Document:

Exhibit 10.4

 

RESTRICTED STOCK UNIT AGREEMENT

PURSUANT TO THE 

GENIUS BRANDS INTERNATIONAL, INC.

2020 INCENTIVE PLAN

 

* * * * *

 

Participant: [NAME]

 

Grant Date: [DATE]

 

Number of Restricted Stock Units Granted: [NUMBER]

 

* * * * *

 

 

THIS RESTRICTED
STOCK UNIT AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered
into by and between Genius Brands International, Inc. (the “Company”), and the Participant specified
above, pursuant to the Genius Brands International, Inc. 2020 Incentive Plan, as in effect and as amended from time to time (the
“Plan”), which is administered by the Committee; and

 

WHEREAS, it
has been determined under the Plan that it would be in the best interests of the Company to grant the Restricted Stock Units (“RSUs”)
provided herein to the Participant.

 

NOW, THEREFORE,
in consideration of the mutual covenants and promises hereinafter set forth and for other good and valuable consideration,
the parties hereto hereby mutually covenant and agree as follows:

 

1.              
Incorporation By Reference; Plan Document Receipt. This Agreement is subject in all respects to the terms
and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless
such amendments are expressly intended not to apply to the Award provided hereunder), all of which terms and provisions are made
a part of and incorporated in this Agreement as if they were each expressly set forth herein. Any capitalized term not defined
in this Agreement shall have the same meaning as is ascribed thereto in the Plan. The Participant hereby acknowledges receipt of
a true copy of the Plan and that the Participant has read the Plan carefully and fully understands its content. In the event of
any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.

 

2.              
Grant of Restricted Stock Unit Award. The Company hereby grants to the Participant, as of the Grant Date specified
above, the number of RSUs specified above. Except as otherwise provided by the Plan, the Participant agrees and understands that
nothing contained in this Agreement provides, or is intended to provide, the Participant with any protection against potential
future dilution of the Participant’s interest in the Company for any reason, and no adjustments shall be made for dividends
in cash or other property, distributions or other rights in respect of the shares of Common Stock underlying the RSUs, except as
otherwise specifically provided for in the Plan or this Agreement.

 

3.              
Vesting.

 

(a)            
Time-Based Vesting. Subject to the provisions of Sections 3(b), 3(c) and 3(d) hereof, 100% of the RSUs subject to
this Award shall become vested as follows, provided that the Participant has not incurred a termination of employment or service
with the Company prior to each such vesting date:

 

	Vesting Date	Number of RSUs
	First Anniversary of the Grant Date	[NUMBER]
	Second Anniversary of the Grant Date	[NUMBER]
	Third Anniversary of the Grant Date	[NUMBER]

 

 

    	 	1	 

     

    

 

There shall be no proportionate
or partial vesting in the periods prior to each vesting date and all vesting shall occur only on the appropriate vesting date,
subject to the Participant’s continued service with the Company or any of its Subsidiaries on each applicable vesting date.

 

(b)            
Committee Discretion to Accelerate Vesting. Notwithstanding the foregoing, the Committee may, in its sole discretion,
provide for accelerated vesting of the RSUs at any time and for any reason.

 

