Document:

troi_ex410.htm

EXHIBIT 4.10
  
 Form of Underwriter’s Warrant
  
 THE REGISTERED HOLDER OF THIS COMMON STOCK PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE, OR BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF THIS COMMON STOCK PURCHASE WARRANT OR THE UNDERLYING SECURITIES FOR A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS IMMEDIATELY FOLLOWING THE COMMENCEMENT OF SALES OF THE COMPANY’S SECURITIES (DEFINED BELOW) IN CONNECTION WITH THE OFFERING (DEFINED BELOW) TO ANYONE OTHER THAN (I) KINGSWOOD CAPITAL MARKETS, DIVISION OF BENCHMARK INVESTMENTS, INC. (“KINGSWOOD”), OR ANY UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING , OR (II) A BONA FIDE OFFICER OR PARTNER OF KINGSWOOD OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.
  
 THIS COMMON STOCK PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS 180 DAYS FROM THE COMMENCEMENT OF SALES OF THE COMPANY’S SECURITIES IN CONNECTION WITH THE OFFERING]. VOID AFTER 5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].
  
 COMMON STOCK PURCHASE WARRANT
  
 TROIKA MEDIA GROUP, INC.
  
 	 Warrant Shares: [_______]
	 Initial Exercise Date: [_______], 2021

	  
	 Issue Date: [_______], 2021

  
 THIS COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after [_______], 2021 [DATE THAT IS 180 DAYS FROM THE COMMENCEMENT OF SALES OF THE COMPANY’S SECURITIES IN CONNECTION WITH THE OFFERING] (the “Initial Exercise Date”) and, in accordance with FINRA Rule 5110(e)(1)(A), and on or prior to 5:00 p.m. (New York City time) on [______], 20261 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Troika Media Group, Inc., a Nevada corporation (the “Company”), up to ______ shares2 (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
  
 Section 1. Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
  
  
 ________________ 
 1 Five years after the Effective Date.
 2 8% of the aggregate shares of Common Stock sold in the offering.
    
 	 
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 “Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if no Trading Market exists, then the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
  
 “Commission” means the United States Securities and Exchange Commission.
  
 “Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.
  
 “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
  
 “Offering” means the offer and sale by the Company of the Securities pursuant to the Registration Statement.
  
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
  
 “Registration Statement” means that certain registration statement on Form S-1 (Registration No. 333-[___]), originally filed with the Commission on [_______], as such registration statement may be amended or otherwise modified from time to time.
  
 “Securities” means, collectively, the shares of Common Stock registered for offer and sale pursuant to the Registration Statement.
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Subsidiary” or “Subsidiaries” means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.
  
 “Trading Day” means a day on which the principal Trading Market or if applicable, the OTCQB or OTCQX Markets operated by OTC Markets Group, Inc., or any similar over the counter market is open for trading.
  
 	 
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 “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or any successors to any of the foregoing.
  
 “Transfer Agent” means American Stock Transfer & Trust Company, LLC, the current transfer agent of the Company with a mailing address of 6201 15th Avenue, Brooklyn, New York 11219, a phone number of (718) 921-8257 and an email address of legaltransfer@amstock.com, and any successor transfer agent of the Company.
  
 “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if no Trading Market exists, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
  
 “Warrants” means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.
  
 Section 2. Exercise.
  
 a) Exercise of Warrant. Subject to the provisions of Section 2(e) herein, exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
  
  
 	 
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 b) Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $[____]3 subject to adjustment hereunder (the “Exercise Price”). 
  
 
 c) Cashless Exercise. If at any time when this Warrant first becomes exercisable, after the one hundred eighty (180)-day anniversary of the Initial Exercise Date, the Registration Statement does not cover the Warrant Shares or is not in effect and there is no other effective registration statement registering, or no current prospectus available for the issuance of the Warrant Shares to the Holder and the resale of the Warrant Shares, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
  
  	  
	 (A)
	 =
	 as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

	  
	  
	  
	  

	  
	 (B)
	 =
	 the Exercise Price of this Warrant, as adjusted hereunder; and

	  
	  
	  
	  

	  
	 (X)
	 =
	 the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

  
 
 If Warrant Shares are issued in a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any position contrary to this Section 2(c).
  
