Document:

Exhibit 10.29

 

TE CONNECTIVITY LTD.

 

ANNUAL INCENTIVE PLAN

 

(as amended and restated effective September 13, 2018)

 

 

TE Connectivity Ltd.

 

Annual Incentive Plan

 

I.                                        Purpose.

 

The purpose of the TE Connectivity Ltd. Annual Incentive Plan (the “Plan”) is to reward the performance of selected Employees who, individually or as members of a group, contribute to the success of TE Connectivity Ltd. (the “Company”) and its subsidiaries, thus providing them a means of sharing in, and an incentive to contribute further to, that success.  The Plan is intended to strengthen the commitment of such Employees by making part of their individual pay dependent on the achievement of corporate financial goals.  The Plan was originally effective as of June 29, 2007 and has been amended and restated several times since.  The effective date of this amended and restated Plan is September 13, 2018.

 

II.                                   Definitions.

 

The following words and phrases shall have the meanings set forth below:

 

“Annual Plan Description” shall mean the written or unwritten procedures and guidelines established or employed by the Committee pursuant to Section III hereof for the purpose of administering the Plan.

 

“Award” or “Annual Incentive Award” shall mean the bonus payable to a Participant under the Plan for any Plan Year.

 

“Annual Base Salary” shall mean, unless otherwise provided by the Committee, the annual compensation, excluding bonuses, commissions, overtime, incentive payments, perquisite allowance, non-monetary awards, directors fees and other fees, relocation expenses, auto allowances, imputed income from group term life insurance, and any other non-recurring item, paid to or on behalf of a Participant for employment services rendered to the Company, before reduction for compensation deferred pursuant to all qualified, nonqualified and cafeteria plans of any Company.  The definition of Annual Base Salary may be modified by the Committee, as is deemed necessary or appropriate to meet the particular circumstances or needs of a particular country, locality or business.  Unless otherwise provided by the Committee, the Award shall be based on the Annual Base Salary as in effect on August 1st of the Plan Year.

 

“Board” shall mean the board of directors of TE Connectivity Ltd.  To the extent permissible under applicable law and the operative corporate documentation of the Company, the Board may delegate its authority or discretion to a third party (such as the Company’s Management Development and Compensation Committee or Chief Human Resources Officer (“CHRO”)) and such third party may in turn delegate that authority or discretion to the extent permitted in the Board action.

 

“Business Unit” shall mean each of the companies or businesses within each Segment.

 

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“Cause” shall mean an Employee’s (i) refusal to perform duties and responsibilities of his or her job as required by the Company, (ii) violation of any fiduciary duty owed to the Company, (iii) conviction of a felony or misdemeanor (or outside of the United States, conviction of a significant crime), (iv) dishonesty, (v) theft, (vi) violation of Company rules or policy, or (vii) other egregious conduct, that has or could have a serious and detrimental impact on the Company and its Employees. Examples of “Cause” may include, but are not limited to, excessive absenteeism, misconduct, insubordination, violation of Company policy (in particular, TE’s Guide to Ethical Conduct and/or TE Policy Avoiding Conflict of Interest), dishonestly, and deliberate unsatisfactory performance (e.g., Employee refuses to improve deficient performance).

 

“Change in Control” means the first to occur of any of the following events:

 

(a)                                 any “person” (as defined in Section 13(d) and 14(d) of the Exchange Act, excluding for this purpose, (i) the Company or (ii) any employee benefit plan of the Company (or any person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan that acquires beneficial ownership of voting securities of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly of securities of the Company representing more than 30 percent of the combined voting power of the Company’s then outstanding securities; provided, however, that no Change in Control will be deemed to have occurred as a result of a change in ownership percentage resulting solely from an acquisition of securities by the Company; or

 

(b)                                 persons who, as of September 13, 2018 , constitute the Board (the “Incumbent Directors”) cease for any reason (including without limitation, as a result of a tender offer, proxy contest, merger or similar transaction) to constitute at least a majority thereof, provided that any person becoming a director of the Company subsequent to September 13, 2018, shall be considered an Incumbent Director if such person’s election or nomination for election was approved by a vote of at least 50 percent of the Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened proxy contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as defined in Section 13(d) and 14(d) of the Exchange Act) other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an Incumbent Director; or

 

(c)                                  consummation of a reorganization, merger or consolidation or sale or other disposition of at least 80 percent of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of outstanding voting securities of the Company immediately prior to such Business Combination beneficially own directly or indirectly more than 50 percent of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the company resulting from such Business Combination (including, without limitation, a company which, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the outstanding voting securities of the Company; or

 

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(d)                                 approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

“Committee” shall mean the Management Development and Compensation Committee of the Board or such other persons appointed by the Board to administer the Plan and which also may act for the Company or the Board in making decisions and performing specified duties under the Plan.

