Exhibit 10.1


 


NON-REVOLVING LINE OF CREDIT LOAN AGREEMENT


 


by and between


 


LOOP MEDIA, INC.


 


and


 


RAT Investment Holdings, LP


 


Dated as of May 13, 2022


 









     


     


    

 


NON-REVOLVING LINE OF CREDIT LOAN AGREEMENT


 


This Non-Revolving Line of
Credit Loan Agreement (this "Agreement") is dated as of May 13, 2022 (“Effective Date”), by and
between LOOP MEDIA, INC., a Nevada corporation ("Borrower"),RAT INVESTMENT HOLDINGS, LP , a Nevada
corporation , as administrator of the loan(the “Loan Administrator”) and the lenders set out on Exhibit B
attached hereto (each individually and collectively a "Lender" and together, the “Lenders”).


 


BACKGROUND


 


A.            Borrower
desires to establish with Lender, and Lender is willing to make loans to Borrower, as a non-revolving line of credit not to exceed the
sum of $2,200,000 in the aggregate, under the terms and provisions hereinafter set forth.


 


B.            The
parties are entering into this Agreement to define the terms and conditions of their relationship in writing.


 


NOW, THEREFORE, the parties
hereto, intending to be legally bound, hereby agree as follows:


 


SECTION I.              DEFINITIONS
AND INTERPRETATION


 


1.1.          Terms
Defined: As used in this Agreement, the following terms (in addition to terms defined elsewhere in this Agreement) have the following
respective meanings:


 


Advance(s) –
Any monies advanced or credit extended to Borrower by Lender under the Line of Credit.


 


Affiliate – With
respect to any Person, (a) any Person which, directly or indirectly through one or more intermediaries controls, or is controlled
by, or is under common control with, such Person, or (b) any Person who is a director or officer (i) of such Person, (ii) of
any Subsidiary of such Person, or (iii) any person described in clause (a) above.


 


Authorized Officer –
Any officer (or comparable equivalent) of Borrower authorized by specific resolution of Borrower to request Advances.


 


Bankruptcy Code –
Title 11 of the United States Code entitled “Bankruptcy”, as now or hereinafter in effect, or any successor statute.


 


Business Day –
A day other than Saturday or Sunday when financial institutions are open for business in Florida.


 


Closing – May 13,
2022.


 


Collateral - all of Borrower’s
personal property, now owned or hereafter acquired, including without limitation, all accounts, chattel paper, commercial tort claims,
deposit accounts, documents, equipment, general intangibles (including intellectual property, patents, copyrights, trademarks, and goodwill),
goods, fixtures, instruments, inventory, financial assets, domain names, investment property, letter of credit rights, money, and all
of Borrower’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and
records; and all products and proceeds thereof, as defined in this Agreement and the Uniform Commercial Code.


 






     


     


    

 


Contract Rate –
A fixed rate of interest equal to twelve percent (12%) per annum.


 


Default - Any event,
act, condition or occurrence which with notice, or lapse of time or both, would constitute an Event of Default hereunder.


 


Effective Date –
The date set forth above.


 


Expenses – The
meaning given such term in Section 8.6 hereof.


 


Governmental Authority
- Any federal, state or local government or political subdivision, or any agency, authority, bureau, central bank, commission, department
or instrumentality of either, or any court, tribunal, grand jury, or arbitration.


 


Indebtedness - All indebtedness
created, assumed or incurred in any manner by a Person representing money borrowed (including by the issuance of debt securities) and
all guarantees of such Person in respect of any of the foregoing.


 


Legal Requirement –
Collectively, any treaty, statute, law, common law, rule, regulation, ordinance, license, permit, governmental approval, injunction, judgment,
order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local.


 


Lien- Any lien, security
interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any
conditional sale, Capital Lease or other title retention arrangement.


 


Line of Credit –
the line of credit facility established pursuant to the terms of this Agreement, the Note and any other Loan Document.


 


Line of Credit Maturity Date
 – Eighteen (18) months from the Effective Date.


 


Loans – Mean the
unpaid balance of Advances under the Line of Credit.


