Document:

ex10_10.htm

    OPTIONS
MEDIA GROUP HOLDINGS, INC.

    2008
EQUITY INCENTIVE PLAN

    

    FORM OF
NONQUALIFIED STOCK OPTION AGREEMENT

    

    This NONQUALIFIED STOCK OPTION
AGREEMENT (the “Option Agreement”), dated as of the ____ day of ___ 20__ (the
“Grant Date”), is between Options Media Group Holdings, Inc., a Nevada
corporation (the “Company”), and _____________ (the “Optionee”), a director,
officer or employees of, or consultant or advisor to, the Company or a
Subsidiary of the Company (a “Related Corporation”), pursuant to the Options
Media Group  Holdings, Inc. 2008 Equity Incentive Plan (the
“Plan”).

    

    WHEREAS, the Company desires to give
the Optionee the opportunity to purchase shares of common stock of the Company,
par value $0.001 (“Common Shares”) in accordance with the provisions of the
Plan, a copy of which is attached hereto;

    

    NOW, THEREFORE, in consideration of the
mutual covenants hereinafter set forth and for other good and valuable
consideration, the parties hereto, intending to be legally bound hereby, agree
as follows:

    

    1.           Grant of
Option.  The Company hereby grants to the Optionee the right
and option (the “Option”) to purchase all or any part of an aggregate of
___________________ (______) Common Shares.  The Option is in all
respects limited and conditioned as hereinafter provided, and is subject in all
respects to the terms and conditions of the Plan now in effect and as it may be
amended from time to time (but only to the extent that such amendments apply to
outstanding options).  Such terms and conditions are incorporated
herein by reference, made a part hereof, and shall control in the event of any
conflict with any other terms of this Option Agreement.  The Option
granted hereunder is intended to be a nonqualified stock option (“NQSO”) and
not an
incentive stock option (“ISO”) as such term is defined in section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).

    

    2.           Exercise
Price.  The exercise price of the Common Shares covered by this
Option shall be $_________ per share.  It is the determination of the
committee administering the Plan (the “Committee”) that on the Grant Date the
exercise price was not less than the greater of (i) 100% of the “Fair Market
Value” (as defined in the Plan) of a Common Share, or (ii) the par value of a
Common Share.

    

                          3.           Term.  Unless
earlier terminated pursuant to any provision of the Plan or of this Option
Agreement, this Option shall expire on ___________ ___, 20__ (the “Expiration
Date”), which date is not more than 10 years from the Grant
Date.  This Option shall not be exercisable on or after the Expiration
Date.

     

    
      
        
        

      

      
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    4.           Exercise of
Option.  The Option shall vest according to the following
schedule, provided that Optionee remains continuously engaged as a director,
officer or employees of, or consultant or advisor to, the Company or a Related
Corporation from the date hereof through the applicable vesting
date:

    

    
      	
              Date
      Installment Becomes Exercisable

            	
              Number
      of Shares

            
	 
      	
              ______
      Shares

            
	 
      	
              an
      additional ______ Shares

            
	 
      	
              an
      additional ______ Shares

            
	 
      	
              an
      additional ______ Shares

            

    

    

    The
Committee may accelerate any vesting date of the Option, in its discretion, if
it deems such acceleration to be desirable.  Once the Option becomes
exercisable, it will remain exercisable until it is exercised or until it
terminates.

    

    5.           Method of Exercising
Option.  Subject to the terms and conditions of this Option
Agreement and the Plan, the Option may be exercised by written notice to the
Company at its principal office.  The form of such notice is attached
hereto and shall state the election to exercise the Option and the number of
whole shares with respect to which it is being exercised; shall be signed by the
person or persons so exercising the Option; and shall be accompanied by payment
of the full exercise price of such shares. Only full shares will be
issued.

    

    The exercise price shall be paid to the
Company:

    

    (a)           in
cash, or by certified check, bank draft, or postal or express money
order;

    

    (b)           through
the delivery of Common Shares previously acquired by the Optionee;

    

    (c)           by
delivering a properly executed notice of exercise of the Option to the Company
and a broker, with irrevocable instructions to the broker promptly to deliver to
the Company the amount necessary to pay the exercise price of the
Option;

    

    (d)           in
Common Shares newly acquired by the Optionee upon exercise of the Option;
or

    

    (e)           in
any combination of (a), (b), (c) or (d) above.