 

“Company” shall mean TE Connectivity Ltd. and any subsidiary and affiliate that has been selected by the Committee to participate in the Plan.  The duties and obligations of the “Company” as they relate to a particular Participant shall refer to the specific entity that employs that Participant at such time and not any other entity, unless otherwise specified.

 

“Disability” shall mean the Participant’s permanent and total incapacity resulting in an inability to engage in any employment for the Company for physical or mental reasons.  Disability shall be deemed to exist only when the Participant meets either the requirements for disability benefits under the Company’s long-term disability plan or, if the Company has no such plan applicable to the Participant, the requirements for disability benefits under the Social Security law (or similar law outside the United States) then in effect.

 

“Employee” shall mean any individual employed by the Company on a regular, full-time basis, other than an individual (a) employed in a casual or temporary capacity (i.e., those hired for a specific job of limited duration), (b) characterized as a “leased employee” within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended, (c) classified by the Company as a flexible part-time employee, or (d) classified by the Company as a “contractor” or “consultant”, no matter how characterized by the Internal Revenue Service, other governmental agency or a court.  Any change of characterization of an individual by any court or government agency shall have no effect upon the classification of an individual as an Employee for purposes of this Plan, unless the Committee determines otherwise.

 

“Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended.

 

“U.S. GAAP” shall mean United States generally accepted accounting principles.

 

“Individual Performance” considers personal work-related factors that the financial formula does not address.

 

“Participant” shall mean, for any Plan Year, an Employee who satisfies the eligibility requirements of Section IV.

 

“Performance Measures” are the annual preestablished organizational or Individual Performance criteria selected by the Committee or its designee on which the requirements to earn an Annual Bonus are based.

 

“Plan” shall mean this TE Connectivity Ltd. Annual Incentive Plan, as from time to time amended and in effect.

 

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“Plan Year” shall mean the fiscal year of the Company or any other period designated by the Committee.

 

“Retirement” shall mean voluntary termination of employment on or after a Participant has attained the age and other requirements for retirement described in the Annual Plan Description.

 

“Schedule” shall mean the Performance Measures established for each Plan Year as set out for each business and function.

 

“Segment” shall mean each of the major business segments within the Company.  As of September 13, 2018, the Segments of the Company are Transportation Solutions, Industrial Solutions and Communication Solutions.

 

“Target Award” is the cash bonus that will be paid for target performance, expressed as a percentage of Annual Base Salary.  A Target Award will be assigned to each Participant at the beginning of the Plan Year based on job level or other competitive guidelines; and may change based on job assignment.

 

“Termination of Employment” shall mean the cessation of employment with the Company, voluntarily or involuntarily, for any reason

 

III.                              Administration.

 

The Plan shall be administered by the Committee consistent with the purpose and the terms of the Plan.  On an annual basis the Committee shall approve, for the overall company and for each Segment, the Performance Measures selected for the Plan Year.  The Committee shall have full power and authority to interpret the Plan, to select the Employees to participate in the Plan, to approve Awards, to make factual determinations, to prescribe, amend and rescind any rules, forms, or Annual Plan Description as the Committee deems necessary or appropriate for the proper administration of the Plan, and to make any other determinations and take such other actions as it deems necessary or advisable in carrying out its duties under the Plan, including the delegation of any such authority or power, where appropriate.  All decisions and determinations by the Committee shall be final, conclusive and binding on the Company, all Employees, Participants, and Plan beneficiaries, and any other persons having or claiming an interest hereunder.

