Document:

opmg_1025.htm

EXHIBIT 10.25

 

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

Options Media Group Holdings, Inc., n/k/a PhoneGuard, LLC/ DB Technologies, LLC, Last Gang Management Inc.

TERM SHEET AGREEMENT

	
Product Parties:

	
Options Media Group Holdings, Inc., which is changing its name to PhoneGuard, Inc., a Nevada corporation, (hereinafter “OPMG/PhoneGuard”).

	
Other Parties:

	
DB Technologies LLC (a Delaware limited liability company), Last Gang Management, Inc. (an Ontario Corporation) (hereinafter collectively “Last Gang”).

	
Product:

	
Software Application for portable and mobile communications  devices that provides monitoring, notification and service blocking to prevent text messaging activities and service while driving or riding in a moving vehicle, and also provide notices of excessive speed and location tracking of mobile device along with antivirus protection for smart phones.

	
Product Name:

	
DriveSafe® and PhoneGuard® mobile software applications for smart phones.

	
Purpose:

	
Provide Justin Bieber and Remster 2, LLC (“Endorsement Party” and “Consulting Party”, respectively) and Justin Bieber’s name, image and likeness for the launch of national advertising and promotions campaign(s) of the Product and to provide Spokesperson services via all available digital and traditional media, including but not limited to mentions and placement at live events, on Twitter®, MySpace®, Facebook® and Endorsement Parties’ web pages.  OPMG/PhoneGuard shall also consult and provide input, guidance and approval of all print and broadcast promotional media for the advertising and promotions campaign. This Agreement is dependent upon the condition precedent of Justin Bieber’s and Remster 2, LLC’s execution of an Agreement, each, (in form and substance substantially similar hereto) to provide Endorsement Party and Spokesperson and Consulting Party services which are signed and accepted by OPMG/PhoneGuard or its designees (the “Artist and Consultant’s Agreements”). If such condition is not deemed satisfied in writing within 10 days following the execution hereof by Last Gang, then Last Gang shall have the right, at any time thereafter until such time as such condition is deemed satisfied, to terminate this Agreement, in Last Gang’s sole discretion, in which case this Agreement shall be deemed void ab initio, and without further force or effect. In addition, if the Artist and Consultant’s Agreements have not been signed prior to 30 days following execution hereof by the Last Gang, then Company shall also have the right, at any time thereafter but before such Artist and Consultant’s Agreements are entered into, to terminate this Agreement, in Company’s sole discretion, in which case this Agreement shall be deemed void ab initio, and without further force or effect.

 

  

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Territory:

	
North America, Central America and South America

	
Term:

	
Three (3) years from the date of execution of this Term Sheet; provided, that Consulting Party  and OPMG/Phone Guard shall each have the right to terminate the Term hereof at any time upon written notice to one another following the date that is one (1) year following the date hereof in the event that the Artist Agreement is terminated prior to the three (3) year period.

	
Compensation:

