Document:

Series B Preferred Stock Purchase Warrant

 Exhibit 10.47 
  
 THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS. NO SALE OR
DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION
LETTERS, FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF SECTION 8 OF THIS WARRANT. 
  
 eUniverse, Inc. 
  
 WARRANT TO PURCHASE SHARES 
 OF SERIES B PREFERRED STOCK 
  
 THIS CERTIFIES THAT, for value received, VP Alpha Holdings IV, L.L.C.., a
Delaware corporation, and its assignees are entitled to subscribe for and purchase 200,000 shares of the fully paid and nonassessable Series B Preferred Stock (as adjusted pursuant to Section 5 hereof, the “Shares”) of eUniverse, Inc., a
Delaware corporation (the “Company”), at the Warrant Price as set forth in Section 2 below, subject to the provisions and upon the terms and conditions hereinafter set forth. As used herein, (a) the term “Series Preferred” shall
mean the Company’s authorized Series B Preferred Stock, and any Stock into or for which such Series B Preferred Stock may thereafter be converted or exchanged, and (b) the term “Date of Grant” shall mean the Date of Grant listed on
the signature page hereof. 
  
 1. Term. The purchase right
represented by this Warrant is exercisable, in whole or in part, at any time and from time to time from the Date of Grant through 5 p.m., Pacific standard time, three (3) years from the Date of Grant. 
  
 2. Warrant Price. The price at which this Warrant may be exercised
shall be $2.50 per share of Series B Preferred Stock. Such price and such other price as shall result from time to time, from the adjustments specified in Section 5 hereof is herein referred to as the “Warrant Price”. 
  
 3. Method of Exercise Payment; Issuance of New Warrant. Subject to
Section 1 hereof, the purchase right represented by this Warrant may be exercised by the holder hereof, in whole or in part and from time to time, at the election of the holder hereof, by (a) the surrender of this Warrant (with the notice of
exercise substantially in the form attached hereto as Exhibit A duly completed and executed) at the principal office of the Company and by the payment to the Company, by certified or bank check by wire transfer to an account designated by the
Company (a “Wire Transfer”), or by the cancellation by the holder hereof of indebtedness or other obligations of the Company to such holder of an amount equal to the then applicable Warrant Price multiplied by the number of Shares then
being purchased, or (b) exercise of the right provided for in Section 11.3 hereof. The person or persons in whose name(s) any certificate(s) representing shares of Series Preferred shall be issuable upon exercise of this Warrant shall be deemed to
have become the holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the shares represented thereby (and such shares shall be deemed to have been issued) immediately prior to the close of business on the date or
dates upon which this Warrant is exercised. In the event of any exercise of the rights represented by this Warrant, certificates for the shares of stock so purchased shall be delivered to the holder hereof by the Company at the Company’s
expense as soon as possible and in any event within thirty (30) days after such exercise and, unless this Warrant has been fully exercised or expired, a new Warrant representing the portion of the Shares, if any, with respect to which this Warrant
shall not then have been exercised shall also be issued to the holder hereof as soon as possible and in any event within such thirty-day period. 
  
 4. Stock Fully Paid; Reservation of Shares. All Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon
issuance pursuant to the terms and conditions herein, be duly authorized, validly issued, fully paid and nonassessable, and free from all taxes, liens, encumbrances, preemptive rights and charges. During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved for the purpose of the issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of its Series
Preferred to provide for the exercise of the rights represented by this Warrant and a sufficient number of shares of its Common Stock to provide for the conversion of the Series Preferred into Common Stock, and from time to time, will take all steps
necessary to amend its Certificate of Incorporation to provide sufficient reserves of shares of Series Preferred issuable upon exercise of the Warrant (and shares of its Common Stock for issuance on conversion of such Series Preferred). 

 
 5. Adjustment of Warrant Price and Number of Shares. The number and
kind of securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows: 
  
 (a) Conversion of Series Preferred. Should all of the Company’s Series Preferred be, or if outstanding would be,
at any time prior to the expiration of this Warrant or any portion thereof, converted into shares of the Company’s Common Stock in accordance with the Company’s Certificate of Incorporation, then the Company shall duly execute and deliver
to the holder of this Warrant a new Warrant (in form and substance satisfactory to the holder of this Warrant), so that the holder of this Warrant shall have the right to receive that number of shares of the Company’s Common Stock equal to the
number shares of the Common Stock that would have been received if this Warrant had been exercised in full and the Series Preferred received thereupon had been simultaneously converted immediately prior to such event, and the Warrant Price shall
immediately be adjusted to equal the quotient obtained by dividing (i) the aggregate Warrant Price of the maximum number of shares of Series Preferred for which this Warrant was exercisable immediately prior to such conversion, by (ii) the number of
shares of Common Stock for which this Warrant is exercisable immediately after such conversion. Such new Warrant shall be immediately exercisable and shall provide for adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 5 and shall provide for anti-dilution protection that shall be as nearly equivalent as may be practicable to the anti-dilution provision applicable to the Series Preferred on the Date of Grant. For purposes
of the 
  

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 foregoing, the “Certificate of Incorporation” shall mean the Certificate of Incorporation of the Company as
amended and/or restated and effective immediately prior to the conversion of all of the Company’s Series Preferred. At the time of any such conversion of all of the Company’s Series Preferred, references herein to Series Preferred shall be
deemed to refer to the Company’s Common Stock to the extent necessary to give appropriate meaning to the provisions hereof. 
  