 

IV.                               Eligibility.

 

Subject to the limitations contained in this Section IV or the Annual Plan Description, all Employees identified, either individually or by group classification, are eligible to participate in the Plan.  Employees shall be eligible to receive an Award calculated under only one Schedule of this Plan for any specific period in time.  An Employee may, however, participate in more than one Schedule provided that participation in each such Schedule shall be pro-rated in a manner consistent with the Annual Plan Description.  During any period in which an Employee participates in this Plan (including any sub-program hereunder), he or she may not participate in any other annual incentive compensation program (including other sub-programs under this Plan) offered by the Company, unless otherwise provided by the Committee in its sole discretion,

 

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V.                                    Determination of Awards.

 

Subject to the Committee’s discretion to adjust any Award individually or by class, the amount of each Participant’s Award, if any, shall be determined in accordance with the Performance Measures approved for such Participant.  Award calculations are generally based on Segment, Business Unit, or overall Company financial results, or any combination thereof, and are subject to adjustments based on Individual Performance.

 

VI.                               Payment of Awards.

 

The Committee shall determine the level of achievement attained under the Performance Measures applicable under each Schedule.  Awards payable to each Participant under his / her applicable Schedule shall be determined after an assessment of the Participant’s Individual Performance for the Plan Year.  Subject to the provisions of Section VII, authorized Awards shall then be payable in cash in a single sum on the date established by the Committee, or as soon as administratively feasible thereafter, at the end of the Plan Year or another time period, if applicable, provided however, that all Awards will be paid no later than the 15th day of the third month following the later of, a) the end of the Plan year or b) the last day of the calendar year in which falls the last day of the Plan year, except to the extent that a Participant has elected to defer payment under the terms of a duly authorized deferred compensation arrangement.

 

Unless otherwise prohibited under applicable law, no Award under the Plan shall be deemed earned until actually paid.  No Participant who commits an act giving rise to Cause shall be entitled to an Award.  In addition, the Committee shall have the authority to establish any other terms and conditions applicable to the Awards (including the mandatory return of all or any portion of an award previously paid) as are deemed necessary and/or appropriate to comply with applicable rules adopted or to be adopted by the Securities Exchange Commission, New York Stock Exchange or any other governmental agency or stock exchange having the authority to establish rules affecting the payment of compensation under this Plan.

 

Unless otherwise prohibited under applicable law, a Participant must be employed by the Company as a regular, full-time Employee on the Award payment date in order to receive an Award, or on such other date as may be determined by the Committee for any Plan Year.  A Participant who incurs a Termination of Employment prior to the end of the Plan Year shall not be entitled to an Award except to the extent otherwise required under applicable law.  Notwithstanding the foregoing, in the event of a termination of employment on account of death, Disability, or due to a change in control by the Company or a reduction in force during the Plan Year, the performance targets established by the Committee for the Plan Year in which the termination occurs shall be deemed to be satisfied at a level of 100% of each Participant’s target amount, and each Participant will be entitled to receive a pro-rated payment of the Award through the date of the termination, unless otherwise provided by the Committee when the Award is granted.  Subject to the provisions of Section VII, authorized Awards shall then be payable in cash in a single sum on the date established by the Committee, or as soon as administratively feasible thereafter.

 

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If a Participant was (a) on an unpaid approved leave of absence during the Plan Year; or (b) not employed by the Company at the beginning of the Plan Year, payment of any Award may be pro-rated.

 

Notwithstanding any provision herein to the contrary, the Committee shall have full power and authority to decide, in its sole discretion, exercised consistent with the Company’s best interest, that no Awards or lesser Award amounts shall be paid under the Plan for a given Plan Year or that no Award shall be paid to any one or more Participants.  Any such decision by the Committee shall be final, conclusive and binding on the Company, all Employees, Participants, and Plan beneficiaries, and any other persons having or claiming an interest hereunder.

 

VII.                          Change in Control.

 

In the event of a Change in Control, the performance targets established by the Committee for the Plan Year in which the Change in Control occurs shall be deemed to be satisfied at a level of 100% of each Participant’s target amount, and each Participant will be entitled to receive a pro-rated payment of the Award through the date of the Change in Control, unless otherwise provided by the Committee when the Award is granted.  In addition, no later than 90 days after the date of Change in Control, the Committee (as constituted prior to the date of Change in Control) shall provide, in its discretion, for any of the following actions to apply to each Award that is outstanding as of the date of Change in Control:  (i) the assumption of such Award by the acquiring or surviving corporation after such Change in Control; or (ii) the payment of such Award by the acquiring or surviving corporation, at the Participant’s request, in cash.  The Committee may specify how an Award will be treated in the event of a Change in Control either when the Award is granted or at any time thereafter.