(c)            
Termination of Employment. All unvested RSUs shall become fully vested upon the termination of the Participant’s
employment or service with the Company by the Company without Cause or a resignation by the Participant for Good Reason. For purposes
of this Agreement, “Cause” shall have the meaning set forth in that certain Amended and Restated
Employment Agreement, by and between the Participant and the Company, effective as of November [____], 2020 (the “Employment
Agreement”). For purposes of this Agreement, “Good Reason” shall mean following events
or conditions: (i) a material reduction by the Company in the Participant’s Base Salary or Target Bonus (each, as defined
in the Employment Agreement) level; (ii) the Participant shall be required to work at a location more than fifty (50) miles away
from the Participant’s place of work as of the Grant Date; (iii) the assignment to the Participant by the Company of duties
substantially inconsistent with, any change in the Participant’s titles or the significant reduction of the powers and functions
associated with, the Participant’s positions, titles or offices as described herein; (iv) the failure of any successor (whether
direct or indirect, by stock or asset purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly to assume and agree to perform the Employment Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place. Any assertion by the Participant
of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition
described in Sections 3(d)(i), 3(d)(ii), 3(d)(iii) or 3(d)(iv) giving rise to the Participant’s termination of employment
must have arisen without the Participant’s consent; (B) the Participant must provide written notice to the Board of the existence
of such condition(s) within thirty (30) days of the initial existence of such condition(s); (C) the condition(s) specified in such
notice must remain uncorrected for thirty (30) days following the Board’s receipt of such written notice; and (D) the date
of the Participant’s termination of employment must occur within sixty (60) days after the initial existence of the condition(s)
specified in such notice.

 

(d)            
Forfeiture. Subject to the provisions of Sections 3(b) and 3(c), all unvested RSUs shall be immediately forfeited
upon (i) the Participant’s termination of employment or service with the Company for any reason and (ii) the Participant’s
violation of any of Sections 8.1, 8.3 or 8.5 of the Employment Agreement.

 

4.              
Delivery of Shares.

 

(a)            
General. Subject to the provisions of Sections 4.(b) and 4.(c) hereof, the Participant shall receive 25% of the number
of shares of Common Stock that correspond to the number of RSUs that have become vested on the applicable vesting date within thirty
(30) days following the applicable vesting date, and will receive an additional 25% of the number of shares of Common Stock that
correspond to the number of RSUs that have become vested on the applicable vesting date on each of (i) 90 days following the applicable
vesting date, (ii) 180 days following the applicable vesting date, and (iii) 270 days following the applicable vesting date.

 

(b)            
Blackout Periods. If the Participant is subject to any Company “blackout” policy or other trading restriction
imposed by the Company on the date such distribution would otherwise be made pursuant to Section 4(a) hereof, such distribution
shall be instead made on the earlier of (i) the date that the Participant is not subject to any such policy or restriction and
(ii) the later of (A) the end of the calendar year in which such distribution would otherwise have been made and (B) a date that
is immediately prior to the expiration of two and one-half months following the date such distribution would otherwise have been
made hereunder.

 

(c)            
Deferrals. If permitted by the Company, the Participant may elect, subject to the terms and conditions of the Plan
and any other applicable written plan or procedure adopted by the Company from time to time for purposes of such election, to defer
the distribution of all or any portion of the shares of Common Stock that would otherwise be distributed to the Participant hereunder
(the “Deferred Shares”), consistent with the requirements of Section 409A of the Code. Upon the vesting of RSUs
that have been so deferred, the applicable number of Deferred Shares shall be credited to a bookkeeping account established on
the Participant’s behalf (the “Account”). Subject to Section 5 hereof, the number of shares of Common
Stock equal to the number of Deferred Shares credited to the Participant’s Account shall be distributed to the Participant
in accordance with the terms and conditions of the Plan and the other applicable written plans or procedures of the Company, consistent
with the requirements of Section 409A of the Code.

 

 

    	 	2	 

     

    

 

5.              
Dividends; Rights as Stockholder. Cash dividends on shares of Common Stock issuable hereunder shall be credited
to a dividend book entry account on behalf of the Participant with respect to each RSU granted to the Participant, provided
that such cash dividends shall not be deemed to be reinvested in shares of Common Stock and shall be held uninvested and without
interest and paid in cash at the same time that the shares of Common Stock underlying the RSUs are delivered to the Participant
in accordance with the provisions hereof. Stock dividends on shares of Common Stock shall be credited to a dividend book entry
account on behalf of the Participant with respect to each RSU granted to the Participant, provided that such stock dividends
shall be paid in shares of Common Stock at the same time that the shares of Common Stock underlying the RSUs are delivered to the
Participant in accordance with the provisions hereof. Except as otherwise provided herein, the Participant shall have no rights
as a stockholder with respect to any shares of Common Stock covered by any RSU unless and until the Participant has become the
holder of record of such shares.

