate or conflict with or constitute a default under any contract, agreement or commitment of any to which the Lender is a party or by which the Lender is bound, or to the Lender’s knowledge, any existing applicable law, rule, regulation, judgment, order or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Lender or any of its property.

10.

Amendment or Assignment.  No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is evidenced by a written instrument, executed by the party against which such modification, waiver, amendment, discharge, or change is sought.  

11.

Notices.  All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given in accordance with the Credit Agreement.

12.

Entire Agreement.  This Agreement contains all of the understandings and agreements of the parties with respect to the subject matter discussed herein.  Upon Lender’s receipt of good and cleared funds representing the Purchase Price, plus payment to Lender’s counsel of the fees required to be paid in accordance with Section 17 below, all prior agreements, whether written or oral, are merged herein and shall be of no force or effect.

13.

Severability.  The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision.  In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein.

14.

Construction and Enforcement.  This Agreement shall be construed in accordance with the laws governing the Credit Agreement, without and application of the principles of conflicts of laws, and venue with respect to any dispute hereunder shall be as set forth in the Credit Agreement.  If it becomes necessary for any party to institute legal action to enforce the terms and conditions of this Agreement, and such legal action results in a final judgment in favor of such party ("Prevailing Party"), then the party or parties against whom said final judgment is obtained shall reimburse the Prevailing Party for all direct, indirect or incidental expenses incurred, including, but not limited to, all attorney's fees, court costs and other expenses incurred throughout all negotiations, trials or appeals undertaken in order to enforce the Prevailing Party's rights hereunder.  

5

15.

Binding Nature, No Third Party Beneficiary. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns, and is made solely and specifically for their benefit.  No other person shall have any rights, interest or claims hereunder or be entitled to any benefits under or on account of this Agreement as a third-party beneficiary or otherwise.

16.

Counterparts.  This Agreement may be executed in any number of counterparts, including facsimile signatures which shall be deemed as original signatures.  All executed counterparts shall constitute one Agreement, notwithstanding that all signatories are not signato­ries to the original or the same counterpart.

17.

Payment of Lender’s Counsel’s Fees.  At the Closing, Borrower shall be obligated to pay Lender’s counsel for its fees in connection with this Agreement in an amount equal to $750.00.

18.

Stock Purchase Agreement.  Borrower represents that the form of agreement undated for October 2013 by and between TCA Global Master Credit Fund, LP., G. Tyler Runnels and Jasmine N. Runnels TTEE The Runnels Family Trust DTD January 11, 2000 and Pearlman Schneider L.L.P. was not exceuted nor consummated by or on behalf of the Runnels Family Trust and void ab initio.  The Escrow Agent also represents that it never executed the form of agreement.

IN WITNESS WHEREOF, this Agreement has been executed by each of the parties hereto on the date first above written.

Social Reality, Inc.

By: /s/ Christopher Miglino

      Christopher Miglino, Chief Executive Officer

TCA Global Credit Master Fund, L.P.

By: 

TCA Global Credit Fund GP, Ltd.

Its: 

General Partner

By: /s/ Robert Press

      Robert Press, Director

Pearlman Schneider LLP

By: /s/ James M. Schneider

      James M. Schneider

6Consulting Agreement

EXHIBIT 10.16

	
	SISKEY CAPITAL, LLC

4521 Sharon Road, Suite 450

Charlotte, NC  28211

October 29, 2013

Social Reality Inc.

Mr. Christopher Miglino

456 Seaton Street

Los Angeles, California, 90013

Re: Consulting Agreement

Dear Mr. Miglino,

Pursuant to this Consulting Agreement (“Agreement”) Social Reality, Inc. (hereinafter referred to as “the Client”) has agreed to engage Siskey Capital, LLC (“SCAP”) on a non-exclusive basis to perform services related to financial consulting matters pursuant to the terms and conditions set forth herein.

1. Services.  SCAP shall act as advisor to the Client and perform, as requested by the Client, the following Services: 

•

new business support, including identifying and introducing potential strategic partners to the Client;

•

in-depth consultations to the Client’s senior management to determine the amount and structure of the capital sought by the Client, 

•

evaluations of competitors and development of strategies to increase the Client’s competitiveness, 

•

the continuing strategic analysis of the Client’s business objectives and balancing these objectives with the expectations of the financial markets; and 

•

the implementation of a strategic plan for the Client, with a view towards enabling the Client to achieve its financial goals.