 


Loan Documents –
Collectively, this Agreement, the Note, and all agreements, instruments and documents executed and/or delivered in connection therewith,
all as may be supplemented, restated, superseded, amended or replaced from time to time.


 


Material Adverse Effect
- (a) A material adverse change in, or material adverse effect upon, the operations, business, Property or condition (financial or
otherwise) of Borrower, (b) a material impairment of the ability of Borrower to perform its obligations under any Loan Document or
(c) a material adverse effect upon the legality, validity, binding effect or enforceability of any Loan Document or the rights and
remedies of the Lender thereunder.


 


Maximum Line of Credit Amount
- The sum of Two Million Two Hundred Thousand and 00/100 Dollars ($2,200,000.00).


 


Note – The Non-Revolving
Line of Credit Promissory Note, dated the date hereof, by Borrower in favor of Lender.


 






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Obligations – All
obligations of the Borrower to pay principal and interest on the Loans, all fees and charges payable hereunder, and all other payment
obligations of the Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising,
due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.


 


Person- An individual,
partnership, corporation, trust, limited liability company, limited liability partnership, unincorporated association or organization,
joint venture or any other entity.


 


Property- As to any Person,
all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance
sheet of such Person and its subsidiaries under GAAP.


 


Responsible Officer -
Of any Person, any executive officer or Financial Officer of such Person and any other officer, general partner or managing member or
similar official thereof with responsibility for the administration of the obligations of such person in respect of this Agreement.


 


Uniform Commercial Code
- the Uniform Commercial Code as in effect from time to time in the state of Florida.


 


U.S. Dollars” and
 “$” - The lawful currency of the United States of America.


 


Warrant those certain
Common Stock Warrants, dated as of the Effective Date issued by Borrower in favor of Lender, in such amounts and in the names set forth
on Exhibit B attached hereto.


 


1.2.          Interpretation:
The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,”
and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified,
refer to such law or regulation as amended, modified or supplemented from time to time. All references to time of day herein are references
to Sarasota, Florida, time unless otherwise specifically provided.


 






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SECTION II.                  THE
LOAN


 


2.1.          Line
of Credit - Description:


 


a.            Subject
to the terms and conditions of this Agreement, Lender hereby establishes for the benefit of Borrower the Line of Credit, which shall include
Advances extended by Lender to or for the benefit of Borrower from time to time hereunder. The aggregate principal amount of Advances,
both outstanding and repaid, shall not exceed in the aggregate the Maximum Line of Credit Amount. Advances made and repaid may not be
reborrowed.


 


b.            If
the aggregate principal amount of unpaid Advances at any time exceeds the Maximum Line of Credit Amount (such excess referred to as "Overadvance"),
Borrower shall, within five (5) Business Days, repay the Overadvance in full.


 


c.            At
Closing, Borrower shall execute and deliver the Note to Lender for the Maximum Line of Credit Amount. The Note shall evidence Borrower's
unconditional obligation to repay Lender for all Advances made under the Line of Credit, with interest as herein provided. Each Advance
under the Line of Credit shall be deemed evidenced by the Note, which is deemed incorporated herein by reference and made part hereof.
The Note shall be in form and substance satisfactory to Lender.


 


d.            The
term of the Line of Credit shall expire on the Line of Credit Maturity Date. On such date, unless having been sooner accelerated by Lender
pursuant to the terms hereof, all sums owing under the Line of Credit shall be due and payable in full, all without demand, notice, presentment
or protest or further action of any kind, and as of and after such date Borrower shall not request and Lender shall not make any further
Advances under the Line of Credit.


 


2.2.          Advances
and Payments:


 


a.            Except
to the extent otherwise set forth in this Agreement, all payments of principal and of interest on the Line of Credit, and all Expenses,
fees, indemnification obligations and all other charges and any other Obligations of Borrower, shall be made to Lender at its office at
____________________________, or such other office as Lender may designate in writing, in United States dollars, in immediately available
funds. Any payments received prior to 2:00 p.m. Eastern Time on any Business Day shall be deemed received on such Business Day. Any
payments (including any payment in full of the Obligations), received after 2:00 p.m. Eastern Time on any Business Day shall be deemed
received on the immediately following Business Day.