 _______________ 
 3 125% of the per share price of the shares of Common Stock offered to the public pursuant to the prospectus, which makes up a part of the Registration Statement.
   
  	 
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 d) Mechanics of Exercise.
  
 i. Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, provided that payment of the aggregate Exercise Price (other than in the instance of a cashless exercise) is received by the Company by such date, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.
  
 ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.
  
 iii. Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.
  
  	 
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 iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date (other than any such failure that is solely due to any action or inaction by the Holder with respect to such exercise), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.
  
 v. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.
  
 vi. Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
  
 vii. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.
  
  	 
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 e) Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.
  
  	 
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 Section 3. Certain Adjustments.
  
 a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
  
 b) Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to all (or substantially all) of the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. The provisions of this Section 3(b) will not apply to any grant, issuance, or sale of Common Stock Equivalents or other rights to purchase stock, warrants, securities or other property of the Company which is not made pro rata to all record holders of Common Stock.
  
 c) [Reserved].
  
  	 
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 d) 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, or (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, merger, or scheme of arrangement) with another Person or group of Persons whereby such other Person or group 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 in accordance with the provisions of this Section 3(d) pursuant to written agreements prior to such Fundamental Transaction and shall, at the option of the Holder, 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). 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 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 with the same effect as if such Successor Entity had been named as the Company herein. For the avoidance of doubt, if, at any time while this Warrant is outstanding, a Fundamental Transaction occurs, pursuant to the terms of this Section 3(d), the Holder shall not be entitled to receive more than one of (i) the 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, or (ii) the assumption by the Successor Entity of all of the obligations of the Company under this Warrant and the option to receive a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant.
  
  	 
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 e) [Reserved.]
  
 f) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
  
 g) Notice to Holder.
  
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
  
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice (unless such information is filed with the Commission, in which case a notice shall not be required) stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.
  
  	 
	-10-
	

	 

  
 h) Aggregation of Shares. If, after the date hereof, the number of outstanding shares of Common Stock is decreased by a consolidation, combination or reclassification of Common Stock or other similar event, then, on the effective date thereof, the number of Warrant Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares of Common Stock, and the Exercise Price shall be proportionately increased.
  
 i) Changes in Form of Warrant. This form of Warrant need not be changed because of any change pursuant to this Section 3, and any Warrant issued after such change may state the same Exercise Price and the same number of Warrant Shares as are stated in the initial Warrant. The acceptance by the Holder of the issuance of a new Warrant reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Initial Exercise Date or the computation thereof.
  
 Section 4. Transfer of Warrant.
  
 a) Transferability. Pursuant to FINRA Rule 5110(e)(1), neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Securities by any person for a period of 180 days immediately following the commencement of sales of the Securities in connection with the Offering pursuant to which this Warrant is being issued, except:
  
  	  
	 i.
	 by operation of law or by reason of reorganization of the Company;

  
 
  	  
	 ii.
	 to any FINRA member firm participating in the Offering and the officers, partners, registered persons or affiliates thereof, if all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

	  
	  
	  

	  
	 iii.
	 if the aggregate amount of securities of the Company held by the Holder or FINRA member firm participating in the Offering do not exceed 1% of the Securities being offered;

	  
	  
	  

	  
	 iv.
	 that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating FINRA member manages or otherwise directs investments by the fund, and participating FINRA members in the aggregate do not own more than 10% of the equity in the fund;

	  
	  
	  

	  
	 v.
	 of an issuer that meets the registration requirements of Commission Forms S-3, F-3 or F-10;

	  
	  
	  

	  
	 vi.
	 if such Warrant or Warrant Shares are considered a non-convertible or non-exchangeable debt security acquired in a transaction related to the Offering;

	  
	  
