Document:

ex102.htm

    Exhibit
10.2

     

    THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR REGISTERED OR QUALIFIED UNDER APPLI­CABLE STATE
SECURITIES LAWS IN RELIANCE UPON EXEMPTIONS THEREFROM.  THE HOLDER MAY
NOT OFFER, SELL, TRANSFER, ASSIGN, PLEDGE, HYPOTHECATE, OR OTHERWISE DISPOSE OF
OR ENCUMBER THIS NOTE EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER
AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION AND/OR QUALIFICATION REQUIREMENTS OF
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

     

     January
4, 2010

     Draper,
Utah

     

    aVINCI
MEDIA CORPORATION

    SECURED
CONVERTIBLE PROMISSORY NOTE

     

    aVinci
Media Corporation, a Delaware corporation (the “Issuer”), for value received,
hereby promises to pay to _________________ (the “Payee”) at _______________, or
at such other address as the Payee may designate in writing, the principal sum
of _______________ in lawful money of the United States, together with interest
thereon from the date hereof at the interest rate hereinafter set forth until
payment in full of the outstanding principal balance.

     

    1. MATURITY.  Unless
converted into Preferred Stock (as defined in Section 7(a)) by the
Payee pursuant to its conversion rights set forth in Section 7(a), the
Issuer shall repay all of the outstanding principal balance and all accrued and
unpaid interest on the earliest of (i) December 31, 2011, (ii) the sale of all
of the then outstanding shares of the Issuer’s common stock (the “Common
Stock”), (iii) the sale of all of the then outstanding equity securities of the
Issuer’s subsidiary, aVinci Media, LC, a Utah limited liability company (the
“Subsidiary”), (iv) the sale of all or substantially all of the assets of the
Issuer or the Subsidiary, (v) the merger of the Issuer with or into another
entity where immediately after such merger the Issuer’s former shareholders own
less than fifty percent (50%) of the outstanding voting securities of the
surviving entity (or the surviving entity’s parent entity if there is one), or
(vi) the occurrence of a Default, as provided in Section
8.

     

    2. INTEREST.

     

    (a) Interest
Rate.  The outstanding principal balance of this Note shall
bear interest at the annual rate of eight percent (8.0%).  Interest
shall accrue on the actual number of days elapsed based upon a three hundred
sixty-five (365)-day year.  Interest shall compound
quarterly.  Interest shall be due and payable on the maturity of this
Note.

     

    (b) Additional
Interest.  As additional interest, whenever the Issuer makes a
distri­bution to the holders of the outstanding Preferred Stock, the Issuer
shall pay the Payee the amount that the Payee would receive if the principal and
accrued interest of this Note had been converted into Preferred Stock pursuant
to Section 7(a)
immediately prior to the record date for such distribu­tion.

     

    (c) Late
Charge.  If the Payee has not received any payment of principal
or interest required pursuant to the terms of this Note within five (5) days
after the date when such payment was due and payable, then the Issuer shall pay
the Payee a late charge equal to three percent (3%) of the past due payment
amount.  Such late charge is for the purpose of defraying the expenses
incident to handling such delinquent payment, and represents a reasonable
estimate by the Payee and the Issuer of a fair compensation for the losses
sustained by the Payee due to the Issuer’s failure to make timely
payment.

     

    
      
        
        

      

      
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    (d) Default Interest
Rate.  If the Issuer is in Default (as defined in Section 8) then the
interest rate set forth in Section 2(a) shall be
increased by five percent (5%) per annum for such time as the Issuer is in
Default.

     

    (e) Usury Savings
Clause.  Notwithstanding anything else to the contrary, the
interest rate provided for herein shall not exceed the maximum rate of interest
allowed under appli­cable usury law.  Any payment paid in excess
of this maximum rate of interest shall be deemed to be a prepayment of
principal, notwithstanding the advance notice provisions set forth in Section
3.  All payments received hereunder shall be applied first to
expenses payable to the Payee pursuant to the terms hereof, next to accrued
interest, and then to the outstanding principal balance hereof.

     

    3. PREPAYMENT.  At
its option, the Issuer may prepay all or any portion of the out­standing
principal balance of this Note at any time or from time to time without penalty
or premium by giving the Payee not less than thirty (30) days advance written
notice and paying one hundred percent (100%) of the principal amount being
prepaid plus all accrued and unpaid interest thereon.  All principal
amounts prepaid shall cease to bear interest on the date of
payment.  The Payee may not convert (as set forth in Section 7) any
principal or accrued interest that is prepaid after the date of
payment.