 

6.              
Non-Transferability. No portion of the RSUs may be sold, assigned, transferred, encumbered, hypothecated or
pledged by the Participant, other than to the Company as a result of forfeiture of the RSUs as provided herein, unless and until
payment is made in respect of vested RSUs in accordance with the provisions hereof and the Participant has become the holder of
record of the vested shares of Common Stock issuable hereunder.

 

7.              
Governing Law. All questions concerning the construction, validity and interpretation of
this Agreement shall be governed by, and construed in accordance with, the laws of
the State of Nevada, without regard to the choice of law principles thereof.

 

8.              
Withholding of Tax. The Company shall have the power and the right to deduct or withhold, or require the Participant
to remit to the Company, an amount sufficient to satisfy any federal, state, local and foreign taxes of any kind (including, but
not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to
be withheld or remitted to comply with the Code and/or any other applicable law, rule or regulation with respect to the RSUs and,
if the Participant fails to do so, the Company may otherwise refuse to issue or transfer any shares of Common Stock otherwise required
to be issued pursuant to this Agreement. Any minimum statutorily required withholding obligation with regard to the Participant
may be satisfied by reducing the amount of cash or shares of Common Stock otherwise deliverable to the Participant hereunder.

 

9.              
Legend. The Company may at any time place legends referencing any applicable federal, state or foreign securities
law restrictions on all certificates representing shares of Common Stock issued pursuant to this Agreement. The Participant shall,
at the request of the Company, promptly present to the Company any and all certificates representing shares of Common Stock acquired
pursuant to this Agreement in the possession of the Participant in order to carry out the provisions of this Section 9.

 

10.           
Securities Representations. This Agreement is being entered into by the Company in reliance upon the following
express representations and warranties of the Participant. The Participant hereby acknowledges, represents and warrants that:

 

(a)            
The Participant has been advised that the Participant may be an “affiliate” within the meaning of Rule 144 under
the Securities Act of 1933 (the “Securities Act”) and in this connection the Company is relying in part
on the Participant’s representations set forth in this Section 10.

 

(b)            
If the Participant is deemed an affiliate within the meaning of Rule 144 of the Securities Act, the shares of Common Stock
issuable hereunder must be held indefinitely unless an exemption from any applicable resale restrictions is available or the Company
files an additional registration statement (or a “re-offer prospectus”) with regard to such shares of Common Stock
and the Company is under no obligation to register such shares of Common Stock (or to file a “re-offer prospectus”).

 

(c)            
If the Participant is deemed an affiliate within the meaning of Rule 144 of the Securities Act, the Participant understands
that (i) the exemption from registration under Rule 144 will not be available unless (A) a public trading market then exists for
the Common Stock of the Company, (B) adequate information concerning the Company is then available to the public, and (C) other
terms and conditions of Rule 144 or any exemption therefrom are complied with, and (ii) any sale of the shares of Common Stock
issuable hereunder may be made only in limited amounts in accordance with the terms and conditions of Rule 144 or any exemption
therefrom.

 

 

 

    	 	3	 

     

    

 

11.           
Entire Agreement; Amendment. This Agreement, together with the Plan, and the Employment Agreement contains
the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements
or prior understandings, whether written or oral, between the parties relating to such subject matter. The Committee shall have
the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the
Plan. This Agreement may also be modified or amended by a writing signed by both the Company and the Participant. The Company shall
give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the
adoption thereof.

 

12.           
Notices. Any notice hereunder by the Participant shall be given to the Company in writing and such notice
shall be deemed duly given only upon receipt thereof by the General Counsel of the Company. Any notice hereunder by the Company
shall be given to the Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address
as the Participant may have on file with the Company.