	  

	  
	 vii.
	 if such Warrant or Warrant Shares are considered a derivative instrument acquired in connection with a hedging transaction related to the Offering and at a fair price;

	  
	  
	  

	  
	 viii.
	 if such Warrant or Warrant Shares were acquired in a transaction meeting the requirements of FINRA Rule 5110(d);

	  
	  
	  

	  
	 ix.
	 if such Warrant or Warrant Shares were received as underwriting compensation, and are registered and sold as part of a firm commitment offering;

	  
	  
	  

	  
	 x.
	 if such Warrant or Warrant Shares are “actively-traded” (as defined in Rule 101(c)(1) of Regulation M promulgated by the Commission);

	  
	  
	  

	  
	 xi.
	 if such Warrant or Warrant Shares are transferred or sold back to the Company in a transaction exempt from registration with the Commission; or

	  
	  
	  

	  
	 xii.
	 for the exercise of this Warrant, if such Warrant and any Warrant Shares remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

  
 
  	 
	-11-
	

	 

  
 Subject to the foregoing and compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. In order to effectuate a transfer (in whole or in part) of this Warrant, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. This Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.
  
 b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.
  
 c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.
  
 d) Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.
  
 Section 5. Miscellaneous.
  
 a) No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. Without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise,” and to receive the cash payments contemplated pursuant to Sections 2(d)(i) and 2(d)(iv), in no event will the Company be required to net cash settle a Warrant exercise.
  
  	 
	-12-
	

	 

  
 b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.
  
 c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day.
  
 d) Authorized Shares.
  
 The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
  
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
  
  	 
	-13-
	

	 

  
 e) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. The Company and the Holder each agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against the Company or the Holder or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. The Company and the Holder each hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. The Company and the Holder each hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. Notwithstanding the foregoing, nothing in this paragraph shall limit or restrict the federal district court in which a Holder may bring a claim under the federal securities laws.
  
 f) Attorney’s Fees. If either the Company or the Holder shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
  
 g) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.
  
 h) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
  
 i) Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder including, without limitation, any Notice of Exercise, shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service, addressed to the Company, 101 S. La Brea Avenue, Los Angeles, California 90036, Attention: Robert Machinist, Chief Executive Officer; e-mail address: rmachinist@troikamedia.com, or such other email address or address as the Company may specify for such purposes by notice to the Holder. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the e-mail address or address of the Holder appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (a) the time of transmission, if such notice or communication is delivered via e-mail attachment at the email addresses described above at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via e-mail attachment at the e-mail addresses described above on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
  
  	 
	-14-
	

	 

  
 j) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
  
 k) Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.
  
 l) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.
  
 m) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder, on the other hand.
  
 n) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.
  
 o) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
  
 ********************
  
 (Signature Page Follows)
   
  	 
	-15-
	

	 

   
 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.
  
  	 TROIKA MEDIA GROUP, INC.
	  

	  
	  
	  

	 By:
	  
	  

	 Name:
	 Robert Machinist
	  

	 Title:
	 Chief Executive Officer
	  

  
 
  	 
	-16-
	

	 

  
 NOTICE OF EXERCISE
  
 TO: TROIKA MEDIA GROUP, INC.
  
 (1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith in lawful money of the United States payment of the exercise price in full, together with all applicable transfer taxes, if any.
  
 (2) Payment shall take the form of (check applicable box):
  
 [  ] in lawful money of the United States; or
  
 [  ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in Section 2(c).
  
 (3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
  
  	  
	  
	  

  
 
 
 The Warrant Shares shall be delivered to the following DWAC Account Number:
  
  	  
	  
	  

	  
	  
	  

	  
	  
	  

	  
	  
	  

	  
	  
	  

  
 
 
 (4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.
  
