Document:

<PAGE>

                                                                    Exhibit 10.1

                              SETTLEMENT AGREEMENT

          This SETTLEMENT AGREEMENT (this "AGREEMENT") is made and entered into
as of August 17, 2006, by and among Celebrate Express, Inc. (the "COMPANY"), on
the one hand, and Spencer Capital Management, LLC, Spencer Capital Opportunity
Fund, L.P., Spencer Capital Partners, LLC, Spencer Capital Offshore Opportunity
Fund, Ltd., Spencer Capital Offshore Partners, LLC, Kenneth H. Shubin Stein, MD,
CFA, Thesis Capital Management, LLC, Thesis Capital, LP, Thesis Capital Master
Fund Limited and Stephen Roseman, CFA (collectively, the "SHAREHOLDER GROUP"),
on the other hand.

                                    RECITALS

          WHEREAS, the Shareholder Group beneficially owns in the aggregate
1,495,396 shares of common stock of the Company, constituting approximately
19.2% of such shares outstanding, and has initiated a proxy solicitation (the
"PROXY SOLICITATION") to elect three individuals to the Company's Board of
Directors (the "BOARD") at the 2006 annual meeting of shareholders of the
Company; and

          WHEREAS, the Company has engaged Cowen and Company, LLC ("COWEN") to
assist the Board in exploring strategic alternatives for the Company; and

          WHEREAS, the Board has determined that it is in the best interests of
the shareholders of the Company to provide representation on the Board to the
Shareholder Group; and

          WHEREAS, the Company and the Shareholder Group desire, in connection
with the termination of the Proxy Solicitation, to make certain representations,
warranties, covenants and agreements with one another pursuant to this
Agreement;

          NOW, THEREFORE, in consideration of the premises, the mutual
representations, warranties, covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                   Article I.

                                BASIC AGREEMENTS

     SECTION 1.1. TERMINATION OF THE PROXY SOLICITATION.

          Based on the representations, warranties, covenants and agreements of
the Company contained in this Agreement, the Shareholder Group hereby (i)
immediately and irrevocably withdraws its nomination of Kenneth H. Shubin Stein,
Stephen Roseman and Matthew C. Diamond and immediately and irrevocably withdraws
and terminates the Proxy Solicitation, (ii) irrevocably withdraws its demand for
a shareholder list and other materials pursuant to Section 23B.16.020 of the
Washington Business Corporation Act or otherwise; (iii) agrees not to, directly
or indirectly, initiate, propose, make, encourage or induce any person, or in
any way participate in any solicitation with respect to any shareholder
proposals for the 2006

<PAGE>

Annual Meeting whether made pursuant the rules and regulations promulgated under
the Securities Exchange Act of 1934 or otherwise, and (iv) agrees not to make
any public objection to the election of the Slate at the 2006 Annual Meeting,
any public statement inconsistent with the provisions of this Agreement, or
otherwise take or cause or induce others to take any action inconsistent with
any of the foregoing.

     SECTION 1.2. BOARD ACTIONS.

          The Company represents and warrants to the Shareholder Group that the
Board has taken the following actions, and covenants and agrees as follows:

     (a) The Board has adopted a resolution increasing the authorized number of
directors of the Company to eight directors, effective at or prior to the
execution and delivery of this Agreement, and reducing the authorized number of
directors of the Company to seven directors, effective upon the conclusion of
the 2006 Annual Meeting. The Board agrees not to rescind or amend such
resolution prior to the 2006 Annual Meeting.

     (b) The Board has elected Dr. Kenneth H. Shubin Stein and Stephen Roseman
as directors to fill the two vacancies on the Board, which election is effective
as of the execution and delivery of this Agreement and at which time the
following will be the eight members of the Board: Keith L. Crandell, Estelle
DeMuesy, Kevin A. Green, Donald R. Hughes, Jean Reynolds, Stephen Roseman, Dr.
Kenneth Shubin Stein and Ronald A. Weinstein.

