Document:

PROMISSORY
      NOTE

    

    
      	 	 	
              Date
                of Issuance

            
	
              $5,375,000.00

            	 	
              October
                23, 2008

            

    

    

    FOR
      VALUE
      RECEIVED, Mandalay
      Media, Inc.,
      a
      Delaware corporation (the “Company”), hereby promises to pay to the order of
      Nathaniel MacLeitch, as trustee for the Sellers (as defined below), with an
      address of c/o AMV Holding Limited, 65 High Street, Marlow, Buckinghamshire,
      United Kingdom (the “Holder”), the aggregate principal sum of Five Million Three
      Hundred Seventy Five Thousand Dollars ($5,375,000.00), together with interest
      thereon from the date of this Note. Interest shall accrue on the unpaid
      principal balance at an initial rate of five percent (5%) per annum, subject
      to
      adjustment as provided in Section 1(e), and shall accrue on a daily basis from
      the date of this Note until paid. Interest shall be calculated on the basis
      of a
      three hundred and sixty (360) day year. This Note shall be non-assignable by
      the
      Company. 

    

    This
      Note
      has been issued pursuant to that certain Stock Purchase Agreement, dated as
      of
      October 8, 2008 (the “Purchase Agreement”), between the Company, the Holder,
      Jack Cresswell (“Cresswell”) and the shareholders of AMV Holding Limited (“AMV”)
      signatories thereto (together with the Holder and Cresswell, the “Sellers”), in
      connection with the acquisition of 100% of the share capital of AMV and 80%
      of
      the share capital of Fierce Media Limited. The Holder is holding this Note
      as
      trustee on behalf of Sellers, pursuant to the Purchase Agreement.

    

    Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings ascribed to such terms in the Purchase Agreement.

    

    The
      principal amount of this Note is subject to adjustment in accordance with the
      terms of Sections 2.1, 2.7, 2.9 and Article X of the Purchase Agreement. In
      the
      event of such an adjustment, the Holder and the Company agree to take all
      reasonably necessary actions to replace this Note with a new Note that reflects
      the adjusted principal amount. Other than as set forth in the Purchase
      Agreement, this Note is not subject to any set-off, counterclaim or deduction.
      

    

    This
      Note
      is secured by the security interests granted pursuant to a certain Debenture,
      by
      and between AMV and the Holder, dated as of even date herewith, and the Holder
      of this Note, on behalf of the Sellers, is entitled to the benefits thereof.
      

    

    1. Payment;
      Prepayment.
      

     

    (a) Unless
      earlier paid, the entire outstanding principal balance and interest of this
      Note
      shall be payable on or before January 30, 2010. The Company shall have the
      right
      of prepayment on this Note.

     

    (b) Payment
      of principal and interest on this Note shall be made by wire transfer of
      immediately available funds to an account designated by the Holder or by check
      sent to the Holder as the Holder may designate for such purpose from time to
      time by written notice to the Company, in such coin or currency of the United
      States of America as at the time of payment shall be legal tender for the
      payment of public and private debts. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) In
      the
      event that the Company completes an equity financing (the “Financing”) that
      results in gross proceeds to the Company of over $6,000,000 (including the
      amount of any financing raised in connection with the acquisition of AMV),
      then,
      within ten days of completion of such Financing, the Company shall prepay to
      Holder an amount equal to one-third of the excess of the gross proceeds of
      the
      Financing over $6,000,000, provided that in no event shall such prepayment
      exceed the aggregate principal sum then outstanding under the Note, plus accrued
      interest thereon.

    

    (d) If,
      prior
      to July 23, 2009, the Company completes a Financing that results in gross
      proceeds to the Company of over $15,000,000 (which is in addition to the
      Financing described in subsection (c) above), then the Company shall prepay
      to
      Holder the entire aggregate principal sum then outstanding under the Note,
      plus
      accrued interest thereon, within ten days of completion of such Financing.
      

    

    (e) If,
      prior
      to July 23, 2009 the entire aggregate principal sum then outstanding under
      the
      Note, plus accrued interest thereon, has not been prepaid in accordance with
      Sections 1(c) or 1(d), then on and after July 23, 2009, interest shall accrue
      on
      the unpaid principal balance of the Note at a rate of seven percent (7%) per
      annum until paid.