 (b) Reclassification or Merger. In case of any reclassification or change of securities of the class issuable upon exercise of this Warrant (other
than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination), or in case of any merger of the Company with or into another corporation (other than a merger with
another corporation in which the Company is the acquiring and the surviving corporation and which does not result in any reclassification or change of outstanding securities issuable upon exercise of this Warrant), or in case of any sale of all or
substantially all of the assets of the Company, the Company, or such successor or purchasing corporation, as the case may be, shall duly execute and deliver to the holder of this Warrant a new Warrant (in form and substance satisfactory to the
holder of this Warrant), so that the holder of this Warrant shall have the right to receive, at a total purchase price not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and in lieu of the shares of Series
Preferred theretofore issuable upon exercise of this Warrant, the kind and amount of shares of stock, other securities, money and property receivable upon such reclassification, change or merger that a holder of the shares deliverable upon exercise
of this Warrant would have been entitled to receive in such reclassification, change or merger if this Warrant had been exercised immediately before such reclassification, change or ,merger, all subject to further adjustment as provided in this Section 5. Such new Warrant shall provide for adjustments that shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Section 5 and, in the case of a new Warrant issuable after the amendment of the terms of the anti-dilution protection of the Series Preferred, shall provide for anti-dilution protection that
shall be as nearly equivalent as may be practicable to the anti-dilution provisions applicable to the Series Preferred on the Date of Grant. The provisions of this subparagraph (a) shall similarly apply to successive reclassifications, changes,
mergers and transfers. 
  
 (c) Subdivision or Combination of
Shares. If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of
securities of the same class, the Warrant Price shall be proportionately decreased in the case of a split or subdivision or increased in the case of a combination, effective at the close of business on the date the subdivision or combination becomes
effective. 
  
 (d) Stock Dividends and Other Distributions.
If the Company at any time while this Warrant is outstanding and unexpired shall (i) pay a dividend with respect to Series Preferred payable in Series Preferred, or (ii) make any other distribution with respect to Series Preferred (except any
distribution specifically provided for in Sections 5(b) and 5(c)), of Series Preferred, then the Warrant Price shall be adjusted, from and after the date of determination of shareholders entitled to receive such dividend or distribution, to that
price determined by multiplying the Warrant Price in effect immediately prior to such date of determination by a fraction (i) the numerator of which shall be the total number of shares of Series Preferred outstanding immediately prior to such
dividend or distribution, and (ii) the denominator of which shall be the total number of shares of Series Preferred outstanding immediately after such dividend or distribution. 
  
 (e) Adjustment of Number of Shares. Upon each adjustment in the Warrant Price, the number of Shares of Series
Preferred purchasable hereunder shall be adjusted, to the nearest whole share, to the product obtained by multiplying the number of Shares purchasable immediately prior to such adjustment in the Warrant Price by a fraction, the numerator of which
shall be the Warrant Price immediately priori to such adjustment and the denominator of which shall be the Warrant Price immediately thereafter. 
  
 (f) Anti-dilution Rights. The other antidilution rights applicable to the Shares of Series Preferred purchasable hereunder are set forth in the
Company’s Certificate of Incorporation, as amended through the Date of Grant, a true and complete copy of which has been supplied to the holder of this Warrant (the “Charter”). The Company shall promptly provide the holder hereof with
any restatement, amendment, modification or waiver of the Charter promptly after the same has been made. 
  
 6. Notice of Adjustments. Whenever the Warrant Price or the number of Shares purchasable hereunder shall be adjusted pursuant to Section 5 hereof,
the Company shall make a certificate signed by its chief financial officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Warrant
Price and the number of Shares purchasable hereunder after giving effect to such adjustment, and shall cause copies of such certificate to be mailed (without regard to Section 14 hereof, by first class mail, postage prepaid) to the holder of this
Warrant. In addition, whenever the conversion price or conversion ratio of the Series Preferred shall be adjusted, the Company shall make a certificate signed by its chief financial officer setting forth, in reasonable detail, the event requiring
the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the conversion price or ratio of the Series Preferred after giving effect to such adjustment, and shall cause copies of such certificate to be
mailed (without regard to Section 14 hereof, by first class mail, postage prepaid) to the holder of this Warrant. 
  
 7. Fraction Shares. No fractional shares of Series Preferred will be issued in connection with any exercise hereunder, but in lieu of such
fractional shares the Company shall make a cash payment therefor based on the fair market value of the Series Preferred on the date of exercise as reasonably determined in good faith by the Company’s Board of Directors. 
  
 8. Compliance with; Act: Disposition of Warrant or Shares of Series
Preferred. 
  
 (a) Compliance with Act. The holder of
this Warrant, by acceptance hereof, agrees that this Warrant, and the shares of Series Preferred to be issued upon exercise hereof and any Common Stock issued upon conversion thereof are being acquired for investment and that such holder will not
offer, sell or otherwise dispose of this Warrant, or any shares of Series Preferred to be issued upon exercise hereof or any Common Stock issued upon conversion thereof except under circumstances which will not result in a violation of the Act or
any applicable state securities laws. Upon exercise of this Warrant, 
  

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 unless the Shares being acquired are registered under the Act and any applicable state securities laws or an exemption
from such registration is available, the holder hereof shall confirm in writing that the shares of Series Preferred so purchased (and any shares of Common Stock issued upon conversion thereof) are being acquired for investment and not with a view
toward distribution or resale in violation of the Act and shall confirm such other matters related thereto as may be reasonably requested by the Company. This Warrant and all shares of Series Preferred issued upon exercise of this Warrant and all
shares of Common Stock issued upon conversion thereof (unless registered under the Act and any applicable state securities laws) shall be stamped or imprinted with a legend in substantially the following form: 
  
 “THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF SECTION 8 OF THE WARRANT UNDER WHICH THESE SECURITIES WERE ISSUED, DIRECTLY OR
INDIRECTLY.” 
  
