Document:

EXHIBIT
        10.8

    

     

    EXHIBIT
      C

    

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    SPATIALIGHT,
      INC.

    

    
      	
              Warrant
                Shares: 240,000

            	
              Initial
                Exercise Date: May 29, 2007

            
	 	
              Issuance
                Date: November 29, 2006

            

    

    

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, Southshore
      Capital Fund Ltd.
      (the
“Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the 181st
      day
      following the date hereof (the “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the five year anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from SpatiaLight, Inc., a New
      York
      corporation (the “Company”),
      up to
      Two Hundred Forty Thousand (240,000) shares (the “Warrant
      Shares”)
      of
      common stock, par value $.01 per share, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant shall be equal
      to
      the Exercise Price, as defined in Section 2(b). 

    

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      November 29, 2006, among the Company and the purchasers signatory
      thereto.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    Section
      2. Exercise.

    

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto to the Company’s
      principal business office (or such other office or agency of the Company as
      it
      may designate by notice in writing to the registered Holder at the address
      of
      such Holder appearing on the books of the Company); and, within three (3)
      Trading Days of the date said Notice of Exercise is delivered to the Company,
      the Company shall have received payment of the aggregate Exercise Price of
      the
      shares thereby purchased by wire transfer or cashier’s check drawn on a United
      States bank. Notwithstanding anything herein to the contrary, the Holder shall
      not be required to physically surrender this Warrant to the Company until the
      Holder has purchased all of the Warrant Shares available hereunder and the
      Warrant has been exercised in full, in which case, the Holder shall surrender
      this Warrant to the Company for cancellation within three (3) Trading Days
      of
      the date the final Notice of Exercise is delivered to the Company. Partial
      exercises of this Warrant resulting in purchases of a portion of the total
      number of Warrant Shares available hereunder shall have the effect of lowering
      the outstanding number of Warrant Shares purchasable hereunder in an amount
      equal to the applicable number of Warrant Shares purchased. The Holder and
      the
      Company shall maintain records showing the number of Warrant Shares purchased
      and the date of such purchases. The Company shall deliver any objection to
      any
      Notice of Exercise Form within one (1) Business Day of receipt of such notice.
      The Holder and any assignee, by acceptance of this Warrant, acknowledge and
      agree that, by reason of the provisions of this paragraph, following the
      purchase of a portion of the Warrant Shares hereunder, the number of Warrant
      Shares available for purchase hereunder at any given time may be less than
      the
      amount stated on the face hereof.

    

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be
$1.75,
      subject
      to adjustment hereunder (the “Exercise
      Price”).

    

    c) Cashless
      Exercise.
      If at
      any time after one year from the date of issuance of this Warrant there is
      no
      effective Registration Statement registering, or no current prospectus available
      for, the resale of the Warrant Shares by the Holder, then this Warrant may
      also
      be exercised at such time by means of a “cashless exercise” in which the Holder
      shall be entitled to receive a certificate for the number of Warrant Shares
      equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

    

    
      	
            	(A)
              =	
              the
                VWAP on the Trading Day immediately preceding the date of such
                election;

            

    

    

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

            

    

    

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

            

    

    

    Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    d) Exercise
      Limitations.
      

    

    
      	 	
              i.