 [SIGNATURE OF HOLDER]
  
  	 Name of Investing Entity:

	  
	  

	  
	  

	 Signature of Authorized Signatory of Investing Entity:

	  
	  

	  

	 Name of Authorized Signatory:

	  
	  

	  

	 Title of Authorized Signatory:

    
  	 Date:
	  
	  

  
 
  	 
	-17-
	

	 

  
  
 ASSIGNMENT FORM
  
 (To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)
  
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to
  
  	 Name:
	  
	  

	  
	  
	 (Please Print)

	 Address:
	  
	  

	  
	  
	 (Please Print)

	  
	  
	  

	 Phone Number:
	  
	  

	  
	  
	  

	 Email Address:
	  
	  

	  
	  
	  

	 Dated: _______________ __, ______
	  
	  

	  
	  
	  

	 Holder’s Signature:
	  
	  

	  
	  
	  

	 Holder’s Address:
	  
	  

	  
	  
	  

	  
	  
	 [Signature Guarantee]

  
 
  	 
	-18-troi_ex1010.htm

EXHIBIT 10.10  
 SEPARATION AGREEMENT
  
 This SEPARATION AGREEMENT, dated as of February 28th, 2021 (this “Agreement”), is between Troika Media Group, Inc, a Nevada Corporation with a principal place of business at 1715 North Gower Street, Los Angeles, CA 90028 (the “Company”), and SAB Management, LLC. and Andrew Bressman, having an address at 31 Pine Hill Road, Old Tappan, New Jersey 07675 (collectively the “Consultant”).
  
 WHEREAS, Consultant entered into an consultant agreement for a six year term, dated as of June 1, 2017, as amended (the “Consultant Agreement”), which states the terms and conditions of the consultancy with the Company as Managing Director and assistant to the CEO and Chairman of the Company shall end on December 31, 2024, unless automatically extended as per the Consultant Agreement.;
  
 WHEREAS, the parties entered into a certain Warrant Agreements, dated June 1, 2017 and April 16, 2018. (collectively the “Warrants”);
  
 WHEREAS, the Consultant Agreement provides that Consultant may only be terminated pursuant to Section 8 thereof;
  
 WHEREAS, the Company desires to terminate Consultant’s agreement for reasons not encompassed within Section 8 of the Consultant Agreement;
  
 WHEREAS, the Company and Consultant have agreed that Consultant would cease to be a consultant or employee of the Company prior to the effectiveness of the Company’s listing on a National Exchange;
  
 WHEREAS, the Company and Consultant agree to a “Restricted Period”, as that term is set forth below;
  
 	 
	1
	

	 

  
 WHEREAS, the Company and Consultant have agreed that Mr. Bressman, as an individual and agent of Consultant, shall be beneficiary of certain terms herein; 
  
 WHEREAS, the Company and Consultant wish to settle, fully and finally, any and all differences between them, including but not limited to, all claims related to the Consultant Agreement, consultants work with the Company and the termination thereof.
     
 NOW, THEREFORE, in consideration of the representations and promises made herein, and for other good and valuable consideration, the receipt and sufficiency of which the parties hereto agree, and intending to be legally bound, the parties enter into this Agreement and agree as follows:
  
 1. Termination. Consultants consultancy with the Company shall terminate without cause effective immediately prior to the listing of the Company’s securities on a National Securities Exchange (the “Termination Date”), subject to the terms and conditions hereof. Consultant agrees that, other than as specifically set forth in this Agreement, Consultant is not due any additional benefits, or compensation for unpaid salary, fees, expenses, bonus, severance, or accrued or unused vacation time or vacation pay.
  
 2. Consulting Fees and Expenses Owed.
  
 (a) Provided that the Consultant executes this Agreement without revocation, for the avoidance of Any and All doubt, the Company shall Immediately wire transfer to Consultant’s bank account, once the Company’s Registration Statement is effective and its IPO is completed, and escrowed funds are released any back consulting fees and expenses owed (back fees and expenses). As of February 28th, 2021, the total owed for back consulting fees and expenses, including interest is $364,807.46.
  