 Said legend shall be removed by the Company,
upon the request of a holder, at such time as the restrictions on the transfer of the applicable security shall have terminated. In addition, in connection with the issuance of this Warrant, the holder specifically represents to the Company by
acceptance of this Warrant as follows: 
  
 (1) The holder is
acquiring this Warrant for its own account for investment purposes only and not with a view to, or for the resale in connection with, any “distribution” thereof in violation of the Act. The holder is an “accredited investor” as
defined in Rule 501(a) of Regulation D promulgated under the Act. 
  
 (2) The holder understands that this Warrant has not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the holder’s investment
intent as expressed herein. 
  
 (3) The holder further understands
that this Warrant must be held indefinitely unless subsequently registered under the Act and qualified under any applicable state securities laws, or unless exemptions from registration and qualification are otherwise available. The holder is aware
of the provisions of Rule 144, promulgated under the Act. 
  
 (b)
Disposition of Warrant or Shares. With respect to any offer, sale or other disposition of this Warrant or any shares of Series Preferred acquired pursuant to the exercise of this Warrant prior to registration of such Warrant or shares, the
holder hereof agrees to give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of such holder’s counsel, or other evidence, if reasonably requested by the Company, to the effect
that such offer sale or other disposition may be effected without registration or qualification (under the Act as then in effect or any federal or state securities law then in effects) of this Warrant or such shares of Series Preferred or Common
Stock and indicating whether or not under the Act certificates for this Warrant or such shares of Series Preferred to be sold or otherwise disposed of require any restrictive legend as to applicable restrictions on transferability in order to ensure
compliance with such law. Promptly upon receiving such written notice and reasonably satisfactory opinion or other evidence, if so requested, the Company, as promptly as practicable but no later than fifteen (15) days after receipt of the written
notice, shall notify such holder that such holder may sell or otherwise dispose of this Warrant or such shares of Series Preferred or Common Stock, all in accordance with the terms of the notice delivered to the Company. If a determination has been
made pursuant to this Section 8(b) that the opinion of counsel for the holder, or other evidence is not reasonably satisfactory to the Company, the Company shall so notify the holder promptly with details thereof after such determination has been
made. Notwithstanding the foregoing, this Warrant or such shares of Series Preferred or Common Stock may, as to such federal laws, be offered, sold or otherwise disposed of in accordance with Rule 144 or 144A under the Act, provided that the Company
shall have been furnished with such information as the Company may reasonably request to provide a reasonable assurance that the provisions of Rule 144 or 144A have been satisfied. Each certificate representing this Warrant or the shares of Series
Preferred thus transferred (except a transfer pursuant to Rule 144 or 144A) shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with such laws, unless in the aforesaid opinion of counsel for the
holder, such legend is not required in order to ensure compliance with such laws. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. 
  
 (c) Applicability of Restrictions. Neither any restrictions of any
legend described in this Warrant nor the requirements of Section 8(b) above shall apply to any transfer or grant of a security interest in, this Warrant (or the Series Preferred or Common Stock obtainable upon exercise thereof) or any part hereof
(i) to a partner of the holder if the holder is partnership, (ii) to a partnership of which the holder is a partner, or (iii) to any affiliate of the holder if the holder is a corporation; provided, however, in any such transfer, if applicable, the
transferee shall on the Company’s request agree in writing to be bound by the terms of this Warrant as if an original signatory hereto. 
  
 9. Rights as Shareholder’s Information. No holder of this Warrant, as such, shall be entitled to vote or receive dividends or be deemed the
holder of Series Preferred or any other securities of the Company which may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, any of
the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to receive notice of meetings, or to receive dividends or subscription rights or
otherwise until this Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have become deliverable, as provided herein. Notwithstanding the foregoing, the Company will transmit to the holder of this Warrant such
information, documents and reports as are generally distributed to the holders of any class or series of the securities of the Company concurrently with the distribution thereof to the shareholders. 
  
 10. Registration Rights. The Company grants registration rights to the
holders of this Warrant for any Common Stock of the Company obtained upon conversion of the Series Preferred, 
  
  

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 comparable to the registration rights granted to the investors in that certain
                 Agreement dated as of             ,
         (the “Registration Rights Agreement”). 
  
 11. Additional Rights. 
  
 11.1 Secondary Sales. The Company agrees that it will not interfere with the holder of this Warrant in obtaining liquidity if opportunities to make
secondary sales of the Company’s securities become available. 
  
 11.2 Mergers. The Company shall provide the holder of this Warrant with at least thirty (30) days’ notice of the terms and conditions of any of the following potential transactions: (i) the sale, lease, exchange, conveyance or
other disposition of all or substantially all of the Company’s property or business, or (ii) its merger into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company), or any transaction (including a
merger or other reorganization) or series of related transactions, in which more than 50% of the voting power of the Company is disposed of. The Company will cooperate with the holder in arranging the sale of this Warrant in connection with any such
transaction. 
  