 

13.           
No Right to Employment. Any questions as to whether and when there has been a termination of employment or
service with the Company and the cause of such termination of employment or service with the Company shall be determined in the
sole discretion of the Committee. Nothing in this Agreement shall interfere with or limit in any way the right of the Company,
its Subsidiaries or its Affiliates to terminate the Participant’s employment or service at any time, for any reason and with
or without Cause.

 

14.           
Transfer of Personal Data. The Participant authorizes, agrees and unambiguously consents to the transmission
by the Company (or any Subsidiary) of any personal data information related to the RSUs awarded under this Agreement for legitimate
business purposes (including, without limitation, the administration of the Plan). This authorization and consent is freely given
by the Participant.

 

15.           
Compliance with Laws. The grant of RSUs and the issuance of shares of Common Stock hereunder shall be subject
to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations
(including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and
regulations promulgated thereunder) and any other law, rule regulation or exchange requirement applicable thereto. The Company
shall not be obligated to issue the RSUs or any shares of Common Stock pursuant to this Agreement if any such issuance would violate
any such requirements. As a condition to the settlement of the RSUs, the Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate to evidence compliance with any applicable law or regulation. Each installment payable hereunder
shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation Section
1.409A-2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral” rule set forth in Treasury
Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule.

 

16.           
Binding Agreement; Assignment. This Agreement shall inure to the benefit of, be binding upon, and be enforceable
by the Company and its successors and assigns. The Participant shall not assign (except in accordance with Section 6 hereof) any
part of this Agreement without the prior express written consent of the Company.

 

17.           
Headings. The titles and headings of the various sections of this Agreement have been inserted for convenience
of reference only and shall not be deemed to be a part of this Agreement.

 

18.           
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original, but all of which shall constitute one and the same instrument.

 

19.           
Further Assurances. Each party hereto shall do and perform (or shall cause to be done and performed) all such
further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto
reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation
of the transactions contemplated thereunder.

 

20.           
Severability. The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall
not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality
or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations
of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

 

 

    	 	4	 

     

    

 

21.           
Acquired Rights. The Participant acknowledges and agrees that: (a) the Company may terminate or amend the
Plan at any time; (b) the Award of RSUs made under this Agreement is completely independent of any other award or grant and is
made at the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the RSUs awarded hereunder)
give the Participant any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this Agreement
are not part of the Participant’s ordinary salary, and shall not be considered as part of such salary in the event of severance,
redundancy or resignation.

 

[Remainder of Page Intentionally
Left Blank]

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

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

 

 

	 	GENIUS BRANDS INTERNATIONAL, INC.

                                             

	 	By: _______________
	 	 
	 	Name:______________
	 	 
	 	Title:_______________

 

 

 

 

	 	PARTICIPANT
	 	 
	 	 
	 	____________________
	 	 
	 	Name: _______________

 

 

 

    	 	6Exhibit 10.5

 

GENIUS BRANDS INTERNATIONAL, INC.

2020 INCENTIVE PLAN

 

STOCK OPTION GRANT NOTICE

 

Genius Brands International,
Inc. (the “Company”), pursuant to its 2020 Incentive Plan (the “Plan”), hereby
grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth below. This option
is subject to all of the terms and conditions as set forth herein and in the Option Agreement, the Plan, and the Notice of Exercise,
all of which are attached hereto and incorporated herein in their entirety.