     

    4. TRANSFER.  The
Payee may not offer, sell, transfer, assign, pledge, hypothecate, or otherwise
dispose of or encumber this Note without the prior written consent of the
Issuer, which consent the Issuer may not unreasonably withhold.  The
Payee may transfer this Note to an affiliate of the Payee without the Issuer’s
consent if the Payee complies with all federal and applicable state securities
laws.

     

    5. SECURITY.  This
Note is secured pursuant to that certain Security Agreement, of even date
herewith (the “Security Agreement”) by and among the Payee, John E. Tyson, a
Nevada resident (“Tyson”), the Issuer, and the Subsidiary.

     

    6. SENIORITY.  This
Note shall be considered as “Senior Debt” and shall be senior or prior in right
of payment of principal and interest to all present and future debt of the
Issuer, except for that certain Secured Convertible Promissory Note (the “Tyson
Note”) of even date herewith by the Issuer in favor of Tyson, which promissory
note shall be considered of equal right and priority to this Note, and except
for all purchase money obligations outstanding on the date hereof that are
secured by the property purchased by such obligation.  The Issuer
shall not incur, create, assume, guarantee, or otherwise become liable for any
new debt that is senior or pari passu to this Note, unless the proceeds of such
new debt will be used to repay this Note and the Tyson Note in
full.

     

    
      
        
        

      

      
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    7. CONVERSION.

     

    (a) Conversion.  At
the option of the Payee, at any time and from time to time, the Payee may
convert all or any portion of the outstanding principal balance and/or accrued
but unpaid interest on this Note (in any amount) into that number of fully paid
and nonassessable shares of the Issuer’s most senior class of convertible
preferred shares outstanding at the time of the conversion or other applicable
times as the case may be (the “Preferred Stock”), rounded to the nearest full
share, that at such time would be convertible into the number of shares of
Common Stock equal to the quo­tient of the amount of principal and/or
accrued interest on this Note being converted divided by the then Conversion
Price (as such term is defined in Section
7(d)).  All accrued but unpaid interest with respect to any
principal portion of this Note that is converted may also be converted into
shares of Preferred Stock or may be paid in cash at the maturity of this Note at
the election of the Payee.  The Payee may convert any accrued but
unpaid interest without converting the principal as to which such interest was
accrued.

     

    (b) Exercise of Conversion
Rights.  To exercise the election to convert this Note, the
Payee shall (i) give written notice to the Issuer of the election to convert,
(ii) surrender this Note, and (iii) provide the Issuer a written representation
letter containing such representations as the Issuer may reasonably request to
comply with federal and all applicable state securities laws.  The
Issuer shall issue and deliver to the Payee a certificate or certificates for
the shares of Preferred Stock to which the Payee is entitled.  The
conversion shall be deemed to have been made immediately prior to the close of
business on the later of the date that the Payee surrenders this Note or the
date that the Payee provides the written representation letter, and the Payee
shall be treated for all purposes as the record holders of such shares of
Preferred Stock as of that date.

     

    (c) Fractional
Share.  The Issuer shall not issue any fractional share of
Preferred Stock on the conversion of this Note.  If any fractional
share would, except for the provisions of this Section 7(c), be
issuable on the conversion of this Note, then instead the Issuer shall pay the
Payee an amount in cash (computed to the nearest cent) equal to the current
market value of the fractional share, or if there is no current market value for
the Preferred Stock, then the Issuer’s Board of Directors in good faith shall
determine the fair market value of the Preferred Stock.

     

