exhibit101loanandsecurit






AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT  THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is  dated as of the Effective Date between SILICON VALLEY BANK, a California corporation (“Bank”), and the  borrowers listed on Schedule I hereto (“Borrower”). The parties agree as follows:  A. Bank and Borrower have previously entered into that certain Loan and Security Agreement dated as of October 25, 2012, as amended from time to time, including without limitations by that certain A&R Loan and Security  Agreement dated December 27, 2018 as amended on December 29, 2020 (collectively, as amended, the “Prior  Agreements”).   B. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank pursuant to the Prior Agreements as modified by this Agreement and its ancillary documents, and  confirms that the indebtedness secured thereby including, without limitation, the Obligations, as provided hereunder  are and remains in full force and effect. Without limiting the foregoing, any warrant(s) issued (if at all) in connection  with the Prior Agreements (to the extent not yet exercised, terminated or amended and restated in connection with this  Agreement) remain in full force and effect.  C. Borrower and Bank have agreed to amend and restate, and replace, the Prior Agreements in their entirety. Bank and Borrower hereby agree that the Prior Agreements are amended and restated in their entirety as follows:  1 LOAN AND TERMS OF PAYMENT  1.1 Revolving Line.  (a) Availability.  Subject to the terms and conditions of this Agreement and to deduction of Reserves, Bank may, in its commercially reasonable discretion, make Advances not exceeding the Revolving Line. Amounts  borrowed under the Revolving Line may be prepaid or repaid as set forth on Schedule I hereto.  (b) Termination; Repayment.  The Revolving Line terminates on the Revolving Line Maturity Date, when the outstanding principal amount of all Advances, the accrued and unpaid interest thereon, and all other  outstanding Obligations relating to the Revolving Line shall be immediately due and payable.  1.2 Reserved.   1.3 Reserved.  1.4 Payment of Interest on the Credit Extensions.  (a) Interest Payments. (i) Advances.  Interest on the principal amount of each Advance is payable as set forth on Schedule I hereto.   (b) Interest Rate. (i) Advances.  Subject to Section 1.4(c), the outstanding principal amount of any Advance shall accrue interest as set forth on Schedule I hereto.  (ii) All-In Rate. Notwithstanding any terms in this Agreement to the contrary, if at any time the interest rate applicable to any Obligations is less than zero  percent (0.0%), such interest rate shall be deemed to be zero percent (0.0%) for all purposes  of this Agreement.  





 






2  (c) Default Rate.  Immediately upon the occurrence and during the continuance of an Event of Default, the outstanding Obligations shall bear interest at a rate per annum which is five percent (5.0%) above the rate that is  otherwise applicable thereto (the “Default Rate”). Fees and expenses which are required to be paid by Borrower  pursuant to the Loan Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear  interest until paid at a rate equal to the highest rate applicable to the Obligations.  Payment or acceptance of the  increased interest rate provided in this Section 1.4(c) is not a permitted alternative to timely payment and shall not  constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank.  (d) Adjustment to Interest Rate.  Each change in the interest rate applicable to any amounts payable under the Loan Documents based on changes to the Prime Rate shall be effective on the effective date of any change  to the Prime Rate and to the extent of such change.   (e) Interest Computation.  Interest shall be computed as set forth on Schedule I hereto.  In computing interest, the date of the making of any Credit Extension shall be included and the date of payment shall be excluded;  provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be  included in computing interest on such Credit Extension.    1.5 Fees.  Borrower shall pay to Bank:  (a) Revolving Line Commitment Fee.  A fully earned, non-refundable commitment fee as set forth on Schedule I hereto;  (b) Termination Fee.  Upon termination of this Agreement or the termination of the Revolving Line for any reason prior to the Revolving Line Maturity Date, in addition to the payment of any other amounts then-owing, a  termination fee in an amount equal to Five Hundred Thousand Dollars ($500,000) (i.e., 1% of the Revolving Line)  (the “Termination Fee”), which shall be fully earned and non-refundable as of such date; provided that the  Termination Fee shall not be charged if the credit facility hereunder is replaced with a new facility from Bank;   (c) Unused Revolving Line Facility Fee.  Payable quarterly in arrears on the last calendar day of each calendar quarter occurring thereafter prior to the Revolving Line Maturity Date, and on the Revolving Line Maturity  Date, a fee (the “Unused Revolving Line Facility Fee”) in an amount equal to Zero point twenty percent (0.20%) per  annum of the average unused portion of the Revolving Line, as determined by Bank, computed on the basis of a year  with the applicable number of days as set forth in Section 1.4(e), which shall be fully earned and non-refundable as of  such date. The unused portion of the Revolving Line, for purposes of this calculation, shall be calculated on a calendar  year basis and shall equal the difference between (i) the Revolving Line, and (ii) the average for the period of the daily  closing balance of the Revolving Line outstanding;  (d) Bank Expenses.  All Bank Expenses incurred through and after the Effective Date, when due (or, if no stated due date, upon demand by Bank) provided that Bank Expenses consisting of reasonable attorneys’ fees  (exclusive of expenses) for the documentation and negotiation of this Agreement incurred as of the Effective Date  shall not exceed Thirty Thousand Dollars ($30,000).  Unless otherwise provided in this Agreement or in a separate writing by Bank, Borrower shall not be entitled  to any credit, rebate, or repayment of any fees earned by Bank pursuant to this Agreement notwithstanding any  termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances  hereunder.  Bank may deduct amounts owing by Borrower under the clauses of this Section 1.5 pursuant to the terms  of Section 1.7(c).  Bank shall provide Borrower written notice of deductions made pursuant to the terms of the clauses  of this Section 1.5.  1.6 Reserved.  1.7 Payments; Application of Payments; Debit of Accounts.   (a) All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds in Dollars, without setoff, counterclaim, or deduction, before 12:00 p.m. Eastern  





 






3  time on the date when due.  Payments of principal and/or interest received after 12:00 p.m. Eastern time are considered  received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business  Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to  accrue until paid.    (b) Bank has the exclusive right to determine the order and manner in which all payments with respect to the Obligations may be applied.  Borrower shall have no right to specify the order or the accounts to which Bank  shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under  this Agreement when any such allocation or application is not specified elsewhere in this Agreement.  (c) Bank may debit any of Borrower’s deposit accounts maintained with Bank, including the Designated  Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due under the  Loan Documents.  These debits shall not constitute a set-off.  1.8 Change in Circumstances.  (a) Increased Costs.  If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the  account of, or advances, loans or other credit extended or participated in by, Bank, (ii) subject Bank to any Taxes  (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes,  and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitment, or other obligations, or  its deposits, reserves, other liabilities or capital attributable thereto, or (iii) impose on Bank any other condition, cost  or expense (other than Taxes) affecting this Agreement or Credit Extensions made by Bank, and the result of any of  the foregoing shall be to increase the cost to Bank of making, converting to, continuing or maintaining any Credit  Extension (or of maintaining its obligation to make any such Credit Extension), or to reduce the amount of any sum  received or receivable by Bank hereunder (whether of principal, interest or any other amount) then, upon written  request of Bank, Borrower shall promptly pay to Bank such additional amount or amounts as will compensate Bank  (after taking into account any additional Taxes) for such additional costs incurred or reduction suffered.  (b) Capital Requirements.  If Bank determines that any Change in Law affecting Bank regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on Bank’s capital as a consequence  of this Agreement, the Revolving Line, any term loan facility, or the Credit Extensions made by Bank to a level below  that which Bank could have achieved but for such Change in Law (taking into consideration Bank’s policies with  respect to capital adequacy and liquidity), then from time to time upon written request of Bank, Borrower shall  promptly pay to Bank such additional amount or amounts as will compensate Bank for any such reduction suffered.  (c) Delay in Requests.  Failure or delay on the part of Bank to demand compensation pursuant to this Section 1.8 shall not constitute a waiver of Bank’s right to demand such compensation; provided that Borrower shall  not be required to compensate Bank pursuant to subsection (a) for any increased costs incurred or reductions suffered  more than nine (9) months prior to the date that Bank notifies Borrower of the Change in Law giving rise to such  increased costs or reductions (except that if the Change in Law giving rise to such increased costs or reductions is  retroactive, then the nine (9) month period shall be extended to include the period of retroactive effect).  1.9 Taxes.    (a) Payments Free of Taxes.  Any and all payments by or on account of any obligation of Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by  Applicable Law.  If any Applicable Law (as determined in the good faith discretion of Borrower) requires the  deduction or withholding of any Tax from any such payment by Borrower, then (i) Borrower shall be entitled to make  such deduction or withholding, (ii) Borrower shall timely pay the full amount deducted or withheld to the relevant  Governmental Authority in accordance with Applicable Law, and (iii) if such Tax is an Indemnified Tax, the sum  payable by Borrower shall be increased as necessary so that after such deduction or withholding has been made  (including such deductions and withholdings applicable to additional sums payable under this Section 1.9) Bank  receives an amount equal to the sum it would have received had no such deduction or withholding been made.  





 






4  (b) Payment of Other Taxes by Borrower.  Without limiting the provisions of subsection (a) above, Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable  Law.  (c) Tax Indemnification.  Without limiting the provisions of subsections (a) and (b) above, Borrower shall, and does hereby, indemnify Bank, within ten (10) days after demand therefor, for the full amount of any  Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this  Section 1.9) payable or paid by Bank or required to be withheld or deducted from a payment to Bank and any  reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly  or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment  or liability delivered to Borrower by Bank shall be conclusive absent manifest error.  (d) Evidence of Payments.  As soon as practicable after any payment of Taxes by Borrower to a Governmental Authority pursuant to this Section 1.9, Borrower shall deliver to Bank a certified copy of a receipt  issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or  other evidence of such payment reasonably satisfactory to Bank.  (e) Status of Bank.  If Bank (including any assignee or successor) is entitled to an exemption from or reduction of withholding tax with respect to payments made under any Loan Document, it shall deliver to Borrower,  at the time or times reasonably requested by Borrower, such properly completed and executed documentation  reasonably requested by Borrower as will permit such payments to be made without withholding or at a reduced rate  of withholding. In addition, Bank, if reasonably requested by Borrower, shall deliver such other documentation  prescribed by Applicable Law or reasonably requested by Borrower as will enable Borrower to determine whether or  not Bank is subject to backup withholding or information reporting requirements.  Without limiting the generality of  the foregoing, Bank shall deliver whichever of IRS Form W-9, IRS Form W-8BEN-E, IRS Form W-8ECI or W-8IMY  is applicable, as well as any applicable supporting documentation or certifications.  (f) The agreements and obligations of Borrower contained in this Section 1.9 shall survive the termination of this Agreement.  1.10 Procedures for Borrowing.  (a) Advances.  Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement (which must be satisfied no later than 12:00 p.m. Eastern time on the applicable  Funding Date), to obtain an Advance, Borrower (via an individual duly authorized by an Administrator) shall notify  Bank (which notice shall be irrevocable) by 12:00 p.m. Eastern time on the Funding Date of the Advance.  Such notice  shall be made through Bank’s online banking program, provided, however, if Borrower is not utilizing Bank’s online  banking program, then such notice shall be in a written format acceptable to Bank that is executed by an Authorized  Signer.  In connection with any such notification, Borrower shall deliver to Bank by electronic mail or through Bank’s  online banking program such reports and information, including without limitation, sales journals, cash receipts  journals, accounts receivable aging reports, as Bank may reasonably request.  Bank shall have received satisfactory  evidence that the Board has approved that such Authorized Signer may provide such notices and request Advances  (which requirement may be deemed satisfied by the prior delivery of Borrowing Resolutions or a secretary’s certificate  that certifies as to such Board approval).    (b) Bank shall credit proceeds of a Credit Extension to the Designated Deposit Account.  Bank may make Advances under this Agreement based on instructions from an Authorized Signer or without instructions if such  Advances are necessary to meet Obligations which have become due.   2 CONDITIONS OF CREDIT EXTENSIONS  2.1 Conditions Precedent to Initial Credit Extension.  Bank’s obligation to make the initial Credit  Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to  Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate,  including, without limitation:  





 