    

    2. Default.
      

     

    (a) The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default”:

     

    (i) Nonpayment.
      The
      Company shall fail to make, on or before the due date, in the manner required,
      any payment of principal, interest or any other sums due under this Note and
      the
      Company shall not have remedied such default within ten (10) days after notice
      of such default;

     

    (ii) Other
      Defaults; Cure Period.
      The
      Company shall fail to observe or perform any of its covenants contained in
      this
      Note, and the Company shall have not remedied such default within ten (10)
      days
      after notice of such default;

     

    (iii) Insolvency.
      The
      Company shall generally not pay its debts as such debts become due, or shall
      admit in writing its inability to pay its debts generally, or shall make a
      general assignment for the benefit of creditors; or the Company shall commence
      any voluntary bankruptcy proceeding, or there shall be commenced against the
      Company by another party any such case, proceeding or other action in bankruptcy
      which remains unstayed, undismissed or undischarged for a period of thirty
      (30)
      days; or

     

    (iv) The
      Company shall be dissolved, liquidated or reorganized.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b) Acceleration.
      Upon an
      Event of Default, the interest rate payable hereunder shall increase by four
      (4)
      percentage points and there shall immediately be due and payable to the Holder
      the full amount of the unpaid principal balance of this Note, plus accrued
      interest and all other amounts owed by the Company pursuant to this Note. All
      amounts under this Section 2 are due and payable without presentment, demand,
      protest and all other notices of any kind are hereby expressly waived by the
      Company.

     

    (c) Remedies
      Upon Event of Default.

     

    (i) General.
      Upon an
      Event of Default, the
      Holder
      may proceed to protect and enforce its rights as holder of this Note, and may
      proceed to enforce the payment of all amounts due upon this Note, and the costs
      and expenses of collection (including, without limitation, reasonable attorneys
      fees and disbursements) or to enforce any other legal or equitable right as
      holder of this Note shall be paid by Company. 

     

    (ii) Remedies
      Cumulative.
      No
      remedy conferred in this Note upon the Holder is intended to be exclusive of
      any
      other remedy and each and every such remedy shall be cumulative and shall be
      in
      addition to every other remedy given hereunder or now or hereafter existing
      at
      law or in equity or otherwise.

     

    (iii) Remedies
      Not Waived.
      No
      course of dealing between the Company and the Holder, and no delay or failure
      in
      exercising any rights hereunder shall operate as a waiver of any of the rights
      of the Holder.

     

    3. Subordination.

    

    (a) The
      Company and the Holder, as trustee for the Sellers, agree that the indebtedness
      evidenced by this Note is subordinated in right of payment, to the extent and
      manner provided in this Section 3, to the prior payment in full of all Senior
      Debt, and that the subordination is for the benefit of all holders of Senior
      Debt.

    

    (b) Upon
      any
      distribution to creditors of the Company or any of its subsidiaries in a
      liquidation or dissolution of the Company or any of its subsidiaries or in
      a
      bankruptcy, reorganization, insolvency, receivership or similar proceeding
      relating to the Company or any of its subsidiaries or any of the Company’s or
      its subsidiaries’ property, an assignment for the benefit of creditors or any
      marshalling of the Company's or its subsidiaries’ assets and liabilities,
      holders of Senior Debt shall be entitled to receive payment in full of all
      obligations due in respect of such Senior Debt (including interest accruing
      after the commencement of any such proceeding at the rate specified in the
      applicable Senior Debt, whether or not allowed or allowable as a claim in such
      proceeding) before the Holder, as trustee for the Sellers, shall be entitled
      to
      receive any payment with respect to this Note, and until all obligations with
      respect to Senior Debt are paid in full, any distribution to which the Holder,
      as trustee for the Sellers, would be entitled shall be made to the holders
      of
      Senior Debt.