    

    In the
event the exercise price is paid, in whole or in part, with Common Shares, the
portion of the exercise price so paid shall be equal to the Fair Market Value of
the Common Shares surrendered on the date of exercise.

     

    
      
        
        

      

      
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    Upon receipt of notice of exercise and
payment, the Company shall deliver a certificate or certificates representing
the Common Shares with respect to which the Option is so exercised. The Optionee
shall obtain the rights of a shareholder upon receipt of a certificate(s)
representing such Common Shares.

    

    Such certificate(s) shall be registered
in the name of the person so exercising the Option (or, if the Option is
exercised by the Optionee and if the Optionee so requests in the notice
exercising the Option, shall be registered in the name of the Optionee and the
Optionee’s spouse, jointly, with right of survivorship), and shall be delivered
as provided above to, or upon the written order of, the person exercising the
Option.  In the event the Option is exercised by any person after the
death or disability (as determined in accordance with Section 22(e)(3) of the
Code) of the Optionee, the notice shall be accompanied by appropriate proof of
the right of such person to exercise the Option.  All Common Shares
that are purchased upon exercise of the Option as provided herein shall be fully
paid and non-assessable.

    

    Upon exercise of the Option, Optionee
shall be responsible for all employment and income taxes then or thereafter due
(whether Federal, State or local), and if the Optionee does not remit to the
Company sufficient cash (or, with the consent of the Committee, Common Shares)
to satisfy all applicable withholding requirements, the Company shall be
entitled to satisfy any withholding requirements for any such tax by disposing
of Common Shares at exercise, withholding cash from Optionee’s salary or other
compensation or such other means as the Committee considers appropriate to the
fullest extent permitted by applicable law.  Nothing in the preceding
sentence shall impair or limit the Company’s rights with respect to satisfying
withholding obligations under Section 10 of the Plan.

    

    6.           Non-Transferability of
Option.  This Option is not assignable or transferable, in
whole or in part, by the Optionee other than by will or by the laws of descent
and distribution.  During the lifetime of the Optionee, the Option
shall be exercisable only by the Optionee or, in the event of his or her
disability, by his or her guardian or legal representative.

    

    7.           Termination of
Services.  If the Optionee’s services with the Company and all
Related Corporations are terminated for any reason (other than death or
disability) prior to the Expiration Date, then this Option may be exercised by
Optionee, to the extent of the number of Common Shares with respect to which the
Optionee could have exercised it on the date of such termination of services, at
any time prior to the earlier of (i) the Expiration Date, or (ii) three months
after such termination of services.  Any part of the Option that was
not exercisable immediately before the termination of Optionee’s services shall
terminate at that time.

    

    8.           Disability.  If
the Optionee becomes disabled (as determined in accordance with section 22(e)(3)
of the Code) during the period of his or her service and, prior to the
Expiration Date, the Optionee’s services are terminated as a consequence of such
disability, then this Option may be exercised by the Optionee or by the
Optionee’s legal representative, to the extent of the number of Common Shares
with respect to which the Optionee could have 

     

    
      
        
        

      

      
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    exercised
it on the date of such termination of services, at any time prior to the earlier
of (i) the Expiration Date or (ii) one year after such termination of
services.  Any part of the Option that was not exercisable immediately
before the Optionee’s termination of services shall terminate at that
time.

    

    9.           Death.  If
the Optionee dies during the period of his or her services and prior to the
Expiration Date, or if the Optionee’s services are terminated for any reason (as
described in Paragraphs 7 and 8) and the Optionee dies following his or her
termination of services but prior to the earliest of (i) the Expiration Date, or
(ii) the expiration of the period determined under Paragraph 7 or 8 (as
applicable to the Optionee), then this Option may be exercised by the Optionee’s
estate, personal representative or beneficiary who acquired the right to
exercise this Option by bequest or inheritance or by reason of the Optionee’s
death, to the extent of the number of Common Shares with respect to which the
Optionee could have exercised it on the date of his or her death, at any time
prior to the earlier of (i) the Expiration Date or (ii) one year after the date
of the Optionee’s death.  Any part of the Option that was not
exercisable immediately before the Optionee’s death shall terminate at that
time.