 	 
	2
	

	 

  
 (b) Provided that the Consultant executes this Agreement without revocation, for the avoidance of Any and All doubt, the Company shall Immediately wire transfer once the Company’s Registration Statement is declared effective and its IPO is completed and escrowed funds are released, one-half of the amount that is contractually owed under the Consultantant Agreement, such that the total consultancy fees to be paid to Consultant at release of the escrowed funds equals One Million Two Hundred and Ninety One Thousand Eight Hundred Thirty Three Dollars and Thirty Three Cents ($1,291,833.33). 
  
 (c) Provided that the Consultant executes this Agreement without revocation, the Company shall pay Consultant the balance of their contractual consultant’s fees due for the Term of the Consultancy Agreement at the rate then in effect under the Consultancy Agreement. For the avoidance of Any and All doubt, the Company shall pay the fees contractually owed through a regular bi-weekly fee schedule (as in effect as of the Termination Date), through March 31st, 2023, such that the total consultancy fees to be paid to Consultant equals One Million Two Hundred and Ninety One Thousand Eight Hundred Thirty Three Dollars and Thirty Three Cents ($1,291,833.33) or Fifty Six Thousand One Hundred Sixty Six Dollars and Sixty Six Cents ($56,166.66) per month for twenty three months. The first contractual installment Shall be paid on the pay date that the Consultant would have received their bi-weekly fees without regard to this Agreement and their change in status. 
   
 (d) In the event of ANY default in the payment of Any of the fees owed by the Company to the Consultant as described in this agreement, which for purposes shall mean a delay of five or more calendar days in payment, the amount due and owing will accrue interest at the rate of twelve percent (12%) per annum and for the avoidance of Any and All doubt, the Company Waives ANY and ALL Defenses including, but not limited to usury to paying Any of the contractual fees owed in section 2 (A, B and C) or in any section in the entire agreement.
  
 	 
	3
	

	 

  
 (e) The Parties understand and agree that, pursuant to the terms of the Consulting Agreement, Consultant is entitled to a bonus as described in the Consulting Agreement (“Bonus Provision”). If the Consultant introduced a Company or Companies prior to the date of this Agreement or effective date of the Company listing and the transaction closes at any time before or after the Company goes effective, Consultant shall be paid such Bonus as provided in the Consulting Agreement.
  
 (f) The parties agree to true up and adjust all amounts owed as necessary as of the date of the company’s registration statement going effective and the Company listing on a National Exchange.
   
 3. Benefits. In accordance with the Consultant Agreement: For the avoidance of any and all doubt, the Company shall provide Andrew Bressman, as representative of the Consultant, at the Company’s Sole expense, All perquisites, including health insurance for his family. For the avoidance of any and all doubt, Andrew Bressman and his family will be enrolled in the Company’s health plan at the Company’s Sole expense through December 31, 2024 and the Company will pay the COBRA for an additional twenty-four months following the expiration of this Agreement (December 31, 2024 relating to the insurance coverage). For the avoidance of any and all doubt, the Company waives Any and All defenses not to supply this coverage to Andrew Bressman and his family at the Company’s Sole expense.
  
 (a) Consultant is entitled to Piggyback Registration and or Demand Registration Rights under there Warrants on a cashless bases and shall be preserved in accordance with its terms; provided also that Any registration statement (Form S-8, Form S1 or Any other registration statement) or filed by the Company with the Securities and Exchange Commission or similar body shall include All shares of the Company’s common stock underlying the Consultant’s Warrants on a cashless basis. 
  
 	 
	4
	

	 

  
 (b) Consultant shall be entitled to retain, and such property shall be assigned to Mr. Bressman personally, the following:
  
 i. Apple Computer, HP Printer and perennials attached to such computer currently used by Consultant (Apple Computer Serial No’s. H12D7J0XPN7C and C02D51FDJV40), provided however, Company proprietary information and permissions shall be removed.
  
 ii. Any and All office furniture, (including ping pong table) presently used by Consultant located at 270 Sylvan Ave, Englewood Cliffs, New Jersey.
  
 iii. Consultant’s telephone number (201-478-8100). Company will help Consultant transfer the telephone number.
  
