Document:

Unassociated Document

    Exhibit
10.2

     

    Standard
Microsystems Corporation

     

    Plan
for Deferred Compensation in Common Stock

     

    for
Outside Directors

     

    As
Amended and Restated, effective May 22, 2009

     

    
      	
              1.

            	
              Purpose

            

    

     

    The
purpose of this Plan is to provide for deferred payment of certain portions of
the compensation of Eligible Directors of Standard Microsystems Corporation, at
their election, in accordance with the provisions hereof and to increase the
proprietary interest of the Eligible Directors in the Corporation by tying the
value of such deferred compensation to the performance of the Corporation’s
Common Stock.

     

    
      	
              2.

            	
              Definitions

            

    

     

     

    As used
herein, the following terms shall have the meanings set forth
below:

     

    “Account” shall mean the
Account established for a Participant pursuant to Section 4.

    “Basic Retainer” shall mean,
for each fiscal year of service, the sum of the quarterly cash fees paid in
advance to an Eligible Director for service on the Board of Directors and any
committee thereof on which the Eligible Director serves, excluding any
per-meeting fee or expense reimbursement.

     

    “Beneficiary” shall mean the
person or persons designated by a Participant in accordance with Section 6 to
receive any amount, or any shares of Common Stock, payable under this Plan by
reason of the Participant’s death or incompetence.

     

    “Board of Directors” shall mean
the Board of Directors of the Corporation.

     

    “Change in Control” shall mean
a change in ownership or effective control of the Corporation, determined in
accordance with Section 409A of the Code.

     

    “Code” shall mean the U.S.
Internal Revenue Code of 1986, as amended from time to time.

     

    “Committee” shall mean the
persons appointed by the Board of Directors to administer this Plan in
accordance with Section 8.

     

    “Common Stock” shall mean the shares
of Common Stock of the Corporation.

     

    “Corporation” shall mean
Standard Microsystems Corporation.

     

    “Director” shall mean a member
of the Board of Directors.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    “Eligible Director” shall mean
any individual who is a Director and who is not an employee of the Corporation
or any of its subsidiaries.

     

    “Market Value” shall mean, with
respect to one share of Common Stock on any date (or if the Common Stock shall
not have traded on that day, then the next succeeding business day on which the
Common Stock shall have traded), the closing sale price of a share of Common
Stock in the principal market in which the Common Stock trades (or if such price
is not reported, the mean of the closing bid and asked prices).

     

    “Participant” shall mean any
Eligible Director who has made an election, or is deemed to have made an
election, under Section 3 to defer any portion of his or her Basic
Retainer.

     

    “Phantom Share Unit” or “PSU” shall mean a notional
unit of measurement equivalent to one share of Common Stock, with none of the
attendant rights of a holder of such share, including, without limitation, the
right to vote such share or the right to receive dividends thereon, except to
the extent otherwise specifically provided herein.

     

    “Plan” shall mean this Plan for
Deferred Compensation in Common Stock for Outside Directors, as amended from
time to time.

     

    “Second Effective Date” shall mean May 22,
2009.

     

    “Separation from Service” shall
have the meaning ascribed to it in Section 409A of the Code.

     

    
      	
              3.

            	
              Deferral
      Elections

            

    

     

    (a)           Not
later than December 1 of any year, an Eligible Director may make an election to
defer pursuant to this Plan all or any portion of Basic Retainers earned and
payable in subsequent fiscal years.

     

    (b)           Notwithstanding
the foregoing, within the 30-day period immediately following the date on which
he/she becomes an Eligible Director, each Eligible Director may elect to defer
0, 50 or 100% of his/her future Basic Retainers earned and payable in the fiscal
quarter following the fiscal quarter in which the election is made and
thereafter.  Any portion of a Basic Retainer earned prior to the
effectiveness of the Eligible Director’s initial election under this Plan shall
be paid in cash and not deferred, except to the extent he/she is deemed to have
made an election pursuant to Section 3(d).  If an Eligible Director
shall fail or omit to file an election form within the period specified in this
Section 3(b), he/she shall thereby be deemed to have elected that (i) 50% of
his/her Basic Retainer shall be deferred and (ii) paid in a single lump sum
payment upon his/her Separation from Service.