 11.3 Rights to Convert Warrant into Stock; Net
Issuance. 
  
 (a) Right to Convert. In addition to and
without limiting the rights of the holder under the terms of this Warrant, the holder shall have the right to convert this Warrant or any portion thereof (the “Conversion Right”) into shares of Series Preferred (or Common Stock if the
Series Preferred has been automatically converted into Common Stock) as provided in this Section 11.3 at any time or from time to time during the term of this Warrant. Upon exercise of the Conversion Right with respect to a particular number of
shares subject to this Warrant (the “Converted Warrant Shares”), the Company shall deliver to the holder (without payment by the holder of any exercise price or any cash or other consideration) (X) that number of shares of fully paid and
nonassessable Series Preferred (or Common Stock if the Series Preferred has been automatically converted into Common Stock) equal to the quotient obtained by dividing the value of this Warrant (or the specified portion hereof) on the Conversion Date
(as defined in subsection (b) hereof), which value shall be determined by subtracting (A) the aggregate Warrant Price of the Converted Warrant Shares immediately prior to the exercise of the Conversion Right from (B) the aggregate fair market value
of the Converted Warrant Shares issuable upon exercise of this Warrant (or the specified portion hereof) on the Conversion Date (as herein defined) by (Y) the fair market value of one share of Series Preferred (or Common Stock if the Series
Preferred has been automatically converted into Common Stock) on the Conversion Date (as herein defined). 
  
 Expressed as a formula, such conversion (assuming the Series Preferred has been automatically converted into Common Stock) shall be computed as follows:

  

	 X    =
	  	B –A	  	 
	 	  	  Y	  	 
			
	 Where: X
	  	=	  	the number of shares of Common Stock that may be issued to holder
			
	               Y
	  	=	  	the fair market value (FMV) of one share of Common Stock
			
	               A
	  	=	  	the aggregate Warrant Price (i.e., Converted Warrant Shares x Warrant Price)
			
	               B
	  	=	  	the aggregate FMV (i.e., FMV x Converted Warrant Shares)

  
 No fractional shares
shall be issuable upon exercise of the Conversion Right, and, if the number of shares to be issued determined in accordance with the foregoing formula is other than a whole number, the Company shall pay to the holder an amount in cash equal to the
fair market value of the resulting fractional share on the Conversion Date (as hereinafter defined). For purposes of Section 10 of this Warrant, shares issued pursuant to the Conversion Right shall be treated as if they were issued upon the exercise
of this Warrant. 
  
 (b) Method of Exercise. The Conversion
Right may be exercised by the holder by the surrender of this Warrant at the principal office of the Company together with a written statement specifying that the holder thereby intends to exercise the Conversion Right and indicating the number of
shares subject to this Warrant which are being surrendered (referred to in Section 11.3(a) hereof as the Converted Warrant Shares) in exercise of the Conversion Right. Such conversion shall be effective upon receipt by the Company of this Warrant
together with the aforesaid written statement, or on such later date as is specified therein (the “Conversion Date”), and, at the election of the holder hereof, may be made contingent upon the closing of the sale of the Company’s
Common Stock to the public in a public offering pursuant to a Registration Statement under the Act (a “Public Offering”). Certificates for the shares issuable upon exercise of the Conversion Right and, if applicable, a new warrant
evidencing the balance of the shares remaining subject to this Warrant, shall be issued as of the Conversion Date and shall be delivered to the holder within thirty (30) days following the Conversion Date. Any conversion from Series Preferred to
Common Stock shall be in the ratio of one (1) share of Common Stock for each share of Series Preferred (as adjusted herein and in the Charter). On the Date of Grant, each share of the Series Preferred represented by this Warrant is convertible into
one (1) share of Common Stock. 
  
 (c) Determination of Fair
Market Value. For purposes of this Section 11.3, “fair market value” of a share of Series Preferred (or Common Stock if the Series Preferred has been automatically converted into Common Stock) as of a particular date (the
“Determination Date”) shall mean: 
  
 (i) If the
Conversion Right is exercised in connection with and contingent upon the closing of the sale and issuance of shares of Common Stock of the Company in a firmly underwritten public offering, pursuant to an effective registration statement under the
Securities Act of 1933, as amended, (“Public Offering”), and if the Company’s Registration Statement relating to such Public Offering (“Registration Statement”) has been declared effective by the SEC, then the initial
“Price to Public” specified in the final prospectus with respect to such offering. 
  
 (ii) If the Conversion Right is not exercised in connection with and contingent upon a Public offering, then as follows: 
  
 (A) If traded on a securities exchange, the fair market value of the Common Stock shall be deemed to be the average of the closing prices
of the 
  

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 Common Stock on such exchange over the 30-day period ending five business days prior to the Determination
Date, and the fair market value of the Series Preferred shall be deemed to be such fair market value of the Common Stock multiplied by the number of shares of Common Stock into which each share of Series Preferred is then convertible; 
  
 (B) If traded over-the-counter, the fair market value of the
Common Stock shall be deemed to be the average of the closing bid prices of the Common Stock over the 30-day period ending five business days prior to the Determination Date, and the fair market value of the Series Preferred shall be deemed to be
such fair market value of the Common Stock multiplied by the number of shares of Common Stock into which each share of Series Preferred is then convertible; and 
  
 (C) If there is no public market for the Common Stock, then fair market value shall be determined by mutual
agreement of the holder of this Warrant and the Company. 
  
 12.
Representations and Warranties. The Company represents and warrants to the holder of this Warrant that: 
  
 (a) Loan Agreement. The representations and warranties of the Company contained in that certain Secured Note Purchase Agreement (the “Note
Purchase Agreement”) between the Company and the initial holder hereof, dated as of                     , 2003, are true, complete and
correct. 
  