 


b.            Advances
which may be made by Lender from time to time under the Line of Credit shall be made available by crediting such proceeds to Borrower's
operating account at _______________________ Bank, Account Number __________________.


 


i.            All
Advances requested by Borrower under the Line of Credit must be in the minimum amount of Two Hundred and Fifty Thousand and 00/100 Dollars
($250,000.00) and integral multiples of Twenty Five Thousand and 00/100 Dollars ($25,000.00) in excess thereof.


 


ii.            All
Advances requested by Borrower under the Line of Credit are to be in writing pursuant to a written request ("Advance Request")
executed by an Authorized Officer in the form of Exhibit A attached hereto. .


 


iii.            Requests
for Advances must be requested by 11:00 a.m. Eastern Time, on the date such Advance is to be made. Upon receiving a request for an
Advance in accordance with subparagraph (ii) above, Lender shall make the requested Advance available to Borrower on that same Business
Day. In the event such request for an Advance is received after 11:00 a.m. Eastern Time on a Business Day, the Lender shall make
the requested Advance available to Borrower as soon as practicable on the following Business Day (subject to the conditions set forth
in this Agreement).


 






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2.3.          Interest:


 


a.            The
unpaid principal balance of Advances under the Line of Credit shall bear interest, subject to the terms hereof at a per annum rate equal
to the Contract Rate.


 


b.            Interest
shall be due and payable semi-annually in arrears on the first day of each six month period from the date of this Agreement, and on the
Line of Credit Maturity Date.


 


2.4.          Additional
Interest Provisions:


 


a.            Interest
shall be calculated on the basis of a year of three hundred sixty (360) days but charged for the actual number of days elapsed.


 


b.            After
the occurrence and during the continuance of an Event of Default hereunder (and after giving of any required notice and the expiration
of any applicable cure period), the per annum effective rate of interest on all outstanding principal under the Loans, shall be increased
by five hundred (500) basis points. All such increases may be applied retroactively to the date of the occurrence of such Event of Default.
Borrower agrees that the default rate payable to Lender is a reasonable estimate of Lender's damages and is not a penalty.


 


c.            All
contractual rates of interest chargeable on outstanding principal under the Loans shall continue to accrue and be paid even after Default,
an Event of Default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any event or
occurrence similar or dissimilar.


 


d.            In
no contingency or event whatsoever shall the aggregate of all amounts deemed interest hereunder and charged or collected pursuant to the
terms of this Agreement exceed the highest rate permissible under any law which a court of competent jurisdiction shall, in a final determination,
deem applicable hereto. In the event that such court determines Lender has charged or received interest hereunder in excess of the highest
applicable rate, Lender shall apply, in its sole discretion, and set off such excess interest received by Lender against other Obligations
due or to become due and such rate shall automatically be reduced to the maximum rate permitted by such law.


 


e.            If
any payment is more than five (5) Business Days late, Borrower agrees to pay Lender a late charge equal to five percent (5.0%) of
such Payment ("Late Fee"). The provisions of this Note establishing a Late Fee shall not be deemed to extend the time for any
Payment due or to constitute a "grace period" giving Borrower a right to cure such default.


 






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2.5.           Prepayments:
Borrower may prepay the Line of Credit in whole or in part at any time or from time to time upon three (3) Business Days’ prior
notice to Lender, provided that if the Borrower prepays all or any portion of the Loans (i) on or before the nine (9) month
anniversary of the Effective Date, then Borrower shall pay a prepayment premimum equal to two percent (2.00%) of such Loans being prepaid,
or (ii) after the nine (9) month anniversary of the Effective Date but before the Line of Credit Maturity Date, then Borrower
shall pay a prepayment premium equal to one percent (1.00%) of such Loans being prepaid.