     

    (c)           All
deferral elections shall be made in accordance with the following:

     

    (i)           A
deferral election shall be made in writing, on a form provided by the Committee
for such purpose.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (ii)           In
the election form, the Eligible Director, shall specify that 0%, 50%, or 100% of
such Eligible Director’s Basic Retainer shall be deferred.

     

    (iii)           In
the election form, the Eligible Director shall specify when he or she will
receive the amounts in his/her General Account (as defined hereafter) and
his/her Dividend Equivalent Subaccount (as defined hereafter).  The
Eligible Director may elect to receive such amounts in a lump sum payment upon
Separation from Service or as a series of substantially equal installment
payments on a fixed schedule over a period of up to ten years following his/her
Separation from Service.

     

    (d)           Each
Eligible Director’s deferral election(s) made pursuant to Section 3(a) or 3(b)
shall remain in effect throughout any period in which such Eligible Director
shall be an Eligible Director; provided that, at any time, a Participant may
make a subsequent election to change the timing of the payment(s) of the amounts
previously accrued in his/her Account and/or amounts to be accrued in his/her
Account within the same fiscal year in which the subsequent deferral election is
made, by submitting such request in writing on a form provided by the Committee
for such purposes.  Any subsequent deferral election shall only apply
(i) to the extent the election is made at least 12 months prior to the date the
first payment under this Plan would otherwise have been made and (ii) to the
extent that the subsequent election provides for an additional deferral of at
least five years for each payment from the date on which such payment otherwise
would have been made pursuant to the election made in accordance with Section
3(c)(iii) above or, for those Directors who were Participants prior to the
Second Effective Date, five years from the date of Separation from Service
(which is the date all amounts in the Account would have otherwise been
made).  In the event that a subsequent deferral election fails to meet
the requirements of (i) and/or (ii) in the preceding sentence, the Participant’s
previous elections shall remain in full force and effect.

     

    
      	
              4.

            	
              Accounts

            

    

     

    For each
Participant, there shall be established on the books and records of the
Corporation, for bookkeeping purposes only, a separate Account to reflect the
Participant’s interest under this Plan.  Records of each Account shall
distinguish between PSUs credited in connection with the Corporation’s issuance
of a dividend on its Common Stock (the “Dividend Equivalent Subaccount”), and
all other PSUs credited to the Account (the “General Account”).  The
Account so established shall be maintained in accordance with the
following:

     

    (a)           On
the fifteenth day of the second month of each fiscal quarter of service as an
Eligible Director, a Participant’s General Account shall be credited with a
number of PSUs (including any fractional PSU rounded to one decimal place) that
shall equal the product obtained by multiplying (i) the percentage elected
pursuant to Section. 3 by
(ii) the quotient obtained by dividing (x) one-quarter of such participant’s
Basic Retainer (prorated, however, for actual period of service during such
fiscal quarter subsequent to the Participants election to defer hereunder), by
(y) the Market Value on the fifteenth day of the second month of such fiscal
quarter.

     

    (b)           A
Participant’s interest in his or her Account shall be fully vested and
nonforfeitable at all times.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    (c)           As
of each date on which the Corporation pays a dividend on its Common Stock, each
Participant’s Dividend Equivalent Subaccount shall be credited with additional
PSUs, the number of which shall be determined by (i) multiplying the number of
PSUs in the Participant’s Account on the record date for such dividend by the
per-share amount of the dividend so paid, and (ii) dividing the amount
determined pursuant to clause (i) by the Market Value of one share of Common
Stock on the dividend payment date.1

     

    (d)           In
the event of any change in the Common Stock occurring by reason of any stock
dividend, recapitalization, reorganization, merger, consolidation, split-up,
combination or exchange of shares, or any rights offering to purchase such
shares at a price substantially below fair market value, or any similar change
affecting the Common Stock, the number and kind of shares represented by PSUs
shall be appropriately adjusted to reflect such change in such manner as the
Committee, in its sole discretion, may deem appropriate.  The
Committee shall give notice to each Participant of any adjustment made pursuant
to this Section 4(d), and such adjustment shall be effective and binding for all
purposes of this Plan.