     SECTION 1.3. 2006 ANNUAL MEETING. At the 2006 Annual Meeting (or any other
meeting of shareholders held in lieu thereof, including any adjournments,
postponements, reschedulings or continuations thereof, the "2006 ANNUAL
MEETING"), the Company shall nominate four persons for election to the Board,
and such slate shall consist of Estelle DeMuesy, Kevin A. Green, Dr. Kenneth H.
Shubin Stein and Stephen Roseman (the "SLATE"). Dr. Shubin Stein and Mr. Roseman
shall be nominated as Class II and I directors, with terms to end in 2008 and
2009, respectively. The Company shall prepare and distribute proxy materials
(the "COMPANY PROXY MATERIALS") (as well as any other solicitation or
recommendation made by the Company) that shall recommend, support and solicit
the election of the Slate to the Board and such material shall otherwise be
prepared in accordance with and to give effect to the terms of this Agreement.
If the Slate is elected at the 2006 Annual Meeting, the following will be
(absent death, removal or resignation) the seven directors of the Company
immediately following the 2006 Annual Meeting: Keith L. Crandell, Estelle
DeMuesy, Kevin A. Green, Donald R. Hughes, Jean Reynolds, Stephen Roseman and
Dr. Kenneth Shubin Stein.

     SECTION 1.4. STRATEGIC ALTERNATIVES PROCESS. The Company represents and
warrants to the Shareholder Group that it has previously provided to the
Shareholder Group a true and correct copy of the engagement letter between Cowen
and the Company (including as the same may be amended, the "ENGAGEMENT LETTER"),
and that the Engagement Letter is, as of the date of this Agreement, in full
force and effect. The Company covenants and agrees that Dr. Shubin Stein and Mr.
Roseman, in their capacities as directors of the Company, shall have the right
to have direct access to Cowen, as it performs its engagement pursuant to the
Engagement Letter. Such access shall be at such times as Dr. Shubin Stein or Mr.
Roseman, on the one hand, and Cowen, on the other hand, shall deem reasonable
and mutually convenient. Dr. Shubin Stein and

                                        2
<PAGE>

Mr. Roseman agree to report to Kevin A. Green, Chief Executive Officer of the
Company, on any conversation either of them holds with Cowen with respect to
Cowen's engagement pursuant to the Engagement Letter, except for conversations
for which Mr. Green or a quorum of the Board is present and except for
ministerial or insignificant conversations.

     SECTION 1.5. VOTING AGREEMENT. Each member of the Shareholder Group agrees
to vote all shares of common stock of the Company as to which it has voting
rights as of the record date for the 2006 Annual Meeting in favor or the Slate.

                                   Article II.

                            MISCELLANEOUS PROVISIONS

     SECTION 2.1. REPRESENTATIONS AND WARRANTIES. Each of the parties hereto
represents and warrants to the other party that:

          (i)  such party has all requisite power and authority to execute and
               deliver this Agreement and to consummate the transactions
               contemplated hereby;

          (ii) the execution and delivery of this Agreement and the consummation
               of the transactions contemplated hereby have been duly and
               validly authorized by all required action on the part of such
               party and no other proceedings on the part of such party are
               necessary to authorize the execution and delivery of this
               Agreement or to consummate the transactions contemplated hereby;

          (iii) this Agreement has been duly and validly executed and delivered
               by such party and constitutes the valid and binding obligation of
               such party enforceable against such party in accordance with
               their respective terms; and

          (iv) this Agreement will not result in a violation of any terms or
               provisions of any agreement to which such person is a party or by
               which such party may otherwise be bound, or of any law, rule,
               license, regulation, judgment, order or decree governing or
               affecting such party.

     SECTION 2.2. GENERAL.

     (a) This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and the respective successors, personal
representatives and assigns of the parties hereto.

     (b) This Agreement contains the entire agreement between the parties with
respect to the subject matter hereof and thereof and supersedes all prior and
contemplated arrangements and understandings with respect thereto.

     (c) This Agreement may be signed in counterparts, each of which shall
constitute an original and all of which together shall constitute one and the
same Agreement.