    (d) Conversion
Price.  The conversion price (the “Conversion Price”) initially
shall be Six Cents ($0.06).  The Conversion Price shall be subject to
adjustment from time to time in the event of a stock split or combination of
shares of Common Stock or a dividend payable in shares of Common Stock, or in
the event the Issuer issues shares of Common Stock for a price less than the
then Conversion Price, issues options, warrants, or rights exercisable to
purchase shares of Common Stock at an exercise price less than the then
Conversion Price, issues securities convertible into shares of Common Stock at a
conversion price less than the then Conversion Price, or issues options,
warrants, or rights exercisable to purchase securities convertible into shares
of Common Stock at a conversion price less than the then Conversion Price
(collectively, a “Dilution Event”).  Notwith­standing the
foregoing, a Dilution Event shall not include the issuance of shares of Common
Stock on the exercise of options or warrants or the conversion of convertible
securities outstanding on the date hereof.  Upon a Dilution Event, the
Conversion Price shall be adjusted, rounded to the nearest One-Tenth of One Cent
($.001), to be equal to the Conversion Price immediately prior to the
Dilu­tion Event, multiplied by a fraction, the numerator of which is the sum
of (a) the number of shares of Common Stock outstanding on a fully diluted basis
immediately prior to the Dilution Event plus (b) the number of shares of Common
Stock that the aggregate consideration received or deemed to be received
pursuant to Section
7(e) in the Dilution Event giving rise to this adjustment would purchase
at the then Conversion Price, and the denominator of which is the number of
shares of Common Stock outstanding on a fully diluted basis immediately after
the Dilution Event.  If a Dilution Event also results in the
adjustment of the conversion price of the Preferred Stock according to its
terms, then the Conversion Price shall not be adjusted to the extent that the
effect of the adjustment of the Conversion Price is duplicative of the effect of
the adjustment of the conversion price of the Preferred Stock.  The
Issuer shall give the Payee prompt notice of any adjustment pursuant to this
Section 7(d),
including copies of all documents and calculations supporting such
adjustment.

     

    (e) Consideration
Received. The consideration received by the Issuer for any Dilu­tion
Event shall be the sum of all cash and the fair market value of all property
other than cash, as determined by the Issuer’s Board of Directors in good faith
and reasonably acceptable to the Payee, received or applied to the benefit of
the Issuer plus, for options, warrants, and rights, the amount equal to the
exercise price multiplied by the number of securities subject to such option,
warrant, or right.  When equity securities are issued in connection
with debt securities, the debt securities shall be valued at their full face
value when allocating the consideration received by the Issuer between the
equity and debt securities.  Shares issued in a split, combination, or
dividend of the Common Stock shall be deemed to be issued for no
consideration.

     

    
      
        
        

      

      
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    (f) Reclassification.  If
the Issuer reorganizes or reclassifies its capital stock such that the Preferred
Stock no longer exists, then this Note shall thereafter be convertible into the
number of shares or other securities or property to which a holder of the number
of shares of Preferred Stock issuable on conversion of this Note would have been
entitled on the reorganization or reclassification, and the Issuer’s Board of
Directors shall make appropriate adjustments to this Section 7, including
but not limited to adjustments to the Conversion Price, such that this Section 7 shall
thereafter be applicable, as nearly as possible, to the shares or other property
thereafter issuable on conversion of this Note.  The Issuer shall
notify the Payee in writing of the date on which the reorganization or
reclassification is to take place and the record date as of which holders of
record of shares of Preferred Stock shall be entitled to exchange such shares
for securities or other property deliverable on such reorganization or
reclassification.  The notice shall be mailed at least ten (10) days
prior to the earlier of the date on which the reorganization or reclassification
is to take place or the record date.

     

    (g) Reservation of
Shares.  The Issuer shall at all times reserve and keep
available, out of its authorized but unissued shares of Preferred Stock, the
full number of shares of Preferred Stock issuable on conversion of the principal
and accrued interest of this Note.  The Issuer shall from time to
time, in accordance with Delaware law, increase the authorized number of shares
of Preferred Stock if at any time the authorized number of shares of Preferred
Stock remaining unissued shall not be sufficient to permit the conversion of
this Note.

     

    (h) Taxes.  The
Issuer shall pay all issue and other taxes that may be payable on the conversion
of this Note, except that the Issuer shall not be required to pay any tax that
may be payable with respect to any transfer involved in the issue and delivery
of shares of Preferred Stock in a name other than that of the
Payee.  No such issue or delivery shall be made unless and until the
Payee has paid the Issuer the amount of any such tax or has established to the
satisfaction of the Issuer that such tax has been paid.

     

    (i) Notice of
Transaction.  If the Issuer (or the Subsidiary) intends to
enter into a transaction of the type set forth in Section 1(ii) through
(v), or pay any
dividend or distribution on the Preferred Stock or the Common Stock, then the
Issuer shall give the Payee written notice thereof within thirty (30) days prior
to the consummation of such transaction.