     

    
      	
              5.

            	
              Payment
      of Account Balances

            

    

     

    Payment
with respect to a Participant’s Account shall be made in accordance with the
following:

     

    (a)           A
Participant’s Account shall become payable in accordance with the Participant’s
election pursuant to Section 3 above.  Such payment(s) shall be made
to the Participant or the Participant’s Beneficiary, as the case may
be.  On each elected payment date, the Corporation shall make payment
by issuing in the name of such Participant or Beneficiary a number of shares of
Common Stock, rounded down to the nearest whole number,  equal to the
percentage of the total number of PSUs in the General Account and the percentage
of the total number of PSUs in the Dividend Equivalent Sub Account, each as of
the date of payment, as elected by the Participant pursuant to Section 3,
provided that the balance of the Account will be paid in full on the last
elected payment date.  The Corporation shall continue to maintain an
Account on behalf of the Participant and the Participant shall continue to
receive additional PSUs pursuant to Section 4(c) until all amounts in the
Account have been distributed pursuant to the terms of the Plan.

     

    (b)           Notwithstanding
any other provision in this Section 5 to the contrary, the entire balance of
each Participant’s Account shall become immediately due and payable in shares of
Common Stock upon the occurrence of a Change in Control, as hereinafter
defined.  Payment with respect to such balance shall be in a number of
whole shares of Common Stock determined as provided in Section 5(a),
substituting the occurrence of such Change in Control for the date of
termination of a Participant’s service as a Director.   Payment
shall be made as soon as practicable, and in any event within 10 days, after the
occurrence of such Change in Control.

     

    (c)           There
shall be deducted from the amount of any payment otherwise required to be made
under this Plan all federal, state and local taxes required by law to be
withheld with respect to such payment.

     

    
 

    __________________ 

      1 WS:
Confirm calculation.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    
      	
              6.

            	
              Designation
      and Change of Beneficiary

            

    

     

    Each
Participant shall file with the Committee a written designation of one or more
persons as the Beneficiary who shall be entitled to receive any amount,
including shares of Common Stock, payable under this Plan by reason of the
Participant’s death or incompetency.  A Participant may, from time to
time, revoke or change his or her Beneficiary designation, without the consent
of any previously designated Beneficiary, by filing a new written designation
with the Committee.  The last such designation received by the
Committee shall be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless delivered to the
Committee prior to the Participant’s death or incompetency, and in no event
shall it be effective as of a date prior to such delivery.  If at the
date of a Participant’s death or incompetency, there is no designation of a
Beneficiary in effect for the Participant pursuant to the provisions of this
Section 6, or if no Beneficiary designated by the Participant in accordance with
the provisions hereof survives to receive any amount payable under this Plan by
reason of the Beneficiary’s death or incompetency, the Participant’s estate
shall be treated as the Participant’s Beneficiary for purposes of this
Plan.

     

    
      	
              7.

            	
              Rights
      of Participants

            

    

     

    A
Participant’s rights and interests under this Plan shall be subject to the
following provisions:

     

    (a)           A
Participant shall have the status of a general unsecured creditor of the
Corporation with respect to his or her right to receive any payment under this
Plan.  This Plan shall constitute a mere promise by the Corporation to
make payments in the future of the benefits provided for herein.  It
is intended that the arrangements reflected in this Plan be treated as unfunded
for tax purposes.

     

    (b)           The
Corporation may, but shall not be required to, establish a trust to assist it in
funding any of its payment obligations under this Plan.  If any such
trust is established, all of the assets of the trust shall, at all times prior
to payment to Participants, remain subject to the claims of the Corporation’s
creditors; and no Participant or Beneficiary shall have any preferred claim on,
or any beneficial ownership interest in, any assets of the trust. Any trust so
established shall also contain such other terms and provisions as will permit
the trust to be treated as a “grantor trust”, of which the Corporation is the
grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Code (or any successor provisions).  If any such
trust is established, the Corporation shall be relieved of its obligation
hereunder to pay any amounts or shares of Common Stock to any Participant or
Beneficiary, to the extent that such amounts or shares are paid to the
Participant or Beneficiary from such trust.