 


SECTION III.                       CONDITIONS
PRECEDENT TO ADVANCES


 


3.1.           Conditions
for Advances: The making of Advances under the Line of Credit is subject to the following conditions precedent (all instruments, documents
and agreements to be in form and substance satisfactory to Lender and its counsel):


 


a.            This
Agreement, the Warrant and each of the other Loan Documents shall be effective;


 


b.            No
event or condition shall have occurred or become known to Borrower, or would result from the making of any requested Advance, which could
have a Material Adverse Effect;


 


c.            No
Default or Event of Default then exists or after giving effect to the making of the Advance would exist;


 


d.            Each
Advance is within and complies with the terms and conditions of this Agreement; and


 


e.            Each
representation and warranty set forth in Section 5 and any other Loan Document in effect at such time (as amended or modified from
time to time) is then true and correct in all material respects as if made on and as of such date except to the extent such representations
and warranties are made only as of a specific earlier date.


  


SECTION IV.                     GRANT OF SECURITY
INTERST


 


4.1.          To
secure the payment and performance of the Obligations under this Agreement and the other Loan Documents, Borrower hereby grants Lender
a continuing security interest in the Collateral. Borrower authorizes Lender to file one or more financing statements to perfect this
security interest, and Borrower will take such actions at Borrower’s own expense as Lender deems reasonably appropriate from time
to time to perfect or continue the security interest granted hereunder. Borrower shall from time to time execute and deliver to Lender,
at the request of Lender, all financing statements and other documents that Lender may reasonably request, in form satisfactory to Lender,
to perfect and continue the perfection of Lender’s security interests in the Collateral and in order to fully consummate all of
the transactions contemplated hereunder, including any account control agreements with respect to Borrower’s operating, depository
or investment accounts, in form and substance satisfactory to Lender.


 






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SECTION V.                     REPRESENTATIONS
AND WARRANTIES


 


To induce Lender to complete
the Closing and make the initial Advances under the Line of Credit Loans to Borrower, Borrower warrants and represents to Lender that:


 


5.1.           Organization
and Qualification: Borrower is duly organized, validly existing, and in good standing as a corporation under the laws of the jurisdiction
in which it is organized, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed
or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property
owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect.


 


5.2.          Authority
and Validity of Obligations: Borrower has full right and authority to enter into this Agreement,
to make the borrowings herein provided for, and to perform all of its obligations hereunder and under any other Loan Documents executed
by it. The Loan Documents delivered by Borrower have been duly authorized, executed, and delivered and constitute valid and binding obligations
of Borrower enforceable against it in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether
the application of such principles is considered in a proceeding in equity or at law).


 


5.3.           Use
of Proceeds: The extensions of credit under and proceeds of the Line of Credit shall be used
for repayment of existing indebtedness of the Borrower, working capital, and general corporate purposes.


 


5.4.           Approvals:
No authorization, consent, license or exemption from, or filing or registration with, any court or governmental department, agency or
instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance
by Borrower of this Agreement, except for such approvals which have been obtained prior to the date of this Agreement and remain in full
force and effect.


 


5.5.          Solvency:
After giving effect to the transactions contemplated hereby, Borrower is solvent, able to pay its debts as they become due, and has sufficient
capital to carry on its business and all businesses in which it is about to engage.


 


5.6.          No
Default or Event of Default: No Default or Event of Default has occurred and is continuing.


 


SECTION VI.                     BORROWER'S
COVENANTS


 


Borrower covenants that until
all of the Obligations are paid and satisfied in full and the Line of Credit has been terminated, that:


 


6.1.          Maintenance
of Business: Borrower shall preserve and maintain its existence, and preserve and keep in force and effect all licenses, permits,
franchises, approvals, patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper
conduct of its business where the failure to do so could reasonably be expected to have a Material Adverse Effect.


 






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6.2.          Maintenance
of Properties: Borrower shall maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition
(ordinary wear and tear excepted), and shall from time to time make all needful and proper repairs, renewals, replacements, additions,
and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained, except to the extent that,
in the reasonable business judgment of Borrower, any such Property is no longer necessary for the proper conduct of the business of Borrower.


 


6.3.          Taxes
and Assessments: Borrower shall duly pay and discharge all taxes, rates, assessments, fees, and governmental charges upon or against
it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that
the same are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate
reserves are provided therefor.


 


6.4.          [Reserved].


 


6.5.          [Reserved].


 


6.6.          Compliance
with Laws: Borrower shall comply in all respects with all Legal Requirements applicable to or pertaining to its Property or business
operations, where any non-compliance, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect
upon any of its Property.