     

    8. DEFAULT.  Upon
the occurrence of any of the following (a “Default”), the Payee may declare the
outstanding principal balance of this Note and all accrued but unpaid interest
immediately due and payable, by giving written notice to the
Issuer:

     

    (a) Failure to
Pay.  The Issuer fails to make any payment of principal or
interest of this Note within five (5) days of the date such payment was due and
payable; or

     

    (b) Event of
Default.  There is an Event of Default as set forth in the
Security Agreement.

     

    
      
        
        

      

      
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    9. COLLECTION.  In
the event of a Default, the Payee may place this Note in the hands of an
attorney for collection and the Issuer shall pay all costs of collection,
including but not limited to court costs and attorneys’ fees.

     

    10. WAIVER.  The
Issuer hereby waives diligence, presentment, protest, notice of protest, notice
of dishonor, and notice of nonpayment of this Note, and specifically consents to
and waives notice of any renewal or extension of this Note.  The
Issuer hereby waives the benefits of the statute of limitations to the maximum
extent allowed by law.  No delay by the Payee in exercising any power
or privilege hereunder, nor the single or partial exercise of any power or
privilege hereunder, shall preclude any other or further exercise thereof, or
the exercise of any other power or privilege hereunder.

     

    11. AMENDMENT.  This
Note may be waived, changed, modified, or amended only with the written consent
of the parties hereto.

     

    12. NOTICES.  All
notices or other communications required or permitted to be given pursuant to
this Note shall be in writing and shall be delivered personally or sent by
overnight courier or by certified mail, return receipt
requested.  Notices delivered personally or sent by overnight courier
shall be effective on the date received, while notices sent by certified mail,
return receipt requested, shall be deemed to have been received and to be
effective three (3) business days after deposit into the
mails.  Notices shall be given to the Issuer at the following address,
to the Payee at the address set forth in the introductory paragraph of this
Note, or to such other address as any party may designate in
writing:

     

    
      	
              If
      to the Issuer: 

            	
              Mr.
      Chett B. Paulsen

              Chief
      Executive Officer

              aVinci
      Media Corporation

              11781
      South Lone Peak Parkway

              Suite
      270

              Draper,
      Utah  84020-6884

            

    

    

    

    13. ASSIGNMENT.  Subject
to the restrictions on transfer described in Section 4, the rights
and obligations of the Issuer and the Payee shall be binding upon and inure to
the benefit of its successors, assigns, heirs, executors, administrators, and
transferees.

     

    14. LAW
GOVERNING.  This Note has been negotiated, executed, and
delivered and shall be performed in the State of Utah, and shall be governed by
and construed and enforced in accordance with the laws of the State of Utah,
without regard for its conflict of laws rules.  The parties hereby
irrevocably submit to the exclusive jurisdiction of the courts of the State of
Utah and any United States District Court situated in the State of Utah for any
suit or proceeding arising out of or based upon this Note.

     

    15. CONSTRUCTION.  The
headings in the Sections of this Note are for convenience only and shall not
constitute a part hereof.  All references to numbered sections
contained herein refer to the sections of this Note unless otherwise expressly
stated.  Whenever the context so requires, the masculine shall include
the feminine and the neuter, the singular shall include the plural, and
conversely.  The terms and all parts of this Note shall in all cases
be interpreted simply and according to their plain meaning and neither for nor
against any party hereto.

     

    16. TIME OF THE
ESSENCE.  Time is hereby expressly declared to be of the
essence of this Note and of every provision hereof.

     

    17. WAIVER OF TRIAL BY
JURY.  THE
ISSUER HEREBY WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT, OR
PROCEEDING IN CON­NECTION WITH OR ARISING OUT OF (i) THIS NOTE, (ii) THE
RELATIONSHIP BETWEEN THE ISSUER AND PAYEE OF DEBTOR AND CREDITOR, (iii) ANY
CLAIM OF INJURY OR DAMAGE RELATING TO ANY OF THE FOREGOING, OR (iv) THE
ENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE WITH RESPECT THERETO.  THE
PARTIES INTEND THAT THE SHAREHOLDERS, OFFICERS, AGENTS, EMPLOYEES, ATTORNEYS, AND
REPRESENTATIVES OF THE ISSUER AND THE PAYEE BE INTENDED THIRD PARTY
BENEFICIARIES OF THIS SECTION
17.  THE
ISSUER HAS HAD THE OPPORTUNITY TO OBTAIN THE ADVICE OF LEGAL COUN­SEL BEFORE
SIGNING THIS AGREEMENT AND ACKNOWLEDGES THAT IT HAS VOLUNTARILY AGREED TO
THIS WAIVER OF THE RIGHT TO A TRIAL BY JURY WITH FULL KNOWLEDGE
OF ITS SIGNIFICANCE AND LEGAL CONSEQUENCE.