     

    (c)           A
Participant’s right to payments under this Plan shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors of the Participant or his
or her Beneficiary.

     

    
      	
              8.

            	
              Administration

            

    

     

    (a)           This
Plan shall be administered by or under the direction of the Compensation
Committee of the Board of Directors (the “Committee”).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    (b)           All
decisions, actions or interpretations of the Committee under this Plan shall be
final, conclusive and binding upon all parties.

     

    (c)           No
member of the Committee shall be personally liable by reason of any contract or
other instrument executed by such member or on his or her behalf in his or her
capacity as a member of the Committee nor for any mistake of judgment made in
good faith, and the Corporation shall indemnify and hold harmless each member of
the Committee, and each employee, officer, or director of the Corporation or any
of its subsidiaries to whom any duty or power relating to the administration or
interpretation of this Plan may be delegated, against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a
claim with the approval of the Board of Directors) arising out of any act or
omission to act in connection with this Plan unless arising out of such person’s
own fraud or bad faith.

     

    (d)           Any
instrument may be delivered to the Committee by certified mail, return receipt
requested, addressed to the Committee at the principal executive office of the
Corporation.  A copy of any instrument so delivered shall similarly
and simultaneously be mailed to the Secretary of the
Corporation.  Delivery shall be deemed complete on the third business
day after such mailing in New York, New York or Hauppauge, New
York.

     

    (e)           There
are reserved for issuance pursuant to this Plan, 100,000 shares of Common
Stock.

     

    
      	
              9.

            	
              Amendment
      or Termination

            

    

     

    (a)           The
Board of Directors may, with prospective or retroactive effect, amend, suspend
or terminate this Plan or any portion thereof at any time; provided, however,
that no amendment of this Plan shall deprive any Participant of any right to
receive payment due him or her under the terms of this Plan as in effect prior
to such amendment without his or her written consent and provided further that
any such amendment or termination shall comply with the requirements of Section
409A of the Code.

     

    (b)           Any
amendment that the Board of Directors would be permitted to make pursuant to the
preceding paragraph may also be made by the Committee where appropriate to
facilitate the administration of this Plan or to comply with applicable law or
any applicable rules and regulations of governing authorities, provided that the
cost of this Plan to the Corporation is not materially increased by such
amendment.

     

    
      	
              10.

            	
              Compliance with Section 409A of
      the Code.

            

    

     

    (a)           This
Plan is intended to comply and shall be administered in a manner that is
intended to comply with Section 409A of the Code and shall be construed and
interpreted in accordance with such intent.  To the extent that any
deferral hereunder is subject to Section 409A of the Code, it shall be deferred
and paid in a manner that will comply with Section 409A of the Code, including
proposed, temporary or final regulations or any other guidance issued by the
Secretary of the Treasury and the Internal Revenue Service with respect thereto
(the “Guidance”).  Any provision of this Plan that would cause a
deferral or payment to fail to satisfy Section 409A of the Code shall have no
force and effect until amended to comply with Section 409A of the Code (which
amendment may be retroactive to the extent permitted by the
Guidance).

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    (b)           It
is intended that each installment, if any, of the payments provided to the
Participant hereunder shall be treated as a separate “payment” for purposes of
Section 409A of the Code.  Notwithstanding anything herein to the
contrary, neither the Corporation nor the Participant shall have the right to
accelerate or defer the delivery of any such payment except to the extent
specifically permitted or required by Section 409A of the Code.

     

    (c)           Notwithstanding
the foregoing or anything herein to the contrary, in no event shall the
Corporation be liable for any taxes or penalties owed as a result of the failure
of the Plan or any deferral or payment made hereunder to comply with Section
409A.

     

    
      	
              11.