 


6.7.          Modification
of Material Documents: Borrower shall not amend or modify its articles of incorporation, charter, partnership agreement, certificate
of formation, by-laws, operating agreement, or other organizational documents in any way which could reasonably be expected to materially
adversely affect the interests of the Lender.


 


SECTION VII.                      DEFAULT


 


7.1.          Events
of Default: Each of the following events shall constitute an event of default ("Event of Default"):


 


a.            default
in the payment when due of all or any part of the principal of or interest on any Loan (whether at the stated maturity thereof or at any
other time provided for in this Agreement) or other Obligation payable hereunder or under any other Loan Document and in respect of any
interest payments, such default in payment is not cured within five (5) Business Days of such due date;


 


b.            default
in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30)
days after written notice thereof is given to the Borrower by the Lender;


 


c.            any
representation or warranty made herein or in any other Loan Document or in any certificate furnished to the Lender pursuant hereto or
thereto proves untrue in any material respect as of the date of the issuance or making or deemed making thereof;


 


d.            any
of the Loan Documents, or any material provision thereof, shall for any reason not be or shall cease to be in full force and effect or
is declared to be null and void, or Borrower takes any action for the purpose of terminating, repudiating or rescinding any Loan Document
executed by it or any of its obligations thereunder;


 






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e.            default
shall occur under any other Indebtedness of Borrower to the Lender;


 


f.            (i) any
judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered or filed
against Borrower, or against any of their respective Property, in an aggregate amount for all such Persons in excess of $250,000 (except
to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing), and which remains
undischarged, unvacated, unbonded or unstayed for a period of 30 days, or any action shall be legally taken by a judgment creditor to
attach or levy upon any Property of Borrower to enforce any such judgment, or (ii) Borrower shall fail within thirty (30) days to
discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or otherwise being appropriately contested
in good faith by proper proceedings diligently pursued;


 


g.            Borrower
shall (i) have entered involuntarily against it an order for relief under the Bankruptcy Code, as amended, which order is undismissed
or unstayed for a period of 60 days, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due,
(iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of
a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute
any proceeding seeking to have entered against it an order for relief under the Bankruptcy Code, as amended, to adjudicate it insolvent,
or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material
allegations of any such proceeding filed against it, (vi) take any corporate or similar action in furtherance of any matter described
in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in this
paragraph; or


 


h.            a
custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for Borrower, or any substantial part of any
of its Property, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days.


 


7.2.          Rights
and Remedies on Default:


 


a.            In
addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents (each of
which is also then exercisable by Lender), or otherwise available at law or in equity, upon or at any time after the occurrence and during
the continuance of a Default or an Event of Default, Lender may, in its discretion, withhold or cease making Advances under the Line of
Credit .


 


b.            In
addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents (each of
which is also then exercisable by Lender), or otherwise available at law or in equity, upon or at any time after the occurrence and during
the continuance of an Event of Default, Lender may, in its discretion, terminate the Line of Credit and declare the Obligations, immediately
due and payable, all without demand, notice, presentment or protest or further action of any kind (it also being understood that the occurrence
of any of the events or conditions set forth in Sections 7.1 (g) or (h) shall automatically cause an acceleration of the Obligations).


 






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7.3.           Nature
of Remedies: All rights and remedies granted Lender hereunder and under the Loan Documents, or otherwise available at law or in equity,
shall be deemed concurrent and cumulative, and not alternative remedies, and Lender may proceed with any number of remedies at the same
time until all Obligations are satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or release of any
other right or remedy, and Lender, upon or at any time after the occurrence of an Event of Default, may proceed against Borrower, at any
time, under any agreement, with any available remedy and in any order.


 


SECTION VIII.                     MISCELLANEOUS


 


8.1.           Governing
Law: THIS AGREEMENT, AND ALL MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND ALL RELATED AGREEMENTS AND DOCUMENTS, SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF FLORIDA. THE PROVISIONS OF THIS AGREEMENT AND ALL
OTHER AGREEMENTS AND DOCUMENTS REFERRED TO HEREIN ARE TO BE DEEMED SEVERABLE, AND THE INVALIDITY OR UNENFORCEABILITY OF ANY PROVISION
SHALL NOT AFFECT OR IMPAIR THE REMAINING PROVISIONS WHICH SHALL CONTINUE IN FULL FORCE AND EFFECT.