 

VIII.                     Deferred Awards.

 

Any Participant who is eligible to participate in the TE Connectivity Corporation Supplemental Savings and Retirement Plan, or any successor plan (the “DCP”) and who makes a deferral election in the manner prescribed by the DCP shall have that portion of his/her Award deferred under the DCP.  The committee shall also have the authority to approve deferral of Awards under any other deferred compensation plan or arrangement sponsored by the company.

 

IX.                              Amendment and Termination.

 

The Plan may be amended, suspended, discontinued or terminated at any time by the Board; provided, however, that no such amendment, suspension, discontinuance or termination shall reduce, or in any manner adversely affect the rights of any Participant with respect to, Awards determined by the Committee to be outstanding as of the effective date of such amendment, suspension, discontinuance or termination.

 

X.                                   Designation of Beneficiary.

 

Any payments under the Plan payable to a Participant following the Participant’s death shall be payable to the beneficiary designated on the Participant’s Company-provided life

 

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insurance policy or, if none or if there are conflicting beneficiaries, to the Participant’s estate or as otherwise provided by will or under the applicable lows of descent and distribution.

 

XI.                              No Implied Rights.

 

The establishment and operation of the Plan, including the eligibility of a Participant to participate in the Plan shall not be construed as conferring any legal or other right upon any Employee for the continuation of employment through the end of the Plan Year or other period.  The Company expressly reserves the right, which may be exercised at any time and in the Company’s sole discretion, to discharge any individual or treat him or her without regard to the effect that discharge might have upon him or her as a Participant in the Plan.

 

XII.                         Adjustment for Non-Recurring Items.

 

Notwithstanding anything herein to the contrary, the Committee in applying Performance Measures, may, in its discretion, exclude unusual or infrequently occurring items and the cumulative effect of changes in the law, regulations or accounting rules, and may determine to exclude other items, each determined in accordance with U.S. GAAP (to the extent applicable).

 

XIII.                    Obligations to Company.

 

If a Participant has outstanding any debt, obligation, or other liability representing an amount owing to the Company, such Participant’s future Awards under the Plan may be offset, at the Committee’s discretion, to the extent necessary to cover the amounts owing to the Company.  If a Participant receives an Award and such Participant has engaged in acts that the Committee, in its sole discretion, determines to constitute Cause, the amount of such Award shall be treated as a liability of the Participant to the Company that the Company may offset against any amounts otherwise payable to the Participant.

 

If the Committee reasonably suspects the Participant has an outstanding debt, obligation, or other liability to the Company, any Award otherwise distributable shall be placed by the Company in escrow but shall earn interest at market rate pending the conclusion of the Committee’s investigation.  Following the end of such an investigation, the amount in escrow, reduced by the amount the Participant owes the Company, if any, shall be distributed to the Participant.  All determinations under this Article XIII shall be made by the Committee in its sole discretion.

 

XIV.                     Nonalienation of Benefits

 

Except as expressly provided herein, no Participant or beneficiary shall have the power or right to transfer other than by will or the laws of descent and distribution, alienate, or otherwise encumber the Participant’s interest under the Plan.  The Company’s obligations under this Plan are not assignable or transferable except to (a) any corporation or partnership which acquires all or substantially all of the Company’s assets or (b) any corporation or partnership into which the Company may be merged or consolidated.  The provisions of the Plan shall inure to the benefit of

 

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each Participant and the Participant’s beneficiaries, heirs, executors, administrators or successors in interest.

 

XV.                          Withholding Taxes.

 

The Company may make such provisions and take such action as it may deem necessary or appropriate for the withholding of any taxes which the Company is required by any law or regulation of any governmental authority, whether Federal, state or local, to withhold in connection with any Award under the Plan, including, but not limited to, the withholding of appropriate sums from any amount otherwise payable to the Participant (or his estate).  Each Participant, however, shall be responsible for the payment of all individual tax liabilities relating to any such Awards.