            	
              Holder’s
                Restrictions.
                The Company shall not effect any exercise of this Warrant, and a
                Holder
                shall not have the right to exercise any portion of this Warrant,
                pursuant
                to Section 2(c) or otherwise, to the extent that after giving effect
                to
                such issuance after exercise as set forth on the applicable Notice
                of
                Exercise, such Holder (together with such Holder’s Affiliates, and any
                other person or entity acting as a group together with such Holder
                or any
                of such Holder’s Affiliates), as set forth on the applicable Notice of
                Exercise, would beneficially own in excess of the Beneficial Ownership
                Limitation (as defined below).  For purposes of the foregoing
                sentence, the number of shares of Common Stock beneficially owned
                by such
                Holder and its Affiliates shall include the number of shares of Common
                Stock issuable upon exercise of this Warrant with respect to which
                such
                determination is being made, but shall exclude the number of shares
                of
                Common Stock which would be issuable upon (A) exercise of the remaining,
                nonexercised portion of this Warrant beneficially owned by such Holder
                or
                any of its Affiliates and (B) exercise or conversion of the unexercised
                or
                nonconverted portion of any other securities of the Company (including,
                without limitation, any other Common Stock or Warrants) subject to
                a
                limitation on conversion or exercise analogous to the limitation
                contained
                herein beneficially owned by such Holder or any of its affiliates. 
                Except as set forth in the preceding sentence, for purposes of this
                Section 2(d)(i), beneficial ownership shall be calculated in accordance
                with Section 13(d) of the Exchange Act and the rules and regulations
                promulgated thereunder, it being acknowledged by a Holder that the
                Company
                is not representing to such Holder that such calculation is in compliance
                with Section 13(d) of the Exchange Act and such Holder is solely
                responsible for any schedules required to be filed in accordance
                therewith. To the extent that the limitation contained in this Section
                2(d) applies, the determination of whether this Warrant is exercisable
                (in
                relation to other securities owned by such Holder together with any
                Affiliates) and of which a portion of this Warrant is exercisable
                shall be
                in the sole discretion of a Holder, and the submission of a Notice
                of
                Exercise shall be deemed to be each Holder’s determination of whether this
                Warrant is exercisable (in relation to other securities owned by
                such
                Holder together with any Affiliates) and of which portion of this
                Warrant
                is exercisable, in each case subject to such aggregate percentage
                limitation, and the Company shall have no obligation to verify or
                confirm
                the accuracy of such determination. In addition, a determination
                as to any
                group status as contemplated above shall be determined in accordance
                with
                Section 13(d) of the Exchange Act and the rules and regulations
                promulgated thereunder. For purposes of this Section 2(d), in determining
                the number of outstanding shares of Common Stock, a Holder may rely
                on the
                number of outstanding shares of Common Stock as reflected in (x)
                the
                Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a
                more recent public announcement by the Company or (z) any other notice
                by
                the Company or the Company’s Transfer Agent setting forth the number of
                shares of Common Stock outstanding.  Upon the written or oral request
                of a Holder, the Company shall within two (2) Trading Days confirm
                orally
                and in writing to such Holder the number of shares of Common Stock
                then
                outstanding.  In any case, the number of outstanding shares of Common
                Stock shall be determined after giving effect to the conversion or
                exercise of securities of the Company, including this Warrant, by
                such
                Holder or its Affiliates since the date as of which such number of
                outstanding shares of Common Stock was reported. The “Beneficial
                Ownership Limitation”
                shall be 4.99% of the number of shares of the Common Stock outstanding
                immediately after giving effect to the issuance of shares of Common
                Stock
                issuable upon exercise of this Warrant. The Beneficial Ownership
                Limitation provisions of this Section 2(d)(i) may be waived by such
                Holder, at the election of such Holder, upon not less than 61 days’ prior
                notice to the Company to change the Beneficial Ownership Limitation
                to
                9.99% of the number of shares of the Common Stock outstanding immediately
                after giving effect to the issuance of shares of Common Stock upon
                exercise of this Warrant, and the provisions of this Section 2(d)
                shall
                continue to apply. Upon such a change by a Holder of the Beneficial
                Ownership Limitation from such 4.99% limitation to such 9.99% limitation,
                the Beneficial Ownership Limitation may not be further waived by
                such
                Holder. The provisions of this paragraph shall be construed and
                implemented in a manner otherwise than in strict conformity with
                the terms
                of this Section 2(d)(i) to correct this paragraph (or any portion
                hereof)
                which may be defective or inconsistent with the intended Beneficial
                Ownership Limitation herein contained or to make changes or supplements
                necessary or desirable to properly give effect to such limitation.
                The
                limitations contained in this paragraph shall apply to a successor
                holder
                of this Warrant.

            

    

    

    
      
         

      

      
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              ii.