 Consultant and Company shall coordinate the transfer of the property above in an orderly and efficient manner. 
  
 4. Restrictions on Activities. Notwithstanding anything to the contrary set forth herein, Consultant acknowledges and agrees that, from the Termination Date and at any time while the Company’s securities are listed on a National Securities Exchange, he shall not and he is restricted from (i) becoming a director, or executive officer of the Company or any of its subsidiaries; (ii) being engaged as a consultant to the Company or any of its subsidiaries; and (iii) promoting the trading of the Company’s securities in any manner whatsoever. The Company’s Board of Directors will monitor Consultant’s and the Company’s compliance with the foregoing restrictions. Consultant agrees that any shares of Common Stock issued upon exercise of Warrants by Consultant or its assignees shall be voted in accordance with the majority of votes cast in any matter put to the shareholders of the Company. Consultant shall deliver to the Company a voting agreement in a form acceptable to the Company within thirty days of the effective date of this Agreement.
  
 	 
	5
	

	 

  
 5. Stock Purchases. Consultant agrees that neither he/it, nor any of his/its affiliates, will, either directly or indirectly including through any immediate family member or any family trusts, purchase any shares of the Company’s common stock either from the Company or in secondary market transactions for a period of three years after the listing to a National Securities Exchange.
  
 6. (a) Consultant’s Release and Waiver of Claims. Except as provided for in this Agreement, in consideration of the Company’s release hereof, Consultant, on behalf of itself its agents, members and heirs, executors and assignees waives and releases any and all legally waivable claims, suits, damages, liabilities, demands and causes of action, whether known or unknown, existing or contingent, or whether at law or equity, which Consultant ever had or may have against the Company, its parent, subsidiaries, affiliated businesses and divisions, and/or their directors, officers, employees or agents (hereinafter collectively referred to as “Releases”), arising out of his consultancy with the Company or the termination of that consultancy (hereinafter collectively referred to as “Claims”), including, but not limited to, any claims arising under his Consultant Agreement, Title VII of the Civil Rights Act of 1964, as amended (“Title VII”); the Civil Rights Act of 1866 (“Section 1981 “); the Age Discrimination in Employment Act (“ADEA’’); the Americans with Disabilities Act of 1990, as amended (the “ADA”); the Equal Pay Act (“EPA”); the Family and Medical Leave Act (“FMLA”); the Employee Retirement Income Security Act (“ERISA”); the Occupational Safety and Health Act (“OSHA”); the Older Workers Benefit Protection Act (“OWBPA”); the New Jersey Law Against Discrimination (“LAD”); and any and all other federal, state, or local laws, and any common Jaw claims now or hereafter recognized, as well as all claims for counsel fees and costs; provided that the Company’s obligations under this Agreement shall survive execution of this release.
  
 	 
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 (b) Company’s Release and Waiver of Claims. Except as provided for in paragraph 3 of this Agreement, in consideration of Employee’s release in paragraph 6(a) hereof, the Company waives and releases any and all legally waivable claims, suits, damages, liabilities, demands and causes of action, whether known or unknown, existing or contingent, or whether at law or equity, which the Company ever had or may have against Consultant, Andrew Bressman, his heirs, executors, attorneys and assigns, for, upon or by reason of any matter whatsoever which occurred up to the date of this release or when the company lists on a National Exchange, including, but not limited to, any and all claims under his Consultant Agreement and all claims arising out of, relating to, or based upon, his consultancy by Company, or any alleged violation of local, state or federal law, regulation or ordinance, and/or public policy, contract, tort or common law, and including, but not limited to, any claims for costs, attorneys’ fees, or expenses.
  
 (c) Indemnification. For the avoidance of any and all doubt, in the event Consultant or Andrew Bressman ever was or is made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he was a consultant or fiduciary of the Company (hereinafter an “indemnitee”), whether the basis of such proceeding is an alleged action in an official capacity while serving as a consultant or fiduciary or in any other capacity while serving as a Managing Director or Consultant, Consultant/Bressman shall be one hundred percent (100%) indemnified and held harmless by the Company.For the avoidance of any and all doubt, the Consultant, Andrew Bressman and Andrew Bressman’s heirs shall be one hundred percent (100%) fully and completely indemnified against Any action, claim or threat of a claim by anyone whatsoever prior, during and after his Consultancy with the Company.
  