 

XVI.                     Unfunded Status of Plan.

 

The Plan is intended to constitute an “unfunded” plan of incentive compensation for Participants.  Awards payable hereunder shall be payable out of the general assets of the Company, and no segregation of any assets whatsoever for such Awards shall be made.  Notwithstanding any segregation of assets or transfer to a grantor trust, with respect to any payments not yet made to a Participant, nothing contained herein shall give any such Participant any rights to assets that are greater than the rights of an unsecured general creditor of the Company.

 

XVII.                Governing Law; Severability.

 

The Plan and all determinations made and actions taken under the Plan shall be governed by the law of Pennsylvania (excluding the choice of law provisions thereof) and construed accordingly.  If any provision of the Plan is held unlawful or otherwise invalid or unenforceable in whole or in part, unlawfulness, invalidity or unenforceability shall not affect any other parts of the Plan, which parts shall remain in full force and effect.

 

XVIII.           Headings.

 

Headings are inserted in this Plan for convenience of reference only and are to be ignored in the construction of the provisions of the Plan.

 

XIX.                    Gender, Singular and Plural.

 

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require.  As the context may require, the singular may read as the plural and the plural as the singular.

 

XX.                         Notice.

 

Any notice or filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing and mailed to the Vice President, Total Rewards at TE Connectivity Ltd., 1050 Westlakes Drive, Berwyn, Pa. 19312, or to such other entity as the Committee may designate

 

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from time to time.  Such notice shall be deemed given as to the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

 

XXI.                    Overpayments.

 

In the event that a Participant receives payment for an Award under this Plan that exceeds the amount that the Participant should have received under this Plan (as determined by the Committee), the Participant shall be required immediately to repay to the Company the excess amount, provided that the Committee may instead offset such Participant’s future Awards or other forms of compensation including but not limited to base pay, under the Plan to the extent necessary to recoup the amount owed.

 

9Blueprint

Execution Version

 

EXCHANGE AGREEMENT

 

THIS
EXCHANGE AGREEMENT (“Agreement”)
is made and entered into this 7th day of November, 2018, by and
between Bright Mountain Media, Inc., a Florida corporation with its
principal place of business located at 6400 Congress Avenue, Suite
2050, Boca Raton, FL 33487 (“Bright
Mountain”), and W. Kip Speyer, an individual with his
principal place of business located at 6400 Congress Avenue, Suite
2050, Boca Raton, FL 33487 (the “Noteholder”).

 

RECITALS:

 

WHEREAS, between September 2016 and
August 2017 Bright Mountain has borrowed an aggregate of $2,035,000
from the Noteholder under a series of unsecured convertible
promissory notes, including $1,075,000 principal amount 12%
Convertible Promissory Notes (the “12%
Notes”), $660,000 principal amount 6% Convertible
Promissory Notes (the “6%
Notes”) and $300,000 principal amount 10% Convertible
Promissory Notes (the “10%
Notes”, and collectively with the 12% Notes and the 6%
Notes, the “Convertible
Notes”), all as set forth on Schedule A attached hereto and
incorporated herein by such reference.

 

WHEREAS, the Noteholder has agreed to
exchange the Convertible Notes for shares of the
Corporation’s preferred stock as hereinafter set
forth.

 

WHEREAS, the Noteholder is an executive
officer, member of the Board of Directors and principal shareholder
of Bright Mountain.

 

WHEREAS, Bright Mountain and the
Noteholder desire to memorialize in writing the terms, provisions
and conditions of the foregoing exchange and certain other matters
relating thereto.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the
mutual promises, covenants, agreements, representations and
warranties set forth hereinafter, $10.00 and other good and
valuable consideration , the receipt, adequacy and sufficiency of
which Bright Mountain and the Noteholder hereby acknowledges and
subject to the terms, provisions and conditions hereof, each of
Bright Mountain and the Noteholder hereby agrees as
follows:

 

ARTICLE ONE

EXCHANGE OF SECURITIES

 