            	
              Trading
                Market Restrictions.
                If the Company has not obtained Shareholder Approval, then the Company
                may
                not issue upon exercise of this Warrant a number of shares of Common
                Stock, which, when aggregated with any shares of Common Stock issued
                (A)
                pursuant to the Purchase Agreement, (B) upon prior exercise of this
                or any
                other Warrant issued pursuant to the Purchase Agreement and (C) pursuant
                to any warrants issued to any registered broker-dealer as a fee in
                connection with the Securities pursuant to the Purchase Agreement,
                would
                exceed 8,387,3111 ,
                subject to adjustment for reverse and forward stock splits, stock
                dividends, stock combinations and other similar transactions of the
                Common
                Stock that occur after the date of the Purchase Agreement (such number
                of
                shares, the “Issuable
                Maximum”).
                The Holder and the holders of the other Warrants issued pursuant
                to the
                Purchase Agreement shall be entitled to a portion of the Issuable
                Maximum
                equal to the product of (I) and (II) where (I) is equal to the Issuable
                Maximum and (II) is the quotient obtained by dividing (x) such Holder’s
                original Subscription Amount by (y) the aggregate original Subscription
                Amount of all holders pursuant to the Purchase Agreement. In addition,
                the
                Holder may allocate its pro-rata portion of the Issuable Maximum
                among
                Warrants held by it in its sole discretion. Such portion shall be
                adjusted
                upward ratably in the event a Purchaser no longer holds any Warrants
                and
                the amount of shares issued to such Purchaser pursuant to its Warrants
                was
                less than such Purchaser’s pro-rata share of the Issuable Maximum. For
                avoidance of doubt, unless and until any required Shareholder Approval
                is
                obtained and effective, warrants issued to any registered broker-dealer
                as
                a fee in connection with the Securities issued pursuant to the Purchase
                Agreement as described in (C) above shall provide that such warrants
                shall
                not be allocated any portion of the Issuable Maximum and shall be
                unexercisable unless and until such Shareholder Approval is obtained
                and
                effective.

            

    

    

    
      
        
          

        

      

      
        1  19.999%
          of the number of shares of Common Stock outstanding on the Trading Day
          immediately preceding the Closing Date

      

      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    e) Mechanics
      of Exercise.
      

    

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges created
      by the Company in respect of the issue thereof (other than taxes in respect
      of
      any transfer occurring contemporaneously with such issue). 

    

    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      three (3) Trading Days from the last to occur of the delivery to the Company
      of
      the Notice of Exercise Form, surrender of this Warrant (if required) and payment
      of the aggregate Exercise Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date that is the latest
      of: (i) the date of the receipt by the Company of the Notice of Exercise, (ii)
      the date that this Warrant is surrendered (if required) to the Company, and
      (iii) the date the Exercise Price is received by the Company. The Warrant Shares
      shall be deemed to have been issued, and Holder or any other person so
      designated to be named therein shall be deemed to have become a holder of record
      of such shares for all purposes, as of the date the Warrant has been exercised
      by payment to the Company of the Exercise Price (or by cashless exercise, if
      permitted) and all taxes required to be paid by the Holder, if any, pursuant
      to
      Section 2(e)(vii) prior to the issuance of such shares, have been paid.

    

    
      
         

      

      
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    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

    

    iv. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise.

    

    v. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) or the Holder’s
      brokerage firm otherwise purchases, shares of Common Stock to deliver in
      satisfaction of a sale by the Holder of the Warrant Shares which the Holder
      anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In and, upon request of
      the
      Company, evidence of the amount of such loss. Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

    

    
      
         

      

      
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    vi. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