 (b) Corporate Power. The Company has all
requisite legal and corporate power to execute and deliver this Warrant and any other agreement contemplated hereby, to sell and issue the Warrant, to sell and issue the Shares upon exercise of the Warrant upon the terms of the Warrant, to sell and
issue the shares of Common Stock issuable upon conversion of the Shares (the “Conversion Shares”) and to carry out and perform its obligations under the terms of this Agreement and any other agreement contemplated hereby or thereby. (The
Shares and the Conversion Shares are collectively referred to hereinafter as the “Underlying Stock.”) 
  
 (c) Authorization. All corporate action on the part of the Company, its directors and stockholders necessary for the authorization, sale and
issuance of the Warrant, the Warrant Shares and the Conversion Shares, and the performance of the company’s obligations hereunder, contemplated hereby and the reservation of the Underlying Stock has been taken. This Agreement and the Warrant
and the other transactions contemplated hereby are valid and binding obligations of the Company, enforceable in accordance with their respective terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of
debtors. 
  
 (d) Rights. The rights, preferences,
privileges and restrictions granted to or imposed upon the Shares and the holders thereof are as set forth in the Company’s Certificate of Incorporation, a true and complete copy of which has been provided to the holder of this Warrant.

  
 (e) No Inconsistency. The execution and delivery of
this warrant is not, and the issuance of the Shares upon exercise of the Warrant in accordance with the terms hereof, and the issuance of the Conversion Shares upon conversion of the Shares, will not be, inconsistent with the Certificate of
Incorporation or the Company’s Bylaws, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, and do not and will not conflict with or contravene any provision of, or constitute a
default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action
in respect of or by, any Federal, state or local government authority or agency or other person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby and, except
for defaults, conflicts, or contraventions, or where the failure to obtain any such consent or approval, or to register, file, or take any action, would not have a Material Adverse Effect (as defined in the Note Purchase Agreement). 
  
 (f) No Suits. There are no actions, suits, audits, investigations or
proceedings pending or, to the knowledge of the Company, threatened against the Company in any court or before any governmental commission, board or authority which, if adversely determined, would reasonably be expected to have a Material Adverse
Effect (as defined in the Note Purchase Agreement) or a material adverse effect on the ability of the Company to perform its obligations under this Warrant. 
  
 13. Modification and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought. 
  
 14. Notices. Any notice, request, communication or other document required or permitted to be given or delivered to the holder hereof or the Company shall be delivered, or shall be sent by certified or
registered mail, postage prepaid, to each such holder at its address as shown on the books of the Company or to the Company at the address indicated therefor on the signature page of this Warrant. 
  
 15. Binding Effect on Successors. This Warrant shall be binding upon
any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets, and all of the obligations of the Company relating to the Series Preferred issuable upon the exercise or
conversion of this Warrant shall survive the exercise, conversion and termination of this Warrant. 
  
 16. Lost Warrants or Stock Certificates. The Company covenants to the holder hereof that, upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant or any stock certificate and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of any such
mutilation upon surrender and cancellation of such Warrant or stock certificate, the Company will make and deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate.

  
 17. Descriptive Headings. The descriptive headings of
the several paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. 
  
 18. Governing Law. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of
the State of California without regard to the conflicts of law principle. 
  
  

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 19. Survival of Representations, Warranties and Agreements. All representations and warranties of
the Company and the holder hereof contained herein shall survive the Date of Grant and the exercise or conversion of this Warrant (or any part hereof). All agreements of the Company and the holder hereof contained herein shall survive indefinitely
until, by their respective terms, they are no longer operative. 
  
 20. Remedies. In case any one or more of the covenants and agreements contained in this Warrant shall have been breached, the holders hereof (in the case of a breach by the Company), or the Company (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit in equity and/or by action at law, including, but not limited to, an action for damages as a result of any such breach and/or an action for specific performance of any
such covenant or agreement contained in this Warrant. 
  
 21.
No Impairment of Rights. The Company will not, by amendment of its Charter or through any other means, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment. 
  
 22. Severability. The invalidity or unenforceability of any provision of this Warrant in any jurisdiction shall not
affect the validity or enforceability of such provision in any other jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and effect. 
  
 23. Dispute Resolution. In the event of any dispute arising out of or relating to this Warrant, then such dispute
shall be              resolved solely and exclusively by confidential binding arbitration with the San Francisco branch of JAMS (“JAMS”) to be governed by JAMS’
Commercial Rules of Arbitration (the “JAMS Rules”) and heard before one arbitrator. The parties shall attempt to mutually select the arbitrator. in the event they are unable to mutually agree, the arbitrator shall be selected by the
procedures prescribed by the JAMS Rules. Each party shall bear its own attorneys’ fees, expert witness fees, and costs incurred in connection with any arbitration. 
  
 23. Construction. This Agreement has been negotiated and drafted by both parties with counsel and its language shall
be construed as to its fair meaning and not strictly for or against any party. 
  
 24. Entire Agreement; Modification. This Warrant constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements,
representations, and undertakings of the parties, whether oral or written, with respect to such subject matter. 
  
  
  
  

 6 

 EXHIBIT A 
 NOTICE OF EXERCISE 
  
 To
eUniverse, Inc 
  
 1. The undersigned hereby:

  

	 ̈	 	elects to purchase              shares of Series B Preferred Stock of eUniverse, Inc. pursuant to the terms of
the attached Warrant, and tenders herewith payment of the purchase price of such shares in full, or 

	 ̈	 	elects to exercise its net issuance rights pursuant to Section 11.3 of the attached Warrant with respect to
             Shares of Series B Preferred Stock. 