Subject
to the terms of this Agreement, the Noteholder hereby exchanges:
(i) the 12% Notes for 2,177,233 shares of Bright Mountain’s
12% Series F-1 Convertible Preferred Stock (the “Series F-1
Preferred Stock”); (ii) the 6% Notes for 1,408,867
shares of Bright Mountains 6% Series F-2 Convertible Preferred
Stock (the “Series F-2
Preferred Stock”); and (iii) the 10% Notes for 757,917
shares of Bright Mountain’s 10% Series F-3 Convertible
Preferred Stock (the “Series F-3
Preferred Stock”). The designations, rights and
preferences for the Series F-1 Preferred Stock, Series F-2
Preferred Stock and Series F-3 Preferred Stock (collectively, the
“Preferred
Shares”) are set forth on Exhibit A attached hereto and
incorporated herein by such reference. Concurrent with the
execution of this Agreement by the parties hereto, the Convertible
Notes shall be deemed satisfied and the Noteholder will have no
further rights under such Convertible Notes. As soon as practicable
after the execution of this Agreement by the parties hereto, the
Noteholder will deliver to Bright Mountain the original Convertible
Notes, marked “paid in
full” and Bright Mountain will deliver the
certificates representing the Preferred Shares to the Noteholder.
The Noteholder shall be deemed to be the record owner of such
shares on the date of this Agreement.

 

ARTICLE TWO

REPRESENTATIONS, WARRANTIES AND AGREEMENTS

OF THE NOTEHOLDER

 

The
Noteholder hereby represents, warrants and agrees to and with
Bright Mountain that:

 

2.1           

Ownership of Convertible Notes.
The Noteholder owns the Convertible Notes free and clear of any
mortgages, liens, security interests, claims, charges, pledges,
encumbrances and any restrictions on the transfer thereof of any
nature whatsoever. There are no outstanding subscriptions, rights,
options, warrants or other agreements obligating the Noteholder to
sell or transfer to any third person any of the Convertible
Notes.

 

2.2           

Capacity to Enter into
Agreement. The Noteholder has full right, power and
authority to execute and deliver this Agreement and all other
agreements, documents and instruments to be executed in connection
herewith and perform his or its obligations hereunder and
thereunder. When this Agreement and all other agreements, documents
and instruments to be executed by a Noteholder in connection
herewith are executed by the Noteholder and delivered to Bright
Mountain, this Agreement and such other agreements, documents and
instruments will constitute the valid and binding agreements of the
Noteholder enforceable against the Noteholder in accordance with
their respective terms, except as such enforceability may be
limited by or subject to (a) any bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to
creditors' rights generally and (b) general principles of equity
(regardless of whether such enforceability is considered in a
proceeding in equity or at law).

 

2.3           

Conflicts. The execution,
delivery, and consummation of the transactions contemplated by this
Agreement will not (a) violate, conflict with or result in the
breach or termination of, or otherwise give any other contracting
party the right to terminate, or constitute a default (by way of
substitution, novation or otherwise) under the terms of, any
contract to which the Noteholder is a party or by which the
Noteholder is bound or by which any of the assets of the Noteholder
is bound or affected, (b) violate any judgment against, or binding
upon, the Noteholder or upon the assets of the Noteholder, or (c)
result in the creation of any lien, charge or encumbrance upon any
assets of the Noteholder pursuant to the terms of any such
contract.

 

2.4           

Consents. No consent from, or
other approval of, any governmental entity or any other person,
which has not been obtained, is necessary in connection with the
execution, delivery, or performance of this Agreement by the
Noteholder.

 

2.5           

Finder's Fees; Certain
Expenses. All negotiations relative to this Agreement and
the transactions contemplated hereby have been carried on by the
Noteholder directly with Bright Mountain and its counsel, without
the intervention of any other person as the result of any act of
any of them, without the intervention of any other person in such
manner as to give rise to any valid claim against any of the
parties hereto for a brokerage commission, finder's fee, or any
similar payment.