	
OPMG/PhoneGuard is the exclusive licensee of the Product, Product Name, Software Application (and related trademarks and intellectual property) at issue for the Territory and is a publicly traded company on the OTC BB  as “OPMG/PhoneGuard”, with 433,794,654 shares of common stock outstanding and a market cap of $5,639,330.00.Upon full execution hereof, and in consideration of Last Gang’s services pursuant to this Agreement, Last Gang will be issued warrants (“Warrants”) entitling Last Gang to purchase from OPMG/PhoneGuard, for a period of 3 years from the date the Warrants are issued, TEN MILLION FOUR HUNDRED ELEVEN THOUSAND SEVENTY-ONE (10,411,071) shares of common stock of OPMG/PhoneGuard (“Common Stock”), that equals TWO POINT 4 PERCENT (2.4%) of the currently outstanding shares of such Common Stock, calculated on a fully-diluted basis, at an exercise price of $.01 (1 cent) per share (the “Exercise Price”).  Last Gang’s Warrants (and the shares into which they are convertible) shall be protected from dilution as follows: Last Gang shall have (i) so-called “full ratchet” anti-dilution protection from subsequent issuances of Common Stock (or warrants or other instruments convertible into Common Stock) either for no consideration or for a lower cost per share than the exercise price of the Warrants (as set forth below), except for Exempt Issuances (as defined below), and Company further agrees to an adjustment to be negotiated in good faith with Last Gang to protect the value of the Last Gang’s Warrants from the financial dilution inherent in any issuance of  Common Stock (or warrants or other instruments convertible into Common Stock) at a price per share (or exercise price per share) of less than the fair market value of such security at the time of issuance (if higher than the Exercise Price of the Warrants), provided that no such adjustment shall  be required in the case of public offering of any such security at a customary discount from fair market value per common practice in the securities industry among arms-length parties trying in good faith to maximize the value of the offering to the issuer (ii) the pre-emptive rights set forth below, (iii) customary adjustments for stock splits or share dividends as set forth below, and (iv) protection against Company’s distribution of cash or property prior to Last Gang’s exercise of the Warrants as set forth below. Exempt Issuances shall mean issuances amounting, in the aggregate, to less than ten percent (10%) of the currently outstanding shares of Common Stock as of the date hereof, in connection with strategic partnerships. OPMG/PhoneGuard covenants that the shares, when issued pursuant to the exercise of the Warrants, will be duly and validly issued, fully paid and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. The number of and kind of securities purchasable upon exercise of the Warrants and the Exercise Price shall be subject to adjustment from time to time as follows: (a) if OPMG/PhoneGuard shall at any time prior to the expiration of the Warrants subdivide the shares or underlying Common Stock, by split-up or otherwise, or combine the shares or underlying Common Stock, or issue additional shares of its Common Stock as a dividend, the number of shares issuable on the exercise of the Warrants shall be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the purchase price payable per share, but the aggregate purchase price payable for the total number of shares purchasable under the Warrants (as adjusted) shall remain the same.  In case of any reclassification, capital reorganization, or change in the capital stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided above), then the Company shall make appropriate provision so that the holder of the Warrants shall have the right at any time prior to the expiration of the Warrants to purchase, at a total price equal to that payable upon the exercise of the Warrants, the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of shares as were purchasable by the holder immediately prior to such reclassification, reorganization, or change.  In any such case appropriate provisions shall be made with respect to the rights and interest of the holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same.  Company and Last Gang agree that in the event of distributions of cash (including dividends, for the avoidance of doubt) or property (other than Common Stock) prior to Last Gang’s exercise of the Warrants, Last Gang shall be entitled to its share of such distributions on a real time basis, as and when they are made, to the same extent as if Last Gang had exercised all of its Warrants prior to any such distribution. Except for Exempt Issuances, if Company shall issue, on or after the date upon which the Warrants are issued to Last Gang, any additional Common Stock, warrants or other securities convertible into Common Stock, either without consideration or for a consideration per share less than the Exercise Price applicable to the Warrants in effect immediately prior to the issuance of such additional securities, the Exercise Price for the Warrants in effect immediately prior to each such issuance shall forthwith (except as otherwise provided in this clause) be adjusted to an Exercise Price equal to the price paid (or payable in the case of a warrant, etc.) per share for such additional security, and the number of shares of Common Stock for which the Warrants are exercisable shall be proportionately increased so that Last Gang shall still have the right to acquired the same aggregate percentage interest of the fully-diluted Common Stock as set forth above (i.e., 2.4%). When any adjustment is required to be made pursuant to the foregoing provisions, the Company shall promptly notify the holder of such event and of the number of shares or other securities or property thereafter purchasable upon exercise of the Warrants. The Company agrees during the term the rights under the Warrants are exercisable to reserve and keep available from its authorized and unissued shares for the purpose of effecting the exercise of the Warrants such number of shares of Common Stock for issuance upon conversion of the Warrants as shall from time to time be sufficient to effect the exercise of the rights under the Warrants. Company agrees not take any action with the intent of undermining the effect of the anti-dilution provisions, and agrees to act in good faith and make appropriate adjustments to the conversion price (and number of shares into which the Warrants are convertible) for events which are not specifically dealt with herein.  In the event OPMG/PhoneGuard desires to issue additional Common Stock (or warrants or other instruments convertible into Common Stock) at a price per share (or exercise price per share) greater than the fair market value of such security at the time of issuance and greater than the Exercise Price of the Warrants, OPMG/PhoneGuard shall give written notice of the intent to issue such additional securities to Last Gang.  For a period of time after such notice by OPMG/PhoneGuard equivalent to the time remaining on the unexercised Warrants, if any, plus thirty (30) days, Last Gang shall have an irrevocable first option to purchase at the issuing price up to TWO POINT 4 PERCENT (2.4%) of the number of shares (or rights to purchase shares) of the additional Common Stock or security.  For the avoidance of doubt, the foregoing pre-emption right shall not be applicable in the case of stock issued by Company for the purpose of acquiring an unaffiliated company in a merger, except to the extent other holders of Common Stock are entitled to such pre-emption rights.

 

  

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CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

	 	
Additionally, Last Gang shall receive [****], of all sales of the Product by OPMG/PhoneGuard in the Territory, [****], as follows:

 

	
●  

	
Payment in the sales royalty amount of [****] for each Software Application sold on a yearly single subscription basis at the suggested retail price of [****], with the entire subscription payment price paid up front.

	
●  

	
Payment in the sales royalty amount of [****] for each Software Application sold on a yearly family subscription basis at the suggested retail price of [****], with the entire subscription payment price paid up front.

	
●  

	
In the event of a multi-year subscription purchase at the prices set forth above, Last Gang shall receive the above-referenced amounts for each year of the subscription, to be paid at the beginning of each additional year (except to the extent Company receives payment for the additional years upfront, in which case Last Gang shall receive its share at the same time);

	
●  

	
Payment in the sales royalty amount of [****], per month for each Software Application sold on retail single subscription basis of [****] with the subscription being paid on a monthly basis (payments on a quarterly or other basis other than annual or monthly, if any, will be subject to the same percentage royalty), provided, however, that if any subscriber cancels without paying at least two months, Last Gang’s royalty in respect thereof shall be treated as a Low Margin Sale, if applicable, and shall be subject to adjustment as provided below.