  
 2. Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are specified
below: 
  

	 	 	
 (Name)
	 	 
	 	 	
	 	 
	 	 	
 (Address)
	 	 

  
 3. The undersigned
represents that the aforesaid shares are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of
distributing or reselling such shares, all except as in compliance with applicable securities laws 
  

	

	 (Signature)

	
	
 (Date)Option Agreement

 Exhibit 10.48 
  
 OPTION AGREEMENT 
  
 OPTION AGREEMENT, dated as of July 15, 2003, among 550 Digital Media Ventures, Inc. (“Seller”), an affiliate of Sony Broadband Entertainment,
Inc., eUniverse, Inc., a Delaware corporation (the “Company”), and VP Alpha Holdings IV, L.L.C. (“Buyer”). 
  
 R E C I T A L S 
  
 This Agreement is entered into upon the basis of the following facts and intentions of the parties: 
  
 A. Seller owns 3,050,000 shares of the Common Stock and 1,750,000 shares of
the Series B Preferred Stock (each, a “Share”, and collectively the “Shares”) of the Company that will be subject to this Agreement. Seller separately owns an additional 316,154 shares of the Common Stock and 173,077 shares of
the Series B Preferred Stock of the Company, which shares shall not be subject to this Agreement. 
  
 B. Seller desires to grant to Buyer an option to purchase the Shares. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree as follows: 
  
 1. Option. Seller hereby
grants to Buyer an option (the “Option”) to purchase any and all (but not less than 50%) of the Shares from Seller upon all of the terms, covenants and conditions hereinafter set forth. The share certificates representing the Shares shall
hereafter bear a legend referring to this Option Agreement. 
  
 2.
Consideration for the Option. Seller acknowledges that it has received good, valuable and sufficient consideration for the Option. 
  
 3. Term and Exercise. Buyer may exercise the Option at any time up to 5:00 p.m., New York City time on January 10, 2004 (the “Termination
Date”) by delivery to Seller of written notice of its exercise of the Option, together with its check for the full Purchase Price (as defined below). Within 5 business days following exercise of the Option, Seller shall deliver to Buyer
certificates for the Shares, duly exercised for transfer, at which time the closing of the purchase of the Shares from Seller shall occur (the “Closing”). The date of the Closing is referred to herein as the “Closing Date.”

  
 4. Purchase Price. 
  
 (a) The purchase price (“Purchase Price”) which Buyer agrees to pay
upon exercise of the Option is one dollar and ten cents ($1.10) per Share, payable in cash at the Closing. 

 (b) In the event that Buyer thereafter sells any Shares acquired from Seller (each, a “Resold
Share” and collectively, the “Resold Shares”) and receives cash consideration in excess of $3 per Resold Share, then Buyer shall, promptly after consummation of such sale, pay over to Seller an amount equal to 40% of the sale price
over $3 per Resold Share received by Buyer, but in no event more than $1.10 per Resold Share (the “Contingent Payment”). In the event that Buyer distributes the Shares to its limited partners, then the Contingent Payment shall be made to
Seller in the form of a portion of the Shares distributed, calculated to be equal to 40% of the excess of the fair market value price per share of the Company’s Common Stock (which shall equal the average closing price over the 20 consecutive
trading days immediately preceding the distribution or if the Company’s Common Stock is not publicly traded then the fair market value after taking into account lack of marketability and any other appropriate factors, as determined by an
appraisal undertaken by an independent appraiser experienced in valuing securities similar to the Shares which has been mutually selected by Buyer and Seller) over $3 per Share on the date of the Distribution, subject to a maximum distribution of
Shares to Seller equal to a value of $1.10 per Share. By way of example, if Buyer exercises the option for all of the Shares, and then two (2) years later sells all of the Shares for a sale price cash consideration of $5 per Share, then Seller shall
be entitled to a payment equal to $0.80 per Share ($5 – $3 x 40%). By way of further example, if Buyer exercises the Option for all of the Shares and Buyer distributes Shares to its limited partners and the fair market value of such distributed
Shares as determined pursuant hereto is $7 per Share, then Seller shall be entitled to receive a number of Shares that have a fair market value of $5.28 million ($7 – $3 x 40%, subject to the maximum of $1.10 per Share, times 4.8 million
Shares.) 
  
 5. Number of Shares. The number and class of
Shares specified in this Agreement and/or the Purchase Price or per share number are subject to appropriate adjustment in the event of any stock dividend, stock split, share combination or other similar event affecting the Shares. 
  
 6. Representations and Warranties of Seller. Seller represents,
warrants and covenants to Buyer, as of the date hereof and as of the Closing Date, that: 
  
 (a) Due Authorization. This Agreement has been duly authorized, executed and delivered by or on behalf of Seller and is a valid and binding agreement of Seller, enforceable in accordance with its terms against
Seller. 
  
 (b) No Conflict. The execution and delivery by
Seller of, and the performance by Seller of its obligations under this Agreement, will not contravene any provision of applicable law, or the certificate of incorporation, or by-laws of Seller, or to Seller’s knowledge, any agreement or other
instrument binding upon Seller or any judgment, order or decree of any governmental body, agency or court having jurisdiction over Seller, and to Seller’s knowledge, no consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by Seller of its obligations under this Agreement. 
  
 (c) Good Title to Shares. Seller has, and on the Closing Date will have, valid title to the Shares to be sold by Seller and the legal right and
power, and all authorization and approval required by law, to enter into this Agreement, and to sell, transfer, 
  

 2 

 and deliver the Shares to be sold by Seller. 
  