    

    10.           Securities
Matters.  (a)  If, at any time, counsel to the
Company shall determine that the listing, registration or qualification of the
Common Shares subject to the Option upon any securities exchange or under any
state or federal law, or the consent or approval of any governmental or
regulatory body, or that the disclosure of non-public information or the
satisfaction of any other condition is necessary as a condition of, or in
connection with, the issuance or purchase of Common Shares hereunder, such
Option may not be exercised, in whole or in part, unless such listing,
registration, qualification, consent or approval, or satisfaction of such
condition shall have been effected or obtained on conditions acceptable to the
Board of Directors.  The Company shall be under no obligation to apply
for or to obtain such listing, registration or qualification, or to satisfy such
condition.  The Committee shall inform the Optionee in writing of any
decision to defer or prohibit the exercise of an Option.  During the
period that the effectiveness of the exercise of an Option has been deferred or
prohibited, the Optionee may, by written notice, withdraw the Optionee’s
decision to exercise and obtain a refund of any amount paid with respect
thereto.

    

    (b)           The
Company may require: (i) the Optionee (or any other person exercising the Option
in the case of the Optionee’s death or Disability) as a condition of exercising
the Option, to give written assurances, in substance and form satisfactory to
the Company, to the effect that such person is acquiring the Common Shares
subject to the Option for his or her own account for investment and not with any
present intention of selling or otherwise distributing the same, and to make
such other representations or covenants; and (ii) that any certificates for
Common Shares delivered in connection with the exercise of the Option bear such
legends, in each case as the Company deems necessary or appropriate, in order to
comply with federal and applicable state securities laws, to comply with
covenants or representations made by the Company in connection with any public
offering of its Common Shares or otherwise.  The Optionee specifically
understands and agrees that the Common Shares, 

     

    
      
        
        

      

      
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    if and
when issued upon exercise of the Option, may be “restricted securities,” as that
term is defined in Rule 144 under the Securities Act of 1933 and, accordingly,
the Optionee may be required to hold the shares indefinitely unless they are
registered under such Securities Act of 1933, as amended, or an exemption from
such registration is available.

    

    (c)           The
Optionee shall have no rights as a shareholder with respect to any Common Shares
covered by the Option (including, without limitation, any rights to receive
dividends or non-cash distributions with respect to such shares) until the date
of issue of a stock certificate to the Optionee for such Common
Shares.  No adjustment shall be made for dividends or other rights for
which the record date is prior to the date such stock certificate is
issued.

    

    11.           Governing
Law.  This Option Agreement shall be governed by the applicable
Code provisions to the maximum extent possible.  Otherwise, the laws
of the State of Delaware (without reference to the principles of conflict of
laws) shall govern the operation of, and the rights of the Optionee under, the
Plan and Options granted thereunder.

    

    [SIGNATURE
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    IN WITNESS WHEREOF, the Company has
caused this Nonqualified Stock Option Agreement to be duly executed by its duly
authorized officer, and the Optionee has hereunto set his or her hand and seal,
all as of the ____ day of ___, 20__.

    

    

    OPTIONS MEDIA GROUP HOLDINGS,
INC.

    

    

    By:_______________________________

    Name:

    Title:

    

    

    

    

    _______________________________

                                                                                                   
Optionee

     

    
      
        
        

      

      
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    OPTIONS
MEDIA GROUP HOLDINGS, INC. 

    2008
EQUITY INCENTIVE PLAN

    

    Notice of
Exercise of Nonqualified Stock Option

    

    I hereby exercise the nonqualified
stock option granted to me pursuant to the Nonqualified Stock Option Agreement
dated as of ______________ __, 20__, by Options Media Group Holdings, Inc. (the
“Company”), with respect to the following number of shares of the Company’s
common stock (“Shares”), par value $0.001 per Share, covered by said
option:

    

       

      
        	Number of Shares to
      be purchased: 	
                _______

              
	
              	 
	Purchase price per
      Share:	
                $_______

              
	 	
                 

              
	Total purchase
      price: 	
                $_______

              

      

       

      
        	
                ______

              	
                A.

              	
                Enclosed
      is cash or my certified check, bank draft, or postal or express money
      order in the amount of $________ in full/partial [circle one] payment for
      such Shares;

              
	 	
              	 
	 	 	
                and/or

              
	 	 	 
	
                ______

              	
                B.