                                        3

<PAGE>

     (d) All notices and other communications required or permitted hereunder
shall be effective upon receipt and shall be in writing and may be delivered in
person, by telecopy, electronic mail, express delivery service or U.S. mail, in
which event it may be mailed by first-class, certified or registered, postage
prepaid, addressed to the party to be notified at the respective addresses set
forth below, or at such other addresses which may hereinafter be designated in
writing:

          If to the Company:

          Celebrate Express, Inc.
          11220 120th Ave. NE
          Kirkland, WA 98033
          Attention: Darin White
          Fax No.: (425) 828-6252

          with a copy to:

          Heller Ehrman LLP
          701 Fifth Avenue
          Suite 6100
          Seattle, WA 98104
          Attention: Jeffry Shelby
          Fax No.: (206) 447-0849

          If to the Shareholder Group:

          Spencer Capital Management, LLC
          1995 Broadway, Suite 1801
          New York, NY 10023
          Attention: Kenneth H. Shubin Stein, MD, CFA
          Fax No.: (646) 349-9642

          with a copy to:

          Willkie Farr & Gallagher LLP
          787 Seventh Avenue
          New York, New York 10019
          Attention: Michael A. Schwartz
          Fax No.: (212) 728-9267

     (e) This Agreement and the legal relations between the parties hereto shall
be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made and performed therein, without giving effect
to the principles of conflicts of law thereof.

     (f) Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid, but if any provision of
this Agreement is held to be invalid or unenforceable in any respect, such
invalidity or unenforceability shall not render invalid or unenforceable any
other provision of this Agreement.

                                        4

<PAGE>

     (g) It is hereby agreed and acknowledged that it will be impossible to
measure in money the damages that would be suffered if the parties fail to
comply with any of the obligations herein imposed on them and that in the event
of any such failure, an aggrieved person will be irreparably damaged and will
not have an adequate remedy at law. Any such person, therefore, shall be
entitled to injunctive relief, including specific performance, to enforce such
obligations, without the posting of any bond, and, if any action should be
brought in equity to enforce any of the provisions of this Agreement, none of
the parties hereto shall raise the defense that there is an adequate remedy at
law.

     (h) Each party hereto shall do and perform or cause to be done and
performed all such further acts and things and shall execute and deliver all
such other agreements, certificates, instruments and documents as any other
party hereto reasonably may request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  [Remainder of page intentionally left blank.]

                                        5

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the day and year first written above.

                                        CELEBRATE EXPRESS, INC.

                                        By: /s/ Kevin A. Green
                                            ------------------------------------
                                        Name: Kevin A. Green
                                        Title: President and Chief Executive
                                               Officer

                                        SPENCER CAPITAL MANAGEMENT, LLC

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                        Name: Kenneth H. Shubin Stein, MD, CFA
                                        Title: Authorized Signatory

                                        SPENCER CAPITAL OPPORTUNITY FUND, LP

                                        By: Spencer Capital Partners, LLC,
                                            Its General Partner

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                        Name: Kenneth H. Shubin Stein, MD, CFA
                                        Title: Managing Member

                    [SIGNATURE PAGE TO SETTLEMENT AGREEMENT]

<PAGE>

                                        SPENCER CAPITAL PARTNERS, LLC

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                        Name: Kenneth H. Shubin Stein, MD, CFA
                                        Title: Managing Member

                                        SPENCER CAPITAL OFFSHORE OPPORTUNITY
                                        FUND, LTD.

                                        By: Spencer Capital Offshore Partners,
                                            LLC,
                                            Its Investment Adviser

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                        Name: Kenneth H. Shubin Stein, MD, CFA
                                        Title: Managing Member

                                        SPENCER CAPITAL OFFSHORE PARTNERS, LLC

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                        Name: Kenneth H. Shubin Stein, MD, CFA
                                        Title: Managing Member

                                        By: /s/ Kenneth H. Shubin Stein
                                            ------------------------------------
                                            Kenneth H. Shubin Stein, MD, CFA

                    [SIGNATURE PAGE TO SETTLEMENT AGREEMENT]

<PAGE>

                                        THESIS CAPITAL MANAGEMENT, LLC

                                        By: /s/ Stephen Roseman
                                            ------------------------------------
                                        Name: Stephen Roseman, CFA
                                        Title: Manager

                                        THESIS CAPITAL, LP

                                        By: Thesis Capital Advisors, LLC,
                                            Its General Partner

                                        By: /s/ Stephen Roseman
                                            ------------------------------------
                                        Name:  Stephen Roseman, CFA
                                        Title:  Manager

                                        THESIS CAPITAL MASTER FUND LIMITED

                                        By: /s/ Stephen Roseman
                                            ------------------------------------
                                        Name: Stephen Roseman, CFA
                                        Title: Director

                                        By: /s/ Stephen Roseman
                                            ------------------------------------
                                            Stephen Roseman, CFA