5  (a) duly executed Loan Documents; (b) duly executed IP Agreement with each Borrower; (c) Intellectual Property search results and completed exhibits to the IP Agreement; (d) duly executed Control Agreements, if required; (e) Borrower’s Operating Documents of Borrower and long-form good standing certificates of Borrower certified by the Secretary of State of the State of Delaware and the Secretary of State (or equivalent agency)  of each other jurisdiction in which Borrower is qualified to conduct business, in each case as of a date no earlier than  30 days prior to the Effective Date;  (f) certificate duly executed by a Responsible Officer or secretary of each Borrower with respect to, each Borrower’s (i) Operating Documents and (ii) Borrowing Resolutions;  (g) certified copies, dated as of a recent date, of financing statement and other lien filing searches, US Companies Registry searches, as Bank shall request, accompanied by written evidence (including any UCC  termination statements) that the Liens indicated in any such financing statements or other filings either constitute  Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released, in  each case with respect to each Borrower;  (h) duly executed Perfection Certificate for each Borrower; (i) duly executed landlord’s consent in favor of Bank for each of Borrower’s leased locations, by the respective landlord thereof, if applicable;  (j) duly executed bailee’s waiver in favor of Bank for each location where Borrower maintains property  with a third party, by each such third party, if applicable;  (k) a legal opinion of Borrower’s counsel dated as of the Effective Date; (l) evidence satisfactory to Bank that the insurance policies and endorsements required by Section 5.8hereof are in full force and effect, together with appropriate evidence showing lender loss payable and additional  insured clauses or endorsements in favor of Bank;  (m) with respect to the initial Advance, a completed Borrowing Base Statement (and any schedules related thereto and including any other information requested by Bank with respect to Borrower’s Accounts)  and a  full set of the monthly reporting package provided under Sections Error! Reference source not found.through  5.3(b)hereunder; and  (n) payment of the fees and Bank Expenses then due as specified in Section 1.5 hereof. 2.2 Conditions Precedent to all Credit Extensions.  Bank’s obligation to make each Credit Extension,  including the initial Credit Extension, is subject to the following conditions precedent:  (a) receipt of Borrower’s Credit Extension request and the related materials and documents as required by and in accordance with Section 1.10;  (b) the representations and warranties in this Agreement and the other Loan Documents shall be true and correct in all material respects as of the date of any Credit Extension request  and as of the Funding Date of each  Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and  warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those  representations and warranties expressly referring to a specific date shall be true and correct in all material respects as  of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit  





 






6  Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and  warranties in this Agreement and the other Loan Documents remain true and correct in all material respects; provided,  however, that such materiality qualifier shall not be applicable to any representations and warranties that already are  qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties  expressly referring to a specific date shall be true and correct in all material respects as of such date; and  (c) a Material Adverse Change shall not have occurred and be continuing. 2.3 Covenant to Deliver. (a) Borrower shall deliver to Bank each item required to be delivered to Bank under this Agreement as a condition precedent to any Credit Extension.  A Credit Extension made prior to the receipt by Bank of any such item  shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the making of any Credit  Extension in the absence of a required item shall be in Bank’s sole discretion.  3 CREATION OF SECURITY INTEREST  3.1 Grant of Security Interest.    (a) Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now  owned or hereafter acquired or arising, and all proceeds and products thereof. In addition, Borrower undertakes to  maintain in favor of Bank, as security for the Obligations, a first ranking fixed charge over its ordinary shares of  Innovid Media Ltd (up to and including sixty-five percent (65.0%) of the presently existing and hereafter arising  issued and outstanding shares of capital stock owned by Borrower of Innovid Media Ltd, which shares entitle the  holder thereof to vote for directors or any other matter), each representing NIS 0.01 nominal value, in accordance with  the form of the Deed of Pledge delivered to Bank pursuant to the Prior Loan Agreement as amended on even date  hereof (the “Pledge Agreement”).    (b) Borrower acknowledges that it previously has entered, or may in the future enter, into Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts  Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and  Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted  herein and any and all other security agreements, mortgages or other collateral granted to Bank by Borrower as security  for the Obligations, now or in the future (subject to Permitted Liens that are permitted to have priority over Bank's  Liens hereunder).  3.2 Authorization to File Financing Statements.  Borrower hereby authorizes Bank to file financing  statements, without notice to Borrower, with all jurisdictions deemed necessary or appropriate by Bank to perfect or  protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower  or any other Person, shall be deemed to violate the rights of Bank under the Code.  Such financing statements may  indicate the Collateral as “all assets of the Debtor” or words of similar effect.  3.3 Termination.  If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until  the Obligations (other than inchoate indemnity obligations) are repaid in full in cash.  Upon payment in full in cash of  the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s obligation to make Credit  Extensions has terminated, Bank shall, at Borrower’s sole cost and expense, terminate its security interest in the  Collateral and all rights therein shall revert to Borrower.  In the event (a) all Obligations (other than inchoate indemnity  obligations), except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank shall terminate  the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its sole discretion  for Bank Services, if any.  In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall  provide to Bank cash collateral in an amount equal to at least (x) 105.0% of the face amount of all such Letters of  Credit denominated in Dollars and (y) 115.0% of the Dollar Equivalent of the face amount of all such Letters of Credit  denominated in a Foreign Currency, plus, in each case, all interest, fees, and costs due or estimated by Bank to become  due in connection therewith, to secure all of the Obligations relating to such  Letters of Credit.  





 






7  4 REPRESENTATIONS AND WARRANTIES  Borrower represents and warrants as follows:  4.1 Due Organization, Authorization; Power and Authority.    (a) Borrower and each of its Subsidiaries are each duly existing and in good standing as a Registered Organization in their respective jurisdiction of formation and are qualified and licensed to do business and is in good  standing in any jurisdiction in which the conduct of their respective business or their ownership of property requires  that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse  effect on Borrower’s business or operations.  (b) All information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is true and correct (it being understood and agreed that Borrower may from time to time update certain  information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific  provisions in this Agreement and the Perfection Certificate shall be deemed to be updated to the extent such notice is  provided to Bank of such permitted update).    (c) The execution, delivery and performance by Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s or any such  Subsidiary’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material  Applicable Law, (iii) contravene, conflict with or violate any applicable order, writ, judgment, injunction, decree,  determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their  property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or  Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have  already been obtained and are in full force and effect), or (v) conflict with, contravene, constitute a default or breach  under, or result in or permit the termination or acceleration of, any material agreement by which Borrower or any of  its Subsidiaries is bound.  Neither Borrower nor any of its Subsidiaries are in default under any agreement to which it  is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect  on Borrower’s or any of its Subsidiary’s business or operations.    4.2 Collateral.   (a) The security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral and a first priority fixed and floating charges (subject to Permitted Liens that are  permitted to have priority over Bank's Liens hereunder). Borrower has good title to, rights in, and the power to transfer  each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except  Permitted Liens.   (b) Borrower has no Collateral Accounts at or with any bank or financial institution other than Bank or Bank’s Affiliates except for the Collateral Accounts described in the Perfection Certificate delivered to Bank in  connection herewith and which Borrower has taken such actions as are necessary to give Bank a perfected security  interest therein, fixed and floating charges thereon, pursuant to the terms of Section 5.9(c).  The Accounts are bona  fide, existing obligations of the Account Debtors.    (c) The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as permitted pursuant to Section 6.2. None of the components of  the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted  pursuant to Section 6.2.  (d) All Inventory is in all material respects of good and marketable quality, free from material defects. (e) Borrower owns, or possesses the right to use to the extent necessary in its business, all Intellectual Property, licenses and other intangible assets that are used in the conduct of its business as now operated, except to  the extent that such failure to own or possess the right to use such asset would not reasonably be expected to have a  





 






8  material adverse effect on Borrower’s business or operations, and no such asset, to the best knowledge of Borrower,  conflicts with the valid Intellectual Property, license, or intangible asset of any other Person to the extent that such  conflict could reasonably be expected to have a material adverse effect on Borrower’s business or operations.  (f) Except as noted on the Perfection Certificate or for which notice has been given to Bank pursuant to and in accordance with Section 5.11(b), Borrower is not a party to, nor is it bound by, any Restricted License.  4.3 Reserved.  4.4 Litigation.  Other than as set forth in the Perfection Certificate or as disclosed to Bank pursuant to  Section 5.3(i), there are no actions, investigations or proceedings pending or, to the knowledge of any Responsible  Officer, threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or  in the aggregate, Five Hundred Thousand Dollars ($500,000).  4.5 Financial Statements; Financial Condition.  All consolidated financial statements for Borrower  and any of its Subsidiaries submitted to the Financial Statement Repository or otherwise delivered to Bank by  submission to the Financial Statement Repository or otherwise submitted to Bank fairly present in all material respects  Borrower’s consolidated financial condition and Borrower’s consolidated results of operations for the periods covered  thereby, subject, in the case of unaudited financial statements, to normal year-end adjustments and the absence of  footnote disclosures.  There has not been any material deterioration in Borrower’s consolidated financial condition  since the date of the most recent financial statements submitted to the Financial Statement Repository or otherwise to  the Financial Statement Repository or otherwise submitted to Bank.   4.6 Solvency.  The fair salable value of Borrower’s consolidated assets (including goodwill minus  disposition costs) exceeds the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital  after the transactions in this Agreement; and Borrower and each of its Subsidiaries are able to pay their debts (including  trade debts) as they mature.  4.7 Regulatory Compliance.  Borrower is not an “investment company” or a company “controlled” by  an “investment company” under the Investment Company Act of 1940, as amended.  Borrower is not engaged as one  of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve  Board of Governors).  Borrower and each of its Subsidiaries (a) have complied in all material respects with all  Applicable Law, and (b) have not violated any Applicable Law the violation of which could reasonably be expected  to have a material adverse effect on Borrower’s business or operations.  Borrower and each of its Subsidiaries have  duly complied with, and their respective facilities, business, assets, property, leaseholds, real property and Equipment  are in compliance with, Environmental Laws, except where the failure to do so could not reasonably be expected to  have a material adverse effect on Borrower’s business or operations; there have been no outstanding citations, notices  or orders of non-compliance issued to Borrower or any of its Subsidiaries or relating to their respective facilities,  businesses, assets, property, leaseholds, real property or Equipment under such Environmental Laws.  Borrower and  each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings  with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses  as currently conducted, except where the failure to obtain or make or file the same would not reasonably be expected  to have a material adverse effect on Borrower’s business or operations.  4.8 Subsidiaries; Investments.  Borrower does not own any stock, partnership, or other ownership  interest or other equity securities except for Permitted Investments.   4.9 Tax Returns and Payments; Pension Contributions.    (a) Borrower and each of its Subsidiaries have timely filed, or submitted extensions for, all required tax returns and reports, and Borrower and each of its Subsidiaries have timely paid all foreign, federal, state and local  taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries except (a) to the extent  such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted,  so long as such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have  been made therefor, or (b) if such taxes, assessments, deposits and contributions do not, individually or in the  





 






9  aggregate, exceed Twenty Five Thousand Dollars ($25,000). Borrower is unaware of any claims or adjustments  proposed for any of Borrower’s or any of its Subsidiary’s prior tax years which could result in additional taxes  becoming due and payable by Borrower or any of its Subsidiaries in excess of Twenty Five Thousand Dollars  ($25,000) in the aggregate.    (b) Borrower and each of its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its  Subsidiaries has withdrawn from participation in, and has not permitted partial or complete termination of, or  permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to  result in any liability of Borrower or any of its Subsidiaries, including any liability to the Pension Benefit Guaranty  Corporation or its successors or any other Governmental Authority.  4.10 Reserved.  4.11 Full Disclosure.  No written representation, warranty or other statement of Borrower or any of its  Subsidiaries in any report, certificate or written statement submitted to the Financial Statement Repository or  otherwise submitted to Bank, as of the date such representation, warranty, or other statement was made, taken together  with all such reports, certificates and written statements submitted to the Financial Statement Repository or otherwise  submitted to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make  the statements contained in the reports, certificates or written statements not misleading in light of the circumstances  under which they were made (it being recognized by Bank that the projections and forecasts provided by Borrower or  any of its Subsidiaries in good faith and based upon reasonable assumptions are not viewed as facts and that actual  results during the period or periods covered by such projections and forecasts may differ from the projected or  forecasted results).  4.12 Sanctions.  Neither Borrower nor any of its Subsidiaries is: (a) in violation of any Sanctions; or (b)  a Sanctioned Person.  Neither Borrower nor any of its Subsidiaries, directors, officers, employees, agents or Affiliates:  (i) conducts any business or engages in any transaction or dealing with any Sanctioned Person, including making or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person; (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to any Sanctions; (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading  or avoiding, or attempts to violate, any of the prohibitions set forth in any Sanctions; or (iv) otherwise engages in any transaction that could cause Bank to violate any Sanctions. 5 AFFIRMATIVE COVENANTS  Borrower shall do all of the following:  5.1 Use of Proceeds.  Cause the proceeds of the Credit Extensions to be used solely (a) as working  capital or (b) to fund its general business purposes, and not for personal, family, household or agricultural purposes.  5.2 Government Compliance.    (a) Maintain its and all of its Subsidiaries’ legal existence (except as permitted under Section 6.3 with respect to Subsidiaries only) and good standing in their respective jurisdictions of formation and maintain qualification  in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect  on Borrower’s business or operations.  Borrower shall comply, and have each Subsidiary comply, in all material  respects, with all laws, ordinances and regulations to which it is subject.  (b) Obtain all of the Governmental Approvals necessary for the performance by Borrower and each of its Subsidiaries of their obligations under the Loan Documents to which it is a party, including any grant of a security  interest to Bank.  Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank.  5.3 Financial Statements, Reports.  Deliver to Bank by submitting to the Financial Statement  Repository by submitting to the Financial Statement Repository:  