 


8.2.           Integrated
Agreement: The Note and this Agreement shall be construed as integrated and complementary of each other, and as augmenting and not
restricting Lender's rights and remedies. If, after applying the foregoing, an inconsistency still exists, the provisions of this Agreement
shall constitute an amendment thereto and shall control.


 


8.3.           Waiver:
No omission or delay by Lender in exercising any right or power under this Agreement or any related agreements and documents will impair
such right or power or be construed to be a waiver of any Default, or Event of Default or an acquiescence therein, and any single or partial
exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other right, and as to
Borrower no waiver will be valid unless in writing and signed by Lender and then only to the extent specified.


 


8.4.          Indemnity:


 


a.            Borrower
releases and shall indemnify, defend and hold harmless Lender and its Affiliates and their respective officers, employees and agents,
of and from any claims, demands, liabilities, obligations, judgments, injuries, losses, damages and costs and Expenses (including, without
limitation, reasonable legal fees) resulting from (i) acts or conduct of Borrower under, pursuant or related to this Agreement and
the other Loan Documents, (ii) Borrower's breach or violation of any representation, warranty, covenant or undertaking contained
in this Agreement or the other Loan Documents, (iii) Borrower's failure to comply with any Legal Requirement (including, without
limitation, Environmental Laws, etc.), and (iv) any claim by any other creditor of Borrower against Lender or its Affiliates
arising out of any transaction whether hereunder or in any way related to the Loan Documents and all costs, Expenses, fines, penalties
or other damages resulting therefrom, unless resulting solely from acts or conduct of Lender or its Affiliates constituting willful misconduct
or gross negligence as determined by a final, non-appealable order of a court of competent jurisdiction.


 






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b.            Promptly
after receipt by an indemnified party under subsection (a) above of notice of the commencement of any action by a third party, such
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the
indemnifying party in writing of the commencement thereof. The omission so to notify the indemnifying party shall relieve the indemnifying
party from any liability which it may have to any indemnified party under such subsection only if the indemnifying party is unable to
defend such actions as a result of such failure to so notify. In case any such action shall be brought against any indemnified party and
it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and,
to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnified
party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any
other Expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable
costs of investigation.


 


8.5.            Time:
Whenever Borrower shall be required to make any payment, or perform any act, on a day which is not a Business Day, such payment may be
made, or such act may be performed, on the next succeeding Business Day. Time is of the essence in Borrower's performance under all provisions
of this Agreement and all related agreements and documents.


 


8.6.            Expenses
of Lender: At Closing and from time to time thereafter, Borrower will pay upon demand of Lender all reasonable costs, fees and expenses
of Lender in connection with (i) the preparation, execution, administration, delivery and termination of this Agreement, and other
Loan Documents and the documents and instruments referred to herein and therein, and any amendment, amendment and restatement, supplement,
waiver or consent relating hereto or thereto, (ii) the enforcement of Lender’s rights hereunder, or the collection of any payments
owing from, Borrower under this Agreement and/or the other Loan Documents or the protection, preservation or defense of the rights of
Lender hereunder and under the other Loan Documents, and (iii) any refinancing or restructuring of the credit arrangements provided
under this Agreement and other Loan Documents in the nature of a "work-out" or of any insolvency or bankruptcy proceedings,
or otherwise (including the reasonable fees and disbursements of counsel for Lender and, with respect to clauses (ii) and (iii),
reasonable allocated costs of internal counsel) (collectively, the "Expenses");


 


8.7.            Brokerage:
This transaction was brought about and entered into by Lender and Borrower acting as principals and without any brokers, agents or finders
being the effective procuring cause hereof.