 

	Optionholder:	[NAME]
	Date of Grant:	[DATE]
	Vesting Commencement Date:	Date of Grant
	Number of Shares Subject to Option:	[NUMBER]
	Exercise Price (Per Share):	[Closing price on Date of Grant]
	Expiration Date:	[10th anniversary of Date of Grant]

 

 

	Type of Grant:	 ̈	Incentive Stock Option	x	Nonstatutory Stock Option
	Exercise Schedule:	x	Same as Vesting Schedule	 	 

 

Vesting Schedule:       This Nonstatutory
Stock Option shall be vested and exercisable as follows, subject to the Optionholder’s continued employment with the Company
through such date:

 

		·	[NUMBER] Shares subject to the Nonstatutory Stock Option shall be vested and exercisable on the
Date of Grant;

 

		·	[NUMBER] Shares subject to the Nonstatutory Stock Option shall be vested and exercisable on the
first anniversary of the Date of Grant;

 

		·	[NUMBER] Shares subject to the Nonstatutory Stock Option shall be vested and exercisable on the
second anniversary of the Date of Grant;

 

		·	[NUMBER] Shares subject to the Nonstatutory Stock Option shall be vested and exercisable on the
third anniversary of the Date of Grant;

 

Payment:       By one or a combination
of the following items (described in the Option Agreement):

 

		·	By cash, check bank draft or money order payable to the Company

 

		·	Pursuant to a Regulation T Program if the shares are publicly traded

 

		·	Subject to the Company’s consent at the time of exercise, by delivery of already-owned shares

 

		·	Subject to the Company’s consent at the time of exercise, by a “net exercise”
arrangement

 

Additional Terms/Acknowledgements:
The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Stock Option Grant Notice, the Option
Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the Option
Agreement, and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock
in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously
granted and delivered to Optionholder under the Plan, and (ii) the following agreements only:

 

OTHER AGREEMENTS: That certain Amended
and Restated Employment Agreement, by and between the Optionholder and the Company, effective as of November [____], 2020 (the
“Employment Agreement”).

 

	
        GENIUS
        BRANDS INTERNATIONAL, INC.

         

        By: _______________________________

                Signature

         

        Title: _____________________________

         

        Date:___________________________

         
	
        OPTIONHOLDER:

         

        __________________________________

              Signature

         

        Date ______________________________

         

 

 

 

 

 

 

    	 	1	 

     

    

 

GENIUS BRANDS INTERNATIONAL, INC.

2020 INCENTIVE PLAN

 

STOCK OPTION GRANT AGREEMENT

 

(NONSTATUTORY
STOCK OPTION)

 

Pursuant to your Stock
Option Grant Notice (“Grant Notice”), that certain Amended and Restated Employment Agreement, by and
between the Optionholder and the Company, effective as of November [____], 2020 (the “Employment Agreement”),
and this Option Agreement, Genius Brands International, Inc. (the “Company”) has granted you an option
under its 2020 Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common
Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined
in this Option Agreement but defined in the Plan shall have the same definitions as in the Plan.

 

The details of your
option are as follows:

 

1.              
Vesting.

 

(a)  
Subject to the limitations contained herein and to Section 1(b) hereof, your option will vest as provided in your Grant
Notice, provided that vesting will cease upon the termination of your employment or service with the Company.

 

(b)                   
All unvested options shall become fully vested upon the termination of your employment or service with the Company by the
Company without Cause or your resignation for Good Reason. For purposes of this Agreement, “Cause” shall have the meaning
set forth in that certain Amended and Restated Employment Agreement, by and between you and the Company, effective as of November
[____], 2020 (the “Employment Agreement”). For purposes of this Agreement, “Good Reason” shall mean following
events or conditions: (i) a material reduction by the Company in your Base Salary or Target Bonus (each, as defined in the Employment
Agreement) level; (ii) a requirement that you work at a location more than fifty (50) miles away from your place of work as of
the Grant Date; (iii) the assignment to you by the Company of duties substantially inconsistent with, any change in your titles
or the significant reduction of the powers and functions associated with, your positions, titles or offices; (iv) the failure of
any successor (whether direct or indirect, by stock or asset purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company to expressly to assume and agree to perform the Employment Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Any assertion
by you of a termination for Good Reason shall not be effective unless all of the following conditions are satisfied: (A) the condition
described in Sections 1(b)(i), 1(b)(ii), 1(b)(iii) or 1(b)(iv) giving rise to your termination of employment must have arisen without
your consent; (B) you must provide written notice to the Board of the existence of such condition(s) within thirty (30) days of
the initial existence of such condition(s); (C) the condition(s) specified in such notice must remain uncorrected for thirty (30)
days following the Board’s receipt of such written notice; and (D) the date of your termination of employment must occur
within sixty (60) days after the initial existence of the condition(s) specified in such notice.