 






10  (a) Quarterly Financial Statements.  At the same time it is reported to the SEC, a company prepared consolidated balance sheet, cash flow, P&L and income statement, covering Borrower’s consolidated operations for  such quarter in a form reasonably acceptable to Bank (the “Quarterly Financial Statements”);   (b) Compliance Statement.  Within Thirty (30) days after the last day of each month and together with the statements set forth in Section 5.3(a), a duly completed Compliance Statement, confirming that as of the end of  such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth  calculations showing compliance with the financial covenants set forth in this Agreement and such other information  as Bank may reasonably request, including, without limitation, a statement that at the end of such month there were  no held checks;  (c) Annual Operating Budget and Financial Projections.  As soon as available, and at least annually, within Ten (10) days following Borrower’s board of directors approval and contemporaneously with any updates or  amendments thereto, (i) capitalization tables, (ii) annual operating budgets (including income statements, balance  sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower, and (iii) annual financial  projections for the following fiscal year (on a quarterly basis), in each case as approved by the Board and as revised,  together with any related business forecasts used in the preparation of such annual financial projections;  (d) Board Materials. Copies of all material notices minutes, consents, presentations and other material materials and information that it provides to its board of directors at the same time they are delivered to the directors;  (e) Annual Audited Financial Statements.  at the same time it is reported to the SEC and in any event within One hundred and Eighty (180) days following the end of Borrower’s fiscal year, audited consolidated financial  statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial  statements from an independent certified public accounting firm reasonably acceptable to Bank (provided that any  firm associated with the “Big Four” accounting firms or an affiliate thereof is deemed acceptable to Bank);   (f) SEC Filings.  Within five (5) days of filing, notification of the filing and copies of all periodic and other reports, proxy statements and other materials filed by Borrower and/or any of its Subsidiaries or any Guarantor  with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national  securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant  to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC), including  without limitation the documents mentioned in this Section 5.3 may be delivered electronically and if so delivered,  shall be deemed to have been delivered on the date on which Borrower or any of its Subsidiaries posts such documents,  or provides a link thereto, on Borrower’s or any of its Subsidiaries’ website on the internet at Borrower’s or any of its  Subsidiaries’ website address;  (g) Security Holder and Subordinated Debt Holder Reports.  Within five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated  Debt (solely in their capacities as security holders or holders of Subordinated Debt and not in any other role);  (h) Beneficial Ownership Information. Prompt written notice of any changes to the beneficial ownership  information set out in Section 14 of the Perfection Certificate. Borrower understands and acknowledges that Bank  relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to  obtain, verify and record information about the beneficial owners of its legal entity customers;   (i) Legal Action Notice.  Prompt written notice of any legal actions, investigations or proceedings pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result  in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Five Hundred Thousand  Dollars ($500,000) or more;    (j) Tort Claim Notice.  If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security  interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and  substance reasonably satisfactory to Bank;  





 






11  (k) Government Filings.  Within five (5) days after the same are sent or received, copies of all correspondence, reports, documents and other filings by Borrower or any of its Subsidiaries with any Governmental  Authority regarding compliance with or maintenance of Governmental Approvals or Applicable Law or that could  reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the business  of Borrower or any of its Subsidiaries;   (l) Registered Organization.  If Borrower is not a Registered Organization as of the Effective Date but later becomes one, promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational  identification number;   (m) Default.  Prompt written notice of the occurrence of a Default or Event of Default; and (n) Other Information.  Promptly, from time to time, such other information regarding Borrower or any of its Subsidiaries or compliance with the terms of any Loan Documents as reasonably requested by Bank.  Any submission by Borrower of a Compliance Statement, a Borrowing Base Statement or any other financial  statement submitted to the Financial Statement Repository pursuant to this Section 5.3 or otherwise submitted to Bank  shall be deemed to be a representation by Borrower that (i) as of the date of such Compliance Statement, Borrowing  Base Statement or other financial statement, the information and calculations set forth therein are true and correct, (ii)  as of the end of the compliance period set forth in such submission, Borrower is in complete compliance with all  required covenants except as noted in such Compliance Statement, Borrowing Base Statement or other financial  statement, as applicable, (iii) as of the date of such submission, no Events of Default have occurred or are continuing,  (iv) all representations and warranties other than any representations or warranties that are made as of a specific date in Section 4 remain true and correct in all material respects as of the date of such submission except as noted in such Compliance Statement, Borrowing Base Statement or other financial statement, as applicable, (v) as of the date of such submission, Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 4.9, and (vi) as of the date of such submission,  no Liens have been levied or claims made against Borrower  relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. 5.4 Accounts Receivable.   (a) Schedules and Documents Relating to Accounts.  Borrower shall deliver to Bank transaction reports and schedules of collections, as provided in Section 5.3, on Bank’s standard forms; provided, however, that Borrower’s  failure to execute and deliver the same shall not affect or limit Bank’s Lien and other rights in all of Borrower’s  Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other  rights therein.  If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all  contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading,  and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts.  In addition,  Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel paper, security agreements,  guarantees and other documents and property evidencing or securing any Accounts, in the same form as received,  with all necessary indorsements, and copies of all credit memos.  (b) Disputes.  Borrower shall promptly notify Bank of all disputes or claims relating to Accounts. Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or  agree to do any of the foregoing so long as (i) Borrower does so in good faith, in a commercially reasonable manner,  in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports  provided to Bank; and (ii) no Event of Default has occurred and is continuing.    (c) Collection of Accounts.  Borrower shall direct Account Debtors to deliver or transmit all proceeds of Accounts into a lockbox account, or such other “blocked account” as specified by Bank (either such account, the  “Cash Collateral Account”). The Bank acknowledges that TV Squared has no existing Cash Collateral Account in  place, however it is required to establish it within 180 days as of the date hereof, as provided under Section 5.19(b)  herein. Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all  payments on and proceeds of Accounts to the Cash Collateral Account. Subject to Bank’s right to maintain a reserve  





 






12  pursuant to Section 5.4(d), all amounts received in the Cash Collateral Account shall be applied to immediately reduce  the Obligations under the Revolving Line (unless Bank, in its sole discretion, at times when an Event of Default exists,  elects not to so apply such amounts). Borrower hereby authorizes Bank to transfer to the Cash Collateral Account any  amounts that Bank reasonably determines are proceeds of the Accounts (provided that Bank is under no obligation to  do so and this allowance shall in no event relieve Borrower of its obligations hereunder).   (d) Reserves.  Notwithstanding any terms in this Agreement to the contrary, (i) Bank may, at any time, in its sole discretion, hold any proceeds of the Accounts and any amounts in the Cash Collateral Account as a reserve  to cover Borrower’s Obligations to Bank (and to pay such Obligations when due); and (ii) at times when a Default or  an Event of Default exists, Bank may hold any proceeds of the Accounts and any amounts in the Cash Collateral  Account that are not applied to the Obligations pursuant to Section 5.4(c) above (including amounts otherwise required  to be transferred to Borrower’s operating account with Bank) as a reserve to be applied to any Obligations regardless  of whether such Obligations are then due and payable.  (e) Returns.  Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) issue a credit  memorandum to the Account Debtor in the appropriate amount in accordance with Borrower’s customary business  practices, and (iii) provide a copy of such credit memorandum to Bank, upon request from Bank.  In the event any  attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold  the returned Inventory in trust for Bank, and immediately notify Bank of the return of the Inventory.    (f) Verifications; Confirmations; Credit Quality; Notifications.  During the continuance of an Event of Default, Bank may, from time to time, (i) verify and confirm directly with the respective Account Debtors the validity,  amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as  Bank may choose, and notify any Account Debtor of Bank’s security interest in such Account and/or (ii) conduct a  credit check of any Account Debtor to approve any such Account Debtor’s credit. In addition, Bank may notify  Account Debtors to make payments in respect of Accounts directly to Bank.   (g) No Liability.  Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error,  act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any  Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to  be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account. Nothing  herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct.  5.5  Remittance of Proceeds.  Except as otherwise provided in Section (c), deliver, in kind, all proceeds  arising from the disposition of any Collateral to Bank in the original form in which received by Borrower not later  than the following Business Day after receipt by Borrower, to be applied to the Obligations (a) prior to an Event of  Default, pursuant to the terms of Section (c) hereof, and (b) after the occurrence and during the continuance of an  Event of Default, pursuant to the terms of Section 8.4 hereof; provided that, if no Event of Default has occurred and  is continuing, Borrower shall not be obligated to remit to Bank the proceeds of the sale of worn out or obsolete  Equipment disposed of by Borrower in good faith in an arm’s length transaction for an aggregate purchase price of  Twenty Five Thousand Dollars ($25,000) or less (for all such transactions in any fiscal year).  Borrower agrees that it  will not commingle proceeds of Collateral with any of Borrower’s other funds or property, but will hold such proceeds  separate and apart from such other funds and property and in an express trust for Bank.  Nothing in this Section 5.5  limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement and/or any other Loan  Document.  5.6 Taxes; Pensions.   (a) Timely file, and require each of its Subsidiaries to timely file (in each case, unless subject to a valid extension), all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all  foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its  Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 4.9(a) hereof, and  shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay, and require each of its  





 






13  Subsidiaries to pay, all amounts necessary to fund all present pension, profit sharing and deferred compensation plans  in accordance with their terms.  (b) To the extent Borrower or any of its Subsidiaries defers payment of any contested taxes, (i) notify Bank in writing of the commencement of, and any material development in, the proceedings, and (ii) post bonds or  take any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a  Lien upon any of the Collateral that is other than a “Permitted Lien.”    5.7 Access to Collateral; Books and Records.  At reasonable times, on one (1) Business Day’s notice  (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall have  the right to inspect the Collateral and the right to audit and copy Borrower’s Books. Such inspections and audits shall  be conducted as frequently as Bank determines in its commercially Reasonable discretion that conditions warrant, but  are expected to be conducted no more often than once every twelve (12) months, unless an Event of Default has  occurred and is continuing, in which case such inspections and audits shall occur as often as Bank shall determine is  necessary. The foregoing inspections and audits shall be conducted at Borrower’s expense and the charge therefor  shall be $1,000.00 per day (or such higher amount as shall represent Bank’s then-current standard charge for the same),  plus out-of-pocket expenses, but in any event shall not exceed $7,000 plus out-of-pocket expenses per each inspection.  In the event Borrower and Bank schedule an audit more than eight (8) days in advance, and Borrower cancels or seeks  to or reschedules the audit with less than eight (8) days written notice to Bank, then (without limiting any of Bank’s  rights or remedies) Borrower shall pay Bank a fee of $2,000.00 plus any out-of-pocket expenses incurred by Bank to  compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling.    5.8 Insurance.    (a) Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request.  Insurance policies shall be in a form, with  financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are  satisfactory to Bank.  (b) All property policies shall have a lender’s loss payable endorsement showing Bank as lender loss payee.  All liability policies shall show, or have endorsements showing, Bank as an additional insured.  Bank shall be  named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect  of any Collateral.    (c) Ensure that proceeds payable under any property policy are, at Bank’s option, payable to Bank on account of the Obligations.  (d) At Bank’s request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments.  Each provider of any such insurance required under this Section 5.8 shall agree, by endorsement  upon the policy or policies issued by it or by independent instruments furnished to Bank, that it will give Bank 30  days prior written notice before any such policy or policies shall be canceled or altered in any material respect.  If  Borrower fails to obtain insurance as required under this Section 5.8 or to pay any amount or furnish any required  proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance  policies required in this Section 5.8, and take any action under the policies Bank deems prudent.  5.9 Accounts.  (a) Maintain Borrower’s and any of its Subsidiaries’ primary operating accounts, depository accounts, the Cash Collateral Account and primary securities/investment accounts, and all of their non-shekel cash with Bank  or Bank’s Affiliates. provided however: (X) Borrower may maintain Dollar deposit accounts with financial institutions  in Israel (other than Bank or Bank’s Affiliates) provided that the aggregate amount of funds held in all such accounts  together shall not exceed Five Hundred Thousand Dollars ($500,000.00) in the aggregate at any time; (Y) subject the  provisions of Section 7.13: (i) Innovid Media Ltd may maintain its existing NIS deposit account no. 640-557740 with  Poalim in Israel, and (ii) Innovid AU Pty Ltd, may maintain an operating account with a financial institutions in  Australia (other than Bank or Bank’s Affiliates) provided that the aggregate amount of funds held in such account  