              	
                Enclosed
      is/are _____ Share(s) with a total fair market value of $____ on the date
      hereof in full/partial [circle one] payment for
      such Shares;

              
	 	 	 
	 	
                 

              	
                and/or

              
	 	
                 

              	 
	
                
                  ______

                

              	
                C. 

              	I have provided
      notice to   [insert name of broker],
      a broker, who will render full/partial [circle one] payment for
      such Shares.  [Optionee should attach to the
      notice of exercise provided to such broker a copy of this Notice of
      Exercise and irrevocable instructions to pay to the Company the
      full/partial (as elected above) exercise price.]
	 	 	 
	 	 	
                and/or

              
	 	 	 
	
                ______
 	
                D.

              	I elect to
      satisfy the payment for Shares purchased hereunder by having the Company
      withhold newly acquired Shares pursuant to the exercise of the
      Option.  I understand that this will result in a “disqualifying
      disposition,” as described in Section 10 of my Incentive Stock Option
      Agreement.

      

       

      
        
          
          

        

        
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      Please
have the certificate or certificates representing the purchased Shares
registered in the following name or names*:                                          
                         ;
and sent to                                                 .

       

      
        	DATED:                      
      ___, 20__	______________________
	 	Optionee’s
      Signature

      

       

                                                                                                                                                                                                                                        

      

        
          
            
              

            

          

        
 

      
        
          	
                  *

                	
                  Certificates
      may be registered in the name of the Optionee alone or in the joint names
      (with right of survivorship) of the Optionee and his or her
      spouse.ex10_11.htm

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.  ANY
TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS
NOTE.  THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE MAY BE LESS THAN
THE AMOUNTS SET FORTH ON THE FACE HEREOF.

     

    OPTIONS
MEDIA GROUP HOLDINGS, INC.

     

    10%
SENIOR SECURED  PROMISSORY NOTE

     

    (non-negotiable)

     

    $1,000,000.00 June
23, 2008

     

    FOR VALUE
RECEIVED Options Media Group Holdings, Inc., a Delaware corporation (the “Company”), promises
to pay to Customer Acquisition Network Holdings, Inc. (the “Holder”), the
principal amount of One Million Dollars ($1,000,000.00), or such lesser amount
as shall equal the outstanding principal amount hereof, together with simple
interest from the date of this Note on the unpaid principal balance at a rate
equal to ten percent (10%) per annum, computed on the basis of the actual number
of days elapsed and a year of 365 days. All unpaid principal, together with any
then accrued but unpaid interest and any other amounts payable hereunder, shall
be due and payable on December 23, 2008 (the “Maturity
Date”).

     

    The
following is a statement of the rights of the Holder of this Note and the
conditions to which this Note is subject, and to which the Holder, by the
acceptance of this Note, agrees:

     

    1. Event of
Default.

     

    (a) For
purposes of this Note, an “Event of Default”
means:

     

    (i) the
Company shall default in the payment of interest and/or principal on this Note;
or

     

    (ii) the
Company shall fail to materially perform any covenant, term, provision,
condition, agreement or obligation of the Company under this Note 

     

    
      
        
        

      

      
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                    (other
than for non-payment) and such failure shall continue uncured for a period of
ten (10) business days after notice from the Holder of such failure;
or

     

    (iii) the
Company shall (1) become insolvent; (2) admit in writing its inability to pay
its debts generally as they mature; (3) make an assignment for the benefit of
creditors or commence proceedings for its dissolution; or (4) apply for or
consent to the appointment of a trustee, liquidator or receiver for it or for a
substantial part of its property or business; or

     

    (iv) a
trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment; or

     

    (v) any
governmental agency or any court of competent jurisdiction at the insistence of
any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company and shall not be
dismissed within thirty (30) days thereafter; or

     

    (vi) the
Company shall sell or otherwise transfer all or substantially all of its assets;
or

     

    (vii) bankruptcy,
reorganization, insolvency or liquidation proceedings or other proceedings, or
relief under any bankruptcy law or any law for the relief of debt shall be
instituted by or against the Company and, if instituted against the Company
shall not be dismissed within thirty (30) days after such institution, or the
Company shall by any action or answer approve of, consent to, or acquiesce in
any such proceedings or admit to any material allegations of, or default in
answering a petition filed in any such proceeding; or

     