	
●  

	
These prices are subject to change without notice and Last Gang is advised that wholesale pricing of the Product is likely.  In the event of any change in the price or price structure of the DriveSafe® and PhoneGuard mobile software applications, the parties agree that the above-referenced sales royalty amounts will be proportionately adjusted accordingly by multiplying the revised Product price (retail in the case of direct sales to consumers and wholesale in the event Company sells at a wholesale price to an unaffiliated third-party wholesaler or retailer (e.g., iTunes) by the above-referenced financial interest sales royalty percentage of [****].  By way of illustration, if the price of the DriveSafe® and PhoneGuard mobile software applications increases to [****], the sales royalty amounts payable to Last Gang will increase by [****].

 

  

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CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

	
●  

	
Notwithstanding the foregoing, payment to Last Gang for certain “Low Margin Sales” (as defined below) of the Products on a wholesale pricing basis will be subject to a so-called “net cap” as follows:  In the event that Last Gang’s royalty per unit sold on a Low Margin Sale to a particular wholesaler, as calculated above, would be greater than [****] of Company’s “Retained Share” (as defined below) per unit sold to such wholesaler, then Last Gang’s payment for such sales shall be [****] of Company’s Retained Share” per unit in lieu of [****], of the wholesale price as otherwise provided above.

 

Low Margin Sales shall mean sales to third parties on a wholesale basis at less than [****] per unit. As used above, Company’s Retained Share per unit shall mean the wholesale price per unit sold on a wholesale basis to a particular wholesaler less the Fixed Costs. The Fixed Costs shall mean the following reasonable, third-party, out-of-pocket, cost and expenses incurred and actually paid per unit by Company:

 

	
o  

	
[****];

	
o  

	
[****];

	
o  

	
[****];

 

	
 

	
Notwithstanding the foregoing, in no event shall the Fixed Costs per unit used to calculate Company’s Retained Share above [****]. For the avoidance of doubt, OPMG/PhoneGuard shall not deduct [****] for purposes of calculating Company’s Retained Share.

For purposes of determining what constitutes a Low Margin Sale, each annual subscription sold to an end user shall be deemed a single unit. In the event that an end user purchases a subscription on a monthly basis (with no commitment for a longer duration), the months shall be aggregated into a single unit for purposes of determining if the sale constitutes a Low Margin Sale (and, accordingly, Last Gang acknowledges that Company will not be able to calculate and pay Last Gang’s royalty in respect of sales on a monthly basis until Company knows if the customer continues for a second month).

  

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CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST. THE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH FOUR ASTERISKS [****].

 

	
Payment Schedule:

	
All Payments to Last Gang will be paid directly by OPMG/PhoneGuard and computed on a [****] basis, [****] of the end of [****] for the preceding [****], with the initial accounting required not later [****] following the end of the first complete [****] hereunder (and to include any partial period prior thereto). By way of illustration, payment to Last Gang for sales of the Product covered by this Term Sheet [****].

 

	
●

	If OPMG/PhoneGuard or its designee, makes any overpayment to Last Gang, OPMG/PhoneGuard may deduct the amount of the over-payment from any payments due or becoming due to Last Gang. If OPMG/PhoneGuard pays Last Gang any amounts for sales of the Product which sales proceeds are returned later, those Payments will be considered overpayments. OPMG/PhoneGuard may at any time elect to utilize a different method of computing royalties so long as such method does not decrease the net monies received by or credited to Last Gang hereunder. In the event of any actual refunds or adjustments made by OPMG/PhoneGuard to customers, sales agents and carriers, OPMG/PhoneGuard will be entitled to a credit from Last Gang for any previously paid sales royalties attributable thereto upon sustaining the refund or adjustment on a cash basis. After the expiration of the Term, no statements shall be required for periods during which no additional payments accrue unless The Last Gang gives OPMG/PhoneGuard, or its designee, a written request therefor before the expiration of the [****] accounting period to which the desired statement relates. If any deductions for any taxes, tariffs, duties or fees are required, or if any Licensee deducts any such taxes, tariffs, etc. from its payments to OPMG/PhoneGuard, OPMG/PhoneGuard may deduct a proportionate amount of those taxes from the Last Gang’s royalties. OPMG/PhoneGuard will provide notice to Last Gang of any such deductions with the next [****] accounting and payment, along with supporting documentation regarding same.