 

2.6           

Securities Representations. The
Noteholder is the Chief Executive Officer of Bright Mountain, has
full access to all material information concerning the condition,
properties, operations and prospects of Bright Mountain, and has
such knowledge, skill and experience in business, financial and
investment matters so that he is capable of evaluating the merits
and risks of the transactions contemplated hereby. The Noteholder
(a) has adequate means of providing for contingencies, (b) has no
present or contemplated future need to dispose of all or any of the
Preferred Shares or any underlying securities to satisfy existing
or contemplated undertakings, needs or indebtedness, (c) is capable
of bearing the economic risk of the ownership of the Preferred
Shares for the indefinite future, and (d) has assets or sources of
income which, taken together, are more than sufficient so that he
could bear the loss of the entire value of the Preferred Shares.
The Noteholder is acquiring the Preferred Shares solely for his own
beneficial account, for investment purposes, and not with a view
to, or for resale in connection with, any distribution of the
Preferred Shares or its underlying securities; he understands that
neither the Preferred Shares nor the shares of Bright
Mountain’s common stock issuable upon the conversion of the
Preferred Shares have been registered under the Securities Act of
1933 or any state securities laws and therefore the Preferred
Shares and their underlying securities are “restricted”
under such laws.

 

ARTICLE THREE

REPRESENTATIONS, WARRANTIES, AND AGREEMENTS

OF BRIGHT MOUNTAIN

 

Bright
Mountain hereby represents, warrants, and agrees to and with the
Noteholder that:

 

3.1           

Capacity to Enter into
Agreement. Bright Mountain has full right, power and
authority to execute and deliver this Agreement and all other
agreements, documents and instruments to be executed in connection
herewith and perform its obligations hereunder and thereunder. The
execution and delivery by Bright Mountain of this Agreement and all
other agreements, documents and instruments to be executed by
Bright Mountain in connection herewith have been authorized by all
necessary action by Bright Mountain. When this Agreement and all
other agreements, documents and instruments to be executed by
Bright Mountain in connection herewith are executed by Bright
Mountain and delivered to the Noteholder, this Agreement and such
other agreements, documents and instruments will constitute the
valid and binding agreements of Bright Mountain enforceable against
Bright Mountain in accordance with their respective terms, except
as such enforceability may be limited by or subject to (a) any
bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to creditors' rights generally and (b) general
principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

3.2           

Conflicts. The execution,
delivery, and consummation of the transactions contemplated by this
Agreement will not (a) violate, conflict with or result in the
breach or termination of, or otherwise give any other contracting
party the right to terminate, or constitute a default (by way of
substitution, novation or otherwise) under the terms of, any
contract to which Bright Mountain is a party or by which Bright
Mountain is bound or by which any of the assets of Bright Mountain
is bound or affected, (b) violate any judgment against, or binding
upon, Bright Mountain or upon the assets of Bright Mountain, (c)
result in the creation of any lien, charge or encumbrance upon any
assets of Bright Mountain pursuant to the terms of any such
contract, or (d) violate any provision in the charter documents,
bylaws or any other agreement affecting the governance and control
of Bright Mountain.

 

3.3           

Consents. No consent from, or
other approval of, any governmental entity or any other person,
which has not been obtained, is necessary in connection with the
execution, delivery, or performance of this Agreement by Bright
Mountain.

 

3.4           

Preferred Shares. The Preferred
Shares, when issued pursuant to the terms of this Agreement, will
be fully paid and non-assessable.

 

ARTICLE FOUR

ADDITIONAL AGREEMENTS

 

Following the date
hereof, the Noteholder shall execute and deliver such other
documents, and take such other actions, as may be reasonably
requested by Bright Mountain to complete the transactions
contemplated by this Agreement.

 

ARTICLE FIVE

SURVIVAL

 

All of
the representations and warranties made by the parties hereto in
this Agreement or pursuant hereto, shall be continuing and shall
survive the closing hereof and the consummation of the transactions
contemplated hereby, notwithstanding any investigation at any time
made by or on behalf of any party hereto.

 

ARTICLE SIX

MISCELLANEOUS

 

6.1           

Notices. Any notices, requests,
demands, or other communications herein required or permitted to be
given shall be in writing and may be personally served or sent by
United States mail and shall be deemed to have been given if
personally served, when served, or if mailed, when deposited in the
mail and shall be deemed to have been received if personally
served, when served, or if mailed, on the third business day after
deposit in the United States mail with postage pre-paid by
certified or registered mail and properly addressed. As used in
this Agreement, the term “business day” means days
other than Saturdays, Sundays, and holidays recognized by Federal
banks. For purposes of this Agreement, the addresses of the parties
hereto shall be the addresses as set forth on the signature pages
of this Agreement until a party subsequently notifies the other
party in writing of a change of address.