     

    [signature
on the next page]

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Issuer has caused this Note to be issued on the date first
written above.

     

    
      
        	 	

                aVinci
      Media Corporation

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Chett
      B. Paulsen	 
	 	 	

                Chief
      Executive Officer

              	 
	 	 	 	 

      

    

     

    
      
        
          	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 	 
	 	 	Edward
      B. Paulsen	 
	 	 	

                  Secretary

                	 
	 	 	 	 

        

      

       

      

    

    

    6Unassociated Document

    Exhibit 10.3

     

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR REGISTERED OR
QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS IN RELIANCE UPON EXEMPTIONS
THEREFROM.  THE HOLDER MAY NOT OFFER, SELL, TRANSFER, ASSIGN, PLEDGE,
HYPOTHECATE, OR OTHERWISE DISPOSE OF OR ENCUMBER SUCH SECURITIES EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE RULES
AND REGULATIONS PROMULGATED THEREUNDER AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
AND/OR QUALIFICATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS.

     

    Date: January
4, 2010 Warrant No. 2010-[*]

    

    WARRANT
TO PURCHASE COMMON STOCK OF

    aVINCI
MEDIA CORPORATION

    

     

    This
certifies that, for value received, __________________ (the “Holder”), is
entitled, subject to the terms set forth below, to purchase from aVinci Media
Corporation, a Delaware corporation (the “Company”), ____________________ shares
of the Company’s common stock (the “Common Stock”) upon surrender of this
Warrant at the principal office of the Company with the simultaneous payment of
the Exercise Price as set forth in Section 2, in lawful
money of the United States or otherwise as hereinafter provided.  The
number and character of such Common Stock are subject to adjustment as provided
in Section
2.

     

    1. TERM OF
WARRANT.  Subject to the terms and conditions set forth herein,
this Warrant shall become exercisable on the date hereof, and shall remain
exercisable until 5:00 P.M., Mountain Standard Time, on January 5, 2015, and
shall be void thereafter.

     

    2. EXERCISE
PRICE.

     

    2.1 Exercise
Price.  The initial Exercise Price for the Common Stock
purchasable on exercise of this Warrant is Seven and One-Half Cents ($0.075) per
share of Common Stock, subject to adjustment as set forth in this Section
2.

     

    2.2 Adjustment for Splits,
Combinations, and Dividends.  In the event the Company should
at any time or from time to time after the date hereof fix a record date for a
split, subdivision, or combination of the outstanding Common Stock, or a
dividend payable in Common Stock, then as of such record date (or the date of
such split, subdivision, combination, or dividend if no record date is fixed)
the number of Common Stock that this Warrant is exercisable to purchase shall be
adjusted to be the same number of Common Stock that the Holder would have if
this Warrant had been exercised immediately prior to such split, subdivision,
combination, or dividend.  The Exercise Price shall be adjusted to be
the then Exercise Price multiplied by a fraction, the numerator of which is the
number of Common Stock that this Warrant is exercisable to purchase immediately
prior to such split, subdivision, combination, or dividend, and the denominator
of which is the number of Common Stock that this Warrant will be exercisable to
purchase immediately after such event.

     

    
      
         

      

      
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    2.3 Adjustment for
Reorganization, Reclassification, Exchange, or
Substitution.  In the event there is a capital reorganization
of the Common Stock, or the Common Stock are changed into the same or different
kind or amount of equity securities, whether by reclassification, exchange,
substitution, or otherwise (other than a split or combination provided for in
Section 2.2 or
a merger, consolidation, or sale of assets provided for in Section 2.4), then
the Holder shall have the right thereafter to receive upon exercise of this
Warrant the kind and amount of securities and property receivable upon such
reorganization, reclassification, exchange, substitution, or other change that
the Holder would have if this Warrant had been exercised immediately prior to
such reorganization, reclassification, exchange, substitution, or other
change.

