<SEC-DOCUMENT>0001144204-16-073684.txt : 20160104
<SEC-HEADER>0001144204-16-073684.hdr.sgml : 20160101
<ACCEPTANCE-DATETIME>20160104080046
ACCESSION NUMBER:		0001144204-16-073684
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20151228
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20160104
DATE AS OF CHANGE:		20160104

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Digital Turbine, Inc.
		CENTRAL INDEX KEY:			0000317788
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				222267658
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35958
		FILM NUMBER:		161316450

	BUSINESS ADDRESS:	
		STREET 1:		1300 GUADALUPE STREET
		STREET 2:		SUITE 302
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78701
		BUSINESS PHONE:		(512) 387-7717

	MAIL ADDRESS:	
		STREET 1:		1300 GUADALUPE STREET
		STREET 2:		SUITE 302
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Mandalay Digital Group, Inc.
		DATE OF NAME CHANGE:	20120207

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NeuMedia, Inc.
		DATE OF NAME CHANGE:	20100514

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Mandalay Media, Inc.
		DATE OF NAME CHANGE:	20071109
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v427951_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND
EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>WASHINGTON, DC
20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM&nbsp;8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CURRENT REPORT
PURSUANT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>TO SECTION&nbsp;13
OR 15(d)&nbsp;OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES EXCHANGE
ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Date of report (Date
of earliest event reported)&nbsp;<B>December 28, 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Digital Turbine,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Exact Name of Registrant
as Specified in Its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 34%"><FONT STYLE="font-size: 10pt"><B>001-35958</B></FONT></TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>22-2267658</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(State or Other Jurisdiction of Incorporation)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(IRS Employer Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 67%"><FONT STYLE="font-size: 10pt"><B>1300 Guadalupe
    Street Suite # 302, Austin TX</B></FONT></TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>78701</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(512) 387-7717
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Registrant&rsquo;s
Telephone Number,&nbsp;Including Area Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Former Name or Former
Address, if Changed Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Check the appropriate box below if the
Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions (<I>see </I>General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written
                                         communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting
                                         material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement
                                         communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR &#9;240.14d-2(b))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement
                                         communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR &#9;240.13e-4(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 1.01.</B></TD><TD STYLE="text-align: justify"><B>Entry
                                         into a Material Definitive Agreement</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 28, 2015,
Digital Turbine Media, Inc., (&ldquo;<U>DTM</U>&rdquo;) (f/k/a Appia, Inc., f/k/a PocketGear, Inc.), a wholly-owned subsidiary
of Digital Turbine, Inc. (the &ldquo;<U>Company</U>&rdquo;) entered into a license with respect to certain of DTM&rsquo;s intellectual
property assets described below (the &ldquo;<U>License Agreement</U>&rdquo;) with Sift Media, Inc. (&ldquo;<U>Sift</U>&rdquo;),
in exchange for shares of Sift&rsquo;s newly-issued Preferred Stock (as hereinafter defined) pursuant to a Stock Purchase Agreement
(the &ldquo;<U>Stock Purchase Agreement</U>&rdquo;) and a cash payment. At the same time, DTM also entered into a publishing agreement
with Sift (the &ldquo;<U>Publishing Agreement</U>&rdquo;), as well as certain other ancillary agreements, all as described below.
Sift was formed by Company-board of directors member Jud Bowman, who is Sift&rsquo;s President, Chief Executive Officer and one
of its significant shareholders. The License Agreement, the Stock Purchase Agreement, the Publishing Agreement, the ancillary
agreements and the transactions contemplated thereby are referred to as the &ldquo;Sift Transactions&rdquo;. The Sift Transactions
were unanimously approved by the independent and disinterested members of the Company&rsquo;s Board other than Mr. Bowman.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>License Transaction</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Licensed Assets