    

    (c) Neither
      the Company nor any of its subsidiaries may make any payment pursuant to this
      Note if (i) a default in the payment of principal, premium, if any, or interest
      on Senior Debt occurs and is continuing beyond any applicable period of grace
      in
      the agreement or other document governing such Senior Debt, or (ii) any other
      default occurs and is continuing with respect to the Senior Debt that permits
      holders of the Senior Debt as to which such default relates to accelerate its
      maturity.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c) In
      the
      event that the Holder or any Seller receives any payment of any obligations
      with
      respect to this Note at a time when the Holder or any Seller, as applicable,
      has
      actual knowledge that such payment is prohibited by this Section 3, such payment
      shall be held by Holder or any Seller in trust for the benefit of, and shall
      be
      paid forthwith over and delivered upon written request to, the holders of the
      Senior Debt for application to the payment of all obligations with respect
      to
      the Senior Debt remaining unpaid and to the extent necessary to pay such
      obligations in full in accordance with their terms, after giving effect to
      any
      concurrent payment or distribution to or for the holders of the Senior
      Debt.

    

    (d) For
      the
      purposes of this Section 3, “Senior Debt” shall mean that certain guaranty given
      as of February 12, 2008 by the Company to ValueAct SmallCap Master Fund, L.P.
      (“ValueAct”) pursuant to which the Company guaranteed to ValueAct the payment by
      the Company of up to $8,250,000 of principal under that certain Senior Secured
      Note issued by ValueAct to Twistbox Entertainment, Inc., a wholly-owned
      subsidiary of the Company, due January 30, 2010, dated July 30, 2007, as
      amended.

    

    4. Amendments
      and Waivers.
      This
      Note may not be modified, amended, waived, extended, changed, discharged or
      terminated orally or by any act or failure to act on the part of Company, but
      only by an agreement in writing signed by the party against whom enforcement
      of
      any modification, amendment, waiver, extension, change, discharge or termination
      is sought.

     

    5. Replacement
      Note.
      Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Note, and (in case of loss, theft
      or
      destruction) of indemnity reasonably satisfactory to it, and upon reimbursement
      to the Company of all reasonable expenses incidental thereto, and upon surrender
      and cancellation of any Note, if mutilated, the Company will make and deliver
      a
      new Note of like tenor in the principal amount of this Note then outstanding
      in
      lieu of such Note. Any Note so made and delivered shall be dated as of the
      date
      to which interest shall have been paid on the Note lost, stolen, destroyed
      or
      mutilated.

     

    6. Successors
      and Assigns.
      This
      Note applies to, inures to the benefit of, and binds the successors and
      permitted assigns of the parties hereto. 

     

    7. Governing
      Law and Venue.
      The
      Note shall be construed in accordance with the laws of the State of New York.
      The Company hereby consents to the jurisdiction of and venue in any court of
      competent jurisdiction in the State of New York. 

     

    8. Unenforceable
      Provision.
      If any
      provision of this Note shall be deemed unenforceable under applicable law,
      such
      provision shall be ineffective, but only to the extent of such unenforceability,
      without invalidating the remainder of such provision or the remaining provisions
      of this Note.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    9. Notice.
      Any
      notice to the Company provided for in this Note shall be in writing and shall
      be
      given and be effective upon (a) delivery to the Company, (b) receipt if
      sent by facsimile transmission (with confirmation of such receipt by the sender)
      or (c) mailing such notice by certified mail, return receipt requested,
      addressed to the Company at the Company’s address stated below, or to such other
      address as the Company may designate by written notice to the Holder. Any notice
      to the Holder shall be in writing and shall be given and be effective upon
      (i) delivery to the Holder, (ii) receipt if sent by facsimile transmission
      (with confirmation of such receipt by the sender) or (iii) by mailing such
      notice by certified mail, return receipt requested, to the Holder at the address
      stated above, or to such other address as the Holder may designate by written
      notice to Company.

     

    The
      Company: 

    

    Mandalay
      Media, Inc. 

    2121
      Avenue of the Stars, Suite 2550

    Los
      Angeles, California 90067

    Attention:
      James Lefkowitz

    Telephone:
      (310)
      601-2500

    

    with
      a
      copy to:

    

    Mintz
      Levin Cohn Ferris Glovsky & Popeo, P.C.