 

2.              
Number Of Shares and Exercise Price. The number of shares of Common Stock subject to your option and your
exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments.

 

3.              
Exercise Restriction For Non-Exempt Employees. In the event that you are an Employee eligible for overtime
compensation under the Fair Labor Standards Act of 1938, as amended (i.e., a “Non-Exempt Employee”),
you may not exercise your option until you have completed at least six (6) months of employment or service with the Company measured
from the Date of Grant specified in your Grant Notice, notwithstanding any other provision of your option.

 

4.              
Method Of Payment. Payment of the exercise price is due in full upon exercise of all or any part of your option.
You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant Notice,
subject to the following:

 

(a)  
Bank draft or money order payable to the Company.

 

 

 

    	 	2	 

     

    

 

(b)  
Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal,
pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common
Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds.

 

(c)  
Subject to the consent of the Company at the time of exercise, by delivery to the Company (either by actual delivery or
attestation) of already-owned shares of Common Stock that are owned free and clear of any liens, claims, encumbrances or security
interests, and that are valued at Fair Market Value on the date of exercise. Notwithstanding the foregoing, you may not exercise
your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation
or agreement restricting the redemption of the Company’s stock.

 

(d)  
If the Option is a Nonstatutory Stock Option, subject to the consent of the Company at the time of exercise, by a “net
exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issued upon exercise
of your option by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price;
provided, however, that the Company shall accept a cash or other payment from you to the extent of any remaining balance of the
aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided further, however,
that shares of Common Stock will no longer be outstanding under your option and will not be exercisable thereafter to the extent
that (1) shares are used to pay the exercise price pursuant to the “net exercise,” (2) shares are delivered
to you as a result of such exercise, and (3) shares are withheld to satisfy tax withholding obligations.

 

5.              
Whole Shares. You may exercise your option only for whole shares of Common Stock.

 

6.              
Securities Law Compliance. Notwithstanding anything to the contrary contained herein, you may not exercise
your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act of 1933
(the “Securities Act”) or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise
of your option also must comply with other applicable laws and regulations governing your option, and you may not exercise your
option if the Company determines that such exercise would not be in material compliance with such laws and regulations.

 

7.              
Term. You may not exercise your option before the commencement or after the expiration of its term. The term
of your option commences on the Date of Grant and expires upon the earliest of the following:

 

(a)  
three (3) months after the termination of your employment or service with the Company for any reason other than your Disability
or death, provided that if during any part of such three (3)-month period you may not exercise your option solely because of the
condition set forth in the preceding paragraph relating to “Securities Law Compliance,” your option shall not
expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months
after the termination of your employment or service with the Company;

 

(b)  
twelve (12) months after the termination of your employment or service with the Company due to your Disability;

 

(c)  
twelve (12) months after your death if you die either during your employment or service with the Company or within three
(3) months after your employment or service with the Company terminates;

 

(d)  
immediately upon the termination of your employment or service with the Company in the event of Cause (as defined in the
Employment Agreement) or upon your violation of any of Sections 8.1, 8.3 or 8.5 of the Employment Agreement; or

 

(e)  
the Expiration Date indicated in your Grant Notice.

 

If your option is an
Incentive Stock Option, note that, to obtain the federal income tax advantages associated with an Incentive Stock Option, the Code
requires that at all times beginning on the date of grant of your option and ending on the day three (3) months before the date
of your option’s exercise, you must be an employee of the Company or an Affiliate, except in the event of your death or Disability.
The Company has provided for extended exercisability of your option under certain circumstances for your benefit but cannot guarantee
that your option will necessarily be treated as an Incentive Stock Option if you continue to provide services to the Company or
an Affiliate as a Consultant or Director after your employment terminates or if you otherwise exercise your option more than three
(3) months after the date your employment terminates.