 


8.8.            Notices:


 


a.            Loan
Documents and notices under the Loan Documents may be transmitted and/or signed by facsimile or electronically, and by signatures delivered
in “PDF” format by electronic mail or other electronic formats. The effectiveness of any such documents and signatures shall,
subject to applicable law, have the same force and effect as an original copy with manual signatures and shall be binding on Borrower
and Lender. Lender may also require that any such documents and signature delivered by facsimile or “PDF” format by electronic
mail be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver any such manually-signed
original shall not affect the effectiveness of any facsimile, electronic or “PDF” document or signature.


 






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b.            Any
notices or consents required or permitted by this Agreement shall be in writing and shall be deemed given if delivered in person to the
person listed below or if sent by electronic mail or by nationally recognized overnight courier, as follows, unless such address is changed
by written notice hereunder:


 


If to Borrower to:


 


Loop Media, Inc. 


700 N Central Avenue, Suite 430 


Glendale, CA 91203 


 


Attention: Jon Niermann (CEO) 


w/ a copy to Neil
Watanabe (CFO)


 


If to Lenders to:


 


RAT Investment Holdings, LP


 


Attention: Roger A. Tichenor


 


c.            Any
notice sent by Lender, or Borrower by any of the above methods shall be deemed to be given when so received.


 


d.            Lender
shall be fully entitled to rely upon any electronic transmission or other writing purported to be sent by any Authorized Officer (whether
requesting an Advance or otherwise) as being genuine and authorized.


 


8.9.             Headings:
The headings of any paragraph or Section of this Agreement are for convenience only and shall not be used to interpret any provision
of this Agreement.


 


8.10.            Survival:
All warranties, representations, and covenants made by Borrower herein, or in any agreement referred to herein or on any certificate,
document or other instrument delivered by it or on its behalf under this Agreement, shall be considered to have been relied upon by Lender,
and shall survive the delivery to Lender of the Note, regardless of any investigation made by Lender or on its behalf. All statements
in any such certificate or other instrument prepared and/or delivered for the benefit of Lender shall constitute warranties and representations
by Borrower hereunder. Except as otherwise expressly provided herein, all covenants made by Borrower hereunder or under any other agreement
or instrument shall be deemed continuing until all Obligations are satisfied in full. All indemnification obligations under this Agreement
shall survive the termination of this Agreement and payment of the Obligations for a period of two (2) years.


 


8.11.            Successors
and Assigns: This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties. Borrower
may not transfer, assign or delegate any of its duties or obligations hereunder and Lender shall not assign or otherwise transfer any
of its rights or obligations hereunder without the consent of Borrower.


 






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8.12.            Duplicate
Originals: Two or more duplicate originals of this Agreement may be signed by the parties, each of which shall be an original but
all of which together shall constitute one and the same instrument.


 


8.13.            Modification:
No modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed by Borrower and
Lender.


 


8.14.            Signatories:
Each individual signatory hereto represents and warrants that he is duly authorized to execute this Agreement on behalf of his principal
and that he executes the Agreement in such capacity and not as a party.


 


8.15.            Third
Parties: No rights are intended to be created hereunder, or under any related agreements or documents for the benefit of any third
party, creditor or incidental beneficiary of Borrower. Nothing contained in this Agreement shall be construed as a delegation to Lender
of Borrower's duty of performance, including, without limitation, Borrower's duties under any account or contract with any other Person.


 


8.16.            Consent
to Jurisdiction: Borrower and Lender each hereby irrevocably consent to the exclusive jurisdiction of the state and federal courts
located in Sarasota County, Florida in any and all actions and proceedings whether arising hereunder or under any other agreement or undertaking.
Borrower waives any objection which Borrower may have based upon lack of personal jurisdiction, improper venue or forum non conveniens.
Borrower irrevocably agrees to service of process by certified mail, return receipt requested to the address of the appropriate party
set forth herein.


 


8.17.            Additional
Documentation: Borrower shall execute and/or re-execute, and cause any other Person party to any Loan Document, to execute and/or
re-execute and to deliver to Lender or Lender’s counsel, as may be deemed appropriate, any document or instrument signed in connection
with this Agreement which was incorrectly drafted and/or signed, as well as any document or instrument which should have been signed at
or prior to the Closing, but which was not so signed and delivered. Borrower agrees to comply with any written request by Lender within
ten (10) days after receipt by Borrower of such request.