                    [SIGNATURE PAGE TO SETTLEMENT AGREEMENT]exv4w3

 

Exhibit 4.3

THIS WARRANT CERTIFICATE (I) CANNOT BE TRANSFERRED OR EXCHANGED UNTIL 20 DAYS AFTER THE EARLIER TO
OCCUR OF THE EXPIRATION OF THE UNDERWRITERS’ OPTION TO PURCHASE ADDITIONAL UNITS TO COVER
OVER-ALLOTMENTS OR THE EXERCISE IN FULL BY THE UNDERWRITERS OF SUCH OPTION (THE “DETACHMENT DATE”)
UNLESS INCLUDED WITH A SHARE OF COMMON STOCK OF SANTA MONICA MEDIA CORPORATION AS PART OF A UNIT
AND (II) CANNOT BE EXERCISED IN WHOLE OR IN PART UNTIL THE LATER OF THE COMPANY’S COMPLETION OF A
BUSINESS COMBINATION OR ___, 2007.

EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT AGENT AS PROVIDED HEREIN.

Warrant Certificate evidencing

Warrants to Purchase Common Stock, par value $0.0001, as described herein.

SANTA MONICA MEDIA CORPORATION

			
	No.                     
	 	CUSIP No.                     

VOID AFTER 5:00 P.M., NEW YORK CITY TIME, ON _______ __, 2010,

OR UPON EARLIER REDEMPTION

     This certifies that ___, or its registered assigns, is the registered holder
of ___warrants to purchase certain securities (each a “Warrant”). Each Warrant
entitles the holder thereof, subject to the provisions contained herein and in the Warrant
Agreement (as defined below), to purchase from Santa Monica Media Corporation, a Delaware
corporation (the “Company”), one share of the Company’s Common Stock (each a “Share”), at the
Exercise Price set forth below. The exercise price of each Warrant (the “Exercise Price”) shall be
$___initially, subject to adjustments as set forth in the Warrant Agreement (as defined
below).

     Subject to the terms of the Warrant Agreement, each Warrant evidenced hereby may be exercised
in whole, but not in part, at any time, as specified herein, on any Business Day (as defined below)
occurring during the period (the “Exercise Period”) commencing on the later of the Company’s
completion of a Business Combination (as defined below) or ___, 2007 and ending at 5:00
P.M., New York City time, on the earlier to occur of (i) ___, 2010 or (ii) the date
fixed for the redemption of the Warrants as set forth in Section 6 of the Warrant Agreement (the
“Expiration Date”). Except with respect to the right to receive the Redemption Price (as set forth
in Section 6 of the Warrant Agreement), each Warrant remaining unexercised after 5:00 P.M., New
York City time on the Expiration Date shall become void, and all rights of the holder of this
Warrant Certificate evidencing such Warrant shall cease.

     The holder of the Warrants represented by this Warrant Certificate may exercise any Warrant
evidenced hereby by delivering, not later than 5:00 P.M., New York City time, on any Business Day
during the Exercise Period to Continental Stock Transfer & Trust Company (the

 

 

“Warrant Agent”, which term includes any successor warrant agent under the Warrant Agreement
described below) at its corporate trust department at 17 Battery Place, New York, NY 10004, (i)
this Warrant Certificate and the Warrants to be exercised (the “Book-Entry Warrants”) free on the
records of The Depository Trust Company (the “Depository”) to an account of the Warrant Agent at
the Depository designated for such purpose in writing by the Warrant Agent to the Depository, (ii)
an election to purchase (“Election to Purchase”), substantially in the form included on the reverse
hereof, as applicable (A) by the holder hereof on the reverse of this Warrant Certificate or (B)
properly executed by the institution in whose account the Warrant is recorded on the records of the
Depository (the “Participant”) and (iii) the Exercise Price for each Warrant to be exercised in
lawful money of the United States of America by certified or official bank check or by bank wire
transfer in immediately available funds. If any of (a) this Warrant Certificate or the Book-Entry
Warrants, (b) the Election to Purchase, or (c) the Exercise Price therefor, is received by the
Warrant Agent after 5:00 P.M., New York City, the Warrants will be deemed to be received and
exercised on the Business Day next succeeding the date such items are received and such date shall
be the Exercise Date for purposes hereof. If the date such items are received is not a Business
Day, the Warrants will be deemed to be received and exercised on the next succeeding day which is a
Business Day and such date shall be the Exercise Date for purposes hereof. If the Warrants to be
exercised are received or deemed to be received after the Expiration Date, the exercise thereof
will be null and void and any funds delivered to the Warrant Agent will be returned to the holder
as soon as practicable. In no event will interest accrue on funds deposited with the Warrant Agent
in respect of an exercise or attempted exercise of Warrants. The validity of any exercise of
Warrants will be determined by the Warrant Agent in its sole discretion and such determination will
be final and binding upon the holder of the Warrants and the Company. Neither the Warrant Agent
nor the Company shall have any obligation to inform a holder of Warrants of the invalidity of any
exercise of Warrants.