    (viii) the
Company or any of its subsidiaries that are a party thereto breaches any
covenant or other term or condition of the Security Agreement (as defined below)
(after giving effect to any grace period set forth in such Security Agreement
relating to any such breach); or

     

    (ix) any lien
created by the Security Agreement shall at any time fail to constitute a valid
first priority perfected lien on all of the collateral purported to be secured
thereby; or

     

    (x) the
Company shall be in material default of any of its indebtedness that gives the
holder thereof the right to accelerate such indebtedness; or

     

                   
(xi) any default by the Company or any subsidiary thereof of its
obligations pursuant to that certain Agreement and Plan of Merger by and among
Options Media Group Holdings, Inc., Options Acquisition Corp., Options
Acquisition Sub, Inc. and the Holder (the “Merger Agreement”)
which remains uncured in accordance with the terms of the Merger
Agreement.

     

    
      
        
        

      

      
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    (b) Upon the
occurrence of an Event of Default, the entire indebtedness with accrued interest
thereon due under this Note shall, at the option of the Holder, be immediately
due and payable without notice.  Failure to exercise such option shall
not constitute a waiver of the right to exercise the same in the event of any
subsequent Event of Default.

     

    2. Seniority.  The
indebtedness evidenced by this Note is hereby expressly senior, in right of
payment to the prior payment in full of all of the Company’s existing and future
Subordinated Indebtedness.  As used in this Note, the term
“Subordinated Indebtedness” shall mean the principal of and unpaid accrued
interest on (i) indebtedness of the Company and (ii) any such indebtedness or
any debentures, notes or other evidence of indebtedness issued in exchange for
such Subordinated Indebtedness, or any indebtedness arising from the
satisfaction of such Subordinated Indebtedness by a guarantor.  Holder
shall execute any intercreditor agreement requested by the Company to give
effect to the foregoing seniority.

     

    3. Security
Interest.  This Note is secured by a security interest granted
to the Holder pursuant to a Security Agreement dated the date hereof (the
“Security Agreement”), as delivered by the Company to Holder.  The
Company acknowledges and agrees that should a proceeding under any bankruptcy or
insolvency law be commenced by or against the Company, or if any of the
Collateral (as defined in the Security Agreement) should become the subject of
any bankruptcy or insolvency proceeding, then the Holder should be entitled to,
among other relief to which the Holder may be entitled under this Note and any
other agreement to which the Company and Holder are parties (collectively, "Loan
Documents").

     

    4. Future
Indebtedness.  The Company agrees that from the date hereof
until the earlier of August 30, 2008 and the first date on which all principal
and accrued interest on the Note are paid in full, the Company shall not incur,
or suffer to exist and Indebtedness or Liens other than Permitted Indebtedness
and Permitted Liens.  Terms not described in this paragraph 4 are
defined on Schedule A.

     

    5. Prepayment.  The
Company may prepay this Note at any time, in whole or in part, provided any such
prepayment will be applied first to the payment of expenses due under this Note,
second to interest accrued on this Note and third, if the amount of prepayment
exceeds the amount of all such expenses and accrued interest, to the payment of
principal of this Note.

     

    6. Negative
Pledge.  Without the approval of Holder, the
Company will not, and will not permit Options Acquisitions Sub, Inc. to
create or suffer to exist any Lien upon the Collateral (as defined in the
Security Agreement) other than a first priority security interest in and
upon the collateral to Lenders.

     

    7. Miscellaneous.

     

    (a) Loss, Theft, Destruction or
Mutilation of Note.  Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Note and, in the case of loss, theft or destruction, delivery of an
indemnity agreement reasonably satisfactory in form and substance to the Company
or, in the case of mutilation, on surrender and cancellation of this Note, the
Company shall execute and deliver, in lieu of this Note, a new note executed in
the same manner as this Note, in the same principal amount as the 

     

    
      
        
        

      

      
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    unpaid
principal amount of this Note and dated the date to which interest shall have
been paid on this Note or, if no interest shall have yet been so paid, dated the
date of this Note.

     

    (b) Payment.  All
payments under this Note shall be made in lawful tender of the United
States.

     

    (c) Waivers.  The
Company hereby waives notice of default, presentment or demand for payment,
protest or notice of nonpayment or dishonor and all other notices or demands
relative to this instrument.