. marketing, business development

2. Performance of Services.  SCAP shall be obligated to provide the Services as and when requested by Client and shall not be authorized or obligated to perform any Services on SCAP’s own initiative. The Services shall be performed reasonably promptly after Client’s request, consistent with SCAP’s availability.  It is understood that the Services to be provided hereunder are not exclusive to the Client and SCAP has other business obligations, including acting as consultant for other companies, provided, however, that SCAP shall not provide services to any potential or actual competitor of the Client during the Term of this agreement.

3. Relationship of the Parties.  SCAP shall be, and at all times during the Term of the Agreement, remain an independent contractor. As such, SCAP shall determine the means and methods of performing the Services hereunder and shall render the Services at such places it determines.  The Client shall pay all reasonable costs and expenses incurred by SCAP in the performance of its duties hereunder, provided however such costs and expenses shall not exceed $250.00 without Client’s prior written approval.

4. Assurances.  Client acknowledges that all opinions and advices (written or oral) given by SCAP to the Client in connection with this Agreement are intended solely for the benefit and use of Client, and Client agrees that no person or entity other than Client shall be entitled to make use of or rely upon the advice of SCAP to be given hereunder.  Furthermore, no such opinion or advice given by SCAP 

shall by used at any time, in any manner or for any purpose, and shall not be reproduced, disseminated, quoted or referred to at any time, in any manner or for any purpose, except as may be contemplated herein. Client shall not make any public references to SCAP without SCAP’s prior written consent or as required by applicable law.

5. Compensation.  

(a)

As compensation for the Services to be performed by SCAP hereunder, SCAP shall receive the following:

­

A retainer in the form of 150,000 shares of Class A Common Stock shall be granted following the execution of this agreement;

­

A retainer in the form of 35,000 shares of Series 1 Preferred Stock shall be granted as soon as practicable following the execution of this agreement.  The designations, rights and preferences of the Series 1 Preferred Stock as previously filed by the Client with the Secretary of State of Delaware are attached hereto as Exhibit A.  SCAP acknowledges it has read such designations, rights and preferences, including the limitations on the sale, transfer, assignment, hypothecation or other disposition of the Series 1 Preferred Stock and the shares of Class A Common Stock issuable upon the conversion of the Series 1 Preferred Stock, and hereby consents to such limitations;

­

A value of $100,000 shall be considered as full payment for the services to be rendered under this three-year agreement.  SCAP agrees to pay all taxes, federal and state, relating to this agreement.  SCAP agrees to indemnify the Client for any claim for unpaid taxes which might arise from the receipt of shares.

(b)

SCAP is an accredited investor as that term is defined in the Securities Act of 1933, as amended (the “Act”).  SCAP acknowledges its understanding that neither the shares of Class A Common Stock, the shares of Series 1 Preferred Stock nor the shares of Class A Common Stock issuable upon the conversion of the Series 1 Preferred Stock (collectively, the “Securities”) are registered under the Act or any state securities laws.  SCAP represents that the Securities are being acquired for SCAP’s own account, for investment purposes only and not with a view for distribution or resale to others. SCAP agrees that it will not sell or otherwise transfer the Securities unless the Securities are registered under the Act or unless in the opinion of counsel satisfactory to the Client an exemption from such registration is available. SCAP further acknowledges its understanding that the Client will place a restrictive legend on the certificates representing the Securities.

(c)

SCAP shall not be entitled to convert the shares of Series 1 Preferred Stock to the extent that after giving effect to such conversion, SCAP (together with the SCAP’s Affiliates, and any other Persons acting as a group together with SCAP or any of SCAP’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  When used in this paragraph, “Affiliates” of SCAP means any entity which directly or indirectly controls or is controlled by SCAP and “Persons” means any individual, partnership, limited liability company, limited liability partnership, corporation, trust, joint venture, joint stock company, or other entity.  For purposes of the foregoing sentence, the number of shares of Class A Common Stock beneficially owned by SCAP and its Affiliates shall include the number of shares of Class A Common Stock issuable upon conversion of the Series 1 Preferred Stock with respect to which such determination is being made, but shall exclude the number of shares of Class A Common Stock which would be issuable upon (i) conversion of the remaining, nonconverted portion of the shares of Series 1 Preferred Stock owned by SCAP or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Client, subject to a limitation on conversion or exercise analogous to the limitation contained herein, beneficially owned by SCAP or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as 