 	 
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 For the avoidance of Any and All doubt, in the event of ANY litigation, investigation or any other matter naming the Consultant, Andrew Bressman individually or any heirs, the Company will pay one hundred percent (100%) of the Consultant’s and Andrew legal fees, including any retainers required, with an attorney or attorneys of the Consultant’s or Bressman’s choice immediately. For the avoidance of Any and All doubt, the Company will also pay one hundred percent (100%) of any required settlement payments related to any litigation matters naming the Consultant and or Andrew Bressman or any of their heir’s.
  
 For the avoidance of Any and All doubt, the Company will also pay one hundred percent (100%) of the Consultant’s legal fees, including a retainer immediately to enforce this Agreement with an attorney of the Consultant’s choice. The Company waives ANY and ALL defenses not honoring ANY part or clause of this agreement.
      
 7. Non-disparagement.
  
 (a) Consultant agrees not to make any disparaging remarks or statements regarding the Company’s products, business practices, operations, or the professional careers and/or personal lives of any Company employee, officer or director of the Company to any person or entity, either orally or in writing, except as may be required by law. Consultant further represents that effective with the signing of this Agreement, he has not disparaged or subverted the business practices, operations, professional careers and/or personal lives of any employee, officer, director of the Company.
  
 	 
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 (b) The Company agrees not to, and will instruct its directors, officers and key employees not to, make any disparaging remarks or statements regarding Consultant or his business practices, professional career and/or personal life to any person or entity, either orally or in writing, except as may be required by law. The Company further represents that, effective with the signing of this Agreement, it and its directors, officers and key employees have not disparaged or subverted Consultant’s professional career and/or personal life.
  
 8. Taxes. Any payments provided for in this Agreement shall be paid by Consultant, as the Consultant is an independent contractor.
  
 9. Cooperation. Following the Termination Date, Consultant agrees:
  
 (a) To make himself available, without additional compensation, on reasonable occasions until December 31, 2022 with reasonable prior notice, to respond to all attorneys, representatives and advisors regarding all matters associated with his consultancy at the Company including, without limitation, his prior responsibilities, and all the processes and procedures of which he acquired knowledge while employed by the Company. In this regard, the parties acknowledge and agree that in providing such responses, Consultant shall not be required to be present at the Company’s offices on a regular basis, but Consultant agrees to make himself available at reasonable times to meet by phone with the Company or its employees, agents, representatives and advisors. The Company shall reimburse Consultant for any reasonable and necessary expenses he incurs in fulfilling this obligation. For purposes of this paragraph, any phone discussion or appearance by Consultant for any period of time in excess of four hours on any business day shall count as participation for a full business day. Consultant shall be paid $150 per hour for his time.
  
 	 
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 (b) To make himself available, without additional compensation, on reasonable occasions until December 31, 2022, with reasonable prior notice and without the requirement of being subpoenaed, to confer with counsel by phone concerning any knowledge he had or may have with respect to actual and/or potential disputes arising out of the activities of the Company during his period of consultancy by the Company. The Company shall reimburse Consultant for any reasonable and necessary expenses he incurs in fulfilling this obligation. For purposes of this paragraph, any phone discussion or appearance by Consultant for any period of time on any business day in excess of four hours shall count as participation for a full business day. Consultant shall be paid $150 per hour for his time.
  
 (c) To submit to deposition and/or testimony and/or participate in an investigation by any government agency in accordance with the laws of the forum involved concerning any knowledge he has or may have with respect to actual and/or potential disputes or issues arising out of the activities of the Company during his period of employment by the Company. The Company shall reimburse Consultant for any reasonable and necessary expenses he incurs in fulfilling this obligation, including reasonable attorneys’ fees and costs. Consultant shall be paid $100 per hour for his time.
  