    666
      Third
      Avenue

    New
      York,
      New York 10017

    Attention:
      Kenneth R. Koch, Esq.

    Fax:
      212-983-3115

    

    9. Jury
      Trial Waiver.
      Each of
      the Company and the Holder of this Note (by accepting this Note) hereby waives,
      to the fullest extent permitted by applicable law, any right it may have to
      a
      trial by jury in respect to any litigation directly or indirectly arising out
      of, under or in connection with this Note. Each of the Company and the Holder
      of
      this Note (by accepting this Note) (a) certifies that no representative, agent
      or attorney of any other party has represented, expressly or otherwise, that
      such other party would not, in the event of litigation, seek to enforce the
      foregoing waiver and (b) acknowledges that it and the other parties hereto
      have
      been induced to issue or accept this Note, as the case may be, by, among other
      things, the mutual waivers and certifications in this paragraph.

    

    [Remainder
      of page intentionally left blank. Signature page to
      follow.]

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Note to be executed and dated the day and year first
      above written. 

    

    
      	
              MANDALAY
                MEDIA, INC.

            
	 
	
              By:

            	
              /s/
                James Lefkowitz

            
	 	
              Name:
                James Lefkowitz

            
	 	
              Title:
                President

            

    

    

    
      	
              Acknowledged
                and agreed:

            
	 	 
	
              By:

            	
              /s/
                Nathaniel MacLeitch

            
	 	
              Nathaniel
                MacLeitchESCROW
      AGREEMENT

     

    ESCROW
      AGREEMENT, made as of the 23rd
      day of
      October, 2008, by and between Mandalay Media, Inc., a Delaware corporation
      (the
“Company”),
      the
      investors listed on the Schedule of Investors attached hereto as Exhibit
      A
      (each
      individually, an “Investor”
and
      collectively, “Investors”)
      and
      American Stock Transfer and Trust Company, LLC, as Escrow Agent (the
“Escrow
      Agent”).

     

    WITNESSETH:

     

    WHEREAS,
      the Company is offering in a private placement (the “Offering”)
      a
      minimum of up to an aggregate of 1,685,393 shares (the “Minimum Shares”)
      of its
      common stock, $0.0001 par value per share (“Common
      Stock”)
      and a
      maximum of up to an aggregate of 3,370,786 shares of Common Stock (the
“Maximum
      Shares”
and
      collectively with the Minimum Shares, the “Shares”),
      at a
      purchase price of $2.67 per share (the “Purchase
      Price”)
      and
      warrants to purchase a maximum of up to an aggregate of 1,685,393 shares of
      Common Stock (the “Warrants”)
      (the
      Shares and the Warrants collectively, the “Securities”),
      pursuant to a Securities Purchase Agreement entered into by and among the
      Company and certain investors, as may be amended, modified or otherwise
      supplemented from time to time (the “Purchase
      Agreement”);

     

    WHEREAS,
      the Company desires that all funds received in payment for the Securities from
      each Investor, as applicable (the “Aggregate
      Subscription Payments”)
      will
      be placed into a segregated account with the Escrow Agent (the “Escrow
      Account”)
      until
      such time as the release or return of such Aggregate Subscription Payments
      are
      required pursuant to Section 4 hereof;

     

    WHEREAS,
      the Escrow Agent has consented to act as escrow agent in connection with the
      Offering, subject to the terms and conditions hereinafter set
      forth;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual representations and
      covenants hereinafter set forth, the parties hereto agree as
      follows:

     

    1. The
      Company hereby appoints the Escrow Agent to serve as escrow agent in connection
      with the Offering in accordance with the terms and conditions herein set forth,
      and the Escrow Agent hereby accepts such appointment.

     

    2. Funds
      received from time to time from Investors in payment for the Securities for
      which they have subscribed pursuant to the Purchase Agreement (each such
      payment, a “Subscription
      Payment”)
      shall
      be deposited with the Escrow Agent as follows:

     

    (a) The
      Company shall direct Investors to wire transfer each respective Subscription
      Payment, in immediately available funds, to: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    JP
      Morgan
      Chase Bank

    55
      Water
      Street

    New
      York,
      NY

    ABA#
      021
      000 021

    Account
      #
      323-062539 

    Attention:
      Henry Reinhold

    

    The
      Escrow Agent shall advise the Company in writing as to the name of each Investor
      from whom a Subscription Payment by wire transfer has been received, and shall
      notify the Company orally (confirming such notice in writing) when the Aggregate
      Subscription Payments so received equals or exceeds $4,400,000.