            	
              Successor
      Corporation

            

    

     

    The
obligations of the Corporation under this Plan shall be binding upon any
successor corporation or organization resulting from the merger, consolidation,
or other reorganization of the Corporation, or upon any successor corporation or
organization succeeding to substantially all of the assets and business of the
Corporation.  The Corporation agrees that it will make appropriate
provision for the preservation of Participants’ rights under this Plan in any
agreement or plan which it may enter into or adopt to effect any such merger,
consolidation, reorganization or transfer of assets.

     

    
      	
              12.

            	
              Effective
      Date

            

    

     

    This Plan
was adopted March 4, 1997 and initially became effective immediately following
the 1997 annual meeting of the stockholders of the Corporation.  The
Amended and Restated Plan shall be effective as of May 22, 2009.

     

    
      	
              13.

            	
              Governing
      Law

            

    

     

    The
provisions of this Plan shall be governed by and construed in accordance with
the laws of the State of New York.

     

    

    
      
         

      

      
        7Exhibit
4.6

    

    PAYOFF,
AMENDMENT AND SETTLEMENT AGREEMENT

    

    This
Payoff, Amendment and Settlement Agreement (the “Agreement”) is made and entered
into as of June 30, 2009, by and between Medialink Worldwide Incorporated, a
Delaware corporation (the “Company”) and the
undersigned holder (the “Holder”) of the Company’s Variable Rate Convertible
Debenture, as amended, due June 30, 2010 (the
“Debenture”).  Capitalized terms used but not defined herein have the
same meanings ascribed to them in the Purchase Agreement (defined below), the
Amendment (defined below), the Warrants (as defined below), or the
Debenture.

    

    WHEREAS,
pursuant to that certain Securities Purchase Agreement dated as of November 8,
2004 (the “Purchase Agreement”), among the Company, the Holder and the other
holders of the Debentures (collectively with the Holder, the “Holders”), the
Company issued to the Holders Debentures in the aggregate principal amount of $5
million and warrants to purchase the Company’s common stock (the “Warrants”);
and

    

    WHEREAS,
on October 6, 2008, the Holders and the Company entered into an Amendment and
Waiver Agreement (the “Amendment”) pursuant to which, among other things, (i)
the Company prepaid interest through January 9, 2010 (the “Prepaid Interest”);
(ii) the maturity of the Debentures was extended to June 30, 2010; and (iii) the
Company executed and delivered a security agreement (the “Security Agreement”)
to the Holders wherein it granted each Holder a first lien security interest in
all of the Company’s assets theretofore and thereafter received to secure the
Company’s obligations under the Debentures; and

    

    WHEREAS,
the Company wishes to pay off and retire the Debentures on the terms and
conditions herein, to amend the Warrants that were issued to the Holders
pursuant to the Purchase Agreement, and to have the Holders release their liens
on the collateral under the Security Agreement.

    

    NOW THEREFORE, in consideration of the
terms contained in this Agreement, and other good and valuable consideration, the receipt
and sufficiency of which is acknowledged, the parties, intending to be legally
bound, agree as follows:

    

    Section
1.          The Payoff
Amount

    

    The
Company shall pay to each Holder the Amount listed on Schedule A under each
Holder’s name as a Final Payment of its Debenture (the “Payoff
Amount”).  Upon receipt of the Payoff Amount, each Holder shall return
its original Debenture to the Company and the obligations contained therein
shall thereafter be extinguished.

    

    

    Section
2.          Pre-paid
Interest

    

    In
consideration for the Holders agreeing to retire the Debentures, in addition to
the receipt of the Payoff Amount as per Section 1 above, the Holders are
entitled to keep the Prepaid Interest payment that was made in connection with
the Amendment and which was meant to cover interest for the 15 month period
subsequent to the Permitted Prepayment Date.