     

    2.4 Adjustment for Merger,
Consolidation, or Sale of Assets.  In the event the Company
shall merge or consolidate into another company where the Company is not the
surviving entity, or the Company shall sell all or substantially all of its
assets to any other person, then as a part of such merger, consolidation, or
sale, provision shall be made so that the Holder shall have the right thereafter
to receive upon exercise of this Warrant the kind and amount of securities and
property of the Company or of the successor entity resulting from such merger,
consolidation, or sale that the Holder would have if this Warrant had been
exercised immediately prior to such merger, consolida­tion, or
sale.  In any such case, appropriate adjustment shall be made in the
application of the provi­sions of this Section 2.4 with
respect to the rights of the Holder after such merger, consolidation, or sale to
the end that the provisions of this Section 2 shall be
applicable after that event as nearly equivalent as may be
practicable.

     

    2.5 Adjustment for Certain
Issuances.  The Exercise Price shall be subject to adjustment
from time to time in the event the Company issues Common Stock for a price less
than the then Exercise Price, issues options, warrants, or rights exercisable to
purchase Common Stock at an exercise price less than the then Exercise Price,
issues securities convertible into Common Stock  at a conversion price
less than the then Exercise Price, or issues options, warrants, or rights
exer­cisable to purchase securities convertible into Common Stock at a
conversion price less than the then Exercise Price (collectively, a “Dilution
Event”).  Notwithstanding the foregoing, a Dilution Event shall not be
triggered by exercise of options or warrants or the conversion of convertible
securities outstanding on the date hereof.  Upon a Dilution Event, the
Exercise Price shall be adjusted, rounded to the nearest One-Tenth of One Cent
($.001), to be equal to the Exercise Price immediately prior to the Dilution
Event, multiplied by a fraction, the numerator of which is the sum of (a) the
number of shares Common Stock outstanding on a fully diluted basis immediately
prior to the Dilution Event plus (b) the number of shares of Common Stock that
the aggregate consideration received or deemed to be received pursuant to Section 2.6 in the
Dilution Event giving rise to this adjustment would pur­chase at the then
Exercise Price, and the denominator of which is the number of shares of Common
Stock outstanding on a fully diluted basis immediately after the Dilution Event;
provided, however, that if a Dilution Event includes options, warrants, or
rights exercisable to purchase shares of Com­mon Stock at an exercise price
that exceeds by more than twenty percent (20%) the purchase price on a per share
basis of other secu­rities issued in such Dilution Event, then such options,
warrants, and rights shall not be included in determining the amount of any
adjustment to the Exercise Price in such Dilution Event.

     

     

    
      
         

      

      
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    2.6 Consideration
Received. The consideration received by the Company for any Dilution
Event shall be the sum of all cash and the fair market value of all property
other than cash, as determined by the Company’s Board of Directors in good faith
and reasonably acceptable to the Holder, received or applied to the benefit of
the Company plus, for options, warrants, and rights, the amount equal to the
Exercise Price multiplied by the number of securities subject to such option,
warrant, or right.  When equity securities are issued in connection
with debt securities, the debt securities shall be valued at their full face
value when allocating the consideration received by the Company between the
equity and debt securities.

     

    2.7 Notice of
Adjustment.  In the event there is an adjustment to this
Warrant pursuant to this Section 2, the
Company shall give the Holder written notice of the effectiveness of the
adjustment within five (5) days after the effective date.

     

    3. EXERCISE OF
WARRANT.

     

    3.1 Manner of
Exercise.  The Holder may exercise the purchase rights
represented by this Warrant in whole or in part, but not for less than one
thousand (1,000) shares of Common Stock at a time (or such lesser number of
shares of Common Stock which may then constitute the maximum number purchasable)
at any time or from time to time during the term hereof as described in Section 1, upon (i)
the surrender of this Warrant at the office of the Company, (ii) payment of the
purchase price of the shares of Common Stock to be purchased in cash, by check,
or other form of payment acceptable to the Company, and (iii) compliance with
the provisions of Sections 3.2 and
3.3.

     

    3.2 Effect of
Exercise.  This Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for
exercise as provided in Section 3.1 and the
person entitled to receive the shares of Common Stock issuable upon such
exer­cise shall be treated for all purposes as the holder of record of such
units as of the close of business of such date.  As promptly as
practicable on or after such date and in any event within five (5) days
thereafter, the Company at its expense shall issue and deliver to the person or
persons entitled to receive the same a certificate or certificates, as
applicable, for the number of shares of Common Stock issuable upon such
exercise.  In the event that this Warrant is exercised in part, the
Company at its expense shall execute and deliver a new Warrant of like tenor
exercisable for the number of shares of Common Stock for which this Warrant may
then be exercised; provided that the failure of the Company to issue such new
Warrant shall not affect the rights that would be conferred on the Holder if
such new Warrant had been issued.

