Document:

Exhibit 4.1

 

WARRANT HOLDER:GLENN LAKEN

  

NUMBER OF WARRANT SHARES: 40,000,000

THE SECURITIES REPRESENTED BY THIS
INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION, AND MAY NOT BE DISPOSED OF WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.  

 

IN ADDITION, THE SECURITIES REPRESENTED
BY THIS INSTRUMENT MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR ENCUMBERED WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY
TO SUCH PROPOSED SALE, PLEDGE, TRANSFER OR ENCUMBRANCE AND TO THE PROPOSED ASSIGNEE, PLEDGEE OR TRANSFEREE.  

 

No. W-1

Issuance Date: April 7,
2014

 

CMG HOLDINGS
GROUP, INC.

 

Common Stock
Purchase Warrant

 

CMG Holdings
Group, Inc., a Nevada corporation, for value received, hereby grants to the holder as indicated at the beginning of this Warrant,
its successors and permitted assigns (collectively, the "Holder"), this right (the "Warrant"), subject to the
terms set forth below, to purchase at the purchase price per share as defined in Section 2.1 below (the "Purchase Price"),
up to that number of Shares (defined below), subject to adjustment as herein provided (such total number of Shares that may be
purchased hereunder being referred to herein as the "Warrant Shares").  This Warrant is not subject to any
vesting period and may be exercised in full or in part at any time in accordance with the provisions below.

 

1.
Definitions.  As used herein, the following terms, unless the context otherwise requires, have the following
respective meanings:

 

1.1.
"Company" shall mean CMG Holdings Group, Inc., a Nevada corporation, and, unless otherwise noted to the contrary,
any company which shall succeed to, by merger, consolidation or similar arrangement of the Company's and assume the
obligations of CMG Holdings Group, Inc. hereunder.

 

1.2.
"Other Securities" refers to any stock (other than the Shares) and other securities of the Company or any other
person (corporate or otherwise) that the Holder at any time shall be entitled to receive, or shall have received, on the
exercise of this Warrant, in lieu of or in addition to Shares, or which at any time shall be issuable or shall have been
issued in exchange for or in replacement of Shares.

 

     

     

    

 

1.3.
"Shares" means (a) the Company's Common Stock, par value $.001, as authorized on the date of this Warrant and (b)
if the class of securities described in (a) shall cease to be issued and outstanding, securities of the same class issued in
exchange for or in respect of the securities described in (a) pursuant to a plan of merger, consolidation, recapitalization
or reorganization, the sale of substantially all of the Company's assets or a similar transaction.

 

2. Exercise of
Warrant.

 

2.1. Purchase
Price.  The Warrant may be exercised, subject to the terms specified herein, at the purchase price of
$0.0155 per Share (the "Purchase Price").  

 

2.2. Exercise
Period.  The Warrant may be exercised (the "Exercise Period") at any time from the date of grant to
and including the fifth anniversary of the Issuance Date (the “Expiration Date”).  

 

2.3. Shares.  The
number of shares subject to this warrant is forty million (40,000,000), subject to the terms specified
herein.

 

2.4. Exercise
in Full.  Subject to the limitations stated above, this Warrant may be exercised in full at the option of the
Holder by surrender of this Warrant, with the form of subscription at the end hereof duly executed by the Holder, to the
Company at its principal office in the United States, accompanied by payment, in cash or by certified or official bank check
payable to the order of the Company, in the amount obtained by multiplying the number of Shares for which this Warrant may be
exercised by the Purchase Price.

 

2.5. Partial
Exercise.  This Warrant may be exercised in part by surrender of this Warrant in the manner and at the place provided
in subsection 2.4 along with payment in the amount determined by multiplying (a) the number of Shares designated by the holder
in the subscription at the end hereof by (b) the Purchase Price.  On any such partial exercise, the Company at its expense
will forthwith issue and deliver to or upon the order of the Holder a new Warrant or Warrants of like tenor, in the name of the
Holder or as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, calling in the aggregate on
the face or faces thereof for the number of Shares for which such Warrant or Warrants may still be exercised.

 

    2

     

    

 

2.6. Cashless
Exercise. If at any time this Warrant is exercised following the one year anniversary of the date of issuance of this Warrant,
but before the Expiration Date and on the Trading Day immediately preceding the Holder’s delivery of an Exercise Notice in
respect of such exercise, a registration Statement (as defined covering the Warrant Shares that are the subject of the Exercise
Notice (the “Unavailable Warrant Shares”) is not available for the resale of such Unavailable Warrant Shares, the Holder
of this Warrant also may exercise this Warrant as to any or all of such Unavailable Warrant Shares and, in lieu of making the cash
payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate Exercise Price, elect instead
to receive upon such exercise a reduced number of shares of Common Stock (the “Net Number”) determined according to
the following formula (a “Cashless Exercise”):

 

	Net Number =	(A x B) - (A x C)	 
	 	B	 

 

For purposes of the foregoing formula:

 

A= the total number of shares with
respect to which this Warrant is then being exercised in a Cashless Exercise.

 

B= the Market Price on the Trading
Day immediately preceding the date of the Exercise Notice.

 

C= the Exercise Price then in effect
for the applicable Warrant Shares at the time of such exercise.

 

There cannot be a Cashless Exercise
unless “B” exceeds “C.”

 

For the purpose
of this Warrant, the term “Trading Day” means (x) if the Common Stock is not listed on the NYSE Euronext or NYSE AMEX
but sale prices of the Common Stock are reported on Nasdaq Global Market, Nasdaq Global Select Market, Nasdaq Capital Market, OTC
Market Group Inc.’s OTCQB Marketplace or another automated quotation system, a day on which trading is reported on the principal
automated quotation system on which sales of the Common Stock are reported, (y) if the Common Stock is listed on the NYSE Euronext
or NYSE AMEX, a day on which there is trading on such stock exchange, or (z) if the foregoing provisions are inapplicable, a day
on which quotations are reported by National Quotation Bureau Incorporated.