    

    vii. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

    

    viii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

    

    f) Call
      Provision.
      Subject
      to the provisions of Section 2(d) and this Section 2(f), if, after the Effective
      Date and the Initial Exercise Date, the VWAP for each of twenty (20) consecutive
      Trading Days (the “Measurement
      Period,”
which
      twenty (20) consecutive Trading Day period shall not have commenced until after
      the Effective Date) exceeds $3.00
      (subject
      to adjustment for forward and reverse stock splits, recapitalizations, stock
      dividends and the like after the date hereof), the Company may, within one
      (1)
      Trading Day of the end of such Measurement Period, call for cancellation up
      to
      120,0002 
      of this
      Warrant for which a Notice of Exercise has not yet been delivered (such right,
      a
“Call”)
      for
      consideration equal to $.001 per Share. To exercise this right, the Company
      must
      deliver to the Holder an irrevocable written notice (a “Call
      Notice”),
      indicating therein the portion of unexercised portion of this Warrant to which
      such notice applies. If the conditions set forth below for such Call are
      satisfied from the period from the date of the Call Notice through and including
      the Call Date (as defined below), then any portion of this Warrant subject
      to
      such Call Notice for which a Notice of Exercise shall not have been received
      by
      the Call Date will be cancelled at 6:30 p.m. (New York City time) on the
      twentieth Trading Day after the date the Call Notice is received by the Holder
      (such date and time, the “Call
      Date”).
      Any
      unexercised portion of this Warrant to which the Call Notice does not pertain
      will be unaffected by such Call Notice. In furtherance thereof, the Company
      covenants and agrees that it will honor all Notices of Exercise with respect
      to
      Warrant Shares subject to a Call Notice that are tendered through 6:30 p.m.
      (New
      York City time) on the Call Date. The parties agree that any Notice of Exercise
      delivered following a Call Notice which calls less than all the Warrants shall
      first reduce to zero the number of Warrant Shares subject to such Call Notice
      prior to reducing the remaining Warrant Shares available for purchase under
      this
      Warrant. For example, if (x) this Warrant then permits the Holder to acquire
      100
      Warrant Shares, (y) a Call Notice pertains to 75 Warrant Shares, and (z) prior
      to 6:30 p.m. (New York City time) on the Call Date the Holder tenders a Notice
      of Exercise in respect of 50 Warrant Shares, then (1) on the Call Date the
      right
      under this Warrant to acquire 25 Warrant Shares will be automatically cancelled,
      (2) the Company, in the time and manner required under this Warrant, will have
      issued and delivered to the Holder 50 Warrant Shares in respect of the exercises
      following receipt of the Call Notice, and (3) the Holder may, until the
      Termination Date, exercise this Warrant for 25 Warrant Shares (subject to
      adjustment as herein provided and subject to subsequent Call Notices). Subject
      again to the provisions of this Section 2(f), the Company may deliver subsequent
      Call Notices for any portion of this Warrant for which the Holder shall not
      have
      delivered a Notice of Exercise. Notwithstanding anything to the contrary set
      forth in this Warrant, the Company may not deliver a Call Notice or require
      the
      cancellation of this Warrant (and any such Call Notice shall be void), unless,
      from the beginning of the Measurement Period through the Call Date, (i) the
      Company shall have honored in accordance with the terms of this Warrant all
      Notices of Exercise delivered by 6:30 p.m. (New York City time) on the Call
      Date, and (ii) the Registration Statement shall be effective as to all Warrant
      Shares and the prospectus thereunder available for use by the Holder for the
      resale of all such Warrant Shares, and (iii) the Common Stock shall be listed
      or
      quoted for trading on the Trading Market, and (iv) there is a sufficient number
      of authorized shares of Common Stock for issuance of all Securities under the
      Transaction Documents, and (v) the issuance of the shares shall not cause a
      breach of any provision of 2(d) herein. The Company’s right to call the Warrants
      under this Section 2(f) shall be exercised ratably among the Holders based
      on
      each Holder’s initial purchase of Warrants.

    
       

        
          

        

      

      2
        50% of
        the Warrant Shares represented by this Warrant.

      
         

      

      
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    Section
      3. Certain Adjustments.

    

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise makes a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

    

    
      
         

      

      
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    b) [RESERVED].