Page 2 of 6

amended (the “Exchange Act”) and the rules and regulations promulgated thereunder, it being acknowledged by SCAP that the Client is not representing to SCAP that such calculation is in compliance with Section 13(d) of the Exchange Act and SCAP is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this paragraph applies, the determination of whether the shares of Series 1 Preferred Stock are convertible (in relation to other securities owned by SCAP together with any Affiliates) and the number of such shares of Series 1 Preferred Stock that are convertible shall be in the sole discretion of SCAP, and the submission of a notice of conversion shall be deemed to be SCAP’s determination of whether the shares of Series 1 Preferred Stock are convertible (in relation to other securities owned by SCAP together with any Affiliates) and of the number of shares of Series 1 Preferred Stock that are convertible, in each case subject to the Beneficial Ownership Limitation, and the Client shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this paragraph, in determining the number of outstanding shares of Class A Common Stock, SCAP may rely on the number of outstanding shares of Class A Common Stock as reflected in (a) the Client’s most recent periodic or annual report filed with the SEC, as the case may be, (b) a more recent public announcement by the Client or (c) a more recent written notice by the Client setting forth the number of shares of Class A Common Stock outstanding.  Upon the written request of SCAP, the Client shall within two (2) trading days confirm orally and in writing to SCAP the number of shares of Class A Common Stock then outstanding.  In any case, the number of outstanding shares of Class A Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company by SCAP or its Affiliates since the date as of which such number of outstanding shares of Class A Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Class A Common Stock outstanding immediately after giving effect to the issuance of shares of Class A Common Stock issuable upon conversion of the Series 1 Preferred Stock.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  

6. Additional Services.  Should Client desire SCAP to perform additional services not outlined herein, Client may make such request to SCAP in writing.  SCAP may agree to perform those services at its sole discretion.  However, any additional services performed by SCAP may require an additional compensation schedule to be mutually agreed upon prior to rendering such services.

7. Term.  This Agreement shall be binding upon all parties when executed by the Client and remain in effect until July 01, 2016 unless otherwise mutually agreed upon in writing by Client and SCAP.

8. Due Diligence/Disclosure

a.

Client recognizes and confirms that, in advising Client and in fulfilling its retention hereunder, SCAP will use and rely upon data, material and other information furnished to it by Client. Client acknowledges and agrees that in performing its Services under this Agreement, SCAP may relay upon the data, material and other information supplied by Client without independently verifying the accuracy, completeness or veracity of it.

b.

Except as contemplated by the terms hereof or as required by applicable law, SCAP shall keep confidential, indefinitely, all non-public information provided to it by Client, and shall not disclose such information to any third party without Client’s prior written consent, other than such of its employees and advisors as SCAP reasonably determines to have a need to know.

Page 3 of 6

9. Indemnification.

a.

Client shall indemnify and hold SCAP harmless against any and all liabilities, claims, lawsuits, including any and all awards and/or judgments to which it may become subject under the Act or the Exchange Act or any other federal or state statute, at common law or otherwise, insofar as said liabilities, claims and lawsuits, (including awards and/or judgments) arise out of or are in connection with the Services rendered by SCAP in connection with this Agreement, except for any liabilities, claims, and lawsuits (including awards, judgments and related costs and expenses), arising out of acts or omissions of SCAP.  In addition, the Client shall indemnify and hold SCAP harmless against any and all reasonable costs and expenses, including reasonable attorney fees, incurred or relating to the foregoing. If it is judicially determined that Client will not be responsible for any liabilities, claims and lawsuits or expenses related thereto, the indemnified party, by his or its acceptance of such amounts, agrees to repay Client all amounts previously paid by Client to the indemnified person and will pay all costs of collection thereof, including but not limited to reasonable attorney’s fees related thereto.  SCAP shall give Client prompt notice of any such liability, claim or lawsuit, which SCAP contends is the subject matter of Client’s indemnification and SCAP thereupon shall be granted the right to take any and all necessary and proper action, at its sole cost and expense, with respect to such liability, claim and lawsuit, including the right to settle, compromise and dispose of such liability, claim or lawsuit, excepting there from any and all proceedings or hearings before any regulatory bodies and/or authorities.

b.