 

3. Delivery of Share
Certificates on Exercise.

 

3.1.
As soon as practicable after the exercise of this Warrant in full or in part, the Company, at its expense (including the
payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder, or as the
Holder (upon payment by the Holder of any applicable transfer taxes) may direct, a certificate or certificates for the number
of fully paid and non-assessable Shares (or Other Securities) to which the Holder shall be entitled on such exercise, plus,
in lieu of any fractional share to which the Holder would otherwise be entitled, cash equal to such fraction multiplied by
the then current market value of one full share, together with any other stock or other securities and property (including
cash, where applicable) to which the Holder is entitled upon such exercise pursuant to Section 2 or otherwise.

 

    3

     

    

 

4. Covenants as to
Shares.

 

4.1.
Issuance of Shares upon Exercise.  All Shares that may be issued upon the exercise of the rights represented by
this Warrant will, upon issuance, be validly issued, fully paid and non-assessable and free from all taxes, liens and charges
with respect to the issue thereof.  The Company will at all times have authorized and reserved, free from
preemptive rights, a sufficient number of its Shares to provide for the exercise of the rights represented by this
Warrant.

 

4.2. Restrictions
on Transfer.  Holder represents to the company that it is acquiring the Warrants for its own investment account
and without a view to the subsequent public distribution of the Warrants or Shares otherwise than pursuant to an effective
registration statement under the Securities Act.  Each Warrant and each certificate for Shares issued to the Holder
and any subsequent holder that have not been sold to the public pursuant to an effective registration statement under the
Securities Act or as to which the restrictions on transfer have not been removed as hereinafter provided, shall bear a
restrictive legend reciting that the same have not been registered pursuant to the Securities Act and may not be transferred
in the absence of an effective registration statement under the Securities Act, the holder thereof shall give written notice
to the Company of its intention to effect such transfer.  Each such notice shall describe the manner of the
proposed transfer and shall be accompanied by an opinion of counsel experienced in federal securities laws matters
and reasonably acceptable to the company and its counsel to the effect that the proposed transfer may be effected
without registration under the Securities Act, whereupon, the holder of such Registrable Common Stock shall be entitled to
transfer such securities in accordance with the terms of its notice and such opinion.  Restrictions imposed under
this Section 4 upon the transferability of the Warrants or of Shares shall cease when:

 

(a) a registration statement
covering such Shares becomes effective under the Securities Act, or

 

(b) the
Company receives from the holder thereof an opinion of counsel experienced in federal securities laws matters, which counsel
shall be reasonably acceptable to the Company, that such restrictions are no longer required in order to insure compliance
with the Securities Act.

 

5. Adjustment for
Reorganization, Consolidation or Merger.

 

5.1. Reorganization,
Consolidation or Merger.  If at any time or from time to time, the Company shall (a) effect a  plan
of merger, consolidation, recapitalization or reorganization or similar transaction with a corporation (the
"Acquiror") whereby the shareholders of the Company will exchange their shares of the Company for the shares of the
parent corporation of the Acquiror, or (b) transfer all or substantially all of its properties or assets to any other person,
under any plan or arrangement contemplating the dissolution of the Company (which along with any transactions set forth in
(a) hereof shall be an "Extraordinary Transaction"), then, in each such case, the holder of this Warrant, on the
exercise hereof as provided in Section 2 at any time after the  completion of any Extraordinary Transaction shall
receive, such Shares or Other Securities and property (including cash) to which such holder would have been entitled in any
Extraordinary Transaction as if such holder had so exercised this Warrant, immediately prior thereto.

 

    4

     

    

 

5.2. Dissolution.  If
the Company dissolves following the transfer of all or substantially all of its properties or assets, the Company, prior to
such dissolution, shall at its expense deliver or cause to be delivered to the Holder the stock and other securities and
property (including cash, where applicable) receivable by the Holder after the effective date of such dissolution pursuant to
this Section 5.

 

5.3. Continuation
of Terms.  Upon any Extraordinary Transaction, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the securities, Shares and Other Securities and property receivable on the exercise of
this Warrant after the consummation of reorganization, consolidation or merger or the effective date of dissolution following
any such transfer, as the case may be, any Extraordinary Transaction and shall be binding upon the party or parties to the
Extraordinary Transaction and their successors, including, in the case of any such transfer, the person acquiring all or
substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the
terms of this Warrant as provided in Section 7.

 

6. Adjustments for Other
Events.

 

6.1. Changes
in Capital Structure.  If the Company shall (a) issue additional Shares as a dividend or other distribution on
outstanding Shares, (b) subdivide its outstanding Shares, or (c) combine its outstanding Shares into a smaller number of
Shares, then, in each such event, the Shares immediately prior to such event shall, simultaneously with the happening of such
event, be adjusted by multiplying the Warrant Shares by a fraction, the numerator of which shall be the total number of
Shares issued and outstanding immediately after such event and the denominator of which shall be the total number of Shares
issued and outstanding immediately prior to such event, and the product so obtained shall thereafter be the Warrant Shares
then in effect.  The Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described herein in this Section 6.  After any such event specified in this subsection
6.1, the original Purchase Price shall continue to apply to any exercise of the Warrant, except that the Purchase Price shall
be adjusted in any such event by multiplying the Purchase Price by a fraction the numerator of which shall be the total
number of Shares issued and outstanding immediately before such event and the denominator of which shall be the total number
of shares issued and outstanding immediately after such event, provided, however, the Warrant Shares shall not be issued at a
discount from the par value stated in the Company's Articles of Incorporation.