    

    c) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then the
      Exercise Price shall be multiplied by a fraction, of which the denominator
      shall
      be the number of shares of the Common Stock outstanding on the date of issuance
      of such rights or warrants plus the number of additional shares of Common Stock
      offered for subscription or purchase, and of which the numerator shall be the
      number of shares of the Common Stock outstanding on the date of issuance of
      such
      rights or warrants plus the number of shares which the aggregate offering price
      of the total number of shares so offered (assuming receipt by the Company in
      full of all consideration payable upon exercise of such rights, options or
      warrants) would purchase at such VWAP. Such adjustment shall be made whenever
      such rights or warrants are issued, and shall become effective immediately
      after
      the record date for the determination of stockholders entitled to receive such
      rights, options or warrants. 

    

    d) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    e) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another 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 (D) 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
      (each “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, the number
      of shares of Common Stock of the successor or acquiring corporation or of the
      Company, if it is the surviving corporation, and any additional consideration
      (the “Alternate
      Consideration”)
      receivable as a result of such merger, consolidation or disposition of assets
      by
      a Holder of the number of shares of Common Stock for which this Warrant is
      exercisable immediately prior to such event. 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. To the extent necessary to effectuate
      the foregoing provisions, any successor to the Company or surviving entity
      in
      such Fundamental Transaction shall issue to the Holder a new warrant consistent
      with the foregoing provisions and evidencing the Holder’s right to exercise such
      warrant into Alternate Consideration. The terms of any agreement pursuant to
      which a Fundamental Transaction is effected shall include terms requiring any
      such successor or surviving entity to comply with the provisions of this Section
      3(e) and insuring that this Warrant (or any such replacement security) will
      be
      similarly adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction. Notwithstanding anything to the contrary, in the event of a
      Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3
      transaction” as defined in Rule 13e-3 under the Securities Exchange Act of 1934,
      as amended, or (3) a Fundamental Transaction involving a person or entity not
      traded on a national securities exchange, the Nasdaq Global Select Market,
      the
      Nasdaq Global Market, the Nasdaq Capital Market, the Company or any successor
      entity shall pay at the Holder’s option, exercisable at any time concurrently
      with or within 30 days after the consummation of the Fundamental Transaction,
      an
      amount of cash equal to the value of this Warrant as determined in accordance
      with the Black-Scholes option pricing formula using an expected volatility
      equal
      to the 100 day historical price volatility obtained from the HVT function on
      Bloomberg L.P. as of the trading day immediately prior to the public
      announcement of the Fundamental Transaction. 

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

    f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

    

    g) Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

    

    h) Notice
      to Holder.
      

    

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. If the Company issues a variable rate
      security, despite the prohibition thereon in the Purchase Agreement, the Company
      shall be deemed to have issued Common Stock or Common Stock Equivalents at
      the
      lowest possible conversion or exercise price at which such securities may be
      converted or exercised in the case of a Variable Rate Transaction (as defined
      in
      the Purchase Agreement).

    

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      or (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least twenty (20) calendar
      days prior to the applicable record or effective date hereinafter specified,
      a
      notice stating (x) the date on which a record is to be taken for the purpose
      of
      such dividend, distribution, redemption, rights or warrants, or if a record
      is
      not to be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or warrants
      are to be determined or (y) the date on which such reclassification,
      consolidation, merger, sale, transfer or share exchange is expected to become
      effective or close, and the date as of which it is expected that holders of
      the
      Common Stock of record shall be entitled to exchange their shares of the Common
      Stock for securities, cash or other property deliverable upon such
      reclassification, consolidation, merger, sale, transfer or share exchange;
      provided that the failure to mail such notice or any defect therein or in the
      mailing thereof shall not affect the validity of the corporate action required
      to be specified in such notice. The Holder is entitled to exercise this Warrant
      during the 20-day period commencing on the date of such notice to the effective
      date of the event triggering such notice.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    Section
      4. Transfer
      of Warrant.

    

    a) Transferability.
      Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
      Agreement, this Warrant and all rights hereunder (including, without limitation,
      any registration rights) are transferable, in whole or in part, upon surrender
      of this Warrant at the principal office of the Company or its designated agent,
      together with a written assignment of this Warrant substantially in the form
      attached hereto duly executed by the Holder or its agent or attorney and funds
      sufficient to pay any transfer taxes payable upon the making of such transfer.
      Upon such surrender and, if required, such payment, the Company shall execute
      and deliver a new Warrant or Warrants in the name of the assignee or assignees
      and in the denomination or denominations specified in such instrument of
      assignment, and shall issue to the assignor a new Warrant evidencing the portion
      of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
      A
      Warrant, if properly assigned, may be exercised by a new holder for the purchase
      of Warrant Shares without having a new Warrant issued. 