 

  

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Audit:

	
OPMG/PhoneGuard will maintain books and records which report the sales or other exploitations of the Product hereunder on which payments hereunder are payable to the Last Gang.  The Last Gang may, at its sole expense, designate a certified public accountant ("CPA") or other qualified representative to examine those books and records, as provided in this paragraph only.  Such examination: (a) may be made only for the purpose of verifying the accuracy of the statements sent by OPMG/PhoneGuard; (b) may be made for a particular statement only once and only within three (3) years after the date when OPMG/PhoneGuard sent that statement; and (c) may be made only during OPMG/PhoneGuard's usual business hours, and at the place where it keeps the books and records to be examined, and upon reasonable notice to OPMG/PhoneGuard.  (OPMG/PhoneGuard will be deemed conclusively to have sent each statement on the dates prescribed above unless Last Gang notifies OPMG/PhoneGuard otherwise, with respect to any statement, within ninety (90) days after that date.)  No examination may be made of any records that do not specifically report sales, returns or other distributions of the Product or other transactions on which payments are due Last Gang (or calculation of Fixed Costs or Retained Share). Notwithstanding the foregoing, Last Gang will be permitted to examine records that reflect the number of subscriptions sold, any movement of OPMG/PhoneGuard's inventory of such Software Applications, and any credits or rebates that are given in respect of such Software Applications, for each accounting period that is the subject of the audit.  Further, such examination shall be conditioned upon the CPA's written agreement to OPMG/PhoneGuard that the CPA will not voluntarily disclose any findings to any Person or entity other than Last Gang, its attorney or other advisers.

	
  

	
If the Last Gang has any objections to a royalty statement, they will give OPMG/PhoneGuard specific notice of that objection and the reasons for it within three (3) year after the date that OPMG/PhoneGuard is deemed to have sent that statement.  Each royalty statement will become conclusively binding at the end of that three (3) year period, and the Last Gang will no longer have any right to make any other objections to it.  The Last Gang will not have the right to sue OPMG/PhoneGuard in connection with any royalty accounting, or to sue OPMG/PhoneGuard for royalties from Product sales or subscriptions sold or receipts derived by OPMG/PhoneGuard during the period a royalty accounting covers, unless Last Gang commences the suit within six (6) months after the end of that three (3)  ­year period.  If the Last Gang commences suit on any controversy or claim concerning royalty accountings rendered to the Last Gang under this Term Sheet Agreement and any subsequent Agreement, the scope of the proceeding will be limited to determination of the amount of the payments due for the accounting periods concerned, and the court will have no authority to consider any other issues or award any relief except recovery of any payments found owing.  Recovery of any such royalties will be the sole remedy available to the Last Gang by reason of any claim related to OPMG/PhoneGuard's royalty accountings.  Without limiting the generality of the preceding sentence, the Last Gang will not have any right to seek termination of this Agreement or subsequent Agreement or avoid the performance of its obligations under it by reason of any such claim.  The preceding three sentences will not apply to any item in a royalty accounting if the Last Gang establishes that the item was fraudulently misstated.

 

  

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Interest:

	
Interest will not be payable on any amounts paid to the Last Gang, except for those amounts that are due without dispute and are paid late, with thirty (30) days grace period.

	
Confidentiality:

	
Last Gang will enter into a separate Confidentiality Agreement. Until such time, all non-public matters, materials, terms and discussions relating to this Agreement shall be kept strictly confidential as though such a reasonable and customary in the software development and marketing industry confidentiality agreement were in place, the disclosure of which may result in legal action by OPMG/PhoneGuard to recover all available legal and equitable relief.

	
Legal Expenses:

	
Each party will bear their own fees and costs relating to this Term Sheet Agreement and any subsequent agreements that may arise herefrom. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida without regard to the principles of conflicts of law.

 

Company shall defend, indemnify and hold harmless Last Gang and its principals, officers, employees and representatives (the “Indemnified Parties”) from and against any and all damages, costs, judgments, penalties and expenses of any kind (including reasonable legal fees and disbursements) which may be obtained against, imposed upon or suffered by the Indemnified Parties as a result of (i) any product liability actions brought against the Indemnified Parties relating to Company’s products, including without limitation, the Products; (ii) Company’s (or its employees’ or officers’) illegal or negligent acts or omissions; and (iii) other claims arising out of the production, marketing, advertising, sale or distribution of the Product. Company agrees to maintain comprehensive general liability insurance and sufficient product liability insurance in respect of the Products it distributes during the term and for so long as they are in use thereafter, with a reputable insurer, and to name Last Gang and Scott Braun and Justin Bieber as additional insured parties under such policies.

 

	
Documentation:

	
All subsequent documentation, to the extent required, will be prepared by counsel for OPMG/PhoneGuard or its designee and will be in the form and on terms acceptable to both parties hereto. Until such time, this Agreement constitutes the entire agreement between the parties hereto with respect to the matters set forth herein, and supersedes in its entirety any and all agreements or communications, whether written or oral, previously or contemporaneously made in connection with the matters herein.  Any agreement to amend or modify the terms and conditions of this Agreement must be in writing and executed by the parties hereto. This Agreement may be executed and delivered in two or more counterparts each of which shall be deemed an original and all of which together shall constitute one instrument.  A facsimile or photocopy of a signature on this Agreement shall constitute an original for all purposes.