(as hereinafter defined) were originally acquired as part of the Company&rsquo;s merger with Appia, Inc. (&ldquo;<U>Appia</U>&rdquo;)
earlier in 2015, and relate to development-stage real-time bidding technology, an ancillary part of Appia&rsquo;s (now DTM&rsquo;s)
advertising business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the License
Agreement, DTM has granted to Sift an irrevocable, non-exclusive and royalty-free license to its real-time bidder and certain
other technology needed to operate the core real-time bidding assets (collectively, the &ldquo;<U>Licensed Assets</U>&rdquo;).
In consideration of the license to Sift, DTM will receive $1,000,000, in cash, 9.9% of the authorized and issued shares of Sift
in the form of Series Seed Convertible Preferred Stock (the &ldquo;<U>Preferred Stock</U>&rdquo;) a seat on the board of directors
of Sift and a variety of other rights referenced below.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the License
Agreement, DTM&rsquo;s license of the Licensed Assets to Sift is perpetual. DTM agreed that it will not license or sell the core
real-time bidding assets to any third parties for any purpose (except in connection with a Change of Control (as defined in the
License Agreement) of the Company or DTM), and DTM will not license or sell certain related but non-core licensed assets to any
third parties (except in connection with a Change of Control of the Company or DTM) within the field of the programmatic advertising
business. Notwithstanding the foregoing limitations on licensing or selling of the core real-time bidding assets and non-core
licensed assets, DTM can use any of the Licensed Assets for its own purposes. DTM currently has, and intends to continue, its
real-time bidding operations. Each party owns any developments or improvements that each such party may make in the future with
respect to the Licensed Assets.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">DTM is providing certain
warranties and indemnities to Sift regarding the Licensed Assets, subject to various limitations, as detailed in the License Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Publisher Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Publisher
Agreement, DTM and Sift (as publisher) will enter into DTM&rsquo;s standard form of Publisher Agreement for a term of one year,
subject to certain exclusivity and matching provisions. Sift is obligated for such period to use DTM as the exclusive provider
of advertising that is available through DTM as set forth in the Publisher Agreement.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Stock Purchase
Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company received
9.9% of Sift&rsquo;s capital stock in the form of newly-issued Preferred Stock, which is convertible into Sift Common Stock (&ldquo;<U>Common
Stock</U>&rdquo;) under certain circumstances, and is redeemable upon the fifth (5th) anniversary of issuance of the Preferred
Stock by the holders of a majority of the Preferred Stock. For so long as it holds Preferred Stock, DTM shall be entitled to nominate
for election one member of the five-member Board of Sift. At Closing (as defined in the Stock Purchase Agreement), the DTM nominated
director will be Bill Stone. The Preferred Stock as a class has a variety of other rights, preferences and privileges typically
associated with early-stage preferred stock, including a liquidation preference of $1.00 per share and certain veto rights. DTM
received 999,000 shares of Preferred Stock. Sift sold and issued an additional 3,190,000 shares of its Series Seed Preferred Stock
to other investors led by Wakefield Group IV, LLC for a total cash consideration of $3,190,000.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Stock
Purchase Agreement, Sift issued the Preferred Stock to DTM and other accredited and institutional investors pursuant to a private
placement exempt from the registration requirements of applicable securities laws. Mr. Bowman serves as Sift&rsquo;s President
and Chief Executive Officer and, upon Sift&rsquo;s formation, entered into an agreement to receive 5,311,000 shares of restricted
Sift Common Stock, representing in the aggregate approximately 53% of Sift&rsquo;s fully-diluted capital stock immediately following
the sale of the Series Seed Preferred Stock.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Ancillary Agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to an Employment
Agreement and related Restricted Stock Agreement, Sift has agreed to employ Mr. Bowman as President and Chief Executive Officer
of Sift for an initial term of three (3) years subject to renewal. Mr. Bowman&rsquo;s base salary is $200,000 per annum with discretionary,
performance-based targeted bonuses of up to 50% of base salary and full participation in Sift&rsquo;s benefit plans. Mr. Bowman
purchased 5,311,000 restricted common shares, which rank beneath the Preferred Stock, at an aggregate price of approximately $60,000.
The restricted shares are subject to a Sift repurchase option at the original purchase price if his employment is terminated for
any reason on or before December 28, 2019. The repurchase option expires on an accelerated basis if he is terminated Without Cause