 (d) Delivery of Shares. Delivery of the Shares to be sold by Seller pursuant to this Agreement will pass title to
such Shares free and clear of any security interests, claims, liens, equities, and other encumbrances, other than any encumbrances or restrictions imposed on the Shares under securities laws or by the Company. 
  
 (e) No Price Stabilization or Manipulation. Seller has not taken and
will not take, directly or indirectly, any action designed cause or result in stabilization or manipulation of the price of any of the Shares. 
  
 (f) Certain Transactions. Except as set forth in Exhibit A, the Company is not indebted, either directly or indirectly, to Seller, Sony Music
Entertainment Inc. or any of its subsidiaries or any of their officers, directors or employees. Each of the Seller and Sony Music Entertainment Inc. and its subsidiaries hereby waives any breach or default under any agreement with the Company.

  
 (g) Value. The Purchase Price may or may not reflect
the actual value of the Shares, that Seller has investigated the value independently, that it has been represented by independent counsel, and that it understands that the value of the Shares when and if the Option is exercised may be significantly
higher than the Purchase Price. 
  
 (h) Assignment. Prior
to the Termination Date, Seller shall not sell, assign, transfer, pledge, hypothecate, or otherwise encumber any of the Shares. 
  
 7. Representations and Warranties of Buyer. Buyer represents, warrants and covenants to Seller, as of the date hereof and as of the Closing Date,
that: 
  
 (a) Due Authorization. This Agreement has been
duly authorized, executed and delivered by or on behalf of Buyer and is a valid and binding agreement of Buyer, enforceable in accordance with its terms against Buyer. 
  
 (b) No Conflict. The execution and delivery by Buyer of, and the performance by Buyer of its obligations under this
Agreement, will not contravene any provision of applicable law, or the organizational documents of Buyer, or to Buyer’s knowledge, any agreement or other instrument binding upon Buyer or any judgment, order or decree of any governmental body,
agency or court having jurisdiction over Buyer, and to Buyer’s knowledge, no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by Buyer of its obligations under
this Agreement. 
  
 (c) No Price Stabilization or
Manipulation. Buyer has not taken and will not take, directly or indirectly, any action designed to cause or result in stabilization or manipulation of the price of any of the Shares. 
  
 (d) Value. The Purchase Price may or may not reflect the actual value of the Shares, that Buyer has investigated the
value independently and that it has been represented by independent counsel. 
  

 3 

 (e) Investment Intent, Etc. Buyer is an “accredited investor” within the meaning of Rule
501(a) under the Securities Act of 1933, and Buyer has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of, and is able to bear the economic risk of, its respective acquisition of
the Shares. Buyer has had the opportunity to do its own due diligence regarding the Company, and Buyer is not relying on Seller with respect to such due diligence. Buyer is not acquiring the Shares with any present intention of offering or selling
any of the Shares in a transaction that would violate the Securities Act 1933 or the securities laws of any state of the United States or any other applicable jurisdiction. 
  
 8. Rights. Any and all rights that Seller has associated with the Shares, including but not limited to registration
rights, voting rights, preemptive right, liquidation preference, or otherwise, shall be deemed transferred (to the extent transferable) to Buyer upon Buyer’s exercise of the Option and payment of the Purchase Price. 
  
 9. Cooperation. If the Option is exercised, Seller and the Company
shall, upon request of Buyer, promptly execute and deliver all additional documents reasonably deemed by Buyer to be necessary, appropriate or desirable to complete and evidence the sale, assignment and transfer of the Shares pursuant to this
Agreement and to accomplish the other matters contemplated herein. 
  
 10. Certain Transactions. Seller shall vote as a stockholder in favor of an investment and loan transaction between the Company and Buyer resulting in an additional investment in the Company by Buyer of no less than $5 million at a
price of at least $1 per share (if an equity transaction), as approved by the Board of Directors of the Company (the “Transaction”). In connection with consummation of any Transaction, Seller shall be deemed to have waived any
anti-dilution protection and any pre-emptive rights and rights of first refusal that Seller may have in connection with its securities holdings in the Company. 
  

11. Amended and Restated Certificate of Designation. Subject to the exercise of the Option, Seller and the Company consent and agree to the
terms set forth in Exhibit B. An amendment to the certificate of incorporation of the Company amending the terms of the Series B Preferred Stock shall be filed by the Company with the Delaware Secretary of State as of the Closing Date which reflects
the changes contemplated by such Exhibit B. If the Company reasonably determines that stockholder approval of such amendment is required under the laws of the State of Delaware, then the Board of Directors of the Company shall establish, before the
Closing Date, a new class of preferred stock with the same rights, preferences and privileges as the Series B Preferred Stock after giving effect to the changes contemplated by Exhibit B. Immediately after the Closing, Buyer may elect to exchange
its Series B Preferred Stock for shares of such new class of preferred stock (at the rate of one share for one share). 
  
 12. Purchase and Sale. If Buyer exercises the Option, at the Closing, Seller shall sell, transfer and deliver the Shares, represented by
certificates duly endorsed in blank or accompanied by stock powers duly executed, to Buyer, and Buyer shall purchase the Shares in exchange for the Purchase Price. 
  

 4 

 13. Acceptance. Company hereby consents to the transaction contemplated hereunder and confirms to
Buyer that the Company’s representations and warranties contained in that Loan Agreement dated the date hereof between Buyer and the Company are true, correct, and complete. 
  