 

7. Notices of Record Date,
etc.  In the event of:

 

7.1. any
taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders
thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise
acquire any shares of stock of any class or any other securities or property, or to receive any other right, or

 

    5

     

    

 

7.2. any
merger, consolidation or capital reorganization of the Company, any reclassification or recapitalization of the capital stock
of the Company any other person, or

 

7.3. any voluntary or
involuntary dissolution, liquidation or winding-up of the Company, then and in each such event the Company will mail or cause
to be mailed to the Holder a notice specifying (a) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, and (b) the
date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution,
liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Shares
(or Other Securities) shall be entitled to exchange their Shares (or Other Securities) for securities or other property
deliverable on such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution,
liquidation or winding-up.  Such notice shall be mailed at least 10 days prior to the date specified in such notice
on which any such action is to be taken.

 

8. Transfers.

 

8.1. The
Warrants are not transferable, in whole or in part, without compliance with the Securities Act of 1933, as amended (the
"Securities Act"), and any applicable state securities laws.  

 

8.2.
Subject to subsection 8.1, this Warrant, or any portion hereof, may be transferred by the Holder's execution and delivery of
the form of assignment attached hereto along with this Warrant.  Any transferee shall be required, as a condition
to the assignment, to deliver all such documentation as the Company deems appropriate.  However, until such
assignment and such other documentation are presented to the Company at its principal offices in the United States, the
Company shall be entitled to treat the registered holder hereof as the absolute owner hereof for all purposes.

 

8.3. Upon
a transfer of this Warrant in accordance with this Section 8, the Company, at its expense, will issue and deliver to or on
the order of the Holder a new Warrant or Warrants of like tenor, in the name of the Holder or as the Holder (on payment by
the Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the Shares
called for on the face or faces of the Warrant or Warrants so surrendered.  If this Warrant is divided into more
than one Warrant, or if there is more than one Holder thereof, all references herein to "this Warrant" shall be
deemed to apply to the several Warrants, and all references to "the Holder" shall be deemed to apply to the several
Holders, except in either case to the extent that the context indicates otherwise.

 

8.4. To
the extent the Holder is a party to the Registration Rights Agreement, the Warrants issued hereunder shall be subject to the
transfer restrictions and other provisions set forth therein.

 

    6

     

    

 

9. Replacement of
Warrants.

 

9.1. On
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and,
in the case of any such loss, theft or destruction of any Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and
cancellation of such Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

 

10. Notices.

 

10.1.   All notices required
hereunder shall be deemed to have been given and shall be effective only when personally delivered or sent by Federal Express,
DHL or other express delivery service or by certified or registered mail to the address of the Company's principal office in the
United States as follows:

 

CMG Holdings
Group, Inc.

875 North Michigan
Avenue

Chicago, IL
60611

 

in the case of any notice to the
Company, and until changed by notice to the Company, to the address of the Holder set forth above in the case of any notice to
the Holder.

 

11. Miscellaneous.

 

11.1. This Warrant
and any term hereof may be changed, waived, discharged or terminated, other than on expiration, only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge or termination is sought.  This Warrant
shall be construed and enforced in accordance with and governed by the laws of the State of Nevada.  The headings in
this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof.  The
invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.  This
Warrant embodies the entire agreement and understanding between the Company and the other parties hereto and supersedes all prior
agreements and understandings relating to the subject matter hereof.

 

    7

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officers thereunto duly authorized.

 

	 	CMG HOLDINGS GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Jeffrey Devlin, Chief Financial Officer

 

    8

     

    

 

FORM OF SUBSCRIPTION

 

(To be signed
only on exercise of Warrant)

 

TO CMG HOLDINGS GROUP, INC.:

 

The undersigned,
the holder of the attached Warrant, hereby irrevocably elects to exercise such Warrant for, and to purchase thereunder, __________
Shares (as defined in the attached Warrant) and herewith makes payment of $___________ therefor, and requests that the certificates
for such shares be issued in the name of, and delivered to _____________________, whose address is ___________________________________.

 

Please issue a new Warrant for the
unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below:

 

___________________________

 

___________________________

 

	Dated: _____________________	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 
	 	 
	 	
         

         

	 	(Address)

 

     

     

    

 

FORM OF ASSIGNMENT

 

(To be signed
only on transfer of Warrant)

 

For
value received, the undersigned hereby sells, assigns, and transfers unto ______________________________________________ whose
address is ________________________________________________________the right represented by the attached Warrant to purchase _____________
Shares (as defined in the Warrant Agreement governing the attached Warrant) to which the within Warrant relates, and appoints __________________________
Attorney to transfer such right on the books of ____________________________ with full power of substitution in the premises.

 

	Dated: _____________________	 
	 	
        (Signature must conform in all respects to name

        of holder as specified on the face of the Warrant)

	 	 
	 	 
	 	
         

         

	 	(Address)

 

Signature Guaranteed:  ___________________________________________

 

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

 

 

10Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT is made and entered into as of the 30th day of April, 2014 (the “Agreement”), by and between
CMG HOLDINGS GROUP, INC., a Nevada corporation (“CMG”), having its principal place of business at 875 North
Michigan Avenue, Chicago, IL 60611, and Glenn Laken (“Employee”) of CMG (Employee and CMG are collectively
referred to as the “Parties”).