     

    (d) Usury.  In
the event that any interest paid on this Note is deemed to be in excess of the
then legal maximum rate, then that portion of the interest payment representing
an amount in excess of the then legal maximum rate shall be deemed a payment of
principal and applied against the principal of this Note.

     

    (e) Waiver and
Amendment.  Any provision of this Note may be amended, waived
or modified only by an instrument in writing signed by the party against which
enforcement of the same is sought

     

    (f) Notices.  Any
notice or other communication required or permitted to be given hereunder shall
be in writing sent by mail, facsimile with printed confirmation, nationally
recognized overnight carrier or personal delivery and shall be effective upon
actual receipt of such notice, to the following addresses until notice is
received that any such address or contact information has been
changed:

     

    To the
Company:

     

    Options
Media Group Holdings, Inc.

    240 Old
Federal Highway

    Suite
100

    Hallandale,
FL 33009

    Attn:
Chief Executive Officer

     

    To
Holder:

     

    Customer
Acquisition Network Holdings, Inc.

    200 Park
Avenue South

    Suite
908-909

    New York,
NY 10003

    Attn:
Chief Executive Officer

     

    (g) Expenses; Attorneys’
Fees.  If action is instituted to enforce or collect this Note,
the Company promises to pay all reasonable costs and expenses, including,
without limitation, reasonable attorneys’ fees and costs, incurred by the Holder
in connection with such action.

     

    (h) Successors and
Assigns.  This Note may not be assigned or transferred by the
Holder without the prior written consent of the Company.  Subject to
the 

     

    
      
        
        

      

      
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    preceding
sentence, the rights and obligations of the Company and the Holder of this Note
shall be binding upon and benefit the successors, permitted assigns, heirs,
administrators and permitted transferees of the parties.

     

    (i) Governing Law;
Jurisdiction.  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICTS OF LAWS. EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO
THE EXCLUSIVE PERSONAL AND SUBJECT MATTER JURISDICTION OF THE SUPREME COURT OF
THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN OVER ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.  EACH PARTY
HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW, (A) ANY
OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT; AND (B) ANY CLAIM THAT ANY SUCH
SUIT, ACTION OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. FINAL
JUDGMENT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT SHALL BE
CONCLUSIVE AND BINDING UPON EACH PARTY DULY SERVED WITH PROCESS THEREIN AND MAY
BE ENFORCED IN THE COURTS OF THE JURISDICTION OF WHICH EITHER PARTY OR ANY OF
THEIR PROPERTY IS SUBJECT, BY A SUIT UPON SUCH JUDGMENT.

     

    [SIGNATURE
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    IN
WITNESS WHEREOF, the Company has caused this Note to be executed as of the date
first above written by its duly authorized officer.

    
    

     

    
      	 	

              OPTIONS
      MEDIA GROUP HOLDINGS, INC.

            
	 	 
	 	By:/s/ Scott
      Frohman
	 	

              Name:
      Scott Frohman

            
	 	Title: Chief
      Executive Officer

    

     

    
      
        
        

      

      
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      Schedule
A

    

    
    

     

    “Capital Lease Obligation”
means, as to any Person, any obligation that is required to be classified and
accounted for as a capital lease on a balance sheet of such Person prepared in
accordance with GAAP, and the amount of such obligation shall be the capitalized
amount thereof, determined in accordance with GAAP.

     

    “Contingent Obligation” means,
as to any Person, any direct or indirect liability, contingent or otherwise, of
such Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if a primary purpose or intent of the Person
incurring such liability, or a primary effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the
holders of such liability will be protected (in whole or in part) against loss
with respect thereto.

     

    “GAAP” means U.S. generally
accepted accounting principles.

     

    “Governmental Entity” means the
government of the United States or any other nation, or any political
subdivision thereof, whether state, provincial or local, or any agency
(including any self-regulatory agency or organization), authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administration powers or
functions of or pertaining to government.