 

  

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Capacity:

	
The parties acknowledge and agree that this Agreement has been entered into without duress and that each party has the authority to fully bind the person or entity they enter this agreement on behalf of and any argument of lack of capacity is specifically waived. The parties acknowledge and agree that each party and its counsel, and counsel being retained as is deemed appropriate in the sole discretion of each party doing so, if at all, have reviewed and revised this Agreement and that the normal rule of construction, to the effect that any ambiguities are to be resolved against the drafting party, shall not be employed in the interpretation of this Agreement.

	
Survival of Terms:

	
If a court of competent jurisdiction invalidates any provision of this Agreement, then all of the remaining provisions of this Agreement shall remain in full force and effect, provided that both parties hereto may still effectively realize the complete benefit of the promises and considerations conferred hereby.  The parties agrees that the terms applicable to the Warrants (including term, exercise price, anti-dilution protection, etc.) and the calculation of the revenue percentage set forth herein shall be provided on a most favored nations basis with the terms applicable to Justin Bieber or Remster 2, LLC in their respective agreements with Company.

  

Accepted and agreed to this 29th day of April, 2011.

 

 

	For DB Technologies, LLC: 	 	 	 For Last Gang Management Inc.	 
	 	 	 	 	 	 
	By:	
 

	 	By: 	
 

	 
	 	
David Bolno, Managing Member.

	 	 	
Chris Taylor, President.

	 
	 	 	 	 	 	 

 

Accepted and agreed to this 2nd day of May, 2011.

For Options Media Group Holdings, Inc., n/k/a PhoneGuard, Inc.:

 

 _____________________________________________

Scott Frohman, CEO.

 

 

Page 8 of 8opmg_1026.htm

EXHIBIT 10.26

 

THIS WARRANT AND THE UNDERLYING SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), OR ANY OTHER SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL TO THE ISSUER OF THESE SECURITIES THAT SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

 

	  	
Date: May 10, 2011

	  

WARRANT FOR THE PURCHASE OF SHARES OF

COMMON STOCK OF OPTIONS MEDIA GROUP HOLDINGS, INC.

THIS IS TO CERTIFY that, for value received, The Big Company, LLC (the “Holder”), is entitled to purchase, subject to the terms and conditions hereinafter set forth, 25,000,000 shares of Options Media Group Holdings, Inc., a Nevada corporation (the “Company”) common stock, $0.001 par value per share (the “Common Stock”) and to receive certificates for the Common Stock so purchased.  The exercise price of this Warrant is $0.02 per share, subject to adjustment as provided below (the “Exercise Price”).

1.            Exercise Period.  This Warrant may be exercised by the Holder beginning on the date listed above (the “Issuance Date”), and ending at 5:00 pm, New York time, three years thereafter (the “Exercise Period”).  This Warrant will terminate automatically and immediately upon the expiration of the Exercise Period.

2.             Exercise of Warrant.

(a) Exercise.  This Warrant may be exercised, in whole or in part, at any time and from time to time during the Exercise Period.  Such exercise shall be accomplished by tender to the Company of an amount equal to the Exercise Price multiplied by the number of underlying shares being purchased (the “Purchase Price”), by wire transfer or by certified check or bank cashier’s check, payable to the order of the Company.  As a condition of exercise, the Holder shall where applicable execute a customary investment letter and accredited investor questionnaire.  The Holder’s right to exercise this Warrant is subject to compliance with any applicable laws and rules including Section 5 of the Securities Act of 1933.

 

(b) Upon receipt of the Purchase Price in Section 2(a) together with presentation and surrender to the Company of this Warrant with an executed subscription form in substantially the form attached hereto as Exhibit A (the “Subscription”), the Company will deliver to the Holder, as promptly as possible, a certificate or certificates representing the shares of Common Stock so purchased, registered in the name of the Holder or its transferee (as permitted under Section 3 below).  With respect to any exercise of this Warrant, the Holder will for all purposes be deemed to have become the holder of record of the number of shares of Common Stock purchased hereunder on the date a properly executed Subscription and payment of the Purchase Price is received by the Company (the “Exercise Date”), irrespective of the date of delivery of the certificate evidencing such shares, except that, if the date of such receipt is a date on which the stock transfer books of the Company are closed, such person will be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open.  Fractional shares of Common Stock will not be issued upon the exercise of this Warrant.  In lieu of any fractional shares that would have been issued but for the immediately preceding sentence, the Holder will be entitled to receive cash equal to the current market price of such fraction of a share of Common Stock on the trading day immediately preceding the Exercise Date.  In the event this Warrant is exercised in part, the Company shall issue a New Warrant (defined below) to the Holder covering the aggregate number of shares of Common Stock as to which this Warrant remains exercisable for.  The Company acknowledges and agrees that this Warrant was issued on the Issuance Date.

 

  

1

  

3.             Recording, Transferability, Exchange and Obligations to Issue Common Stock.

 

(a)           Registration of Warrant.  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 from the transferee and transferor.