 

WITNESSETH:

 

WHEREAS,
CMG is engaged in the business of experiential advertising and marketing through its subsidiary, XA, The Experiential Agency,
Inc. (“XA”) and on-line gaming, through its subsidiary, Good Gaming, Inc. (“GGI”)(the “Businesses”);
and

 

WHEREAS,
Employee has represented that he has the experience, background and expertise necessary to enable him to be CMG’s Chief
Executive Officer and to manage the businesses of XA and GGI; and

 

WHEREAS,
based on such representation, on April 7, 2014, the Board (as defined below) approved to appoint and employ Employee as CMG’s
Chief Executive Officer and grant Employee a warrant to purchase a total of forty million (40,000,000) shares of Common Stock
at an exercise price of $0.0155 with a term of five years (the “Warrants”);

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements herein contained, and other good
and valuable consideration, the Parties agree as follows:

 

	1.	DEFINITIONS.  As
    used herein, the following terms shall have the following meanings:

 

1.1 “Affiliate”
means any Person controlling, controlled by or under common control with CMG, including XA and GGI.

 

1.2  “Board”
means the Board of Directors of CMG Holdings Group, Inc.

 

1.3  “Cause”
means:

 

	 	1.3.1	Employee’s
    persistent failure to perform his duties and responsibilities as set forth in a written job description as designated by the
    Board after delivery of written notice to Employee detailing the basis for such failure, with a reasonable opportunity for
    Employee to cure such failure (not to exceed 30 days); provided, however, if Employee shall be diligently pursuing a cure,
    CMG may, in its discretion, extend such period for a reasonable period of time;

 

	 	1.3.2	Employee’s
    knowing participation in any activity that is competitive with or financially injurious to CMG;

 

     

     

    

 

	 	1.3.3	Employee’s
    commission of any fraud against CMG, or unauthorized use or appropriation of any funds or properties of CMG for Employee’s
    personal gain;

 

	 	1.3.4	Employee’s
    conviction of a felony offense involving moral turpitude;

 

	 	1.3.5	Employee’s
    knowing misappropriation of trade secrets or proprietary information of CMG, CMG customers, suppliers or other third parties,
    who have provided confidential or proprietary information to CMG pursuant to an effective confidentiality agreement with CMG;

 

1.4
“Common Stock” means CMG’s $.001 par value per share common stock.

 

1.5
“Date of Termination” means (a) in the case of a termination for which a Notice of Termination (as hereinafter
defined in Section 5.4.3) is required, the date of actual receipt of such Notice of Termination or, if later, the date specified
therein, as the case may be, and (b) in all other cases, the actual date on which the Employee’s employment terminates during
the Term of Employment (as hereinafter defined in Section 3) (it being understood that nothing contained in this definition of
“Date of Termination” shall affect any of the cure rights provided to the Employee or CMG in this Agreement).

 

1.6
“Disability” means Employee’s inability to render, for a period of nine (9) consecutive months, services
hereunder due to his physical or mental incapacity.

 

1.7
“Effective Date” means April 7, 2014.

 

1.8
“Person(s)” means any individual or entity of any kind or nature, including any other person as defined in
Section 3(a)(9) of the Securities Exchange Act of 1934, and as used in Sections 13(d) and 14(d) thereof.

 

1.9
“Prospective Customer” shall mean any Person which has either (a) entered into a nondisclosure agreement with
CMG, XA or GGI or any other CMG subsidiary or (b) has within the preceding 12 months received a currently pending and not rejected
written proposal in reasonable detail from CMG, XA, GGI or another CMG subsidiary.

 

1.10
“Severance Payments” shall mean any payments made under section 5.3.5.

 

	2.	EMPLOYMENT.

 

2.1 Agreement
to Employ. Effective as of the Effective Date, CMG hereby agrees to employ Employee, and Employee hereby agrees to serve,
subject to the provisions of this Agreement, as an officer and employee of CMG.

 

2.2 Duties
and Schedule. Employee shall serve as CMG’s Chief Executive Officer and shall have such responsibilities as designated
by the Board that are not inconsistent with applicable laws, regulations and rules. Employee shall report directly to the Board
as circumstances may require.

 

    2

     

    

  

3.           
 TERM OF AGREEMENT. Unless Employee’s employment shall sooner terminate pursuant to Section 5, CMG shall employ
Employee for a term commencing on the Effective Date and ending on the fifth anniversary thereof, which shall be renewed for additional
three-year terms unless notice of non-renewal is received by Employee from CMG within ninety (90) days of the end of the initial
five year term or a subsequent three year renewal term.  The period during which Employee is employed pursuant to this
Agreement shall be referred to as the “Term” or the “Term of Employment”.

 

	4.	COMPENSATION.

 

4.1 Salary.
Employee’s salary during the Term shall be $180,000 per year (the “Salary”) payable in accordance with
CMG’s normal payroll practices. All applicable withholding taxes shall be deducted from such payments. The Board, or the
Compensation Committee of the Board, if any, will review Employee’s Salary at least once per year and may, in its discretion,
increase (but not decrease) the Salary in accordance with CMG’s compensation policies.  In the event that the
Company lacks sufficient cash to pay the Salary, the Company may, at Employee’s discretion either (i) accrue the Salary
until such time as it can be paid in cash; provided, however that the Salary may not be accrued for more than four (4) months
or (ii) pay the Salary in Company common stock at a price equal to the 30-day trailing volume weighted average price as reported
by Bloomberg, L.P. prior to the date the Salary is due.

 

4.2 Cash
Bonus. Employee shall be entitled to cash bonuses as may be granted in the discretion of the Board.

 

4.3 Equity
Compensation. Employee hereby acknowledges receipt of the Warrants as compensation hereunder.

 

4.4 Health
Insurance; Other Employee Benefits. During the Term, Employee shall receive such health coverage as is available to employees
of CMG and/or any CMG subsidiary.    In addition, during the Term, Employee shall be eligible to participate
in any other employee benefit plan, program or practice, in each case, sponsored by CMG for its executives or employees on terms
and conditions set forth in such programs and plans (as amended from time to time).