     

    “Indebtedness” of any Person
means, without duplication:

     

    (i) All
indebtedness for borrowed money;

     

    (ii) All obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than
unsecured account trade payables that are (A) entered into or incurred in the
ordinary course of the Company’s and its Subsidiaries’ business, (B) on terms
that require full payment within 90 days from the date entered into or incurred
and (C) not unpaid in excess of 90 days from the date entered
into or incurred, or are being contested in good faith and as to which such
reserve as is required by GAAP has been made;

     

    (iii) All
reimbursement or payment obligations with respect to letters of credit, surety
bonds and other similar instruments;

     

    (iv) All
obligations evidenced by notes, bonds, debentures, redeemable capital stock or
similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses;

     

    (v) All
indebtedness created or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either case with respect to
any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller, bank or other financing source
under such agreement in the event of default are limited to repossession or sale
of such property);

     

    
      
        
        

      

      
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    (vi) All
Capital Lease Obligations;

     

    (vii) All
indebtedness referred to in clauses (i) through (vi) above secured by (or for
which the holder of such indebtedness has an existing right, contingent or
otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person that
owns such assets or property has not assumed or become liable for the payment of
such indebtedness; and

     

    (viii) All
Contingent Obligations in respect of indebtedness or obligations of others of
the kinds referred to in clauses (i) through (vii) above.

     

    “Lien” means with respect to
any asset or property, any mortgage, lien, pledge, hypothecation, charge,
security interest, encumbrance or adverse claim of any kind and any restrictive
covenant, condition, restriction or exception of any kind that has the practical
effect of creating a mortgage, lien, pledge, hypothecation, charge, security
interest, encumbrance or adverse claim of any kind (including any of the
foregoing created by, arising under or evidenced by any conditional sale or
other title retention agreement, the interest of a lessor with respect to a
Capital Lease Obligation, or any financing lease having substantially the same
economic effect as any of the foregoing).

     

    “Permitted Lien”
means:

     

    (i) Liens
created by the Security Documents;

     

    (ii) Liens for
taxes or other governmental charges not at the time due and payable, or which
are being contested in good faith by appropriate proceedings diligently
prosecuted, so long as foreclosure, distraint, sale or other similar proceedings
have not been initiated, and in each case for which the Company and its
Subsidiaries maintain adequate reserves in accordance with GAAP in respect of
such taxes and charges;

     

    (iii) Liens
arising in the ordinary course of business in favor of carriers, warehousemen,
mechanics and materialmen, or other similar Liens imposed by law, which remain
payable without penalty or which are being contested in good faith by
appropriate proceedings diligently prosecuted, which proceedings have the effect
of preventing the forfeiture or sale of the property subject thereto, and in
each case for which adequate reserves in accordance with GAAP are being
maintained;

     

    (iv) Liens
arising in the ordinary course of business in connection with worker’s
compensation, unemployment compensation and other types of social security
(excluding Liens arising under ERISA);

     

    (v) Attachments,
appeal bonds (and cash collateral securing such bonds), judgments and other
similar Liens, for sums not exceeding $250,000 in the aggregate for the Company
and its Subsidiaries, arising in connection with court proceedings, provided that the
execution or other enforcement of such Liens is effectively stayed;

     

    (vi) Easements,
rights of way, restrictions, minor defects or irregularities in title and other
similar Liens arising in the ordinary course of business and not materially

     

    
      
        
        

      

      
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                      detracting
from the value of the property subject thereto and not interfering in any
material respect with the ordinary conduct of the business of the Company or any
of its Subsidiaries;

    

     

    (vii) Liens
arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies and burdening
only deposit accounts or other funds maintained with a creditor depository
institution, provided that no such
deposit account is a dedicated cash collateral account or is subject to
restrictions against access by the depositor in excess of those set forth by
regulations promulgated by the Board of Governors of the U.S. Federal Reserve
System and that no such deposit account is intended by the Company or any of its
Subsidiaries to provide collateral to the depository institution;

     

    (viii) Liens
securing Capital Lease Obligations permitted under Section 5(g)(iv),
provided that such Liens attach only to the fixed assets financed by such
Capital Lease Obligations and such Liens attach concurrently with, or within
ninety (90) days, after the acquisition thereof.

     

    “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, a Governmental Entity or any other legal
entity.

     

    “Security Documents” means the
Security Agreement and any other agreements, documents and instruments executed
concurrently herewith or at any time hereafter pursuant to which the Company,
its Subsidiaries, or any other Person either (i) guarantees payment or
performance of all or any portion of the obligations hereunder or under any
other instruments delivered in connection with the transactions contemplated
hereby and by the other transaction documents, and/or (ii) provides, as security
for all or any portion of such obligations, a Lien on any of its assets in favor
of a Buyer, as any or all of the same may be amended, supplemented, restated or
otherwise modified from time to time.

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