    

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

    

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

    

    d) Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be registered pursuant to an effective
      registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer, that (i) the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, and
      (ii)
      the Holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company, and (iii) the transferee be
      an
“accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) promulgated under the Securities Act.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

       

    

    Section
      5. Miscellaneous.

    

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(ii). 

    

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

    

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

    

    d) Authorized
      Shares.
      

    

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

    

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its 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 actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

       

    

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

    

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

    

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

    

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

    

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

    

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

       

    

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

    

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

    

    l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

    

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

    

    n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

    

    

    ********************

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

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

     

    
      	 	 	 
	 	
              SPATIALIGHT,
                INC.

            
	 
 	 
 	 
 
	 	By:  	/s/
              David F. Hakala
	 	
              
Name:
              David F. Hakala
	 	
              Title:
                Chief Operating Officer, Principal Financial and Accounting
                Officer

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    NOTICE
      OF EXERCISE

    

    
      	TO:	
              [_______________________]

            

    

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

    

    (2) Payment
      shall take the form of (check applicable box):

    

    [
      ] in
      lawful money of the United States; or

    

    [
      ] [if
      permitted] the cancellation of such number of Warrant Shares as is necessary,
      in
      accordance with the formula set forth in subsection 2(c), to exercise this
      Warrant with respect to the maximum number of Warrant Shares purchasable
      pursuant to the cashless exercise procedure set forth in subsection
      2(c).

    

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

    

    _______________________________

     

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      _______________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      _______________________________________________________________________________________

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

    

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature:   _____________________________

    

    Holder’s
      Address:    _____________________________

     

    _____________________________

    

    

    Signature
      Guaranteed: ___________________________________________

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.EXHIBIT
        10.9

    

    

    EXHIBIT
      D

    

    FORM
      OF
      LOCK-UP AGREEMENT

     

    November
      29, 2006

    

    To
      the
      purchasers signatory to 

    the
      Agreement

    

    
      	 	
              Re:

            	
              Securities
                Purchase Agreement dated November 29, 2006 (the “Agreement”)
                by and among, Spatialight, Inc., a New York corporation (the “Company”),
                and the purchasers signatory thereto (each, a “Purchaser”
                and collectively referred to as the “Purchasers”)
                

            

    

    

    Ladies
      and Gentlemen:

    

    Defined
      terms not otherwise defined herein (the “Letter
      Agreement”)
      shall
      have the meanings set forth in the Agreement. Pursuant to Section 2.2 of the
      Agreement and in satisfaction of a condition of the Purchasers’ obligations
      under the Agreement, the undersigned irrevocably
      agrees with the Purchasers that, from the date hereof until the date that is
      90
      calendar days following the Effective Date (such period, the “Restriction
      Period”),
      the
      undersigned will not offer, sell, contract to sell, pledge or otherwise dispose
      of, or enter into any transaction which is designed to, or might reasonably
      be
      expected to, result in the disposition (whether by actual disposition or
      effective economic disposition due to cash settlement or otherwise) by the
      undersigned or any affiliate of the undersigned or any person in privity with
      the undersigned or any affiliate of the undersigned, directly or indirectly,
      including the filing (or participation in the filing) of a registration
      statement with the Commission in respect of, or establish or increase a put
      equivalent position or liquidate or decrease a call equivalent position within
      the meaning of Section 16 of the Exchange Act and the rules and regulations
      of
      the Commission promulgated thereunder with respect to, any shares of Common
      Stock beneficially owned, held or hereafter acquired by the undersigned (the
      “Securities”).
      Beneficial
      ownership shall be calculated in accordance with Section 13(d) of the Exchange
      Act. In order to enforce this covenant, the Company will impose irrevocable
      stop-transfer instructions preventing the transfer agent from effecting any
      actions in violation of this agreement.