     

    3. The
      Escrow Account shall not be an interest-bearing account.

     

    4. The
      Aggregate Subscription Payments to be held in the Escrow Account shall be
      subject to, and distributed to the Company in accordance with, the following
      provisions:

     

    Following
      the receipt by the Escrow Agent of an amount of cash equal to or exceeding
      $4,400,000, the Escrow Agent shall deliver the Aggregate Subscription Payments
      to the Company by wire transfer to the Company’s designated account, as detailed
      below, upon the earliest of (a) delivery of written instructions from any of
      the
      Investors to the Escrow Agent directing the Escrow Agent to deliver the
      Aggregate Subscription Payments to the Company, (b) delivery of written notice
      from the Company to the Escrow Agent, advising that the Company had received
      lock-up agreements from its current stockholders in a number that is
      satisfactory to the Investors and directing the Escrow Agent to deliver the
      Aggregate Subscription Payments to the Company, and (c) 14 days after the
      Initial Closing Date, as defined below; provided,
      however,
      if an
      amount of cash equal to or exceeding $4,400,000 has not
      been
      received by the Escrow Agent and deposited into the Escrow Account within 24
      hours following the execution of this Agreement or if the Escrow Agent has
      refunded Subscription Payments to any of the Investors, then the Escrow Agent
      will promptly return to each of the Investors its respective Subscription
      Payment. “Initial
      Closing Date”
shall
      mean the date of the initial closing of the transaction contemplated by the
      Purchase Agreement.

     

    Company’s
      account:

     

    
      	
              Bank:

            	
              1st
                Century Bank

            
	 	
              1875
                Century Park East, Suite 1400

            
	 	
              Los
                Angeles, CA 90067

            
	 	 
	
              ABA
                Number:

            	
              122-243-761

            
	 	 
	
              Account
                Number:

            	
              2100012273

            
	 	 
	
              Account
                Name:

            	
              Mandalay
                Media, Inc.

            

    

     

    5. The
      Company shall promptly notify the Escrow Agent of any termination of the
      Offering.

     

    6. To
      induce
      the Escrow Agent to act hereunder, the Company agrees that:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a) Distribution
      of the Escrow Account pursuant to Section 4 of this Agreement by the Escrow
      Agent shall operate to divest all right, title, interest, claim, and demand,
      either at law or in equity, of any party to this Agreement (other than the
      distributee) in and to the Escrow Account and shall be a perpetual bar both
      at
      law and in equity as against the Escrow Agent and against any person claiming
      or
      attempting to claim such distributed Escrow Account from, through, or under
      the
      Escrow Agent.

     

    (b) The
      Escrow Agent shall not be under any duty to give the monies held by it hereunder
      any greater degree of care than it gives its own similar property and shall
      not
      be required to invest any funds held hereunder except as directed in this Escrow
      Agreement. Uninvested funds held hereunder shall not earn or accrue
      interest.

     

    (c) This
      Escrow Agreement expressly sets forth all the duties of the Escrow Agent with
      respect to any and all matters pertinent hereto. No implied duties or
      obligations shall be read into this Agreement against the Escrow Agent. The
      Escrow Agent shall not be bound by the provisions of any agreement except this
      Escrow Agreement.

     

    (d) The
      Escrow Agent shall not be liable, except for its own gross negligence or willful
      misconduct and, except with respect to claims based upon such gross negligence
      or willful misconduct that are successfully asserted against the Escrow Agent,
      the Company shall indemnify and hold harmless the Escrow Agent (and any
      successor Escrow Agent) from and against any and all losses, deficiencies,
      liabilities, claims, suits, actions, damages, settlements and expenses,
      including reasonable attorneys fees and disbursements, arising out of and in
      connection with this Escrow Agreement. Without limiting the foregoing, the
      Escrow Agent shall in no event be liable in connection with its investment
      or
      reinvestment of any cash held by it, if any, hereunder in good faith, in
      accordance with the terms hereof, including, without limitation, any liability
      for any delays (not resulting from gross negligence or willful misconduct)
      in
      any such investment or reinvestment of any Subscription Payment, or any loss
      of
      interest incident to any such delays.