 






14  shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate at any time (iii) Innovid  Argentina SRL may maintain (A) its existing Argentine peso deposit account no. 208-006911/9 with Santander Rio  Bank and (B) its existing Argentine peso deposit account no. 7968-4 066-5 with Banco Galicia, and (iv) Innovid EU  Limited may maintain its account with Barclays ending 382, provided that the aggregate amount of funds held in such  account shall not exceed Five Hundred Thousand Dollars ($500,000.00) in the aggregate at any time, and (v) TV  Squared Limited may maintain its accounts with Royal Bank of Scotland and (vi) TV Squared GMBH may maintain  its account with Commerzbank AG. Any Guarantor shall maintain all depository, operating and securities/investment  accounts with Bank and Bank’s Affiliates. The Bank acknowledges that Innovid LLC, funds payroll and accounts  payable for its subsidiaries including in Israel, Argentina, Europe and Australia.  As such, the balance in any of these  accounts (as specified above) may be, for up to five (5) Business Days per month, greater than the amounts stated in  this 5.9(a) paragraph, subject however to any limitations set forth herein, including without limitations sub-section (j)  to the “Permitted Investments” definition.  (b) In addition to the foregoing, Borrower, any Subsidiary of Borrower and any Guarantor, shall obtain any non-shekel business credit card, letter of credit and cash management services from Bank.  (c) In addition to and without limiting the restrictions in (a), Borrower shall provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than  Bank or Bank’s Affiliates.  For each Collateral Account that Borrower at any time maintains, Borrower shall cause  the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to  execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to  perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement  may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not  apply to deposit accounts exclusively used for payroll, payroll taxes, and other employee wage and benefit payments  to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such.  5.10 Financial Covenants.   (a) Adjusted Quick Ratio.  Maintain at all times, to be tested as of the last day of each month, a ratio of Quick Assets to Current Liabilities minus the current portion of Deferred Revenue (“AQR”) of at least 1.30 to 1.00.  Notwithstanding anything to the contrary, the Bank acknowledges and confirms that the AQR will be based on Parent's  consolidated financials.   (b) Adjusted EBITDA.  Maintain at all times when Borrower (based on Parent's consolidated financials statements filed with the SEC) does not maintain AQR of at least 1:50 to 1:00, measured as of the end of each fiscal  quarter during the following periods, Adjusted EBITDA (as defined in Parent’s SEC filings) of at least the following:  Period Minimum Adjusted  EBITDA  Calendar quarter ending on March 31, 2022 ($3,500,000)  Calendar quarter ending on June 30, 2022 $750,000  Calendar quarter ending on September 30,  2022  $1,500,000  Calendar quarter ending on December 31, 2022 $3,000,000  Calendar quarter ending on March 31, 2023 ($3,500,000)  Calendar quarter ending on June 30, 2023 $1,500,000  





 






15  Calendar quarter ending on September 30,  2023  $3,000,000  Calendar quarter ending on December 31, 2023 $5,000,000  With respect to any period ending after December 31, 2023, the EBITDA levels applicable to such  period shall be determined by Bank, in its sole discretion, until December 31, 2023 based upon, among other factors,  budgets, sales projections, operating plans and other financial information of Borrower that Bank deems relevant,  including, without limitation, Borrower’s financial projections. With respect thereto: Borrower’s failure to deliver to  Bank, on or before December 1, 2023 Borrower’s budgets, sales projections, operating plans and other financial  information of Borrower that Bank deems relevant and reasonably requested by Bank prior to such date, including,  without limitation, Borrower’s quarterly and annual financial projections, together with any related business forecasts  used in the preparation of such projections, with respect to Borrower’s 2024 fiscal year, shall result in an immediate  Event of Default for which there shall be no grace or cure period.  5.11 Protection of Intellectual Property Rights.    (a) (i) Protect, defend and maintain the validity and enforceability of Borrower’s and each Subsidiary’s Intellectual Property, except to the extent that such failure to do so would not reasonably be expected to have a material  adverse effect on Borrower’s business or operations; (ii) promptly advise Bank in writing of infringements or any  other event that could reasonably be expected to materially and adversely affect the value Borrower’s and each  Subsidiary’s Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s or any  Subsidiary’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent.  (b) If Borrower (i) obtains any Patent, registered Trademark, registered Copyright, registered mask work, or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies for  any Patent or the registration of any Trademark, then Borrower shall provide written notice thereof to Bank  on the  next compliance Certificate delivered by Borrower to Bank and shall execute such intellectual property security  agreements and other documents and take such other actions as Bank may request in its commercially reasonable  discretion to perfect and maintain a first priority perfected security interest in favor of Bank in such property within  five (5) days of such request.  If Borrower intends to register any Copyrights or mask works in the United States  Copyright Office, Borrower shall: (x) provide Bank with at least 15 days prior written notice of Borrower’s registration  of such Copyrights or mask works together with a copy of the application it intends to file with the United States  Copyright Office (excluding exhibits thereto); (y) prior to the date of registration of the Copyrights or mask works  described in (x), execute an intellectual property security agreement and such other documents and take such other  actions as Bank may request in its commercially reasonable discretion to perfect and maintain a first priority perfected  security interest in favor of Bank in such Copyrights or mask works; and (z) record such intellectual property security  agreement with the United States Copyright Office contemporaneously with filing the Copyright or mask work  application(s) with the United States Copyright Office.  Borrower shall promptly provide to Bank copies of all  applications that it files for Patents or for the registration of Trademarks, Copyrights or mask works, together with  evidence of the recording of the intellectual property security agreement required for Bank to perfect and maintain a  first priority perfected security interest in such property.  (c) Provide written notice to Bank within twenty (20) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public).  Borrower shall  take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is  necessary for (i) any such Restricted License to be deemed “Collateral” and for Bank to have a security interest in it  that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now  existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to  dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement and the other Loan  Documents.  5.12 Litigation Cooperation.  From the date hereof and continuing through the termination of this  Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and  Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend  any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower.  





 






16  5.13 Online Banking.    (a) Utilize Bank’s online banking platform for all matters requested by Bank which shall include, without limitation (and without request by Bank for the following matters), uploading information pertaining to  Accounts and Account Debtors, requesting approval for exceptions, requesting Credit Extensions, and uploading  financial statements and other reports required to be delivered by this Agreement (including, without limitation, those  described in Section 5.3 of this Agreement).  (b) Comply with the terms of Bank’s Online Banking Agreement as in effect from time to time and ensure that all persons utilizing Bank’s online banking platform are duly authorized to do so by an Administrator.  Bank shall be entitled to assume the authenticity, accuracy and completeness of any information, instruction or request  for a Credit Extension submitted via Bank’s online banking platform and to further assume that any submissions or  requests made via Bank’s online banking platform have been duly authorized by an Administrator.  5.14 Grants.  Borrower shall obtain the prior written consent of Bank before receiving any new grants,  funds or benefits or any other Governmental Authority.  5.15 Formation or Acquisition of Subsidiaries.  Notwithstanding and without limiting the negative  covenants contained in Sections 6.3 and 6.7 hereof, at the time that Borrower or any Guarantor forms any Subsidiary  or acquires any Subsidiary after the Effective Date (including, without limitation, pursuant to a Division), Borrower  and such Guarantor shall (a) cause such new Subsidiary to provide to Bank a joinder to this Agreement to become a  co-borrower hereunder or a guaranty to become a Guarantor hereunder (as determined by Bank in its sole discretion),  together with documentation, all in form and substance satisfactory to Bank (including being sufficient to grant Bank  a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b)  provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial  ownership interest in such new Subsidiary, in form and substance satisfactory to Bank; and (c) provide to Bank all  other documentation in form and substance satisfactory to Bank, including one or more opinions of counsel  satisfactory to Bank, which in its opinion is appropriate with respect to the execution and delivery of the applicable  documentation referred to above.  Any document, agreement, or instrument executed or issued pursuant to this Section  5.15 shall be a Loan Document.  5.16 Inventory; Returns.  Keep all Inventory in good and marketable condition, free from material  defects.  Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary  practices as they exist at the Effective Date.  Borrower shall promptly notify Bank of all returns, recoveries, disputes  and claims that involve more than Five Hundred Thousand Dollars ($500,000).   5.17 Further Assurances.  Execute any further instruments and take such further action as Bank  reasonably requests to perfect, protect, ensure the priority of or continue Bank’s Lien on the Collateral or to effect the  purposes of this Agreement.  5.18 Sanctions.  (a) Not, and not permit any of its Subsidiaries to, engage in any of the activities  described in Section 4.12 in the future; (b) not, and not permit any of its Subsidiaries to, become a Sanctioned Person;  (c) ensure that the proceeds of the Obligations are not used to violate any Sanctions; and (d) deliver to Bank any certification or other evidence requested from time to time by Bank in its sole discretion, confirming each such Person’s compliance with this Section 5.18.  In addition, have implemented, and will consistently apply while this Agreement is in effect, procedures to ensure that the representations and warranties in Section 4.12 remain true and correct while this Agreement is in effect. 5.19 Post-closing Covenants.  (a) Within thirty (30) days of the Effective Date, Borrower shall deliver to Bank evidence satisfactory to Bank, in Bank’s sole discretion, that the insurance policies and endorsements required by Section 5.8 hereof are in  full force and effect, in accordance with the terms thereof.  





 






17  (b) Within one hundred and eighty (180) days of the Effective Date, TV Squared’s Cash Collateral Account shall be maintained to Bank’s satisfaction in its sole discretion.  6 NEGATIVE COVENANTS  Borrower shall not do any of the following without Bank’s prior written consent:  6.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without  limitation, pursuant to a Division) (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any  part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn- out or obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to  maintain or useful in the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted  Investments; (d) consisting of the sale or issuance of any stock, partnership, membership, or other ownership interest  or other equity securities of Borrower permitted under Section 6.2 of this Agreement; (e) consisting of Borrower’s or  its Subsidiaries’ use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this  Agreement or the other Loan Documents; (f) in connection with Permitted Liens and Permitted Investments and (g)  of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business.  6.2 Changes in Business, Management, Control, or Business Locations.  (a) Engage in or permit any  of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such  Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve or permit any of its Subsidiaries to  liquidate or dissolve; (c) fail to provide notice to Bank of any Key Persons departing from or ceasing to be employed  by Borrower within five (5) days after their departure from Borrower; (d) permit, allow or suffer to occur any Change  in Control, including in one or more of its Subsidiaries; or (e) without at least 10 days prior written notice to Bank, (i)  add any new offices or business locations, including warehouses (unless such new offices or business locations contain  less than One Hundred Thousand Dollars ($100,000) in Borrower’s assets or property) or deliver any portion of the  Collateral valued, individually or in the aggregate, in excess of Ten Thousand Dollars ($10,000) to a bailee at a location  other than to a bailee and at a location already disclosed in the Perfection Certificate, (ii) change its jurisdiction of  organization, (iii) change its organizational structure or type, (iv) change its legal name, or (v) change any  organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to add any new offices  or business locations, including warehouses, containing in excess of Fifty Thousand Dollars ($50,000) of Borrower’s  assets or property, then Borrower will cause the landlord of any such new offices or business locations, including  warehouses, to execute and deliver a landlord consent in form and substance satisfactory to Bank.  If Borrower intends  to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Ten Thousand Dollars  ($10,000) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the  Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower will cause such bailee  to execute and deliver a bailee agreement in form and substance satisfactory to Bank.   6.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or  consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of  the stock, partnership, membership, or other ownership interest or other equity securities or property of another Person  (including, without limitation, by the formation of any Subsidiary or pursuant to a Division). Notwithstanding anything  to the contrary, a Subsidiary may merge or consolidate into another Subsidiary or into Borrower.  6.4 Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary  to do so, other than Permitted Indebtedness.  6.5 Encumbrance.  Create, incur, allow, or suffer to exist any Lien on any of its property, or assign or  convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so,  except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted herein  or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any  Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from  assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any  Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 6.1 hereof and the definition of  “Permitted Liens” herein.  