    

    Section
3.          Security
Agreement

    

    Upon
receipt of the Payoff Amount referenced in Section 1 above, the Security
Agreement shall be terminated and the Holders will cooperate with the Company to
the extent necessary to have the liens on the Collateral pledged thereunder
released.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
4.          The
Warrant

    

    The
Holders and the Company agree to amend Section 3(f) of the Warrants by replacing
it in its entirety with the following:

    

    Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property, (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person
acquires more than 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a
“Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant).  For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction.  The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this
Section 3(e) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the
holder of this Warrant, deliver to the Holder in exchange for this Warrant a
security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable and
receivable upon exercise of this Warrant (without regard to any limitations on
the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of
Common Stock pursuant to such Fundamental Transaction and the value of such
shares of capital stock, such number of shares of capital stock and such
exercise price being for the purpose of protecting the economic value of this
Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the other
Transaction Documents referring to the “Company” shall refer instead to the
Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had
been named as the Company herein.  The provisions of this paragraph shall
apply similarly and equally to successive Fundamental Transactions and shall be
applied as if this Warrant (and any such subsequent warrants) were fully
exercisable and without regard to any limitations on the exercise of this
Warrant (provided that the Holder shall continue to be entitled to the benefit
of the Beneficial Ownership Limitation, applied however, with respect to shares
of capital stock registered under the Exchange Act and thereafter receivable
upon exercise of this Warrant (or any such other warrant)).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Notwithstanding
anything to the contrary herein, in the event of a Fundamental Transaction that
is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in
Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a
person or entity not traded on a national securities exchange, including, but
not limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, or
the Nasdaq Capital Market, this Warrant shall upon the consummation of the
Fundamental Transaction, be cacnelled and converted into a right to receive from
the Company or any Successor Entity (as definded below) an amount of cash equal
to the Black Scholes Value of the remaining unexercised portion of this Warrant
on the date of the consummation of such Fundamental Transaction.  “Black-Scholes Value”
means the value of this Warrant based on the Black- Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to 206% (C) if
applicable, the underlying price per share used in such calculation shall be the
sum of the price per share being offered in cash, if any, plus the value of any
non-cash consideration, if any, being offered in such Fundamental Transaction
and (D) a remaining option time equal to the time between the consummation date
of the applicable Fundamental Transaction and the Termination Date.  Such
payment will be made upon receipt from the Holder of the Warrant together with a
letter of transmittal or other documentation required by the Company or the
Successor Entity and
will be made no later than the later of (i) ten (10) business days after the
consummation date of the applicable Fundamental Transaction and (ii) the receipt
of the aforementioned documents.

     

    

    Section
5.                  Representations and
Warranties of the Company.  The Company hereby makes the
representations and warranties set forth below to the Holder as of the date of
its execution of this Agreement:

    

    (a)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder.  The
execution and delivery of this Agreement by the Company and the consummation by
the Company of the transactions contemplated hereby have been duly authorized by
all necessary action on the part of the Company and no further action is
required by the Company, its board of directors or its stockholders in
connection therewith.  This Agreement has been duly executed by the
Company and, when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (b)           No
Conflicts.  The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby do not and will not: (i) conflict with or violate any
provision of the Company’s certificate of incorporation, bylaws or other
organizational or charter documents; or (ii) conflict with, or constitute a
default (or an event that with notice or lapse of time or both would become a
default) under, result in the creation of any Lien upon any of the properties or
assets of the Company in connection with, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any material agreement, credit facility, debt or
other material instrument (evidencing Company debt or otherwise) or other
material understanding to which the Company is a party or by which any property
or assets of the Company is bound or affected; or (iii) conflict with or result
in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company
is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected.

     

    (c)           Equal
Consideration.  Except as set forth in this Agreement, no
consideration has been offered or paid to any person to amend or consent to a
waiver, modification, forbearance or otherwise of any provision of any of the
Transaction Documents.

     

    (d)           Affirmation of Prior
Representations and Warranties.  Except as set forth in the SEC
Reports, the Company hereby represents and warrants to the Holder that the
Company’s representations and warranties set forth in each of the documents
executed by the Company in connection with the Transaction Documents, as
amended, are true and correct as of the date hereof.

     

    Section
6.                 Representations and
Warranties of the Holder. The Holder hereby makes the representations and
warranties set forth below to the Company as of the date of its execution of
this Agreement. The Holder represents and warrants that (a) the execution and
delivery of this Agreement by it and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary action on its
behalf and (b) this Agreement has been duly executed and delivered by the Holder
and constitutes the valid and binding obligation of the Holder, enforceable
against it in accordance with its terms except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    Section
7.                  Public
Disclosure.  The Company shall, as soon as practical and, in
any event, within 4 Trading Days of the Effective Date, issue a Current Report
on Form 8-K, reasonably acceptable to the Holder, disclosing the material terms
of the transactions contemplated hereby and attaching this Agreement as an
exhibit thereto.  The Company shall consult with the Holder in issuing
any other press releases with respect to the transactions contemplated
hereby.