 

4.5 Vacation.
Employee shall be entitled to four (4) weeks of paid vacation per calendar year taken at such times so as to not materially impede
his duties hereunder. Vacation days that are not taken may not be carried over into future years.  Illness days shall
be consistent with CMG’s standard policies.

 

4.6 Monthly
Allowances. Employee shall receive allowances of $1,000 per month for purposes such as automobile, cellular phone and other
expenses reasonably related to the Businesses.

 

4.7 Business
Expenses. Employee shall be reimbursed by CMG for all ordinary and necessary expenses incurred by Employee in the performance
of his duties hereunder on behalf of CMG, XA, GGI or any other subsidiary.

 

    3

     

    

  

	5.	TERMINATION.

 

5.1 Termination
Due to Death or Disability.

 

	 	5.1.1	Death.
    This Agreement shall terminate immediately upon the death of Employee.  Upon Employee’s death, Employee’s
    estate or Employee’s legal representative, as the case may be, shall be entitled to Employee’s accrued and unpaid
    Salary and vacation as of the date of Employee’s death, plus all other compensation and benefits that were vested through
    the date of Employee’s death, including, but not limited to, any vested and unpaid or granted and unpaid annual bonus
    and equity award(s) for the calendar year prior to Employee’s death.

 

	 	5.1.2	Disability.
    In the event of Employee’s Disability, this Agreement shall terminate and Employee shall be entitled to receive the
    following: (i) continuation of Employee’s Salary for Employee’s Disability period (it being understood that such
    period will be nine months from the first date that Employee is unable to work), and (ii) any unvested equity compensation
    will continue to vest for a period of three (3) years after the Employee’s Disability occurs. In addition, Employee
    shall also be entitled to (a) accrued and unpaid vacation as of the Date of Termination; and (b) all other compensation and
    benefits that were vested through the Date of Termination, including, but not limited to, any vested and unpaid or granted
    and unpaid annual bonus and equity award(s) through the first day of Employee’s Disability.

 

5.2 Termination
by CMG for Cause.  CMG may terminate Employee’s employment hereunder for Cause by delivery of written notice
to Employee specifying the cause or causes relied upon for such termination. If CMG terminates Employee’s employment hereunder
for Cause, Employee shall be entitled only to (a) Employee’s accrued and unpaid Salary and vacation through the Date of
Termination; and (b) all other compensation and benefits that were vested through the Date of Termination, including, but not
limited to, any vested and unpaid or granted and unpaid annual bonus and equity award(s) through the Date of Termination.

 

5.3 Termination
Without Cause. CMG may terminate the Employee’s employment hereunder without Cause. If CMG terminates the Employee’s
employment hereunder without Cause, other than due to death or Disability, the Employee shall be entitled to only the following:

 

	 	5.3.1	Employee’s
    accrued and unpaid Salary and vacation through the Date of Termination;

 

	 	5.3.2	all other compensation
    and benefits that were granted through the Date of Termination, including but not limited to, any granted and unpaid annual
    bonus and equity award(s) through the Date of Termination. All such granted equity awards(s) that have not vested shall immediately
    vest upon the Date of Termination;

  

    4

     

    

 

	 	5.3.3	All equity compensation
    shall immediately vest; and

 

	 	5.3.4	CMG shall continue
    or cause to be continued at the expense of CMG the Employee’s life and medical insurance benefits in effect immediately
    prior to the Date of Termination until the earlier of: (a) two (2) years from the Date of Termination, (b) the date
    Employee reaches normal retirement age, (c) the date on which Employee becomes eligible for coverage under another employer’s
    plan, or (d) Employee’s cancellation of such coverage in writing; and

 

	 	5.3.5	Employee shall
    be entitled to Severance Payments as set forth below:

 

	 	5.3.5.1	In the event
    that during the Term, CMG terminates Employee’s employment hereunder without Cause or Employee terminates the employment
    for Good Reason, as defined below in Section 5.4, Employee shall be entitled to the severance payments in the amount equal
    to the Salary that he would have received for a period of one (1) year immediately after the Date of Termination;

 

	 	5.3.5.2	All Severance
    Payments set forth in this Section 5.3.5 are subject to the following conditions: (a) Employee shall perform such reasonable
    duties as may be requested by CMG during the period the Severance Payments set forth in this Section 5.3.5 are made; (b) Employee
    shall refrain from disparaging CMG, CMG and any of their directors, officers, employees or affiliates and CMG shall refrain
    from denigrating Employee; and (c) Employee cooperates with CMG in all reasonable requests to transition Employee’s
    replacement.  Subject to Employee’s compliance with the foregoing, all Severance Payments set forth in this
    Section 5.3.5 shall be paid to Employee in installments over the Term, with the first installment payment, which shall cover
    the period from Employee’s Date of Termination to the first regularly scheduled CMG payroll date that occurs after the
    fifty-fifth (55th) day following Employee’s Date of Termination, shall be paid to Employee on such regularly scheduled
    payroll date after such fifty-fifth (55th) day and the remaining amounts shall be paid to Employee in installments over the
    remainder of the Term in accordance with CMG’s regularly scheduled payroll dates, commencing with CMG’s first
    regularly scheduled payroll date that occurs after such first payment.

  

    5

     

    

 

5.4 Termination
by Employee. Any termination of this Agreement by Employee by formal notice shall have the same effect as a termination by
CMG for Cause, unless Employee terminates employment for “Good Reason” as defined below.  A termination
for Good Reason shall have the same effect as a termination by CMG without Cause.

 

	 	5.4.1	For purposes
    of this Agreement “Good Reason” shall mean 1) a material diminution in Employee’s duties and responsibilities,
    or material change in reporting structure; 2) CMG shall default in the performance of any of its material obligations under
    this Agreement (provided that, in any such case, Employee shall have provided the Board with written notice of such default
    and not less than thirty (30) days to cure such default); 3) the occurrence of a Change of Control (as defined below); or
    4) CMG requests that Employee engage in any illegal conduct, or retaliates against Employee for objecting to any illegal conduct
    by CMG.