(b)           Registration of Transfers.  The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto as Exhibit B duly completed and signed, to the Company at its address specified herein.  As a condition to the transfer, the Company may request a legal opinion as contemplated by the legend.  Upon any such registration or transfer, a New Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder.  The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

(c)           This Warrant is exchangeable upon its surrender by the Holder to the Company for New Warrants of like tenor and date representing in the aggregate the right to purchase the number of shares purchasable hereunder, each of such New Warrants to represent the right to purchase such number of shares as may be designated by the Holder at the time of such surrender (not to exceed the aggregate number of shares underlying this Warrant).

(d)           The Company’s obligations to issue and deliver Common Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Common Stock.  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 certificates representing shares of Common Stock upon exercise of the Warrant  as required pursuant to the terms hereof.

 

  

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4.             Adjustments to Exercise Price and Number of Shares Subject to Warrant.  The Exercise Price and the number of shares of Common Stock purchasable upon the exercise of this Warrant are subject to adjustment from time to time upon the occurrence of any of the events specified in this Section 4.  For the purpose of this Section 4, “Common Stock” means shares now or hereafter authorized of any class of common stock of the Company, however designated, that has the right to participate in any distribution of the assets or earnings of the Company without limit as to per share amount (excluding, and subject to any prior rights of, any class or series of preferred stock).

(a)           In case the Company shall (i) pay a dividend or make a distribution in shares of Common Stock to holders of shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification of its shares of Common Stock other securities of the Company, then the Exercise Price in effect at the time of the record date for such dividend or on the effective date of such subdivision, combination or reclassification, and/or the number and kind of securities issuable on such date, shall be proportionately adjusted so that the Holder of the Warrant thereafter exercised shall be entitled to receive the aggregate number and kind of shares of Common Stock (or such other securities other than Common Stock) of the Company, at the same aggregate Exercise Price, that, if such Warrant had been exercised immediately prior to such date, the Holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, distribution, subdivision, combination or reclassification.  Such adjustment shall be made successively whenever any event listed above shall occur.

(b)           In case the Company shall fix a record date for the making of a distribution to all holders of Common Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the surviving corporation) of cash, evidences of indebtedness or assets, or subscription rights or warrants, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Fair  Market Value per share of Common Stock on such record date, less the amount of cash so to be distributed or the Fair Market Value (as determined in good faith by, and reflected in a formal resolution of, the board of directors of the Company) of the portion of the assets or evidences of indebtedness so to be distributed, or of such subscription rights or warrants, applicable to one share of Common Stock, and the denominator of which shall be the Fair Market Value per share of Common Stock.  Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Exercise Price shall again be adjusted to be the Exercise Price, which would then be in effect if such record date had not been fixed.

 

  

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(c)           Notwithstanding any provision herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Exercise Price; provided, however, that any adjustments which by reason of this Section 4(c) are not required to be made shall be carried forward and taken into account in any subsequent adjustment.  All calculations under this Section 4 shall be made to the nearest cent or the nearest one-hundredth of a share, as the case may be.

(d)           In the event that at any time, as a result of an adjustment made pursuant to Section 4(a) above, the Holder of any Warrant thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, thereafter the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Common Stock contained in this Section 4, and the other provisions of this Warrant shall apply on like terms to any such other shares.

(e)           Fundamental Transactions.  If, at any time while this Warrant is outstanding, (1) the Company effects any merger or consolidation of the Company with or into another company, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another company or person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification 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 (in any such case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Common Stock then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). 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.  At the Holder’s option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a New Warrant substantially in the form of this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof.  Any such successor or surviving entity shall be deemed to be required to comply with the provisions of this Section 4(e) and shall insure that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

  

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(f)           In case any event shall occur as to which the other provisions of this Section 4 are not strictly applicable but the failure to make any adjustment would not fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and principles hereof, then, in each such case, the Company shall effect such adjustment, on a basis consistent with the essential intent and principles established in this Section 4, as may be necessary to preserve, without dilution, the purchase rights represented by this Warrant.

(g)           Notice of Adjustments.  Upon the occurrence of each adjustment pursuant to this Section 4, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Common Stock or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based.  Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s Transfer Agent.

(h)           Price Protection.

 

(i)  If, at any time during the Exercise Period, the Company shall issue any Common Stock or securities exchangeable for, convertible into or exercisable for Common Stock (any “Common Stock Equivalents”), except for the Excepted Issuances (as hereinafter defined), for a consideration per share of Common Stock that is less than the Exercise Price that would be in effect at the time of such issue, then, and thereafter successively upon each such issuance, the Exercise Price shall be reduced to such other lower issue price.  Common Stock or Common Stock Equivalents issued or issuable by the Company for no consideration will be deemed issuable or to have been issued for $0.001 per share of Common Stock.  “Excepted Issuances” shall mean any proposed sale, transfer or issuance by the Company of its Common Stock or Common Stock Equivalents not to exceed 45,640,916 shares in connection with (A) full or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of the securities or assets of a corporation or other entity (or any division or business unit thereof), or (B) full or partial consideration in connection with a strategic supply, sale or license agreements and other partnering arrangements so long as such issuances are not for the purpose of raising capital.