    

    Section
8.                  Effect on Transaction
Documents.  Except as expressly set forth above, all of the
terms and conditions of the Transaction Documents shall continue in full force
and effect after the execution of this Agreement and shall not be in any way
changed or modified by the terms set forth herein, including, but not limited
to, any other obligations the Company may have to the Holder under the
Transaction Documents.  Notwithstanding the
foregoing, this Agreement shall be deemed for all purposes as an amendment to
any Transaction Document as required to serve the purposes hereof, and in the
event of any conflict between the terms and provisions of any other Transaction
Document, on the one hand, and the terms and provisions of this Agreement, on
the other hand, the terms and provisions of this Agreement shall
prevail.

    

    Section
9.                  Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the same shall be in writing and signed by the Company and the
Holder.  An e-mail intending to modify or amend this Agreement shall
not be binding upon the parties hereto.

    

    Section
10.               Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be delivered as set forth in the Purchase
Agreement.

    

    Section
11.                Survival. All
warranties and representations (as of the date such warranties and
representations were made) made herein or in any certificate or other instrument
delivered by it or on its behalf under this Agreement shall be considered to
have been relied upon by the parties hereto and shall survive for the applicable
statute of limitations.

    

    Section
12.       Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties hereto;
provided, however, that no
party may assign this Agreement or the obligations and rights of such party
hereunder without the prior written consent of the other parties
hereto.

    

    Section
13.                Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

    

    Section
14.               Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined pursuant to
the Governing Law provision of the Purchase Agreement.

    

    Section
15.                Severability.  If
any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    Section
16.                Construction.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.  The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

    

    Section
17.       Entire
Agreement.  The Agreement, together with the exhibits and
schedules thereto, contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and
schedules.

    

    Section
18.               Independent Nature of
Holder’s Obligations and Rights.  The obligations of the Holder
hereunder are several and not joint with the obligations of any other Holders
executing similar agreements, and no Holder shall be responsible in any way for
the performance of the obligations of any other Holder. Nothing contained herein
or in any other agreement or document delivered at any closing, and no action
taken by the Holder pursuant hereto, shall be deemed to constitute the Holder
with the other Holders as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Holders are in any way
acting in concert with respect to such obligations or the transactions
contemplated by this Agreement.  The Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising
out of this Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

    

    Section
19.                Legal
Fees.  Simultaneous with the payment of the Payoff Amount, the
Company shall pay Iroquois Capital Management $10,000 for legal
fees.

    

    [SIGNATURE
PAGE FOLLOWS]

    *********************

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    

                      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their proper and duly authorized officers as of the day and year
first above written.

    

    COMPANY:

     

    
      
        	 	MEDIALINK
      WORLDWIDE INCORPORATED	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	Name:  
      	 	 
	 	Title:	 	 
	 	 	 	 

      
                       

    HOLDER:

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	 	 	 
	 	 	 	 
	
                                                   

                                                	
                                                  Name of Holder: 

                                                	 	 
	 	 	 	 
	 	Signature
      of Authorized Signatory of Holder: 	 
	 	 	 
	 	Name
      of Authorized Signatory: 	 
	 	 	 
	 	Title
      of Authorized Signatory:	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Schedule
A

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Holder

                            	 	
                              Payoff Amount

                            	 
	 
      	 	 	 
	
                              Iroquois
      Capital, LP

                            	 	$	731,034.48	 
	
                              Smithfield
      Fiduciary LLC

                            	 	$	310,689.66	 
	
                              Rockmore
      Capital, LLC

                            	 	$	173,675.52	 
	
                              Portside
      Growth and Opportunity Fund

                            	 	$	374,600.34	 
	 
      	 	 	 	 
	
                              Total

                            	 	$	1,590,000.00

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