 

	 	5.4.2	For purposes
    of this Agreement, “Change in Control” shall mean:  (i) any acquisition by any person or any
    persons acting together which would constitute a “group” for purposes of Section 13(d) of the Securities Exchange
    Act of 1934 (a “Group”) of fifty percent (50%) or more of the total voting power of all classes of capital stock
    of CMG entitled to vote generally in the election of the Board; (ii) any other acquisition by any person or group of the power
    to elect, appoint or cause the election or appointment of at least a majority of the members of the Board through beneficial
    ownership of the capital stock or otherwise; (iii) the merger or consolidation of CMG as a result of which persons who were
    stockholders of CMG immediately prior to such merger or consolidation, do not, immediately thereafter, own, directly or indirectly,
    50% or more of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated
    company; (iv) the sale, transfer or other disposition of all or substantially all of the assets of CMG through one transaction
    or a series of related transactions to one or more persons or entities who are not, immediately prior to such sale, transfer
    or other disposition, stockholders of CMG immediately prior to such sale(s), transfer(s) or other disposition(s). Notwithstanding
    the foregoing, or anything to the contrary contained herein, it shall not be a Change in Control if any of the foregoing transactions
    are approved in writing by persons who, as of the date of this Agreement, in the aggregate, own more than 50% of the voting
    stock of CMG.

 

	 	5.4.3	Notice of
    Termination.  Any termination of the Employee by CMG shall be communicated by a notice of termination to the
    Employee given in accordance with Section 8.4 of this Agreement (the “Notice of Termination”).  Such
    notice shall (a) indicate the specific termination provision in this Agreement relied upon and (b) if the termination date
    is other than the date of receipt of such notice, specify the dates on which the Employee’s employment is to be terminated
    (which date shall not be earlier than the date on which such notice is given).

 

5.5 Payment.
Except as otherwise provided in this Agreement, more specifically excluding Severance Payments, any payments to which the Employee
shall be entitled under this Section 5, including, without limitation, any economic equivalent of any benefit, shall be made as
promptly as possible following the Date of Termination, but in no event more than 30 days after the Date of Termination.  If
the amount of any payment due to the Employee cannot be finally determined within 30 days after the Date of Termination, such
amount shall be reasonably estimated on a good faith basis by CMG and the estimated amount shall be paid no later than thirty
(30) days after such Date of Termination.  As soon as practicable thereafter, the final determination of the amount
due shall be made and any adjustment requiring a payment to Employee shall be made as promptly as practicable.  The
payment of any amounts under this Section 5 shall not affect Employee’s rights to receive any workers’ compensation
benefits.

  

    6

     

    

 

5.6 No
Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Employee’s continuing or future participation
in any plan, program, policy or practice provided by CMG or its subsidiaries, if any, and for which the Employee may qualify,
nor shall anything herein limit or otherwise affect such rights as Employee may have under any other contract or agreement with
the CMG or its subsidiaries, at or subsequent to the Date of Termination (“Other Benefits”), which such Other Benefits
shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified
by this Agreement. Notwithstanding the foregoing, if Employee receives payments and benefits pursuant to Section 5.3 of this
Agreement, Employee shall not be entitled to any severance pay or benefits under any severance plan, program or policy of CMG,
unless otherwise specifically provided therein in a specific reference in or to this Agreement.

 

	6.	EMPLOYEE’S
    REPRESENTATIONS. The Employee represents and warrants to CMG that: (a) he is subject to no contractual, fiduciary or other
    obligation which may affect the performance of his duties under this Agreement; (b) he has terminated, in accordance with
    their terms, any contractual obligation which may affect his performance under this Agreement; (c) his employment with CMG
    will not require him to use or disclose proprietary or confidential information of any other person or entity; and (d) any
    other agreements he previously had with CMG with respect to a consulting arrangement are hereby terminated and of no further
    force or effect.

 

	7.	NON-COMPETITION:
    NON-DISCLOSURE; INVENTIONS.

 

7.1 Trade
Secrets. Employee acknowledges that his employment position with CMG is one of trust and confidence. Employee further understands
and acknowledges that, during the course of Employee's employment with CMG, Employee will be entrusted with access to certain
confidential information, specialized knowledge and trade secrets which belong to CMG including but not limited to, their methods
of operation and developing customer base, its manner of cultivating customer relations, its practices and preferences, current
and future market strategies, formulas, patterns, patents, devices, secret inventions, processes, compilations of information,
records, and customer lists, all of which are regularly used in the operation of their business and which Employee acknowledges
have been acquired, learned and developed by them only through the expenditure of substantial sums of money, time and effort,
which are not readily ascertainable, and which are discoverable only with substantial effort, and which thus are the confidential
and the exclusive Property of CMG (hereinafter “Trade Secrets”). Employee covenants and agrees to use his best efforts
and utmost diligence to protect those Trade Secrets from disclosure to third parties.  Employee further acknowledges
that, absent the protections afforded CMG in Section 7, Employee would not be entrusted with any of such Trade Secrets. Accordingly,
Employee agrees and covenants (which agreement and covenant shall survive the termination of this Agreement regardless of the
reason) as follows:

 

	 	7.1.1	Employee will
    at no time take any action or make any statement that will disparage or discredit CMG, any of its subsidiaries or their products
    or services;

  

    7

     

    

 