    

    The
      undersigned acknowledges that the execution, delivery and performance of this
      letter agreement is a material inducement to the Purchasers to complete the
      transaction contemplated by the Agreement and that the Purchasers (which shall
      be third party beneficiaries of this letter agreement) and the Company shall
      be
      entitled to specific performance of my obligations hereunder. The undersigned
      hereby represents that the undersigned has the power and authority to execute,
      deliver and perform this letter agreement, that the undersigned has received
      adequate consideration therefor and that the undersigned will indirectly benefit
      from the closing of the transactions contemplated by the Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    This
      letter agreement may not be amended or otherwise modified in any respect without
      the written consent of each of the Company, the Purchasers and the undersigned.
      This letter agreement shall be construed and enforced in accordance with the
      laws of the State of New York, without regard to the principles of conflicts
      of
      laws. The undersigned hereby irrevocably submit to the exclusive jurisdiction
      of
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, and
      hereby irrevocably waive, and agree not to assert in any suit, action or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      any such court, or that such suit, action or proceeding is improper. The
      undersigned hereby irrevocably waives personal service of process and consents
      to process being served in any such suit, action or proceeding by receiving
      a
      copy thereof sent to the Company at the address in effect for notices to it
      under the Agreement and agrees that such service shall constitute good and
      sufficient service of process and notice thereof. The undersigned hereby waives
      any right to a trial by jury. Nothing contained herein shall be deemed to limit
      in any way any right to serve process in any manner permitted by law. The
      undersigned agrees and understands that this letter does not intend to create
      any relationship between the undersigned and the Purchasers and that the
      Purchasers are not entitled to cast any votes on the matters herein contemplated
      and that no issuance or sale of the Securities is created or intended by virtue
      of this letter.

    

    By
      its
      signature below, the Company’s transfer agent hereby acknowledges and agrees
      that it has placed an irrevocable stop transfer instruction on all Securities
      beneficially owned by the undersigned, reflecting this Letter Agreement, until
      the end of the Restriction Period. This Letter Agreement shall be binding on
      successors and assigns of the undersigned with respect to the Securities and
      any
      such successor or assign shall enter into a similar agreement for the benefit
      of
      the Purchasers. This letter agreement may be executed in two or more
      counterparts, all of which when taken together may be considered one and the
      same agreement.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	 	
              Very
                truly yours,

              

              By:
                /s/
                Jerilyn
                Kessel                                   
                

              Name:
                Jerilyn Kessel

              Title:
                Director

              Position
                with the Company (if applicable):

               

              By:
                /s/
                Herbert
                Ehrenthal                             
                

              Name:
                Herbert Ehrenthal

              Title:
                Director

              Position
                with the Company (if applicable):

              

              By:
                /s/
                Lawrence J.
                Matteson                    
                

              Name:
                Lawrence J. Matteson

              Title:
                Director

              Position
                with the Company (if applicable):

              

              By:
                /s/
                Claude
                Piaget                                   
                

              Name:
                Claude Piaget

              Title:
                Director

              Position
                with the Company (if applicable):

              

              By:
                /s/
                Robert C.
                Munro                             
                

              Name:
                Robert C. Munro

              Title:
                Director

              Position
                with the Company (if applicable):

              

              By:
                /s/
                Michael S.
                Jin                                  
                

              Name:
                Michael S. Jin

              Title:
                Chief Technology Officer

              Position
                with the Company: Executive Officer

              

              By: /s/
                Don S.
                Suh                                   
                   

              Name:
                Don S. Suh

              Title:
                Chief Executive Officer

              Position
                with the Company: Executive Officer

            

    

    

    Acknowledged
      and agreed to:

    

    SPATIALIGHT,
      INC.

    

    By:
      /s/
      David F.
      Hakala                                     

    Name:
      David F. Hakala

    Title:
      Chief Operating Officer, Principal Financial and 

    Accounting
      Officer and Chairman of the Board

     

    
      
         

      

      
        3

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