 






18  6.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the  terms of Section 5.9(c).  6.7 Distributions; Investments.  (a) Pay any dividends or make any distribution or payment or redeem,  retire or purchase any stock, partnership, membership, or other ownership interest or other equity securities, other than  repurchase the stock, partnership, membership, or other ownership interest or other equity securities of former  employees or consultants pursuant to employee stock purchase plans, stock repurchase agreements or any similar plan  duly adopted by Borrower, so long as an Event of Default does not exist at the time of any such repurchase and would  not exist after giving effect to any such repurchase, provided that the aggregate amount of all such repurchases does  not exceed Fifty Thousand Dollars ($50,000.00) per each period of twelve (12) months; or (b) directly or indirectly  make any Investment (including, without limitation, by the formation of any Subsidiary) other than Permitted  Investments, or permit any of its Subsidiaries to do so. For the avoidance of any doubt, Borrower shall not make any  Investment or pay any dividend or any other payment to Parent, for any reason whatsoever, except as specifically  permitted under sub-section (k) of the Permitted Investments definition.  6.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material  transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s  business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s  length transaction with a non-affiliated Person.  6.9 Subordinated Debt. Except as expressly permitted under the terms of the subordination,  intercreditor, or other similar agreement to which any Subordinated Debt is subject: (a) make or permit any payment  on such Subordinated Debt; or (b) amend any provision in any document relating to such Subordinated Debt which  would increase the amount thereof, provide for earlier or greater principal, interest, or other payments thereon, or  adversely affect the subordination thereof to Obligations owed to Bank.  6.10 Compliance.  (a) Become an “investment company” or a company controlled by an “investment  company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities  extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the  Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; (b)(i) fail to meet the minimum  funding requirements of ERISA, (ii) permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to  occur, (iii) fail to comply with the Federal Fair Labor Standards Act or (iv) violate any other law or regulation, if the  foregoing subclauses (i) through (iv), individually or in the aggregate, could reasonably be expected to have a material  adverse effect on Borrower’s business or operations, or permit any of its Subsidiaries to do so; or (c) withdraw or  permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the  occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan  which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit  Guaranty Corporation or its successors or any other Governmental Authority.  7 EVENTS OF DEFAULT  Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:  7.1 Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit  Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are  due and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line  Maturity Date).  During the cure period, the failure to make or pay any payment specified under clause (b) hereunder  is not an Event of Default (but no Credit Extension will be made during the cure period);  7.2 Covenant Default.   (a) Borrower fails or neglects to perform any obligation in Section 5 or violates any covenant in Section 6 of this Agreement; or  





 






19  (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those  specified in this Section 7) under such other term, provision, condition, covenant or agreement that can be cured, has  failed to cure the default within ten (10) days after the occurrence thereof (but no Credit Extensions shall be made  during such cure period).  Cure periods provided under this section shall not apply, among other things, to financial  covenants or any other covenants that are required to be satisfied, completed or tested by a date certain or any  covenants set forth in clause (a) above;  7.3 Material Adverse Change.  A Material Adverse Change occurs with respect to either Borrower or  Parent;  7.4 Attachment; Levy; Restraint on Business.  (a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower, Parent or any entity under the control of Borrower and/or Parent (including a Subsidiary), or (ii) a notice of lien or  levy is filed against any of Borrower’s, Parent or any of their respective Subsidiaries’ assets by any Governmental  Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof,  discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions  shall be made during any ten (10) day cure period; or   (b) (i) any material portion of Borrower’s, Parent or any of their respective Subsidiaries’ assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains,  or prevents Borrower, Parent or any of their respective Subsidiaries from conducting all or any material part of its  business;  7.5 Insolvency.  (a) Borrower, Parent or any of their respective Subsidiaries is unable to pay its debts  (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower, Parent or any of their  respective Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower,  Parent or any of their respective Subsidiaries and is not dismissed or stayed within 30 days (but no Credit Extensions  shall be made while any of the conditions described in clause (a) exist or until any Insolvency Proceeding is dismissed);  7.6 Other Agreements.  There is, under any agreement to which Borrower, Parent, any of their  respective Subsidiaries, or any Guarantor is a party with a third party or parties, (a) any default resulting in a right by  such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount  individually or in the aggregate in excess of Five Hundred Thousand Dollars ($500,000); or (b) any breach or default  by Borrower, Parent any of their respective Subsidiaries, or Guarantor, the result of which could have a material  adverse effect on Borrower’s, Parent any of their respective Subsidiaries’, or any Guarantor’s business or operations;  7.7 Judgments; Penalties.  One or more fines, penalties or final judgments, orders or decrees for the  payment of money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars  ($500,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance  carrier) shall be rendered against Borrower, Parent or any of their respective Subsidiaries by any Governmental  Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, or  after execution thereof, or stayed pending appeal, or such judgments are not discharged prior to the expiration of any  such stay (provided that no Credit Extensions will be made prior to the discharge, or stay of such fine, penalty,  judgment, order or decree);  7.8 Misrepresentations.  Borrower or any of its Subsidiaries or any Person acting for Borrower or any  of its Subsidiaries makes any representation, warranty, or other statement now or later in this Agreement, any Loan  Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and  such representation, warranty, or other statement is incorrect in any material respect when made. It being agreed and  acknowledged by Bank that the projections and forecasts provided by Borrower or any of its Subsidiaries in good faith  and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods  covered by such projections and forecasts may differ from the projected or forecasted results;  





 






20  7.9 Subordinated Debt.  If: (a) any document, instrument, or agreement evidencing any Subordinated  Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, or any Person  (other than Bank) shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that  it has any further liability or obligation thereunder; (b) a default or event of default (however defined) has occurred  under any document, instrument, or agreement evidencing any Subordinated Debt, which default shall not have been  cured or waived within any applicable grace period; or (c) the Obligations shall for any reason be subordinated or  shall not have the priority contemplated by this Agreement or any applicable subordination or intercreditor agreement;  7.10 Lien Priority.  There is a material impairment in the perfection or priority of Bank’s security interest  in the Collateral;  7.11 Guaranty.  (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full  force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations;  (c) any circumstance described in Sections 7.3, 7.4, 7.5, 7.6, 7.7, or 7.8 of this Agreement occurs with respect to any Guarantor, (d) the death, liquidation, winding up, or termination of existence of any Guarantor; or (e)(i) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, condition (financial  or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor; or 7.12 Governmental Approvals.  Any Governmental Approval shall have been (a) revoked, rescinded,  suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any  decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of  such Governmental Approval or that could result in the Governmental Authority taking any of the actions described  in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i)  causes, or could reasonably be expected to cause, a Material Adverse Change, or (ii) adversely affects the legal  qualifications of Borrower, Parent or any of their respective Subsidiaries to hold such Governmental Approval in any  applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be  expected to affect the status of or legal qualifications of Borrower, Parent or any of their respective Subsidiaries to  hold any Governmental Approval in any other jurisdiction.  7.13 Non-borrowing Subsidiaries.  (i) All Borrower’s direct or indirect Subsidiaries that are not parties  to this Agreement (for all such Subsidiaries measured together), at any time maintain cash and Cash Equivalents and  account receivables with an aggregate gross value greater than the equivalent of an amount equal to Nine Million  Dollar ($9,000,000); and/or (ii) Parent, at any time maintains cash and Cash Equivalents and account receivables with  an aggregate gross value greater than the equivalent of an amount equal to One Million Dollar ($1,000,000).  7.14 Parent Indebtedness. Parent incurred outstanding Indebtedness, not specifically permitted herein.  8 BANK’S RIGHTS AND REMEDIES  8.1 Rights and Remedies.  Upon the occurrence and during the continuance of an Event of Default,  Bank may, without notice or demand, do any or all of the following:  (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 7.5 occurs all Obligations are immediately due and payable without any action by Bank).  (b) stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank.  (c) demand that Borrower (i) deposit cash with Bank in an amount equal to at least (A) 105.0% of the aggregate face amount of any Letters of Credit denominated in Dollars remaining undrawn, and (B) 115.0% of the  Dollar Equivalent of the aggregate face amount of any Letters of Credit denominated in a Foreign Currency remaining  undrawn (plus, in each case, all interest, fees, and costs due or estimated by Bank to become due in connection  therewith), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment  of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and  





 






21  (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; (d) terminate any FX Contracts (it being understood and agreed that (i) Bank is not obligated to deliver the currency which Borrower has contracted to receive under any FX Contract, and Bank may cover its exposure for any FX  Contracts by purchasing or selling currency in the interbank market as Bank deems appropriate; (ii) Borrower shall be liable  for all losses, damages, costs, margin obligations and expenses incurred by Bank arising from Borrower’s failure to satisfy its  obligations under any FX Contract or the execution of any FX Contract; and (iii) Bank shall not be liable to Borrower for any  gain in value of a FX Contract that Bank may obtain in covering Borrower’s breach);   (e) verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in  any order that Bank considers advisable, and notify any Person owing Borrower money of Bank’s security interest in  such funds.  Borrower shall collect all payments in trust for Bank and, if requested by Bank, immediately deliver the  payments to Bank in the form received from the Account Debtor, with proper endorsements for deposit;  (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Borrower shall assemble the Collateral if Bank requests and make it  available as Bank designates.  Bank may enter premises where the Collateral is located, take and maintain possession  of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior  to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its  premises, without charge, to exercise any of Bank’s rights or remedies;  (g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) amount held by Bank owing to or for the credit or the account of Borrower;  (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral.  For use solely upon the occurrence and during the continuation of an Event of Default, Bank is hereby  granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents,  Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter,  or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling  any Collateral and, in connection with Bank’s exercise of its rights under this Section 8.1, Borrower’s rights under all  licenses and all franchise agreements inure to Bank’s benefit;  (i) place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements  providing control of any Collateral;  (j) demand and receive possession of Borrower’s Books; and (k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code or any Applicable Law (including disposal of the Collateral pursuant  to the terms thereof) or any other applicable law.  8.2 Power of Attorney.  Borrower hereby irrevocably appoints Bank as its true and lawful attorney-in- fact, (a) exercisable upon the occurrence and during the continuance of an Event of Default, to: (i) sign Borrower’s  name on any invoice or bill of lading for any Account or drafts against Account Debtors; (ii) demand, collect, sue,  and give releases to any Account Debtor for monies due, settle and adjust disputes and claims about the Accounts  directly with Account Debtors, and compromise, prosecute, or defend any action, claim, case, or proceeding about  any Collateral (including filing a claim or voting a claim in any bankruptcy case in Bank’s or Borrower’s name, as  Bank chooses); (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) pay, contest or settle  any Lien, charge, encumbrance, security interest, or other claim in or to the Collateral, or any judgment based thereon,  or otherwise take any action to terminate or discharge the same; and (v) transfer the Collateral into the name of Bank  or a third party as the Code permits; and (vi) receive, open and dispose of mail addressed to Borrower; and (b)  regardless of whether an Event of Default has occurred, to: (i) endorse Borrower’s name on any checks, payment  





 






22  instruments, or other forms of payment or security; (ii) notify all Account Debtors to pay Bank directly; and (iii) sign  Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the  Collateral.  Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled  with an interest, are irrevocable until such time as all Obligations (other than inchoate indemnity obligations) have  been satisfied in full, Bank is under no further obligation to make Credit Extensions and the Loan Documents have  been terminated. Bank shall not incur any liability in connection with or arising from the exercise of such power of  attorney and shall have no obligation to exercise any of the foregoing rights and remedies.  8.3 Protective Payments.  If Borrower fails to obtain the insurance called for by Section 5.8 or fails to  pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement  or any other Loan Document or which may be required to preserve the Collateral, Bank may obtain such insurance or  make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing  interest at the then highest rate applicable to the Obligations, and secured by the Collateral.  Bank will make reasonable  efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a  reasonable time thereafter.  No payments by Bank are deemed an agreement to make similar payments in the future  or Bank’s waiver of any Event of Default.  8.4 Application of Payments and Proceeds. Bank may apply any funds in its possession, whether from  Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other  disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its sole  discretion.  Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain  liable to Bank for any deficiency.  If Bank, in its commercially reasonable discretion, directly or indirectly, enters into  a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option,  exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring  the reduction of the Obligations until the actual receipt by Bank of cash therefor.  8.5 Bank’s Liability for Collateral. Bank’s sole duty with respect to the custody, safekeeping and  physical preservation of the Collateral in its possession or under its control, under Section 9-207 of the Code or  otherwise, shall be to deal with it in the same manner as Bank deals with its own property consisting of similar  instruments or interests.  Borrower bears all risk of loss, damage or destruction of the Collateral.  8.6 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict  performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or  diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith.  No waiver  hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific  instance and purpose for which it is given.  Bank’s rights and remedies under this Agreement and the other Loan  Documents are cumulative.  Bank has all rights and remedies provided under the Code, by law, or in equity.  Bank’s  exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under  this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a  continuing waiver.  Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.    8.7 Demand Waiver.  Borrower waives demand, notice of default or dishonor, notice of payment and  nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal  of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable.  8.8  Borrower Liability.  Any Borrower may, acting singly, request Credit Extensions hereunder.  Each  Borrower hereby appoints each other as agent for the other for all purposes hereunder, including with respect to  requesting Credit Extensions hereunder. Each Borrower hereunder shall be liable for the Credit Extensions and  Obligations as set forth on Schedule I hereto.  Each Borrower waives (a) any suretyship defenses available to it under  the Code or any other Applicable Law, including, without limitation, the benefit of California Civil Code Section 2815  permitting revocation as to future transactions and the benefit of California Civil Code Sections 1432, 2809, 2810,  2819, 2839, 2845, 2847, 2848, 2849, 2850, and 2899 and 3433, and (b) any right to require Bank to: (i) proceed against  any Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy.  Bank  may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the  right to foreclose by judicial or non-judicial sale) without affecting any Borrower’s liability.  Notwithstanding any  other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may  