	 	7.1.2	During the period
    of Employee's employment with CMG and for twenty-four (24) months immediately following the termination of such employment,
    Employee will not disclose or reveal to any person, firm or corporation other than in connection with the business of CMG
    or as may be required by law, any Trade Secret used or useable by CMG or any of its subsidiaries, divisions or Affiliates
    (collectively the “Companies”) in connection with their respective businesses, known to Employee as a result
    of his employment by CMG, or other relationship with the Companies, and which is not otherwise publicly available. Employee
    further agrees that during the term of this Agreement and at all times thereafter, he will keep confidential and not disclose
    or reveal to any person, firm or corporation other than in connection with the business of the Companies or as may be required
    by applicable law, any information received by him during the course of his employment with regard to the financial, business,
    or other affairs of the Companies, their respective officers, directors, customers or suppliers which is not publicly available;

 

	 	7.1.3	Upon the termination
    of Employee's employment with CMG, Employee will return to CMG all documents, customer lists, customer information, product
    samples, presentation materials, drawing specifications, equipment and other materials relating to the business of any of
    the Companies, which Employee hereby acknowledges are the sole and exclusive property of the Companies or any one of them.  Nothing
    in this Agreement shall prohibit Employee from retaining, at all times any document relating to his personal entitlements
    and obligations, his rolodex, his personal correspondence files; and any additional personal property;

 

	 	7.1.4	During the term
    of the Agreement and, for a period of twenty-four (24) months immediately following the termination of the Employee's employment
    with CMG, Employee shall not: compete, or participate as a shareholder, director, officer, partner (limited or general), trustee,
    holder of a beneficial interest, employee, agent of or representative in any business competing directly with the Companies
    without the prior written consent of CMG, which may be withheld in CMG’s sole discretion; provided, however,
    that nothing contained herein shall be construed to limit or prevent the purchase or beneficial ownership by Employee of less
    than five percent of any security registered under Section 12 or 15 of the Securities Exchange Act of 1934;

  

    8

     

    

 

	 	7.1.5	During the term
    of the Agreement and, for a period of twenty-four (24) months immediately following the termination of the Employee's employment
    with CMG, Employee will not:

 

	 	7.1.5.1	solicit or accept
    competing business from any customer of any of the Companies or any person or entity known by Employee to be or have been,
    during the preceding 18 months, a customer or Prospective Customer of any of the Companies without the prior written consent
    of CMG;

 

	 	7.1.5.2	encourage, request
    or advise any such customer or Prospective Customer of any of the Companies to withdraw or cancel any of their business from
    or with any of the Companies; or

 

	 	7.1.6	Employee will
    not during the period of his employment with CMG and, subject to the provisions hereof for a period of twenty-four (24) months
    immediately following the termination of Employee's employment with CMG,

 

	 	7.1.6.1	conspire with
    any person employed by any of the Companies with respect to any of the matters covered by this Section 7;

 

	 	7.1.6.2	encourage, induce
    or solicit any person employed by any of the Companies to facilitate Employee's violation of the covenants contained in this
    Section 7;

 

	 	7.1.6.3	assist any entity
    to solicit the employment of any employee of any of the Companies; or

 

	 	7.1.6.4	employ or hire
    any employee of any of the Companies, or solicit or induce any such person to join the Employee as a partner, investor, coventurer,
    or otherwise encourage or induce them to terminate their employment with any of the Companies. Employee shall not be deemed
    to hire any such person so long as Employee did not directly or indirectly engage in or encourage such hiring.

 

7.2
Employee expressly acknowledges that all of the provisions of this Section 7 of this Agreement have been bargained for and Employee's
agreement hereto is an integral part of the consideration to be rendered by the Employee which justifies the rate and extent of
the compensation provided for hereunder.

 

7.3
Employee acknowledges and agrees that a violation of any one of the covenants contained in this Section 7 shall cause irreparable
injury to CMG, that the remedy at law for such a violation would be inadequate and that CMG shall thus be entitled to temporary
injunctive relief to enforce that covenant until such time that a court of competent jurisdiction either (i) grants or denies
permanent injunctive relief or (ii) awards other equitable remedy(s) as it sees fit.

 

    9

     

    

 

7.4 Successors.

 

	 	7.4.1	Employee.
    This Agreement is personal to Employee and, without the prior express written consent of CMG, shall not be assignable by Employee,
    except that Employee’s rights to receive any compensation or benefits under this Agreement may be transferred or disposed
    of pursuant to testamentary disposition, intestate succession or a qualified domestic relations order or in connection with
    a Disability. This Agreement shall inure to the benefit of and be enforceable by Employee’s estate, heirs, beneficiaries,
    and/or legal representatives.

 

	 	7.4.2	CMG.
    This Agreement shall inure to the benefit of and be binding upon CMG and its successors and assigns.

 

7.5 Inventions
and Patents. CMG shall be entitled to the sole benefit and exclusive ownership of any inventions or improvements in drugs,
products, processes, or other things that may be made or discovered by Employee while he is in the service of CMG, and all patents
for the same. During the Term, Employee shall do all acts necessary or required by CMG to give effect to this section and, following
the Term, Employee shall do all acts reasonably necessary or required by CMG to give effect to this section.  In all
cases, CMG shall pay all costs and fees associated with such acts by Employee.

 

	8.	MISCELLANEOUS.

 

8.1 Indemnification.  CMG
and each of its subsidiaries shall, to the maximum extent provided under applicable law, indemnify and hold Employee harmless
from and against any expenses, including reasonable attorney’s fees, judgments, fines, settlements and other legally permissible
amounts (“Losses”), incurred in connection with any proceeding arising out of, or related to, Employee’s
employment by CMG, other than any such Losses incurred as a result of Employee’s negligence or willful misconduct.  CMG
shall, or shall cause a subsidiary thereof to, advance to Employee any expenses, including attorney’s fees and costs of
settlement, incurred in defending any such proceeding to the maximum extent permitted by applicable law.  Such costs
and expenses incurred by Employee in defense of any such proceeding shall be paid by CMG or applicable subsidiary in advance of
the final disposition of such proceeding promptly upon receipt by CMG of (a) written request for payment; (b) appropriate documentation
evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought; and (c) an undertaking
adequate under applicable law made by or on behalf of Employee to repay the amounts so advanced if it shall ultimately be determined
pursuant to any non-appealable judgment or settlement that Employee is not entitled to be indemnified by CMG or any subsidiary
thereof. CMG will provide Employee with coverage under all director’s and officer’s liability insurance policies which
is has in effect during the Term, with no deductible to Employee.