 

 

 

    	 	3	 

     

    

 

8.              
Exercise.

 

(a)  
You may exercise the vested portion of your option during its term by delivering a Notice of Exercise (in a form designated
by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate,
during regular business hours, together with such additional documents as the Company may then require.

 

(b)  
By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to
enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising
by reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares of Common
Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such exercise.

 

(c)  
If your option is an Incentive Stock Option, by exercising your option you agree that you will notify the Company in writing
within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your
option that occurs within two (2) years after the date of your option grant or within one (1) year after such shares of Common
Stock are transferred upon exercise of your option.

 

9.              
Transferability.

 

(a)  
Restrictions on Transfer. Your option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during your lifetime only by you; provided, however, that the Board may, in its sole discretion,
permit transfer of your options in a manner that is not prohibited by applicable tax and securities laws upon your request.

 

(b)  
Domestic Relations Orders. Notwithstanding the foregoing, your option may be transferred pursuant to a domestic relations
order; provided, however, that if your option is an Incentive Stock Option, your option shall be deemed to be a Nonstatutory Stock
Option as a result of such transfer.

 

(c)  
Beneficiary Designation. Notwithstanding the foregoing, you may, by delivering written notice to the Company, in
a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect option exercises,
designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. In the absence of
such a designation, the executor or administrator of your estate shall be entitled to exercise your option.

 

10.           
Option Not A Service Contract. Your option is not an employment or service contract, and nothing in your option
shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate,
or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall obligate the Company or
an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any relationship that you might
have as a Director or Consultant for the Company or an Affiliate.

 

11.           
Withholding Obligations.

 

(a)  
At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you hereby
authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including
by means of a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by the Federal
Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your option.

 

 

 

    	 	4	 

     

    

 

(b)  
Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable legal
conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the
exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the
date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary
to avoid classification of your option as a liability for financial accounting purposes). If the date of determination of any tax
withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering
the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise
deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your option. Notwithstanding
the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined
as of the date of exercise of your option that are otherwise issuable to you upon such exercise. Any adverse consequences to you
arising in connection with such share withholding procedure shall be your sole responsibility.

 

(c)  
You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.
Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall
have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow
provided for herein unless such obligations are satisfied.

 

12.           
Tax Consequences. You hereby agree that the Company does not have a duty to design or administer the Plan
or its other compensation programs in a manner that minimizes your tax liabilities. You shall not make any claim against the Company,
or any of its Officers, Directors, Employees or Affiliates related to tax liabilities arising from your option or your other compensation.
In particular, you acknowledge that this option is designed to be exempt from Section 409A of the Code only if the exercise price
per share specified in the Grant Notice is at least equal to the “fair market value” per share of the Common
Stock on the Date of Grant and there is no other impermissible deferral of compensation associated with the option.

 

13.           
Notices. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed
effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit
in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.

 

14.           
Governing Plan Document. Your option is subject to all the provisions of the Plan, the provisions of which
are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which
may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your
option and those of the Plan, the provisions of the Plan shall control.

 

15.           
Entire Agreement; Amendment. This Agreement, together with the Plan, and the Employment Agreement
contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all
prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter. The Committee
shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided
in the Plan. This Agreement may also be modified or amended by a writing signed by both the Company and you. The Company shall
give you written notice of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.

 

16.           
Governing Law. All questions concerning the construction, validity and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of Nevada, without regard to the choice of law principles
thereof.