 


8.18.            Waiver
of Jury Trial: BORROWER AND LENDER EACH HEREBY WAIVE ANY AND ALL RIGHTS IT MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION,
PROCEEDING OR COUNTERCLAIM ARISING WITH RESPECT TO RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO OR UNDER THE LOAN DOCUMENTS OR WITH RESPECT
TO ANY CLAIMS ARISING OUT OF ANY DISCUSSIONS, NEGOTIATIONS OR COMMUNICATIONS INVOLVING OR RELATED TO ANY PROPOSED RENEWAL, EXTENSION,
AMENDMENT, MODIFICATION, RESTRUCTURE, FORBEARANCE, WORKOUT, OR ENFORCEMENT OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS.


 


8.19.            Consequential
Damages: Neither Lender nor agent or attorney of Lender, shall be liable for any special, punitive, incidental or consequential damages
arising from any breach of contract, tort or other wrong relating to the establishment, administration or collection of the Obligations.


 






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8.20.            Lenders’
Collateral Agent: The Company and each Lender hereby appoints Shumaker, Loop & Kendrick, LLP ("Purchasers’ Collateral
Agent") as its agent and attorney-in-fact for the purpose of signing and filing any uniform commercial code financing statements
(and any amendments and/or continuations thereof) or other documents in any jurisdictions and filing offices as Lenders’ Collateral
Agent considers necessary or appropriate to perfect or enhance the Purchasers’ security interest in the Collateral granted hereunder
and under the Note, or to deliver any notices required thereunder. Furthermore, and without limiting the foregoing, the Company shall
execute and/or deliver, from time to time, as Lenders’ Collateral Agent, in its capacity as agent for the Lenders, may reasonably
require for the benefit of Lenders to evidence, perfect or protect Lenders’ liens and security interests in the Collateral, any
agreements, documents, instruments and writings, including, without limitation, financing statements, security agreements, pledge agreements,
and amendments, continuations or supplements to any of the foregoing.


 


8.21.            Loan
Administrator: The Lenders hereby appoint the Loan Administrator as their agent for the purpose of administering the Loans. All payments
to lender shall be made payable to RAT Investment Holdings, LP.


 


[SIGNATURES TO FOLLOW ON SEPARATE PAGES]


 






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WITNESS the due execution
of this Agreement as a document under seal as of the date first written above.


 





	 	BORROWER:
	 	 
	 	LOOP MEDIA, INC.
	 	 
	 	 
	 	By:	/s/
	 	Name: 	Neil T. Watanabe 
	 	Title:	Chief Financial Officer
	 	 
	 	LOAN ADMINISTRATOR:
	 	 
	 	RAT INVESTMENT HOLDINGS, LP
	 	 
	 	 
	 	By:	/s/
	 	Name: 	Roger A. Tichenor 
	 	Title:	General Partner
	 	 
	 	LENDER:
	 	 
	 	[    ]



 


(Signature Page to Loan Agreement)


 






    


     


    

 


EXHIBIT A


 


FORM OF LINE OF CREDIT ADVANCE REQUEST


 


LOOP MEDIA, INC. (“Borrower”)


 


To:           RAT
Investment Holdings, LP 


(“Lender”)


 


Borrower hereby requests an Advance in the amount
of $_[FULL AMOUNT] pursuant to Section 2.2 of that certain Non-Revolving Line of Credit Loan Agreement by and among Borrower and
Lender dated as of April 25, 2022 (as amended, restated or otherwise modified from time to time, the “Loan Agreement”).
The proposed date of the Advance is ___________, 2022.


 


Borrower hereby represents and warrants to Lender as follows:


 


		a.	There exists no Default or Event of Default under the Loan Agreement.



 


		b.	All representations, warranties and covenants made in the Loan Agreement are true andcorrect as of the date hereof.



 


		c.	The aggregate principal amount of all Advances outstanding under the Line of Credit (including those repaid) is $_[0]_.



 


	LOOP MEDIA, INC.	 
	 	 
	 	 
	By: 	 	 
	Name:	 Neil T. Watanabe 	 
	Title:	Chief Financial Officer	     



 


Date: _____________, 2022