     

    (e) The
      Escrow Agent shall be entitled to rely upon any order, judgment, certification,
      demand, notice, instrument or other writing delivered to it hereunder without
      being required to determine the authenticity or the correctness of any fact
      stated therein or the propriety or validity or the service thereof. The Escrow
      Agent may act in reliance upon any instrument or signature believed by it to
      be
      genuine and may assume that any person purporting to give receipt or advice
      or
      make any statement or execute any document in connection with the provisions
      hereof has been duly authorized to do so.

     

    (f) The
      Escrow Agent may act pursuant to the advice of counsel with respect to any
      matter relating to this Escrow Agreement and shall not be liable for any action
      taken or omitted in accordance with such advice.

     

    (g) The
      Escrow Agent does not have any interest in the amounts deposited hereunder
      but
      is serving as escrow holder only and having only possession thereof. The Company
      shall pay or reimburse the Escrow Agent upon request for any transfer taxes
      or
      other taxes relating to the escrowed property incurred in connection herewith
      and shall indemnify and hold harmless the Escrow Agent from any amounts that
      it
      is obligated to pay in the way of such taxes. Any payments of income from this
      Escrow Account shall be subject to withholding regulations then in force with
      respect to United States taxes. The parties hereto will provide the escrow
      agent
      with appropriate W-9 forms for tax I.D., number certifications, or W-8 forms
      for
      non-resident alien certifications. It is understood that the Escrow Agent shall
      be responsible for income reporting only with respect to income, if any, earned
      on investment of funds deposited in the Escrow Account and is not responsible
      for any other reporting. This Section 6(g) and Section 6(d) shall survive
      notwithstanding any termination of this Escrow Agreement or the resignation
      of
      the Escrow Agent.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (h) The
      Escrow Agent shall have no duties or responsibilities except those expressly
      set
      forth herein. The Escrow Agent shall not be bound by any notice of a claim,
      or
      demand with respect thereto, or any waiver, modification, amendment,
      termination, cancellation, or revision of this Agreement, unless in writing
      and
      signed by the other parties hereto and received by the Escrow Agent, and, if
      the
      Escrow Agent’s duties as escrow agent hereunder are affected, unless the Escrow
      Agent shall have given its prior written consent thereto. The Escrow Agent
      shall
      not be bound by any assignment by the Company of its rights hereunder unless
      the
      Escrow Agent shall have received written notice thereof from the assignor.
      The
      Escrow Agent is authorized to comply with and obey laws, orders, judgments,
      decrees, and regulations of any governmental authority, court, tribunal, or
      arbitrator. If the Escrow Agent complies with any such law, order, judgment,
      decree, or regulation, the Escrow Agent shall not be liable to any of the
      parties hereto or to any other person even if such law, order, judgment, decree,
      or regulation is subsequently reversed, modified, annulled, set aside, vacated,
      found to have been entered without jurisdiction, or found to be in violation
      of
      or beyond the scope of a constitution or a law.

     

    (i) If
      the
      Escrow Agent (i) shall be uncertain as to the Escrow Agent’s duties or rights
      hereunder, (ii) shall receive any notice, advice, direction, or other document
      from any other party with respect to the Escrow Account which, in the Escrow
      Agent’s opinion, is in conflict with any of the provisions of this Agreement, or
      with any notice, advice, direction or other document it has received from
      another party, or (iii) should be advised that a dispute has arisen with respect
      to the payment, ownership, or right of possession of the Escrow Account or
      any
      part thereof (or as to the delivery, non-delivery, or content of any notice,
      advice, direction, or other document), the Escrow Agent shall be entitled,
      without liability to anyone, to refrain from taking any action other than to
      use
      the Escrow Agent’s best efforts to keep safely the Escrow Account until the
      Escrow Agent shall be directed otherwise in (x) a writing executed by each
      of
      the Company and the Investors or (y) by an order, decree, or judgment of a
      court
      of competent jurisdiction which has been finally affirmed on appeal or which
      by
      lapse of time or otherwise is no longer subject to appeal, but the Escrow Agent
      shall be under no duty to institute or to defend any proceeding, although the
      Escrow Agent may, in the Escrow Agent’s discretion and at the expense of the
      Company as provided in Section 6(o), institute or defend such
      proceedings.