 

6.2           

Counterparts. This Agreement
may be executed in any number of counterparts and each such
counterpart shall be deemed to be an original instrument, but all
such counterparts together shall constitute but one and the same
instrument.

 

6.3           

Amendments and Waivers. This
Agreement may be amended, modified, or superseded only by written
instrument executed by all parties hereto. Any waiver of the terms,
provisions, covenants, representations, warranties, or conditions
hereof shall be made only by a written instrument executed and
delivered by the party waiving compliance. Any waiver granted by a
corporate party hereto shall be effective only if executed and
delivered by the chief executive officer, president, or any vice
president of such party. The failure of any party at any time or
times to require performance of any provision hereof shall in no
manner affect the right to enforce the same. No waiver by any party
of any condition, or of the breach of any term, provision,
covenant, representation, or warranty contained in this Agreement
in one or more instances shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach or a
waiver of any other condition or the breach of any other term,
provision, covenant, representation, or warranty.

 

6.4           

Time of Essence. Time is of the
essence in the performance of this Agreement.

 

6.5           

Captions. The captions
contained in this Agreement are solely for convenient reference and
shall not be deemed to affect the meaning or interpretation of any
Article, Section, or paragraph hereof.

 

6.6           

Entire Agreement. This
Agreement sets forth the entire agreement and understanding of the
parties with respect to the transactions contemplated hereby, and
supersedes all prior agreements, arrangements, and understandings
relating to the subject matter hereof.

 

6.7           

Successors and Assigns. All of
the terms, provisions, covenants, representations, warranties, and
conditions of this Agreement shall be binding upon and shall inure
to the benefit of and be enforceable by the parties hereto and
their respective heirs, legal representatives, assigns, and
successors.

 

6.8           

Knowledge, Gender, and Certain
References. A representation or statement made herein to the
knowledge of any corporate party refers to the knowledge or belief
of the companies' directors, officers, and attorneys, regardless of
whether the knowledge of such person was obtained outside of the
course and scope of his corporate employment or duties, and
regardless of whether any such person's interests are adverse to
such entity in respect of the matters as to which his knowledge is
attributed. Whenever from the context it appears appropriate, each
term stated in either the singular or the plural shall include both
the singular and the plural, and pronouns stated in the masculine
or the neuter gender shall include the masculine, the feminine and
the neuter gender. The terms “hereof,”
“herein,” or “hereunder” shall refer to
this Agreement as a whole and not to any particular Article,
Section, or paragraph hereof.

 

6.9           

Applicable
Law. This Agreement shall be
governed exclusively by its terms and by the laws of the State of
Florida. The parties acknowledge and agree that the
15th
Judicial Circuit in Florida, Palm
Beach County, Florida, shall be the venue and exclusive proper
forum in which to adjudicate any case or controversy arising
either, directly or indirectly, under or in connection with this
Agreement and the parties further agree that, in the event of
litigation arising out of or in connection with this Agreement in
these courts, they will not contest or challenge the jurisdiction
or venue of these courts.

 

6.10           

Costs, Expenses and Fees. Each
party hereto agrees hereby to pay all costs, expenses, and fees
incurred by it in connection with the transactions contemplated
hereby, including, without limitation, all attorneys' and
accountants' fees.

 

6.11                      

Role of
Counsel. The Noteholder
acknowledges his understanding that this Agreement was prepared at
the request of Bright Mountain by Pearlman Law Group LLP, its
counsel, and that such firm did not represent the Noteholder in
conjunction with this Agreement or any of the related transactions.
The Noteholder, as further evidenced by his signature below,
acknowledges that he has had the opportunity to obtain the advice
of independent counsel of his choosing prior to his execution of
this Agreement and that he has availed himself of this opportunity
to the extent he deemed necessary and
advisable.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year first above
written.

 

 

	
 

	
 

	
 

	
 

	

Bright Mountain Media, Inc.

	
 

	
 

	
 

	
 

	

By:

	

/s/
Todd Speyer

	
 

	
 

	

Todd
Speyer, Vice President - Digital

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ W.
Kip Speyer

	
 

	
 

	

W. Kip
Speyer

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