DLPN Dolphin Entertainment Inc

Dolphin Entertainment, Inc. (the “Company”) and certain of its subsidiaries recently executed notes and received loans (collectively, the “PPP Loans”, and each loan, a “PPP Loan”) from BankUnited, N.A., under the Paycheck Protection Program (“PPP”) which was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. As of April 23, 2020, the amounts of the PPP loans for the Company, Shore Fire Media, Ltd, 42 West LLC, Viewpoint Computer Animation Incorporated and The Door Marketing Group LLC, are $54,900, $322,200, $725,200, $321,000 and $672,700, respectively (each such entity, a “Borrower”). A total of five PPP Loans were made to the Company and its subsidiaries. The proceeds from each PPP Loan will be used in accordance with the terms of the CARES Act program, as described further below. The aggregate amount received under the PPP Loans by the Company and its subsidiaries is approximately $2.1 million. The PPP Loans mature between April 19, 2022 and April 23, 2022 and bear interest at a rate of 1.0% per annum. Commencing November 19, 2020 through November 23, 2020 (the “First Payment Dates”), the Company and its subsidiaries are required to pay the Lender all accrued interest that has not been forgiven. Additionally, beginning on the First Payment Dates and each month thereafter, the Company and its subsidiaries shall make equal monthly payments of principal and accrued interest as necessary to fully amortize the principal amount outstanding by the maturity date. The PPP Loans may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The PPP Loans are unsecured, and all or a portion of the PPP Loans may be forgiven upon application to the Lender for certain expenditure amounts made, including payroll costs, during the 8-week period beginning on the date of first disbursement, in accordance with the requirements under the PPP. The foregoing description of the PPP Loan is qualified in its entirety by reference to the form of Paycheck Protection Program Term Note filed as an exhibit hereto and incorporated herein by reference.