 10. Entire Agreement. This Agreement embodies the sole and entire agreement between Consultant and the Company and all Releases concerning the resolution of all matters with respect to Consultant’s consultancy with the Company. Except as specifically mentioned otherwise in this Agreement, all prior agreements, arrangements, and/or understandings, written or oral, expressed or implied, including, but not limited to, the Consultant Agreement, between Consultant and the Company or any Release are replaced and superseded by this Agreement, and are no longer of any force and effect. In executing this Agreement, Consultant represents that he is not relying on any inducements, promises, or representations of the Company or Releasees other than expressly set forth in this Agreement.
  
 	 
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 11. Default. In the event of ANY default in the payment of ANY of the fees owed by the Company to the Consultant as described in this agreement (section 2), which for purposes shall mean a delay of five or more calendar days in payment, the amount due and owing will accrue interest at the rate of twelve percent (12%) per annum and for the avoidance of Any and All doubt, the Company Waives ANY and ALL Defenses to the payments due and waives Any and All defenses to ANY other section of this agreement as well.
  
 12. Confidentiality. The parties hereto agree and acknowledge that this Agreement and the terms hereof are and will remain strictly confidential, and they further agree not to disclose or cause to be disclosed, the existence of this Agreement or the terms hereof to any person or entity whatsoever, except as may be necessary to comply with any legal requirement (including the requirements of United States securities laws) or court order or in connection with any action to enforce this Agreement.
  
 13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 14. Acknowledgement. With the signing of this Agreement, Consultant affirms that he has carefully read this entire document. Consultant understands that by signing this document, he is waiving and releasing all claims relating to his consultancy with the Company and the termination of that consultant other than the items provided for in this Agreement. Consultant acknowledges signing this Agreement voluntarily intending to be legally bound. Consultant acknowledges that he has had a full and fair opportunity to review this Agreement with legal counsel, and that he has been given twenty-one days to consider this Agreement. 
  
 	 
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 15. Governing Law.
  
 This Agreement shall be governed by and construed in accordance with the Laws of the State of New Jersey, United States of America, without giving effect to the principles of conflicts of laws thereof.
  
 16. Waiver. Waiver by either of the parties of any breach of any provision of this Agreement shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereof.
  
 17. Amendment. This Agreement may be amended, modified, superseded or canceled, in whole or in part, only by written instrument executed by Consultant and by an authorized representative of the Company.
  
 18. Assignment. This Agreement shall inure to the benefit of, and shall be one hundred percent binding upon, the parties hereto and ANY of their respective successors, assigns, heirs and legal representatives, including ANY successors of the Company by way of merger, consolidation, purchase, acquisition, or transfer of ANY or substantially all of the assets or stock of the Company and ANY parent, subsidiary or affiliate of the Company to which the Company may transfer its rights under and pursuant to this Agreement. The Company shall require ANY successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. For the avoidance of ANY and ALL doubt, this agreement is one hundred percent binding on the parties and ANY successors in ANY manner or form whatsoever.
  
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 IN WITNESS WHEREOF, the parties have executed this Separation Agreement or caused the same to be executed by a duly authorized officer as of the date first written above.
  
  
 	  
	 	 	Troika Media Group, Inc.	 
	  
	  
	  
	  
	  
	  

	 By:
	/s/ Andrew Bressman	 	By:	/s/ Robert Machinist 	 
	  
	SAB Management LLC     	 	 	 Robert Machinist 
	 
	  
		 	 	Chief Executive Officer	 
	  
	  
	  
	  
	  
	  

	 DATE: February 28th, 2021 
	  
	 DATE: February 28th, 2021
	  

	  
		  
	  
	  
	  

	  
		  
	  
	  
	  

	 By: 
	 /s/ Andrew Bressman
	  
	  
	  
	  

	  
	 Andrew Bressman
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

	 DATE: February 28th, 2021
	  
	  
	  
	  

  
 	 
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