 14. Buyer May Exercise Option For Less Than All Shares. Notwithstanding any other provision herein to the contrary,
Buyer may exercise the Option with respect to less than all of the Shares, but in no event less than 50% of the Shares. 
  
 15. Survival. All representations, warranties and agreements made by Seller and by Buyer in this Agreement shall survive the execution of this
Agreement for a period of one (1) year from the date hereof, except for the provisions of Sections 6(a) and 6(c), which shall survive indefinitely. 
  
 16. Miscellaneous. This Agreement constitutes and contains the entire agreement and understanding between the parties with respect to the subject
matter hereof and supersedes any prior or contemporaneous oral or written agreements or understandings. Each party acknowledges and agrees that they have not made any representations, warranties or agreements of any kind regarding the subject matter
hereof, except as expressly set forth herein. This Agreement may not be modified or amended, except by an instrument in writing signed by duly authorized officers of both of the parties hereto. The parties agree that any dispute arising out of or in
connection with this Agreement will be resolved solely by confidential binding arbitration in San Francisco, California according to the commercial arbitration rules of JAMS. Each party shall bear its own attorneys’ fees, expert witness fees,
and costs in connection with such arbitration. This Agreement has been negotiated and drafted by each party, with counsel from each party reviewing the document. The language in this Agreement shall be construed as to its fair meaning and not
strictly for or against any party. This Agreement, and any dispute arising hereunder, shall be governed by California law, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws
of any jurisdiction other than California. If any provision of this Agreement is determined to be invalid in whole or in part for any reason, such unenforceable or invalid provision shall not affect the legality, enforceability or validity of the
rest of this Agreement. If any provision is stricken in accordance with the previous sentence, then the stricken provision shall be replaced with a legal, enforceable and valid provision that is as similar in tenor to the stricken provision as is
legally possible. The provisions of this Agreement are intended solely for the benefit of the Company, Buyer, and Seller and no provision hereof may be enforced by any creditor, shareholder, officer, director, or agent of, or any other party
affiliated with, the Company, Seller or Buyer. The Company and Seller shall use their commercially reasonable efforts to perform such further acts and things as Buyer may reasonably request in order to carry out the intent and accomplish the purpose
of this Agreement. 
  

 5 

 IN WITNESS WHEREOF, this Option Agreement has been duly executed and delivered by Buyer, Company, and
Seller as of the day and year first written below: 
  

	 SELLLER:

	
	 550 Digital Media Ventures, Inc.,
 on behalf of itself and Sony Music
 Entertainment Inc. and its subsidiaries

		
	 By:
	 	 /s/    MARK
EISENBERG        

	 Name:
	 	Mark Eisenberg        
	 Title:
	 	Sr. V.P. & General Counsel

  

	 COMPANY

	
	 eUNIVERSE, INC.

		
	 By:
	 	 /s/    BRAD
GREENSPAN        

	 Name:
	 	Brad Greenspan
	 Title:
	 	Chief Executive Officer

  

	 BUYER

	
	 VP ALPHA HOLDINGS IV, L.L.C

			
	 	 	 By:
	 	 VANTAGEPOINT VENTURE ASSOCIATES IV, L.L.C
 Its Managing Member

				
	 	 	 	 	 By:
	 	 /s/    ALAN E.
SALZMAN        

	 	 	 	 	 Name:
	 	Alan E. Salzman
	 	 	 	 	 Title:
	 	Managing Member

  
 [SIGNATURE PAGE TO
OPTION AGREEMENT] 
  
  

 6 

 Exhibit A 
  

Indebtedness 
  
 Second Amended and Restated Promissory Note dated March 28, 2003 in the principal amount of $2,289,764, executed by eUniverse, Inc. payable to 550 Digital Media Ventures, Inc. 
  
  

 A-1 

 Exhibit B 
  

Changes to Terms of Series B Preferred Shares 
  
 The Company’s existing Certificate of Designation of Series B Convertible Preferred Stock, filed with the Secretary of State of Delaware on January 8, 2003, shall be
amended in a manner acceptable to Buyer to encompass the following changes: 
  

	1.	 	The authorized number of shares of Series B Preferred Stock shall be increased to 20,000,000 shares. 

  

	2.	 	No shares of Series B Preferred Stock shall be issued without the consent of Buyer. 

  

	3.	 	Dividends for shares of Series B Preferred Stock held by Buyer, its affiliates and their assignees shall be entitled to an 8% cumulative dividend, payable quarterly. The dividend
shall be payable in additional shares of Series B Preferred Stock, as amended for the matters contemplated by this Exhibit B. 

  

	4.	 	Section 4(d) shall be amended to remove the reference to 550 Digital Media Ventures, Inc. and be substituted with reference to VP Alpha Holdings IV, L.L.C. 

 

	5.	 	The initial Conversion Price defined in Section 5(c) shall be deemed to be $1.50 for shares held by Buyer, its affiliates and their assignees. 

  

	6.	 	If Buyer has exercised the Option for all of the Shares, in the event of any vote or consent by the holders of Series B Preferred Stock, Seller and any assignee of its Series B
Preferred Stock shall be deemed to have voted or consented in the same manner as the vote or consent of Buyer, its affiliates and assignees with respect to the Shares. 

  

	7.	 	The provisions dealing with the “Company Election” shall not apply to the shares held by Buyer, its affiliates and their assignees. 

  

	8.	 	The shares of Series B Preferred Stock held by Buyer, its affiliates and their assignees shall only be convertible into common stock of the Company at Buyer’s election or upon
other events acceptable to Buyer in its sole discretion. 

  

 B-1

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