     

    (j) The
      Escrow Agent makes no representation as to the validity, value, genuineness
      or
      the collectability of any security or other document or instrument held by
      or
      delivered to it.

     

    (k) The
      Company authorizes the Escrow Agent, if threatened with litigation or sued,
      to
      interplead all interested parties in any court of competent jurisdiction and
      to
      deposit the Escrow Account with the clerk of that court.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (l) The
      Escrow Agent shall not be called upon to advise any party as to the wisdom
      in
      selling or retaining or taking or refraining from any action with respect to
      any
      securities or other property deposited hereunder.

     

    (m) The
      Escrow Agent (and any successor Escrow Agent) may at any time resign as such
      by
      delivering the Aggregate Subscription Payments received by the Escrow Agent
      and
      all interest and other income earned thereon to any successor Escrow Agent
      designated by the Escrow Agent, in writing, or to any court of competent
      jurisdiction, whereupon the Escrow Agent shall be discharged of and from any
      and
      all further obligations arising in connection with this Escrow Agreement. The
      resignation of the Escrow Agent will take effect on the earlier of (i) the
      appointment of a successor (including a court of competent jurisdiction), or
      (ii) the day which is ten (10) days after the date of delivery of its written
      notice of resignation to the Company. If at that time the Escrow Agent has
      not
      designated a successor Escrow Agent, the Escrow Agent’s sole responsibility
      after that time shall be to safekeep the Subscription Payments received by
      the
      Escrow Agent and all interest and other income earned thereon until receipt
      of a
      designation of successor Escrow Agent or a final order of a court of competent
      jurisdiction.

     

    (n) The
      Escrow Agent shall have no responsibility for the contents of any writing of
      the
      arbitrators or any third party contemplated herein as a means to resolve
      disputes and may rely without any liability upon the contents
      thereof.

     

    (o) The
      Company shall pay Escrow Agent $2,500 for Escrow Agent’s services
      hereunder.

     

    (p) The
      Company hereby irrevocably submits to the jurisdiction of any New York State
      or
      federal court sitting in New York City in any action or proceeding arising
      out
      of or relating to this Escrow Agreement, and hereby irrevocably agrees that
      all
      claims in respect of such action or proceeding shall be heard and determined
      in
      such a New York State or federal court, without regard to its rules respecting
      conflicts of law. The Company hereby consents to and grants to any such court
      jurisdiction over the Company and over the subject matter of any such dispute
      and agrees that delivery or mailing of any process or other papers in the manner
      provided herein, or in such manner as may be permitted by law, shall be valid
      and sufficient service thereof.

     

    (q) No
      printed or other matter in any language (including, without limitation,
      prospectuses, notices, reports and promotional material) which mentions the
      Escrow Agent’s name or the rights, powers, or duties of the Escrow Agent shall
      be issued by the Company or on the Company’s behalf unless the Escrow Agent
      shall first have given its specific written consent thereto.

     

    (r) The
      Company authorizes the Escrow Agent, for any securities held hereunder, if
      any,
      to use the services of any United States central securities depository it deems
      appropriate, including, but not limited to, the Depositary Trust Company and
      the
      Federal Reserve Book Entry System.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (s) The
      Escrow Agent’s responsibilities and liabilities hereunder, except as a result of
      the Escrow Agent’s own bad faith or gross negligence, will terminate upon the
      delivery by the Escrow Agent of the Escrow Account under any provision of this
      Agreement.