SCAP shall indemnify and hold Client and its director, officers, employees and agents harmless against any and all liabilities, claims and lawsuits, including and all award and/or judgments to which it may become subject under the Act, the Exchange Act or any other federal or state statute, at common law or otherwise, insofar as said liabilities, claims and lawsuits (including awards and/or judgments) that may arise out of or are based upon SCAP’s gross negligence or willful misconduct, or any untrue statement or alleged untrue statement of a material fact or omission of a material fact required to be stated or necessary to make the statement provided by SCAP not misleading, which statement or omission was made in reliance upon information furnished in writing to Client by or on behalf of SCAP for inclusion in any registration statement or prospectus or any amendment or supplement thereto in connection with any transaction to which this Agreement applies.  In addition, SCAP shall also indemnify and hold Client harmless against any and all costs and expenses, including reasonable attorney fees, incurred or relating to the foregoing.  Client shall give SCAP prompt notice of any such liability, claim or lawsuit which Client contends is the subject matter of SCAP’s indemnification and SCAP thereupon shall be granted the right to take any and all necessary and proper action, at its sole cost and expense, with respect to such liability, claim and lawsuit, including the right to settle, compromise or dispose of such liability, claim or lawsuit, excepting therefrom any and all proceedings or hearings before any regulatory bodies and/or authorities.

c.

The indemnification provisions contained in this Section are in addition to any other rights or remedies which either party hereto may have with respect to the other or hereunder.

10. General Provisions.

a.

Entire Agreement.  This Agreement between Client and SCAP constitutes the entire agreement between and understandings of the parties hereto, and supersedes any and all pervious agreements and understandings, whether oral or written, between the parties with respect to the matters set forth herein.

Page 4 of 6

b.

Notice. Any notice or communication permitted or required hereunder shall be in writing and deemed sufficiently given if hand-delivered: (i) five (5) calendar days after being sent postage prepaid by registered mail, return receipt requested; or (ii) one (1) business day after being sent via facsimile with confirmatory notice by U.S. mail, to the respective parties as set forth above, or to such other address as either party may notify the other in writing.

c.

Binding Nature.  This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors, legal representatives and assigns.  All materials generated pursuant to Section 1 or otherwise produced by SCAP for and on behalf of Client during the Term of this Agreement shall be the sole and exclusive property of Client.

d.

Counterparts.  This Agreement may be executed by any number of counterparts, each of which together shall constitute the same original document.

e.

Amendments.  No provisions of the Agreement may be amended, modified or waived, except in writing signed by all parties hereto.

f.

Assignment.  This Agreement cannot be assigned or delegated, by either party, without the prior written consent of the party to be charged with such assignment or delegation, and any unauthorized assignments shall be null and void without effect and shall immediately terminate the Agreement.

g.

Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California, without giving effect to its conflict of law principles. The parties hereby agree that any dispute(s) or claim(s) with respect to this Agreement of the performance of any obligations thereunder, shall be settled by arbitration and commenced and adjudicated under the rules of the American Arbitration Association.  The arbitration shall take place in Los Angeles, California if commenced by either party.  The arbitration shall be conducted before a panel of three (3) arbitrators, one appointed by each of the parties and the third selected by the two appointed arbitrators.  The arbitrators in any arbitration proceeding to enforce this Agreement shall allocate the reasonable attorney’s fees, among one or both parties in such proportion as the arbitrators shall determine represents each party’s liability hereunder.  The decision of the arbitrator shall be final and binding and may be entered into any court having proper jurisdiction to obtain a judgment for the prevailing party.  In any proceeding to enforce an arbitration award, the prevailing party in such proceeding shall have the right to collect from the non-prevailing party, its reasonable fees and expenses incurred in enforcing the arbitration award (including, without limitation, reasonable attorney’s fees).

Page 5 of 6

If you are in agreement with the foregoing, please execute two copies of this Agreement in the space provided below and return them to the undersigned.

		
	 

	Very truly yours,

	 

	

Siskey Capital, LLC

By: /s/ Todd D. Beddard

Todd D. Beddard

Chief Operating Officer

ACCEPTED AND AGREED TO THIS 29th DAY OF OCTOBER, 2013

Social Reality, Inc.

By: /s/ Christopher Miglino

By: Christopher Miglino,

Christopher Miglino

Chief Executive Officer

Page 6 of 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]