     Notwithstanding the foregoing, the Company shall not be obligated to deliver any Shares pursuant to
the exercise of a Warrant and shall have no obligation to settle the Warrant exercise unless a
registration statement under the Securities Act of 1933, as amended (the “Securities Act”), with
respect to the Shares is effective and a current prospectus is available for delivery by the
Warrant Agent, subject to the Company satisfying its obligations under Section 7.4 of the Warrant
Agreement (as defined below) to use its best efforts. Notwithstanding anything to the contrary
herein or in the Warrant Agreement, under no circumstances will the Company be required to net cash
settle the Warrant exercise.

     As used herein, the term “Business Day” means any day that is not a Saturday or Sunday and is
not a United States federal holiday or a day on which banking institutions generally are authorized
or obligated by law or regulation to close in New York City.

     As used herein, the term “Business Combination” shall mean the acquisition by the Company,
whether by merger, capital stock exchange, asset or stock acquisition or other similar business
combination, of one or more operating businesses in the communications, media, gaming and/or
entertainment industries (collectively, the “Target Business”) having a fair market value (as
calculated in accordance with the Company’s Amended and Restated Certificate of Incorporation),
either individually or collectively, of at least 80% of the Company’s net assets at the time of
such merger, capital stock exchange, asset or stock acquisition or other similar business
combination; provided, that any acquisition of multiple operating businesses shall occur
contemporaneously with one another.

     Warrants may be exercised only in whole numbers of Warrants. No fractional shares of Common
Stock are to be issued upon the exercise of any Warrant, but rather the number of shares of Common
Stock to be issued shall be rounded up to the nearest whole number. If fewer than all of the
Warrants evidenced by this Warrant Certificate are exercised, a new Warrant Certificate for the
number of Warrants remaining unexercised shall be executed by the Company and countersigned by the
Warrant Agent, as provided in Section 2 of the Warrant Agreement,

2

 

and delivered to the holder of this Warrant Certificate at the address specified on the books
of the Warrant Agent or as otherwise specified by such Registered Holder.

     This Warrant Certificate is issued under and in accordance with the Warrant Agreement, dated
as of ___, 2006 (the “Warrant Agreement”), between the Company and the Warrant Agent
and is subject to the terms and provisions contained in the Warrant Agreement, all of which terms
and provisions the holder of this Warrant Certificate and the beneficial owners of the Warrants
represented by this Warrant Certificate consent to by acceptance hereof. Copies of the Warrant
Agreement are on file and can be inspected at the above-mentioned office of the Warrant Agent and
at the office of the Company at 9229 Sunset Boulevard, Suite 505, Los Angeles, California 90069.

     [At any time during the Exercise Period, the Company may, at its option, redeem all (but not
part) of the then outstanding Warrants upon giving notice in accordance with the terms of the
Warrant Agreement (the “Redemption Notice”), at a price of $0.01 per Warrant (the “Redemption
Price”); provided, that the last sales price of the Shares is at least $11.50 per Share, for any
twenty (20) trading days within a thirty (30) trading day period ending on the third Business Day
prior to the date on which the Redemption Notice is given. In the event the Company shall elect to
redeem all of the then outstanding Warrants, the Company shall fix a date for such redemption (the
“Redemption Date”); provided, that such date shall occur prior to the expiration of the Exercise
Period. The Warrants may be exercised in accordance with the terms of this Agreement at any time
after a Redemption Notice shall have been given by the Company; provided, however, that no Warrants
may be exercised subsequent to the expiration of the Exercise Period; provided, further, that all
rights with respect to the Warrants shall cease on the Redemption Date, other than to the right to
receive the Redemption Price.]1

     The accrual of dividends, if any, on the Shares issued upon the valid exercise of any Warrant
will be governed by the terms generally applicable to such Shares. From and after the issuance of
such Shares, the former holder of the Warrants exercised will be entitled to the benefits
generally available to other holders of Shares and such former holder’s right to receive payments
of dividends and any other amounts payable in respect of the Shares shall be governed by, and shall
be subject to, the terms and provisions generally applicable to such Shares.