 






23  have at law or in equity (including, without limitation, any law subrogating Borrower to the rights of Bank under this  Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or  any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made  by Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might  have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by Borrower  with respect to the Obligations in connection with this Agreement or otherwise.  Any agreement providing for  indemnification, reimbursement or any other arrangement prohibited under this Section 8.8 shall be null and void.  If  any payment is made to a Borrower in contravention of this Section 8.8, such Borrower shall hold such payment in  trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether  matured or unmatured.  Each Borrower is entering into this Agreement, and making all representations and warranties hereunder, on  a joint and several basis, and all covenants, agreements and undertakings herein expressed or implied on the part of  each Borrower shall be deemed to be joint and several.   9 NOTICES  All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement  or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered:  (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address or email address indicated below; provided that, for clause (b), if such notice, consent, request, approval, demand or other communication is not sent during the normal business hours of the recipient, it shall be deemed to have been sent at the opening of business on the next Business Day of the recipient.  Bank or Borrower may change its mailing or electronic mail address by giving the other party written notice thereof in accordance with the terms of this Section 9. If to Borrower: Innovid LLC  Address: 30 Irving Place 12th Floor New York, NY 10003   Attn: Tanya Andreev-Kaspin  Email: tanya@innovid.com  Tv Squared, Inc.  Address: 30 Irving Place 12th Floor New York, NY 10003   Attn: Tanya Andreev-Kaspin  Email: tanya@innovid.com  and with a copy to: Furth, Wilensky, Mizrachi, Knanni – Law Offices.  1 Azrieli Center.,  Tel-Aviv 67021, Israel  Attn.: Erez Mizrachi, adv.  Telephone: +972-36070800  E-Mail: Erez@fwmk-law.co.il If to Bank: Silicon Valley Bank   Alphabeta, 14-18 Finsbury Square  London EC2A 1BR  Attn: Jim Watts  E-Mail: JWatts2@svb.com and with a copy to: Shibolet & Co.   4 Berkowitz St.,   Tel-Aviv 6423806, Israel  





 






24  Attn.: Maya Koubi Bara-nes, adv.  Telephone: +972-7778333  E-Mail: Maya@shibolet.com 10 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER; JUDICIAL REFERENCE  Except as otherwise expressly provided in any of the Loan Documents, New York law governs the Loan  Documents without regard to principles of conflicts of law that would require the application of the laws of another  jurisdiction.  Borrower and Bank each irrevocably and unconditionally submit to the exclusive jurisdiction of the State  and Federal courts in New York New York; provided, however, that nothing in this Agreement shall be deemed to  operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction with respect to the  Loan Documents or to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or  other court order in favor of Bank.  Borrower expressly, irrevocably and unconditionally submits and consents in  advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby irrevocably and  unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may have based upon  lack of personal jurisdiction, improper venue, or forum non conveniens and hereby irrevocably and unconditionally  consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Borrower hereby  waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that  service of such summons, complaints, and other process may be made by registered or certified mail addressed to  Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 9 of this  Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt  thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK  EACH WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT  OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED  TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS  AGREEMENT.  EACH PARTY HERETO HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.  This Section 10 shall survive the termination of this Agreement and the repayment of all Obligations.  11 GENERAL PROVISIONS  11.1 Termination Prior to Maturity Date; Survival.  All covenants, representations and warranties  made in this Agreement shall continue in full force until this Agreement has terminated pursuant to its terms and all  Obligations (other than inchoate indemnity obligations) have been satisfied.  So long as Borrower has satisfied the  Obligations (other than inchoate indemnity obligations, and any other obligations which, by their terms, are to survive  the termination of this Agreement and the repayment of all Obligations, and any Obligations under Bank Services  Agreements that are cash collateralized in accordance with Section 3.1 of this Agreement), this Agreement may be  terminated prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days after written  notice of termination is given to Bank. Those obligations that are expressly specified in this Agreement as surviving  this Agreement’s termination and the repayment of all Obligations shall continue to survive notwithstanding this  Agreement’s termination and the repayment of all Obligations. Without limiting the foregoing, except as otherwise  provided in Section 3.1, the grant of a security interest by Borrower in Section 3.1 shall survive until the termination  of this Agreement and all Bank Services Agreements.  11.2 Successors and Assigns.  This Agreement binds and is for the benefit of the successors and  permitted assigns of each party.  Borrower may not assign or transfer this Agreement or any rights or obligations under  it without Bank’s prior written consent (which may be granted or withheld in Bank’s sole discretion) and any other  attempted assignment or transfer by Borrower shall be null and void.  Bank has the right, without the consent of or  notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in,  Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents.   





 






25  11.3 Indemnification.   (a) General Indemnification.  Borrower shall indemnify, defend and hold Bank and its Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of  Bank and its Affiliates (each, an “Indemnified Person”) harmless against: (i) all losses, claims, damages, liabilities  and related expenses (including Bank Expenses and the reasonable fees, charges and disbursements of any counsel for  any Indemnified Person)  (collectively, “Claims”) arising out of, in connection with, or as a result of (i) the execution  or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or  thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the  consummation of the transactions contemplated hereby or thereby, (ii) any Credit Extension or the use or proposed  use of the proceeds therefrom, (iii) any actual or alleged presence or release of hazardous materials on or from any  property owned or operated by Borrower or any of its Subsidiaries, or any environmental liability related in any way  to Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding  relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party  or by Borrower, and regardless of whether any Indemnified Person is a party thereto; provided that such indemnity  shall not, as to any Indemnified Person, be available to the extent that such losses, claims, damages, liabilities or  related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have  resulted from the gross negligence or willful misconduct of such Indemnified Person.  All amounts due under this  Section 11.3 shall be payable promptly after demand therefor.   (b) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, neither party shall assert, and hereby waives, any claim against any Indemnified Person or Borrower, on any theory of liability,  for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) or any loss of profits  arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or  instrument contemplated hereby, the transactions contemplated hereby or thereby, any Credit Extension, or the use of  the proceeds thereof. No Indemnified Person shall be liable for any damages arising from the use by unintended  recipients of any information or other materials distributed by it through telecommunications, electronic or other  information transmission systems in connection with this Agreement or the other Loan Documents or the transactions  contemplated hereby or thereby.  This Section 11.3 shall survive the termination of this Agreement and the repayment of all Obligations until  all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have run.  11.4 Time of Essence.  Time is of the essence for the performance of all Obligations in this Agreement.  11.5 Severability of Provisions. Each provision of this Agreement is severable from every other  provision in determining the enforceability of any provision.  11.6 Amendments in Writing; Waiver; Integration.  No purported amendment or modification of any  Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be effective  unless, and only to the extent, expressly set forth in a writing signed by each party hereto.  Without limiting the  generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance  or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on  any Loan Document.  Any waiver granted shall be limited to the specific circumstance expressly described in it, and  shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any  obligation or commitment to grant any further waiver.  The Loan Documents represent the entire agreement about this  subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations,  warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan  Documents.  11.7 Counterparts.  This Agreement may be executed in any number of counterparts and by different  parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together,  constitute one Agreement.  Delivery of an executed signature page of this Agreement by electronic mail transmission  shall be effective as delivery of a manually executed counterpart hereof.  





 






26  11.8 Confidentiality.  Bank agrees to maintain the confidentiality of Information (as defined below),  except that Information may be disclosed (a) to Bank’s Subsidiaries and Affiliates and their respective employees,  directors, agents, attorneys, accountants and other professional advisors (collectively, “Representatives” and,  together with Bank, collectively, “Bank Entities”); (b) to prospective transferees, assignees, credit providers or  purchasers of Bank’s interests under or in connection with this Agreement and their Representatives (provided,  however, Bank shall use commercially reasonable efforts to obtain any such prospective transferee’s, assignee’s, credit  provider’s, purchaser’s or their Representatives’ agreement to the terms of this provision); (c) as required by law,  regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required or requested in connection with  Bank’s examination or audit; (e) in connection with the exercise of remedies under the Loan Documents or any action  or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or  thereunder; and (f) to third-party service providers of Bank so long as such service providers have executed a  confidentiality agreement with Bank with terms no less restrictive than those contained herein.  “Information” means  all information received from Borrower regarding Borrower or its business, in each case other than information that  is either: (i) in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public  domain (other than as a result of its disclosure by Bank in violation of this Agreement) after disclosure to Bank; or (ii)  disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the  information.  11.9 Electronic Execution of Documents.  The words “execution,” “signed,” “signature” and words of  like import in any Loan Document,report forms, shall be deemed to include electronic signatures, including any  Electronic Signature as defined in the Electronic Transactions Law (2003 Revision) of the Cayman Islands (the  “Cayman Islands Electronic Signature Law”), if applicable, or the keeping of records in electronic form, including  any Electronic Record, as defined in Cayman Islands Electronic Signature Law, each of which shall be of the same  legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping  systems, as the case may be, to the extent and as provided for in any Applicable Law, including, without limitation,  any state law based on the Uniform Electronic Transactions Act or the Cayman Islands Electronic Signature Law;  provided, however that sections 8 and 19(3) of the Cayman Islands Electronic Signature Law shall not apply to this  Agreement or the execution or delivery thereof.  11.10 Right of Setoff.  Borrower hereby grants to Bank a Lien and a right of setoff as security for all  Obligations to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and  property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control  of Bank (including a subsidiary of Bank) or in transit to any of them, and other obligations owing to Bank or any such  entity.  At any time after the occurrence and during the continuance of an Event of Default, without demand or notice,  Bank may setoff the same or any part thereof and apply the same to any liability or Obligation of Borrower even  though unmatured and regardless of the adequacy of any other collateral securing the Obligations.  ANY AND ALL  RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER  COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF  WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY  KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.  11.11 Captions and Section References.  The headings used in this Agreement are for convenience only  and shall not affect the interpretation of this Agreement.  Unless indicated otherwise, section references herein are to  sections of this Agreement.  11.12 Construction of Agreement.  The parties hereto mutually acknowledge that they and their attorneys  have participated in the preparation and negotiation of this Agreement.  In cases of uncertainty this Agreement shall  be construed without regard to which of the parties caused the uncertainty to exist.  11.13 Relationship. The relationship of the parties to this Agreement is determined solely by the  provisions of this Agreement.  The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary  or other relationship with duties or incidents different from those of parties to an arm’s-length contract.  11.14 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer  any benefits, rights or remedies under or by reason of this Agreement on any Persons other than the express parties to  it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any Person  





 






27  not an express party to this Agreement; or (c) give any Person not an express party to this Agreement any right of  subrogation or action against any party to this Agreement.  11.15 Anti-Terrorism Law.  Bank hereby notifies Borrower that, pursuant to the requirements of Anti- Terrorism Law, Bank may be required to obtain, verify and record information that identifies Borrower, which  information may include the name and address of Borrower and other information that will allow Bank to identify  Borrower in accordance with Anti-Terrorism Law. Borrower hereby agrees to take any action necessary to enable  Bank to comply with the requirements of Anti-Terrorism Law.   11.16 Attorneys’ Fees, Costs and Expenses.  In any action or proceeding between Borrower and Bank  arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable  attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled.  11.17 Amended and Restated Agreement. This Agreement amends and restates, in its entirety, and  replaces, the Prior Agreement.  12 ACCOUNTING TERMS AND OTHER DEFINITIONS  12.1 Accounting and Other Terms.  (a) Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP (except for with respect to unaudited financial statements for the  absence of footnotes and subject to year-end audit adjustments), provided that if at any time any change in GAAP  would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either  Borrower or Bank shall so request, Borrower and Bank shall negotiate in good faith to amend such ratio or requirement  to preserve the original intent thereof in light of such change in GAAP; provided, further, that, until so amended, (i)  such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and  (ii) Borrower shall provide Bank financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.  Notwithstanding the foregoing, all financial covenant and other financial calculations shall be computed with respect to Borrower only, and not on a consolidated basis. (b) As used in the Loan Documents: (i) the words “shall” or “will” are mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes  the plural, and numbers denoting amounts that are set off in brackets are negative; (ii) the term “continuing” in the  context of an Event of Default means that the Event of Default has not been remedied (if capable of being remedied)  or waived; and (iii) whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the  “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge,  after reasonable investigation, of any Responsible Officer.  12.2 Definitions.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set  forth in this Section 12.2.  All other terms contained in this Agreement, unless otherwise indicated, shall have the  meaning provided by the Code to the extent such terms are defined therein.  As used in this Agreement, the following  capitalized terms have the following meanings:  “Account” is, as to any Person, any “account” of such Person as “account” is defined in the Code with such  additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other  sums owing to such Person.  “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may  hereafter be made.  “Adjusted EBITDA” means, as determined in accordance with GAAP, (a) net income, plus (b) to the extent  deducted in the calculation of net income, interest, taxes, depreciation and amortization, plus (c) to the extent deducted  





