Lateral Media, Inc. Suite 2550 Los Angeles, CA 90067 Attention: PresidentLateral Media, Inc. • July 2nd, 2009 • Metal mining • Delaware
The undersigned (the “Lender”) has made advances to Lateral Media, Inc. (the “Company”), pursuant to that certain letter agreement, dated as of July 11, 2007, as subsequently amended on November 15, 2007, April 18, 2008, August 1, 2008, April 30, 2009 and June 11, 2009 (the “Loan Agreement”), pursuant to which the Lender agreed to provide a loan to the Company in the principal amount of up to $1,250,000, plus any accrued interest thereon (the “Loan”). As of the date hereof, the principal balance of the Loan is $1,200,000, and the accrued and unpaid interest outstanding under the Loan is $ $30,507, for an aggregate balance of $1,230,507 (the “Current Outstanding Debt”). The Lender and the Company now wish to satisfy $350,000 of the Current Outstanding Debt by means of delivery to the Lender of a 7% Convertible Promissory Note in the aggregate amount of $350,000 (the “Note”) and a Warrant to purchase 350,000 shares of the Company’s common stock, par value $0.001 per share (“Common Stock”