     The Exercise Price and the number of Shares purchasable upon the exercise of each Warrant
shall be subject to adjustment as provided pursuant to Section 4 of the Warrant Agreement.

     Prior to the Detachment Date, the Warrants represented by this Warrant Certificate may only be
exchanged or transferred together with the Shares to which such Warrant is attached (together, a
“Unit”), and only for the purpose of effecting, or in conjunction with, an exchange or transfer of
such Unit. Additionally, prior to the Detachment Date, each transfer of such Unit on the register
of the Units shall operate also to transfer the Warrants included in such Units. From and after
the Detachment Date, the above provisions shall be of no further force and effect. Upon due
presentment for registration of transfer or exchange of this Warrant Certificate at the

 

			
	1	 	The bracketed text will not be included in
warrants included in the units initially issued to Santa Monica Capital
Partners, LLC in July, 2005.

3

 

stock transfer division of the Warrant Agent, the Company shall execute, and the Warrant Agent
shall countersign and deliver as provided in Section 5 of the Warrant Agreement, in the name of the
designated transferee, one or more new Warrant Certificates of any authorized denomination
evidencing in the aggregate a like number of unexercised Warrants, subject to the limitations
provided in the Warrant Agreement.

     Neither this Warrant Certificate nor the Warrants evidenced hereby shall entitle the holder
hereof or thereof to any of the rights of a holder of the Shares, including, without limitation,
the right to receive dividends, if any, or payments upon the liquidation, dissolution or winding up
of the Company or to exercise voting rights, if any.

     The Warrant Agreement and this Warrant Certificate may be amended as provided in the Warrant
Agreement including, under certain circumstances described therein, without the consent of the
holder of this Warrant Certificate or the Warrants evidenced thereby.

     THIS WARRANT CERTIFICATE AND ALL RIGHTS HEREUNDER AND UNDER THE WARRANT AGREEMENT SHALL BE
GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS FORMED AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD
REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

     This Warrant Certificate shall not be entitled to any benefit under the Warrant Agreement or
be valid or obligatory for any purpose, and no Warrant evidenced hereby may be exercised, unless
this Warrant Certificate has been countersigned by the manual signature of the Warrant Agent.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 	 	 
	Dated as of _____________, 2006	 	 	 	Santa Monica Media Corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorized Officer
	 
	 	 	 	 	 	 
	Continental Stock Transfer & Trust Company,

as Warrant Agent By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Authorized Officer

	 	 	 	 	 	 

4

 

[REVERSE]

Instructions for Exercise of Warrant

     To exercise the Warrants evidenced hereby, the holder or Participant must, by 5:00 P.M., New
York City time on the specified Exercise Date, deliver to the Warrant Agent at its stock transfer
division, a certified or official bank check or a wire transfer in immediately available funds, in
each case payable to the Warrant Agent to an account designated by the Warrant Agent, in an amount
equal to the Exercise Price in full for the Warrants exercised. In addition, the Warrant holder or
Participant must provide the information required below and deliver this Warrant Certificate to the
Warrant Agent at the address set forth below and the Book-Entry Warrants to the Warrant Agent in
its account with the Depository designated for such purpose. The Warrant Certificate and this
Election to Purchase must be received by the Warrant Agent by 5:00 P.M., New York time, on the
specified Exercise Date.

ELECTION TO PURCHASE TO BE EXECUTED IF WARRANT HOLDER DESIRES TO

EXERCISE THE WARRANTS EVIDENCED HEREBY

     The undersigned hereby irrevocably elects to exercise, on ___,
___(the “Exercise Date”), ___Warrants, evidenced by
this Warrant Certificate, to purchase ___shares of the Common Stock (each a “Share”) of
Santa Monica Media Corporation, a Delaware corporation (the “Company”), and represents that, on or
before the Exercise Date, such holder has tendered payment for such Shares by certified or official
bank check or bank wire transfer in immediately available funds to the order of the Company c/o
Continental Stock Transfer & Trust Company, 17 Battery Place, New York, New York 10004, in the
amount of $___in accordance with the terms hereof. The undersigned requests that said
number of Shares be in fully registered form, registered in such names and delivered, all as
specified in accordance with the instructions set forth below.