 

(ii)  If, at any time during the Exercise Period, the Company shall issue any Common Stock or Common Stock Equivalents for a consideration per share of Common Stock that is higher than the Exercise Price that would be in effect at the time of such issue, then, the Company further agrees to negotiate in good faith with the Holder to adjust the Exercise Price to protect the value of the Warrants from the financial dilution inherent in the issuance. Provided, however, no adjustment shall be required in the case of any public offering at a customary discount form fair market value among arms-length parties trying in good faith to maximize the value of the offering to the issuer.  In addition at any time during the Exercise Period (except where the Common Stock and/or Common Stock Equivalents are issued in connection with a merger to acquire an unaffiliated company and no other persons are offered pre-emptive rights in such merger), the Holder shall have the pre-emptive right to purchase up to 7% of the Company’s outstanding shares of Common Stock on a fully diluted basis at the price per share that the Company is offering Common Stock or Common Stock Equivalents to third parties for a consideration per share of Common Stock that is higher than the Exercise Price that would be in effect at the time of such issue.

 

  

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5.             Legend.  If there is not a current effective registration statement in effect and the exemption provided by Rule 144 under the Securities Act is unavailable when exercised, the stock certificates shall bear the following legend.

“The securities represented by this certificate have not been registered under the Securities Act of 1933 (the “Securities Act”), and may not be offered for sale or sold except pursuant to (i) an effective registration statement under the Securities Act, or (ii) an opinion of counsel to the issuer, that an exemption from registration under the Securities Act is available.”

6.             Reservation of Common Stock.  The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Common Stock upon exercise of this Warrant as herein provided, the number of shares of Common Stock which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of Section 4).  The Company covenants that all Common Stock so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable.

7.             Replacement of Warrant.  If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which may include a surety bond), if requested.  Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.  If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company's obligation to issue the New Warrant.

8.             Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Common Stock or Warrants in a name other than that of the Holder.  The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Common Stock upon exercise hereof.

 

  

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9.             Certain Notices to Holder.

In the event of (a) any fixing by the Company of a record date with respect to the holders of any class of securities of the Company for the purpose of determining which of such holders are entitled to dividends or other distributions, or any rights to subscribe for, purchase or otherwise acquire any shares of capital stock of any class or any other securities or property, or to receive any other right, (b) any capital reorganization of the Company, or reclassification or recapitalization of the capital stock of the Company or any transfer of all or substantially all of the assets or business of the Company to, or consolidation or merger of the Company with or into, any other entity or person, or (c) any voluntary or involuntary dissolution or winding up of the Company, then and in each such event the Company will give the Holder a written notice specifying, as the case may be (i) the record date for the purpose of such dividend, distribution, or right, and stating the amount and character of such dividend, distribution, or right; or (ii) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, conveyance, dissolution, liquidation, or winding up is to take place and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such capital stock or securities receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock securities) for securities or other property deliverable upon such event.  Any such notice shall be given at least 10 days prior to the earliest date therein specified.

10.           No Rights as a Shareholder.  This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company, nor to any other rights whatsoever except the rights herein set forth.  Provided, however, the Company shall not close any merger arising out of any merger agreement in which it is not the surviving entity, or sell all or substantially all of its assets unless the Company shall have first provided the Holder with 20 days’ prior written notice.

11.           Additional Covenants of the Company.  If upon issuance of any shares for which this Warrant is exercisable, the Common Stock is listed for trading or trades on any national securities exchange upon the issuance, the Company shall, at its expense, promptly obtain and maintain the listing or qualifications for trading of such shares.

The Company shall comply with the reporting requirements of Sections 13 and 15(d) of the Securities Exchange Act of 1934 for so long as and to the extent that such requirements apply to the Company.

The Company shall not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issuance 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.  Without limiting the generality of the foregoing, the Company (a) will at all times reserve and keep available, solely for issuance and delivery upon exercise of this Warrant, shares of Common Stock issuable from time to time upon exercise of this Warrant, (b) will not increase the par value of any shares of Common Stock issuable upon exercise of this Warrant above the amount payable therefor upon such exercise, and (c) will take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable stock.

12.           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Company, the Holder and their respective successors and permitted assigns.

13.           Severability.  Every provision of this Warrant is intended to be severable.  If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the remainder of this Warrant.

 

  

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14.           Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of Florida without regard to choice of law considerations.

15.           Attorneys’ Fees.  In any action or proceeding brought to enforce any provision of this Warrant, the prevailing party shall be entitled to recover reasonable attorneys’ fees in addition to its costs and expenses and any other available remedies.

16.           Entire Agreement. This Warrant (including the Exhibits attached hereto) constitutes the entire understanding between the Company and the Holder with respect to the subject matter hereof, and supersedes all prior negotiations, discussions, agreements and understandings relating to such subject matter.