     

    7. This
      Escrow Agreement shall be binding upon and inure solely to the benefit of the
      parties hereto and their respective successors and assigns, and shall not be
      enforceable by or inure to the benefit of any third party except as provided
      in
      Section 6(m) with respect to a resignation by the Escrow Agent. No party may
      assign any of its rights or obligations under this Escrow Agreement without
      the
      written consent of the other party.

     

    8. This
      Agreement may only be modified by a writing signed by the parties hereto, and
      no
      waiver hereunder shall be effective unless in writing and signed by the party
      to
      be charged.

     

    9. This
      Escrow Agreement shall be construed in accordance with the laws of the State
      of
      New York, without regard to its rules respecting conflicts of laws. It may
      be
      executed in several counterparts, each of which shall be deemed an original,
      and
      all of which shall constitute but one instrument.

     

    10. Any
      notice, consent or request to be given in connection with any of the terms
      or
      provisions of this Escrow Agreement shall be in writing and shall be sent by
      certified mail, return receipt requested, or delivered against written
      receipt:

     

    
      	
            	(a)	
              if
                to the Escrow Agent, to:

            

    

     

    American
      Stock Transfer and Trust Company, LLC

    59
      Maiden
      Lane

    New
      York,
      NY 10038 

    Attention:
      Henry Reinhold

    Telephone:   718-921-8225

    Facsimile:     718-234-5001

     

    
      	
            	(b)	
              if
                to the Company, to:

            

    

    

    Mandalay
      Media, Inc.

    c/o
      Trinad Capital, L.P.

    2121
      Avenue of the Stars, Suite 2550

    Los
      Angeles, California 90067

    Telephone:   310-601-2500

    Facsimile:     310-277-2741

    

    
      	
            	(c)	
              if
                to the Investors, to:

            

    

    

    ValueAct
      SmallCap Master Fund, L.P.

    435
      Pacific Avenue, 4th
      Fl.

    San
      Francisco, CA 94133

    Attention:
      Jimmy Price

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Trinad
      Capital Master Fund, Ltd.

    2121
      Avenue of the Stars, Suite 2550

    Los
      Angeles, California 90067

    Attention:
      Jay Wolf

     

    Guber
      Family Trust

    c/o
      Peter
      Guber

    4751
      Wilshire Boulevard

    3rd
      Floor

    Los
      Angeles, CA 90010  

    

    Any
      notice, consent or request given by certified mail shall be deemed given at
      the
      time of certification thereof.

    

     

    11. This
      Agreement shall terminate upon the date on which the Aggregate Subscription
      Payments have been fully disbursed from the Escrow Account in accordance with
      Section 4 of this Escrow Agreement.

     

    [Signature
      page to follow]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

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

     

    
      	
              AMERICAN
                STOCK TRANSFER AND TRUST COMPANY, LLC

            
	 	 	 
	
              By:

            	
              /s/
                Herbert J. Lemmer

            
	 	
              Name:
                

            	
              Herbert
                J. Lemmer

            
	 	
              Title:
                

            	
              Vice
                President

            
	 	 	 
	
              MANDALAY
                MEDIA, INC.

            
	 	 	 
	
              By:

            	
              /s/
                James Lefkowitz

            
	 	
              Name:
                

            	
              James
                Lefkowitz

            
	 	
              Title:
                

            	
              President

            

    

     

    
      	
              INVESTORS:.

            
	 	 	 
	
              ValueAct
                SmallCap Master Fund, L.P.

            
	
              By
                VA Smallcap Partners, LLC, its General Partner

            
	 	 
	
                By:

            	
              /s/
                David Lockwood

            
	
              Name: 

            	
              David
                Lockwood

            
	
              Title: 

            	
              Managing
                Member

            
	 	 	 
	
              Trinad
                Capital Master Fund, Ltd.

            
	 	 	 
	
                By:

            	
              /s/
                Robert Ellin

            
	
              Name:  

            	
              Robert
                Ellin

            
	
              Title:
                

            	
              Director

            
	 	 	 
	
              Guber
                Family Trust

            
	 	 	 
	
                By:

            	
              /s/
                Peter Guber

            
	
              Name:  

            	
              Peter
                Guber

            
	
              Title:
                

            	
              Trustee

            

    

    

      [Signature
        Page to Escrow Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]