 

8.2 Applicable
Law. Except as may be otherwise provided herein, this Agreement shall be governed by and construed in accordance with the
laws of the State of Nevada, applied without reference to principles of conflict of laws.

 

    10

     

    

 

8.3 Amendments.
This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective
successors or legal representatives.

 

8.4 Notices.  All
notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If
to the Employee:

 

Glenn
Laken

2130
North Lincoln Park West

Apartment
8N

Chicago,
IL  60614

 

If
to CMG:

 

CMG
Holdings Group, Inc.

875
North Michigan Avenue

Chicago,
IL 60611

Phone:
646-688-6381

E-mail:
captjedge@aol.com

 

With
a copy to (which shall not constitute notice):

 

Ofsink,
LLC

230
Park Avenue, Suite 851

New
York, New York 10169

Attn:
Darren Ofsink

Facsimile:
646-224-9844

 

Or
to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notices
and communications shall be effective when actually received by the addressee.

 

8.5 Withholding.
CMG may withhold from any amounts payable under the Agreement, such federal, state and local income, unemployment, social security
and similar employment related taxes and similar employment related withholdings as shall be required to be withheld pursuant
to any applicable law or regulation.

 

8.6 Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, and any such provision which is not valid or enforceable in whole shall be enforced to the maximum
extent permitted by law.

  

    11

     

    

 

8.7 Captions.
The captions of this Agreement are not part of the provisions and shall have no force or effect.

 

8.8 Entire
Agreement. This Agreement contains the entire agreement among the parties concerning the subject matter hereof and supersedes
all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties
with respect thereto.

 

8.9 Survivorship.
The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement or the Employee’s
employment hereunder to the extent necessary to the intended preservation of such rights and obligations.

 

8.10 Waiver.
Either Party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver
of any such provision or provisions, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

 

8.11 Joint
Efforts/Counterparts. Preparation of this Agreement shall be deemed to be the joint effort of the parties hereto and shall
not be construed more severely against any party.  This Agreement may be signed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

8.12 Representation
by Counsel.   Each Party hereby represents that it has had the opportunity to be represented by legal counsel
of its choice in connection with the negotiation and execution of this Agreement.

 

8.13 No
Mitigation. Employee shall have no duty to seek other employment and the amounts, benefits and entitlements payable to Employee
hereunder or otherwise shall not be subject to reduction, offset or repayment for any compensation received by Employee from services
provided by Employee following the termination of Employee’s employment with CMG.

 

8.14 Section
409A.

 

	 	8.14.1	The intent of
    the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations
    and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum
    extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In no event whatsoever shall
    CMG be liable for any additional tax, interest or penalty that may be imposed on the Employee by Code Section 409A or damages
    for failing to comply with Code Section 409A.

 

	 	8.14.2	A termination
    of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
    of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation
    from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references
    to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  Notwithstanding
    anything to the contrary in this Agreement, if the Employee is deemed on the date of termination to be a “specified
    employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision
    of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation
    from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (A) the
    expiration of the six (6)-month period measured from the date of such “separation from service” of the Employee,
    and (B) the date of the Employee’s death, to the extent required under Code Section 409A.  Upon the expiration
    of the foregoing delay period, all payments and benefits delayed pursuant to this Section 8.14 (whether they
    would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed
    to the Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided
    in accordance with the normal payment dates specified for them herein.

 

    12

     

    

 

	 	8.14.3	To the extent
    that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation”
    for purposes of Code Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the
    last day of the taxable year following the taxable year in which such expenses were incurred by the Employee, (B) any right
    to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no
    such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way
    affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

	 	8.14.4	For purposes
    of Code Section 409A, the Employee’s right to receive any installment payments pursuant to this Agreement shall be treated
    as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies
    a payment period with reference to a number of days, the actual date of payment within the specified period shall be within
    the sole discretion of CMG.

 

	 	8.14.5	Notwithstanding
    any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes
    “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount
    unless otherwise permitted by Code Section 409A.

 

    13

     

    

 

8.15 Adjustment.
Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that as a result of any payment
or distribution by CMG to or for Employee’s benefit whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (the “Payments”), Employee would be subject to the excise tax imposed
by Sections 409A, 280G or Section 4999 of the Internal Revenue Code or any interest or penalties are incurred
by Employee with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), Employee shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that, after payment by the Employee of all taxes (including any interest or penalties imposed
with respect to such taxes), including, without limitation, any income taxes and Excise Tax imposed upon the Gross-Up Payment,
Employee is in the same after-tax position as if no Excise Tax had been imposed upon Employee with respect to the Payments, provided
further that such Gross-Up Payment shall be made prior to April 15th of the calendar year following the year in which Employee
receive any payment or distribution from CMG which gives rise to a Gross-Up Payment.

 

--
Signature page follows --

 

    14

     

    

 

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

 

	EMPLOYEE:

         

        /s/
        Glenn Laken                                        
            

        Glenn
        Laken
	 	CMG
                                         HOLDINGS GROUP, INC.

         

        By:       /s/
        Jeffrey Devlin                      
                              

        Name:  Jeffrey
        Devlin

        Title:    Director
        and Chief Financial Officer

 

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]