     If said number of Shares is less than all of the Shares purchasable hereunder, the undersigned
requests that a new Warrant Certificate evidencing the remaining balance of the Warrants evidenced
hereby be issued and delivered to the holder of the Warrant Certificate unless otherwise specified
in the instructions below.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:	 	 	 	 	 	(Please Print)
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/  /  /  /    /  /  /    /  /  /  /  /	 	 	 	Address:	 	 
	 	 	 	 	 	 	 
	(Insert Social Security or	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Other Identifying Number	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	of Holder)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

5

 

     This Warrant may only be exercised by presentation to the Warrant Agent at one of the
following locations:

     By hand at:

     By mail at:

     The method of delivery of this Warrant Certificate is at the option and risk of the exercising
holder and the delivery of this Warrant Certificate will be deemed to be made only when actually
received by the Warrant Agent. 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.

(Instructions as to form and delivery of Shares and/or Warrant Certificates)

	 	 	 
	Name in which Shares are to be
registered if other than in the
name of the registered holder of
this Warrant Certificate:
	 	 
	 

	 	 
	 
	 	 
	Address to which Shares are to be
mailed if
	 	 
	 

	 	 
	other than to the address of the
registered
holder
of this Warrant Certificate as
shown on the books of the Warrant
Agent:

	 	(Street Address)
	 

	 	 
	 

	 	(City and State) (Zip Code)
	 
	 	 
	Name in which Warrant Certificate
evidencing unexercised Warrants,
if any, are to be registered if
other than in the name of the
registered holder of this Warrant
Certificate:
	 	 
	 

	 	 
	 
	 	 
	Address to which certificate
representing
	 	 
	 

	 	 
	unexercised Warrants,
if any, are to be mailed
if other
than to the address of the
registered holder of this Warrant
Certificate as shown on

	 	(Street Address)
	 

	 	 
	the books
of the Warrant Agent:

	 	(City and State) (Zip Code)

	 	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Signature
	 
	 	 	 	 
	 	 	Signature must conform in all
respects to the name of the holder as
specified on the face of this Warrant
Certificate. If Shares, or a Warrant
Certificate evidencing unexercised
Warrants, are to be issued in a name
other than that of the registered

6

 

	 	 	 	 	 
	 	 	holder hereof or are to be delivered
to an address other than the address
of such holder as shown on the books
of the Warrant Agent, the above
signature must be guaranteed by an
Eligible Guarantor Institution (as
that term is defined in Rule 17Ad-15
of the Securities Exchange Act of
1934, as amended).

	 	 	 	 	 	 	 	 	 
	SIGNATURE GUARANTEE	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name of Firm:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Area and Code and Number	 	 	 	 	 	 
	 

	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 

7

 

ASSIGNMENT

(FORM OF ASSIGNMENT TO BE EXECUTED IF WARRANT HOLDER DESIRES TO

TRANSFER WARRANTS EVIDENCED HEREBY)

FOR VALUE RECEIVED, ___HEREBY SELL(S), ASSIGN(S) AND TRANSFER(S) UNTO    
                          
                          
                          
                          
                         
                         
                        
                         
                                  

	 	 	 
	 

	 	 
	(Please print name and address
including zip code of assignee)

	 	(Please insert social security or
other identifying number of
assignee)

the rights represented by the within Warrant Certificate and does hereby irrevocably constitute and
appoint ___Attorney to transfer said Warrant Certificate on the books of the
Warrant Agent with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature
	 

	 	 	 	 	 	(Signature must conform in all respects to the name
of the holder as specified on the face of this
Warrant Certificate and must bear a signature
guarantee by an Eligible Guarantor Institution (as
that term is defined in Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended).

	 	 	 	 	 	 	 	 	 
	SIGNATURE GUARANTEE	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name of Firm:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Area and Code and Number	 	 	 	 	 	 
	 

	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]