     

    3.3 Compliance With Securities
Laws.  Exercise of this Warrant is subject to the Holder’s
compliance with all federal and applicable state securities
laws.  Upon exercise of this Warrant, the Holder shall provide the
Company with a written representation letter containing such representations as
the Company may reasonably request to comply with such securities
laws.

     

    4. NO FRACTIONAL UNITS OR
SCRIP.  The Company shall not issue any fractional shares of
Common Stock or scrip representing fractional shares of Common Stock upon
exercise of this Warrant.  In lieu of any fractional shares of Common
Stock to which the Holder would other­wise be entitled, the Company shall
make a cash payment to the Holder (computed to the nearest cent) equal to the
current market value of the fractional interest, or if there is no current
market value for the Common Stock, then the Company’s Board of Directors in good
faith shall determine the fair market value of the Common Stock.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

     

    5. REPLACEMENT OF
WARRANT.  On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in
the case of mutilation, on surrender and cancellation of this Warrant, the
Company at its expense shall execute and deliver, in lieu of this Warrant, a new
warrant of like tenor and amount.

     

    6. NO RIGHTS AS A
SHAREHOLDER.  Except as otherwise provided herein, nothing
contained in this Warrant shall be construed as conferring upon the Holder or
any other person the right to vote or to consent or to receive notice as a
shareholder in respect of meetings of shareholders for the election of directors
of the Company or any other matter or any right whatsoever as a shareholder of
the Company.  The Company shall not pay or accrue any dividends in
respect of this Warrant or the Common Stock purchasable hereunder until, and
only to the extent that, the Holder shall have exercised this Warrant as set
forth in Section
3.

     

    7. TRANSFER.  The
Holder may not offer, sell, transfer, assign, pledge, hypothecate, or otherwise
dispose of or encumber this Warrant without the prior written consent of the
Company, which consent the Company may not unreasonably withhold.  The
Holder may transfer this Warrant to an affiliate of the Holder without the
Company’s consent if the Holder complies with all federal and applicable state
securities laws.

     

    8. RESERVATION OF COMMON
STOCK.  The Company covenants that during the term that this
Warrant is exercisable, the Company shall reserve from its authorized and
unissued Common Stock a sufficient number of shares of Common Stock to provide
for the issuance of Common Stock on the exercise of this Warrant, and from time
to time will take all steps necessary to provide sufficient reserves of Common
Stock for issuance upon exercise of this Warrant.  The Company agrees
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing unit certificates to execute
and issue the necessary certificates for Common Stock on the exercise of this
Warrant.

     

    9. NOTICES.  The
Company shall give the Holder at least thirty (30) days prior written notice of
each of the following:

     

    9.1 Record
Date.  A record date is set by the Company for the distribution
of cash, securities, or any other property to its shareholders;

     

    9.2 Distribution.  The
Company makes a distribution of cash, securities, or any other property to its
shareholders without setting a record date;

     

    9.3 Dissolution.  The
Company voluntarily elects to wind-up, liquidate, or dissolve;

     

    9.4 Capital
Transaction.  The sale of all of the outstanding shares of
Common Stock, the sale of all or substantially all of the Company’s operating
assets, or the merger, consolida­tion, or combination of the Company with or
into another entity or entities where the Company’s shareholders immediately
prior to such event own less than a majority of the outstanding voting interests
of the surviving entity immediately after such event; and

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    9.5 Adjustment of Exercise
Price.  Any event set forth in Section 2 that would
result in the adjustment of the Exercise Price of this Warrant.

     

    10. GENERAL
PROVISIONS.

     

    10.1 Amendment.   Any
amendment or modification of this Warrant shall be in writing and shall be
signed by the parties hereto.

     

    10.2 Waiver.  Any
waiver of any right, power, or privilege hereunder must be in writing and signed
by the party being charged with the waiver.  No delay on the part of
any party hereto in exercising any right, power, or privilege hereunder shall
operate as a waiver of any other right, power, or privilege hereunder, nor shall
any single or partial exercise of any right, power, or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, power, or privilege.