or for Good Reason (as such terms are defined in the Employment Agreement) as follows: (i) 25% expires if he is terminated prior
to the 6-month anniversary from the effective date; and (ii) 50% expires if he is terminated after the 6-month anniversary from
the effective date if such repurchase option then applies to less than 50% of the restricted shares after passage of time. In
addition, 100% of the repurchase option expires upon a &ldquo;Change of Control.&rdquo; Mr. Bowman also is eligible for severance
in the event of termination Without Cause or for Good Reason (as such terms are defined in the Employment Agreement), and is subject
to certain in-term and post-term restrictive covenants, including post-term non-competition and non-solicitation covenants for
a period of 18 months. Mr. Bowman remains a Digital Turbine, Inc. director.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Concurrent with the
Employment Agreement, Mr. Bowman has entered into Sift&rsquo;s standard Non-Disclosure, Non-Solicitation and Inventions Assignment
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to an Investor
Rights Agreement, the holders of Preferred Stock (including DTM), together with certain Key Holders (as hereinafter defined),
are accorded certain registration rights, preemptive rights, information rights and other customary provisions. The Investor Rights
Agreement includes other customary provisions including preemptive rights, registration rights, financial information rights and
a 180-day market standoff provision. In addition, the Investor Rights Agreement terminates certain of DTM&rsquo;s rights in the
event of certain limited, willful and material breaches by DTM of the License Agreement.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, pursuant
to a Right of First Refusal and Co-Sale Agreement, any proposed transfer of Common Stock by the key holders of such shares (including
Mr. Bowman) (the &ldquo;<U>Key Holders</U>&rdquo;) shall require notice to Sift and each of the holders of Preferred Stock; such
agreement provides Sift and then the holders of Preferred Stock certain rights of first refusal to acquire the Key Holders&rsquo;
shares proposed to be transferred, subject to certain exclusions, and certain co-sale rights, after customary notice and exercise
periods, and to participate in any sale by the Key Holders to any third party upon the same economic terms to which all or a portion
of the Key Holders&rsquo; shares are subject. In addition, the Right of First Refusal and Co-Sale Agreement terminates certain
of DTM&rsquo;s rights in the event of certain limited, willful and material breaches by DTM of the License Agreement.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A Voting Agreement
sets forth certain voting rights and obligations of the holders of Common Stock and Preferred Stock. Under the Voting Agreement,
the holders of Common Stock and Preferred Stock are required to vote their shares to elect five (5) directors of Sift as follows:
(i) one director nominated by Wakefield Group IV, LLC, (ii) one director nominated by DTM, (iii) two directors nominated by a
majority of the Key Holders, each of whom shall be independent of Mr. Bowman so long as he continues to serve as President and
Chief Executive Officer, and (iv) one director who shall be the &ldquo;CEO director.&rdquo;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Voting Agreement
includes other customary provisions including an irrevocable proxy, a change of control provision for a sale of Sift and termination
upon underwritten public offering or sale of Sift. In addition, the Voting Agreement terminates certain of DTM&rsquo;s rights
in the event of certain limited, willful and material breaches by DTM of the License Agreement.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Transition
Services Agreement, DTM has agreed to provide Sift limited transition services for a period of 90 days following the Closing (as
such term is defined in the Transition Services Agreement) in connection with the Sift Transactions for certain fees and reimbursement
of certain out-of-pocket costs.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing summary
of the Sift Transactions is a summary only and does not purport to be complete and is subject to, and qualified in its entirety
by, the full text of the material agreements comprising the Sift Transactions (currently expected to be the License Agreement,
Stock Purchase Agreement, Publishing Agreement, Employment Agreement and Restricted Stock Agreement), which the Company will file
in connection with its next quarterly report on Form 10-Q for its third fiscal quarter.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: January 4, 2016</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Digital Turbine, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By: </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/&nbsp;&nbsp;&nbsp;Andrew
    Schleimer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Andrew Schleimer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive Vice President, Chief Financial Officer</FONT></TD></TR>
</TABLE>

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