 






28  in the calculation of net income, non-cash stock-based compensation, as set forth on Borrower’s most recent  consolidated balance sheet and income statement delivered to Bank pursuant to Section 5.3.  “Administrator” is an individual that is named:  (a) as an “Administrator” in the “SVB Online Services” form completed by Borrower with the authority to determine who will be authorized to use SVB Online Services (as defined in Bank’s Online  Banking Agreement as in effect from time to time) on behalf of Borrower; and   (b) as an Authorized Signer of Borrower in an approval by the Board. “Advance” or “Advances” means a revolving credit loan (or revolving credit loans) under the Revolving Line (including, for the avoidance of doubt,  Non-Formula Advances).  “Affiliate” is, with respect to any Person, each other Person that owns or controls directly or indirectly the  Person, any Person that controls or is controlled by or is under common control with the Person, and each of that  Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that  Person’s managers and members.   “Agreement” is defined in the preamble hereof.  “Anti-Terrorism Law” means any law relating to terrorism or money-laundering, including Executive Order  No. 13224 and the USA Patriot Act.  “Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties,  regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities and all  orders and decrees of all courts and arbitrators.  “Authorized Signer” means any individual listed in Borrower’s Borrowing Resolution who is authorized to  execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf  of Borrower.  “Bank” is defined in the preamble hereof.  “Bank Entities” is defined in Section 11.8.   “Bank Expenses” are all audit fees, costs and reasonable expenses (including reasonable, out-of-pocket and  documented attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and  enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency  Proceedings) or otherwise incurred with respect to Borrower or any Guarantor.  “Bank Services”  are any products, credit services, and/or financial accommodations previously, now, or  hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation,  any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of  payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange  services as any such products or services may be identified in Bank’s various agreements related thereto (each, a  “Bank Services Agreement”).  “Bank Services Agreement” is defined in the definition of Bank Services.  “Board” is Borrower’s board of directors or equivalent governing body.  “Borrower[s]” is set forth on Schedule I hereto.  





 






29  “Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns,  records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all  computer programs or storage or any equipment containing such information.  “Borrowing Base Statement” is that certain statement of the value of certain Collateral in the form specified  by Bank to Borrower from time to time.  “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s board  of directors (and, if required under the terms of such Person’s Operating Documents, stockholders) and delivered by  such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated  thereby, together with a certificate executed by its secretary on behalf of such Person certifying (a) such Person has  the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party,  (b) that set forth as a part of or attached as an exhibit to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents, including making (and executing if applicable) any Credit Extension request, on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling or amending such prior certificate. “Business Day” is a day other than a Saturday, Sunday or other day on which commercial banks in the State  of California are authorized or required by law to close.  “Cash Collateral Account” is defined in Section 5.4(c).  “Cash Equivalents” are (a) marketable direct obligations issued or unconditionally guaranteed by the United  States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition;  (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least 95.0% of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. “Cayman Islands Electronic Signature Law” is defined in Section 11.9.  “Change in Control” means the entering into any transaction or series of related transactions (A) which  result in each of Innovid Corp (the “Parent”) and/or any Borrower owning less than one hundred percent (100.0%)  of the equity interests, directly or indirectly, in all of their respective direct and/or indirect Subsidiaries, or (B) in  which the shareholders of Parent who were not shareholders immediately prior to the first such transaction own more  than forty-nine percent (49.0%) of the voting share of Parent  immediately after giving effect to such transaction or  related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering or to  venture capital investors so long as Borrower identifies to Bank such investors at least Seven (7) Business Days prior  to the closing of the transaction and provides to Bank a description of the material terms of the transaction).  “Change in Law” means the occurrence, after the Effective Date, of:  (a) the adoption or taking effect of any  law, rule, regulation or treaty; (b) any change in Applicable Law or in the administration, interpretation,  implementation or application thereof by any Governmental Authority; or (c) the making or issuance of any request,  rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that  notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act  and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules,  guidelines or directives promulgated by Bank for International Settlements, the Basel Committee on Banking  Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case  pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted  or issued.  “Claims” is defined in Section 11.3.  





 






30  “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in  the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan  Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such  term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory  provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on  any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of  California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other  jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies  and for purposes of definitions relating to such provisions, and (b) with respect any assets located outside of the United  States, any applicable law.  “Collateral” consists of: all of Borrower’s right, title and interest in and to the following personal property:  (i) all goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles, Intellectual Property, except as provided below, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures, letters of credit rights (whether  or not the letter of credit is evidenced by a writing), securities, securities accounts, securities entitlements and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and (ii) all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account.  “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term  as may hereafter be made.  “Compliance Statement” is that certain statement in the form attached hereto as Exhibit A.  “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income  (however denominated) or that are franchise Taxes or branch profits Taxes.  “Contingent Obligation” is, for any Person, any direct or indirect liability of that Person for (a) any direct  or indirect guaranty by such Person of any indebtedness, lease, dividend, letter of credit, credit card or other obligation  of another, (b) any other obligation endorsed, co-made, discounted or sold with recourse by that Person, or for which  that Person is directly or indirectly liable; (c) any obligations for undrawn letters of credit for the account of that  Person; and (d) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or  collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates,  currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the  ordinary course of business.  The amount of a Contingent Obligation is the stated or determined amount of the primary  obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated  liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations  under any guarantee or other support arrangement.  “Control Agreement” is any control agreement entered into among the depository institution at which  Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower  maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control  (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account.  “Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like  protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or  not the same also constitutes a trade secret.  “Credit Extension” is any Advance or any other extension of credit by Bank for Borrower’s benefit.  





 






31  “Currency” is coined money and such other banknotes or other paper money as are authorized by law and  circulate as a medium of exchange.  “Current Liabilities” are all obligations and liabilities of Borrower to Bank (including without limitation,  all obligations and liabilities in connection with the Revolving Line), plus, without duplication, the aggregate amount  of Borrower’s Total Liabilities that mature within one (1) year.  “Default” means any event which with notice or passage of time or both, would constitute an Event of  Default.  “Default Rate” is defined in Section 1.4(c).  “Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not  yet recognized as revenue.  “Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may  hereafter be made.  “Designated Deposit Account” is the deposit account established by Borrower with Bank for purposes of  receiving Credit Extensions.  “Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or  more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division,  including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act  for limited liability companies formed under Delaware law, Section 17-220 of the Delaware Revised Uniform Limited  Partnership Act for limited partnerships formed under Delaware law, or any analogous action taken pursuant to any  other Applicable Law with respect to any corporation, limited liability company, partnership or other entity.  “Dollars,” “dollars” or use of the sign “$” means only lawful money of the United States and not any other  currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into  lawful money of the United States.  “Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount,  and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as  determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for  sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.   “Effective Date” is set forth on Schedule I hereto.  “Environmental Laws” means any Applicable Law (including any permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions) relating to pollution or the protection of health, safety or the  environment or the release of any materials into the environment (including those related to hazardous materials, air  emissions, discharges to waste or public systems and health and safety matters).  “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter  be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and  trailers), and any interest in any of the foregoing.  “ERISA” is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.  “Event of Default” is defined in Section 7.  “Exchange Act” is the Securities Exchange Act of 1934, as amended.  





 






32  “Excluded Taxes” means any of the following Taxes imposed on or with respect to Bank or required to be  withheld or deducted from a payment to Bank, (a) Taxes imposed on or measured by net income (however  denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of Bank being organized  under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing  such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding  Taxes imposed on amounts payable to or for the account of Bank with respect to an applicable interest in a Credit  Extension or the Revolving Line pursuant to a law in effect on the date on which (i) Bank acquires such interest in the  Credit Extensions or Revolving Line or (ii) Bank changes its lending office, except in each case to the extent that,  pursuant to Section 1.9, amounts with respect to such Taxes were payable either to Bank’s assignor immediately  before Bank became a party hereto or to Bank immediately before it changed its lending office, (c) Taxes attributable  to Bank’s failure to comply with Section 1.9(e), and (d) any withholding Taxes imposed under FATCA.  “FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more onerous to comply  with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to  Section 1471(b)(1) of the Internal Revenue Code and any fiscal or regulatory legislation, rules or practices adopted  pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and  implementing such Sections of the Internal Revenue Code.  “Financial Statement Repository” is Bank’s e-mail address specified in Section 9 or such other means of  collecting information approved and designated by Bank after providing notice thereof to Borrower from time to time.  “Foreign Currency” is the lawful money of a country other than the United States.  “Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which  shall be a Business Day.  “FX Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower  commits to purchase from or sell to Bank a specific amount of Foreign Currency at a set price or on a specified date.   “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the  Accounting Principles Board of the American Institute of Certified Public Accountants and statements and  pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as  may be approved by a significant segment of the accounting profession, which are applicable to the circumstances as  of the date of determination.  “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with  such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims,  income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to purchase or  sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or  otherwise), insurance policies (including without limitation key man, property damage, and business interruption  insurance), payments of insurance and rights to payment of any kind.  “Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit,  certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any  Governmental Authority.  “Governmental Authority” is any nation or government, any state or other political subdivision thereof,  any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,  legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities  exchange and any self-regulatory organization.  “Guarantor” is any Person providing a Guaranty in favor of Bank.  





 






33  “Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to time be  amended, restated, modified or otherwise supplemented.   “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such  as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes,  bonds, debentures or similar instruments, (c) capital lease obligations, (d) Contingent Obligations and (e) other short-  and long-term obligations under debt agreements, lines of credit and extensions of credit.  “Indemnified Person” is defined in Section 11.3.  “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any  payment made by or on account of any obligation of Borrower under any Loan Document and (b) to the extent not  otherwise described in clause (a), Other Taxes.  “Information” is defined in Section 11.8.  “Initial Audit” is Bank’s inspection of Borrower’s Accounts, the Collateral, and Borrower’s Books, with  results satisfactory to Bank in its sole discretion.  “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy  Code or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions,  extensions generally with its creditors, or proceedings seeking reorganization, arrangement, receivership or other  relief.  “Intellectual Property” means, with respect to any Person, all of such Person’s right, title, and interest in  and to the following:  (a) its Copyrights, Trademarks and Patents; (b) any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how and operating manuals;  (c) any and all source code; (d) any and all design rights which may be available to such Person; (e) any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the  Intellectual Property rights identified above; and  (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. “IP Agreement” is that certain Intellectual Property Security Agreement between Borrower and Bank dated  as of the Effective Date, as may be amended, modified or restated from time to time.  “Internal Revenue Code” means the U.S. Internal Revenue Code of 1986, and the rules and regulations  promulgated thereunder, each as amended or modified from time to time.  “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such  term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing  and shipping materials, work in process and finished products, including without limitation such inventory as is  temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents  of title representing any of the above.  