 

17.           
Transfer of Personal Data. You authorize, agree and unambiguously consent to the transmission by the Company
(or any Subsidiary) of any personal data information related to the Nonqualified Stock Option awarded under this Agreement for
legitimate business purposes (including, without limitation, the administration of the Plan). This authorization and consent is
freely given by you.

 

18.           
Compliance with Laws. The grant of Nonqualified Stock Options and the issuance of shares of Common Stock hereunder
shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws,
rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any
respective rules and regulations promulgated thereunder) and any other law, rule regulation or exchange requirement applicable
thereto. The Company shall not be obligated to issue the Nonqualified Stock Option or any shares of Common Stock pursuant to this
Agreement if any such issuance would violate any such requirements. As a condition to the exercise of the Nonqualified Stock Option,
the Company may require you to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any
applicable law or regulation.

 

 

 

    	 	5	 

     

    

 

19.           
Binding Agreement; Assignment. This Agreement shall inure to the benefit of, be binding upon, and be enforceable
by the Company and its successors and assigns. You shall not assign any part of this Agreement without the prior express written
consent of the Company.

 

20.           
Headings. The titles and headings of the various sections of this Agreement have been inserted for convenience
of reference only and shall not be deemed to be a part of this Agreement.

 

21.           
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original, but all of which shall constitute one and the same instrument.

 

22.           
Further Assurances. Each party hereto shall do and perform (or shall cause to be done and performed) all such
further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto
reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation
of the transactions contemplated thereunder.

 

23.           
Severability. The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall
not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality
or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations
of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

24.           
Acquired Rights. You acknowledge and agree that: (a) the Company may terminate or amend the Plan at any time;
(b) Nonqualified Stock Options granted under this Agreement is completely independent of any other award or grant and is made at
the sole discretion of the Company; (c) no past grants or awards (including, without limitation, the Nonqualified Stock Options
awarded hereunder) give you any right to any grants or awards in the future whatsoever; and (d) any benefits granted under this
Agreement are not part of your ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy
or resignation.

 

 

 

 

 

    	 	6	 

     

    

 

NOTICE OF EXERCISE

Genius
Brands International

9401
Wilshire #608

Beverly
Hills, CA 90212

 

Date of Exercise:__________

 

Ladies and Gentlemen:

 

This constitutes notice
under my stock option that I elect to purchase the number of shares for the price set forth below.

 

	Type of option (check one):	Incentive  ̈	Nonstatutory  ̈
	Stock option dated:	_______________	 
	Number of shares as to which option is exercised:	_______________	 
	Certificates to be issued in name of:	_______________	 
	Total exercise price:	$______________	 
	Cash or check delivered herewith:	$______________	 
	Regulation T Program (cashless exercise)	$______________	 
	Value of _____ shares of Pacific Entertainment Corporation common stock delivered herewith:1	$______________	 
	Value of _____ shares of Pacific Entertainment Corporation common stock pursuant to net exercise:2	$______________	 

 

 

		1	Subject to the consent of Genius Brands International, Inc. at the time of exercise. Shares of
Common Stock must be valued in accordance with the terms of the option being exercised, must have been owned for the minimum period
required in the option, and must be owned free and clear of any liens, claims, encumbrances or security interests. Certificates
must be endorsed or accompanied by an executed assignment separate from certificate.

 

		2	Genius Brands International, Inc. must have established net exercise procedures at the time of
exercise in order to utilize this payment method and must expressly consent to your use of net exercise at the time of exercise.
An Incentive Stock Option may not be exercised by a net exercise arrangement.

 

By this exercise,
I agree (i) to provide such additional documents as you may require pursuant to the terms of the 2020 Incentive Plan, (ii) to provide
for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise
of this option, and (iii) if this exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days
after the date of any disposition of any of the shares of Common Stock issued upon exercise of this option that occurs within two
(2) years after the date of grant of this option or within one (1) year after such shares of Common Stock are issued upon exercise
of this option.

 

	 	Very truly yours,
	 	 
	 	_________________________________

 

 

    	 	7

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