     

    10.3 Notices.  All
notices or other communications required or permitted to be given pursuant to
this Warrant shall be in writing and shall be delivered personally or sent by
overnight courier or by certified mail, return receipt
requested.  Notices delivered personally or sent by overnight courier
shall be effective on the date received, while notices sent by certified mail,
return receipt requested, shall be deemed to have been received and to be
effective three (3) business days after deposit into the
mails.  Notices shall be given to the parties at the following
respective addresses, or to such other addresses as any party shall designate in
writing:

     

    
      	
              If
      to the Company:  

            	
              Mr.
      Chett B. Paulsen

              Chief
      Executive Officer

              aVinci
      Media Corporation

              11781
      Lone Peak Parkway

              Suite
      270

              Draper,
      Utah  84020-6884

            

    

                                                                    

    If to
Holder:

    

     

    10.4 Law
Governing.  This Warrant has been negotiated, executed, and
delivered and shall be performed in the State of Utah and shall be governed by
and construed and enforced in accordance with the laws of the State of Utah,
without regard for its conflict of laws rules.

     

    10.5 Attorneys’
Fees.  Should a lawsuit or arbitration be commenced to
interpret or enforce the terms of this Warrant, the prevailing party shall be
entitled to recover costs and attorneys’ fees in addition to any other recovery
to which such party may be entitled.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    10.6 Arbitration.  If
any dispute arises concerning the interpretation, validity, or performance of
this Warrant any of its terms and provisions, including but not limited to the
issue of whether or not a dispute is arbitrable, then the parties shall submit
such dispute for binding deter­mination before a retired judge selected from
J.A.M.S., Inc. or any similar organization mutually acceptable to the
parties.  The parties shall mutually agree on one arbitrator from the
list provided by the arbitrating organization; provided that if the parties
cannot agree, then the parties shall select one arbitrator according to the
rules of the arbitrating organization.  The arbitration shall take
place in Utah and shall be conducted in accordance with the then prevailing
rules of the arbitrating organiza­tion, except as set forth in this Section
10.6.  The parties shall have all rights for depositions and
dis­covery as provided to litigants by Utah law.  The arbitrator
shall apply Utah substantive, procedural, and evidence law to the
proceeding.  The arbitrator shall have the power to grant all legal
and equi­table remedies including provisional remedies and award
compensatory damages provided by Utah law, but the arbitrator may not order
relief in excess of what a court could order.  The arbitrator shall
not have the power to commit errors of law or legal reasoning or to make
findings of fact except upon sufficiency of the evidence and any award may be
vacated or corrected for any such error.  The arbitrator shall prepare
and provide the parties with a written award including factual findings and the
legal reasoning upon which the award is based.  The arbitrator shall
award costs and attorneys’ fees in accordance with the terms of this
Warrant.  Judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction.  The parties understand that
by agreement to binding arbitration they are giving up the rights they may
otherwise have to a trial by a court or a jury and all rights of
appeal.  Pending resolution of any arbitration proceeding and
selection of an arbitrator, either party may apply to any court of competent
jurisdiction for any provisional remedy, including but not limited to a
temporary restraining order or a preliminary injunction but excluding any
dispute relating to discovery matters, and for enforcement of any such
order.  The application for or enforce­ment of any provisional
remedy by a party shall not operate as a waiver of the within agreement to
submit a dispute to binding arbitration.

     

    10.7 Construction.  The
headings in the sections of this Warrant are for convenience only and shall not
constitute a part hereof.  All references to numbered sections
contained herein refer to the sections of this Warrant unless otherwise
expressly stated.  Whenever the context so requires, the masculine
shall include the feminine and the neuter, the singular shall include the
plural, and conversely.  The terms and all parts of this Warrant shall
in all cases be interpreted simply and according to their plain meaning and
neither for nor against any party hereto.

     

     

     

     

    [signatures
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        6

        
          

        

      

      
         

      

    

     

     

     

    IN
WITNESS WHEREOF, the Company has duly executed and delivered this Warrant as of
this 4th day of January, 2010.

     

    
      
        	 	      
                aVinci
      Media Corporation

              	 
	 	 	 	 
	
              	
                By:
      

              	/s/ 	 
	 	 	Chett B. Paulsen

                Chief
      Executive Officer

              	 
	 	 	
              	 
	 	 	 	 

      

    

        

     

    
      
        
          	 	 	 
	 	 	 	 
	
                	
                  By:
      

                	/s/ 	 
	 	 	
                  Edward
      B. Paulsen
      
                    Secretary

                  

                	 
	 	 	
                	 
	 	 	 	 

        

      

                                                                                                            

    

                                                                                       

     

     

     

     

    7

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