17.           Good Faith. The Company will not, by amendment of its Certificate 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 action as may be necessary or appropriate  in order to protect the rights of the holder of this Warrant against such impairment.

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first set forth above.

 

 

	 	Options Media Group Holdings, Inc.	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Keith St. Clair	 
	 	 	Chairman	 

 

  

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Exhibit A

SUBSCRIPTION FORM

(To be Executed by the Holder to Exercise the Rights To Purchase Common Stock Evidenced by the Within Warrant)

The undersigned hereby irrevocably subscribes for _________ shares of the Common Stock (the “Stock”) of Options Media Group Holdings, Inc. (the “Company”) pursuant to and in accordance with the terms and conditions of the attached Warrant (the “Warrant”), and hereby makes payment of $_______ therefore by tendering cash, wire transferring or delivering a certified check or bank cashier’s check, payable to the order of the Company.  The undersigned requests that a certificate for the Common Stock be issued in the name of the undersigned and be delivered to the undersigned at the address stated below.  If the Common Stock is not all of the shares purchasable pursuant to the Warrant, the undersigned requests that a new Warrant of like tenor for the balance of the remaining shares purchasable thereunder be delivered to the undersigned at the address stated below.

In connection with the issuance of the Common Stock, if the Common Stock may not be immediately publicly sold, I hereby represent to the Company that I am acquiring the Common Stock for my own account for investment and not with a view to, or for resale in connection with, a distribution of the shares within the meaning of the Securities Act of 1933 (the “Securities Act”).

I am______ am not ______ [please initial one] an accredited investor for at least one of the reasons on Exhibit A-1 to the Warrant.  If the SEC has amended the rule defining the definition of accredited investor, I acknowledge that as a condition to exercise the Warrant, the Company may request updated information regarding the Holder’s status as an accredited investor.  My exercise of the Warrant shall be in compliance with the applicable exemptions under the Securities Act and applicable state law

I understand that if at this time the Common Stock has not been registered under the Securities Act, I must hold such Common Stock indefinitely unless the Common Stock is subsequently registered and qualified under the Securities Act or is exempt from such registration and qualification.  I shall make no transfer or disposition of the Common Stock unless (a) such transfer or disposition can be made without registration under the Securities Act by reason of a specific exemption from such registration and such qualification, or (b) a registration statement has been filed pursuant to the Securities Act and has been declared effective with respect to such disposition.  I agree that each certificate representing the Common Stock delivered to me shall bear substantially the same as set forth on the front page of the Warrant.

I further agree that the Company may place stop transfer orders with its transfer agent same effect as the above legend.  The legend and stop transfer notice referred to above shall be removed only upon my furnishing to the Company of an opinion of counsel to the Company to the effect that such legend may be removed.

	
Date:_______________________________

	
Signed: _______________________________

Print Name:____________________________

Address:______________________________

 

	
Date:_______________________________

 

	
Signed: _______________________________

Print Name:____________________________

Address:______________________________

  

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Exhibit A-1

 

For Individual Investors Only:

 

1.           A person who has an individual net worth, or combined net worth (with his or her spouse) who has, in excess of $1,000,000.  For purposes of this question, “net worth” means the excess of total assets at fair market value.  The fair market value of my primary residence and the indebtedness on mortgages or deeds of trust related to such residence shall be excluded unless the indebtedness exceeds the fair market value.

 

2a.         A person who had individual income (exclusive of any income attributable to the person’s spouse) of more than who has $200,000 in each of the two most recently completed years and who reasonably expects to have an individual income in excess of $200,000 this year.

 

2b.         Alternatively, a person, who with his or her spouse, has joint income in excess of $300,000 in each applicable year.

 

 

3.           A director or executive officer of the Company.

 

Other Investors:

 

4.           Any bank as defined in Section 3(a)(2) of the Securities Act of 1933 (“Securities Act”) whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; insurance company as defined in Section 2(13) of the Securities Act; investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000, or if a self-directed plan, with investment decisions made solely by persons that are accredited investors.

 

5.           A private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

 

6.           An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000.

 

7.           A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act.

 

8.           An entity in which all of the equity owners are accredited investors.

 

  

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Exhibit B

 

ASSIGNMENT

(To be Executed by the Holder to Effect Transfer of the Attached Warrant)

For Value Received Options Media Group Holdings, Inc. hereby sells, assigns and transfers to Remster2, LLC the Warrant attached hereto and the rights represented thereby to purchase 51,714,954 shares of Common Stock in accordance with the terms and conditions hereof, and does hereby irrevocably constitute and appoint ___________________________ as attorney to transfer such Warrant on the books of the Company with full power of substitution.

                                                                          

	
Dated: ________________________

Please print or typewrite

name and address of

assignee:

 

	  	
Signed: _____________________________

Please insert Social Security

or other Tax Identification

Number of Assignee:

        

	
Dated: ________________________

Please print or typewrite

name and address of

assignee:

 

	  	
Signed: _____________________________

Please insert Social Security

or other Tax Identification

Number of Assignee:

 

 

 

 

11

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