 






34  “Investment” is any beneficial ownership interest in any Person (including stock, partnership, membership,  or other ownership interest or other equity securities), and any loan, advance or capital contribution to any Person.   “Key Person” is each of Zvika Netter, Parent’s Chief Executive Officer as of the Effective Date and Tal  Chalozin, Parent’s Chief Technological Officer as of the Effective Date.   “Letter of Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower  based upon an application, guarantee, indemnity, or similar agreement.   “Lien” is a claim, mortgage, deed of trust, levy, attachment charge, pledge, hypothecation, security interest  or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against  any property.  “Loan Documents” are, collectively, this Agreement, the IP Agreements and any schedules, exhibits,  certificates, notices, and any other documents related to this Agreement, the Perfection Certificate, IP Agreement,  Control Agreements (if any), any Bank Services Agreement, any subordination agreement, any warrant, any note, or  notes or guaranties executed by Borrower or any Guarantor, landlord waivers and consents, bailee waivers and  consents, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit of Bank  in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified in accordance  with the terms thereof.   “Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the  Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition  (financial or otherwise) of Borrower and/or Parent;  (c) a material impairment of the prospect of repayment of any  portion of the Obligations;  or (d) Bank determines, based upon information available to it and in its reasonable  judgment, that there is a likelihood that Borrower shall fail to comply with one or more of the financial covenants in  Section 5 during the next succeeding financial reporting period.  “Measurement Period” is each calendar quarter.  “Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank  Expenses, the Unused Revolving Line Facility Fee, and other amounts Borrower owes Bank now or later, whether  under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating  to Bank Services and interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of  Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.  “OFAC” is the Office of Foreign Assets Control of the United States Department of the Treasury and any  successor thereto.  “Operating Documents” are, for any Person, such Person’s formation documents, as certified by the  Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than  30 days prior to the Effective Date, if applicable, and, (a) if such Person is a corporation, its bylaws in current form,  certificate of incorporation or memorandum and/or articles of association (or similar document, as the case may be)  (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership or limited partnership, its partnership agreement or limited partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. “Other Connection Taxes” means, with respect to Bank, Taxes imposed as a result of a present or former  connection between Bank and the jurisdiction imposing such Tax (other than connections arising from Bank having  executed, delivered, become a party to, performed its obligations under, received payments under, received or  perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or  sold or assigned an interest in any Credit Extension or Loan Document).  “Other Taxes” means all present or future stamp, court, documentary, intangible, recording, filing VAT  (including financial institution profits tax) or similar Taxes that arise from any payment made under, from the  





 






35  execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest  under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes  imposed with respect to an assignment.  “Patents” means all patents, patent applications and like protections including without limitation  improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.  “Payment Date” is set forth on Schedule I hereto.  “Perfection Certificate” is each Perfection Certificate delivered by each Borrower in connection with this  Agreement.  “Permitted Indebtedness” is:  (a) Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; (b) Indebtedness existing on the Effective Date which is shown on the Perfection Certificate; (c) Subordinated Debt; (d) unsecured Indebtedness to trade creditors incurred in the ordinary course of business; (e) Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder;  (f) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course  of business; and  (g) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (d) above, provided that the principal amount thereof is not increased or the terms thereof  are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.  “Permitted Investments” are:  (a) Investments (including, without limitation, Subsidiaries) existing on the Effective Date which are shown on the Perfection Certificate (specifically excluding any future investments in any Subsidiaries unless otherwise  permitted hereunder);  (b) Investments consisting of Cash Equivalents, and (c) Investment by either Borrower in any other Borrower. (d) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;  (e) to the extent that such deposit accounts are permitted to be maintained under Section 5.9 of this Agreement, Investments consisting of deposit accounts in which Bank has a first priority perfected security interest;  (f) Investments accepted in connection with Transfers permitted by Section 6.1; (g) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the  purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements  approved by Borrower’s board of directors;  





 






36  (h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with,  customers or suppliers arising in the ordinary course of business; and  (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (h)  shall not apply to Investments of Borrower in any Subsidiary; and  (j) Investments by Borrower in its Subsidiaries for the ordinary and necessary current operating expenses of such Subsidiaries in the ordinary course of business, in an aggregate amount (for all such Investments  together) not to exceed Two Million Five Hundred Thousand Dollars (US$2,500,000)  per month.   (k) Investments by Borrower in Parent for the ordinary and necessary current operating expenses of Parent in the ordinary course of business, in an aggregate amount (for all such Investments together) not to exceed  One Hundred Thousand Dollars (US$100,000) per month.   “Permitted Liens” are:  (a) Liens arising under this Agreement or any other Loan Documents. (b) Liens existing on the Effective Date which are shown on the Perfection Certificate or arising under this Agreement or any other Loan Documents.  (c) Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on Borrower’s  Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code; and  (d) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate  amount not to exceed Fifty Thousand Dollars ($50,000.00) and which are not delinquent or remain payable without  penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect  of preventing the forfeiture or sale of the property subject thereto;   (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);  (f) Liens incurred in the extension, renewal or refinancing of the Indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property  encumbered by the existing Lien and the principal amount of the indebtedness may not increase;  (g) non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business; and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property  that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet  geographical areas outside of the United States  (h) Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 7.4 and 7.7 of this Agreement; and  (i) Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at such institutions (but only to the extent that such deposit and/or securities accounts are  permitted to be maintained under Section 5.8(a) of this Agreement), provided that Bank has a first priority perfected  security interest in the amounts held in such deposit and/or securities accounts.  





 






37  “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture,  company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm,  joint stock company, estate, entity or government agency.   “Prime Rate” is set forth on Schedule I hereto.   “Prime Rate Margin” is set forth on Schedule I hereto.  “Quick Assets” is, on any date, Parent's, consolidated, unrestricted and unencumbered cash maintained with  Bank and Borrower’s net billed accounts receivable.  “Registered Organization” is any “registered organization” as defined in the Code with such additions to  such term as may hereafter be made.  “Representatives” is defined in Section 11.8.  “Reserves” means, as of any date of determination, such amounts as Bank may from time to time establish  and revise in its sole discretion, reducing the amount of Advances and other financial accommodations which would  otherwise be available to Borrower (a) to reflect events, conditions, contingencies or risks which, as determined by  Bank in its sole discretion, do or may adversely affect (i) the Collateral or any other property which is security for the  Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets,  business or prospects of Borrower or any Guarantor, or (iii) the security interests and other rights of Bank in the  Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Bank's reasonable belief that  any collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Bank is or  may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts  which Bank determines in its sole discretion constitutes a Default or an Event of Default.  “Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer of Borrower.  “Restricted License” is any material license or other material agreement with respect to which Borrower is  the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest  in such license or agreement or any other property, or (b) for which a default under or termination of could interfere  with Bank’s right to sell any Collateral.  “Revolving Line” is set forth on Schedule I hereto.  “Revolving Line Maturity Date” is set forth on Schedule I hereto.   “Sanctioned Person” means a Person that: (a) is listed on any Sanctions list maintained by OFAC or any  similar Sanctions list maintained by any other Governmental Authority having jurisdiction over Borrower; (b) is  located, organized, or resident in any country, territory, or region that is the subject or target of Sanctions; or (c) is  50.0% or more owned or controlled by one (1) or more Persons described in clauses (a) and (b) hereof.  “Sanctions” means the economic sanctions laws, regulations, embargoes or restrictive measures  administered, enacted or enforced by the United States government and any of its agencies, including, without  limitation, OFAC and the U.S. State Department, or any other Governmental Authority having jurisdiction over  Borrower.  “SEC” is the Securities and Exchange Commission, any successor thereto, and any analogous Governmental  Authority.  “Securities Account” is any “securities account” as defined in the Code with such additions to such term as  may hereafter be made.  





 






38  “Subordinated Debt” is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all of  Borrower’s or any of its Subsidiaries’ now or hereafter indebtedness to Bank (pursuant to a subordination,  intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and  the other creditor), on terms acceptable to Bank.  “Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of  which shares of stock, partnership, membership, or other ownership interest or other equity securities having ordinary  voting power (other than stock, partnership, membership, or other ownership interest or other equity securities having  such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other  managers of such corporation, partnership or other entity are at the time owned, or the management of which is  otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.  Unless the  context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower or  Guarantor.  “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup  withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest,  additions to tax or penalties applicable thereto (including for avoidance of doubt, Other Taxes, Connection Taxes and  Excluded Taxes).  “Trademarks” means, with respect to any Person, any trademark and servicemark rights, whether registered  or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business  of such Person connected with and symbolized by such trademarks.  “Transfer” is defined in Section 6.1.   “Unused Revolving Line Facility Fee” is defined in Section 1.5(c).   “US Borrower” is defined in Schedule I of this Agreement.   “USA Patriot Act” means the “Uniting and Strengthening America by Providing Appropriate Tools  Required to Intercept and Obstruct Terrorism Act of 2001” (Public Law 107-56, signed into law on October 26, 2001),  as amended from time to time.   [Signature page follows]  





 






Signature Page to Loan and Security Agreement  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under the laws of  the State of California as of the Effective Date.  BORROWER:  INNOVID LLC  By: _______________________________________  Name: _____________________________________  Title: ______________________________________  TV SQUARED, INC.  By: _______________________________________  Name: _____________________________________  Title: ______________________________________  BANK:  SILICON VALLEY BANK  By: _______________________________________  Name: _____________________________________  Title: ______________________________________  





 






SCHEDULE I LSA PROVISIONS LSA Section LSA Provision 1.1(a) – Revolving Line – Availability Amounts borrowed under the Revolving Line may be prepaid or repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 1.4(a)(i) – Interest Payments – Advances Interest on the principal amount of each Advance is payable in arrears monthly (A) on each Payment Date, (B) on the date of any prepayment and (C) on the Revolving Line Maturity Date. 1.4(b)(i) – Interest Rate – Advances The outstanding principal amount of any Advance shall accrue interest at a floating rate per annum equal to the greater of (1) four and a one quarter of one percent (4.25%) and (2) the Prime Rate plus the Prime Rate Margin, which interest shall be payable in accordance with Section 1.4(a). 1.4(f) – Interest Computation Interest shall be computed on the basis of the actual number of days elapsed and a 360-day year for any Credit Extension outstanding. 1.5(a) – Revolving Line Commitment Fee and Anniversary Fee (i) A fully earned, non-refundable commitment fee of Forty Thousand Dollars ($40,000) on the Effective Date, and (ii) an anniversary fee equal to Seventy Five Thousand Dollars ($75,000), which is due and payable on the earlier to occur of (i) the First Anniversary Date, (ii) the termination of this Agreement, or (iii) the occurrence of an Event of Default, and shall be fully earned and non-refundable as of such date. 8.8 – Borrower Liability Each Borrower hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder and any other Obligations related thereto, regardless of which Borrower actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions. 12.2 – “Borrower[s]” “Borrower(s)” means each of: (i) Innovid LLC, a Delaware corporation with its principal place of business at 30 Irving Place 12th Floor New York, NY 10003 (“Innovid LLC”) and (iii) TV Squared, Inc., a Delaware corporation with its principal place of business at 30 Irving Pl, Fl 12, New York, NY 10003 (“TV Squared”). 12.2 – “Effective Date” “Effective Date” is  August 4, 2022. 12.2 – “Payment Date” “Payment Date” is with respect to Advances, the last calendar day of each month. 12.2 – “Prime Rate” “Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero percent (0.0%) per annum, such rate shall be deemed to be zero percent (0.0%) per annum for purposes of this Agreement. 12.2 – “Prime Rate Margin” “Prime Rate Margin” is point and three quarters of one percent (0.75%). 





 






12.2 – “Revolving Line” “Revolving Line” is an aggregate principal amount equal to Fifty Million  Dollars ($50,000,000).  12.2 – “Revolving Line Maturity  Date”  “Revolving Line Maturity Date” is June 30, 2024.  





 






EXHIBIT A  COMPLIANCE STATEMENT  TO:  SILICON VALLEY BANK Date:  FROM:  INNOVID LLC and TV SQUARED, INC.  The undersigned authorized officer of INNOVID LLC and TV SQUARED, INC (“Borrower”) certifies that  under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, modified,  supplemented and/or restated from time to time, the “Agreement”), (1) Borrower is in complete compliance for the period  ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all  representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below;  provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are  qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly  referring to a specific date shall be true and correct in all material respects as of such date, (4) Borrower, and each of its  Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and  local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of  Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries, if  any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to  Bank.  Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in  accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or  footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that  Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date  this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the  Agreement.  Please indicate compliance status by circling Yes/No under “Complies” column.  Reporting Covenants Required Complies  Compliance Statement Monthly within 30 days of month   end  Quarterly financial statements (income statement, cash  flow, and balance sheet)   Quarterly, when reported to the SEC Yes   No  Annual financial statements (CPA Audited) FYE within 180 days Yes   No  10-Q, 10-K and 8-K Within 5 days after filing with  SEC  Yes   No  Annual operating budgets, Capitalization table and  projections  as soon as available, at least  annually, and within 10 days  following board approval, and as  revised  Yes   No  Copies of materials provided to the Board at the same time it is delivered to the  Board members  Yes   No  [The following Intellectual Property was registered after the Effective Date (if no registrations, state “None”)  ____________________________________________________________________________]  





 






Financial Covenant Required Actual Complies  Maintain as indicated:  Adjusted EBITDA** >____** Yes   No  Maintain AQR 1.3:1.00 Yes   No  ** see Section 5.10  The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and correct  as of the date of this Compliance Statement.  The following are the exceptions with respect to the statements above: (If no exceptions exist, state “No  exceptions to note.”)  ----------------------------------------------------------------------------------------------------------------------------- ------------------  TV SQUARED, INC.   By:  Name:  Title:  INNOVID LLC   By:  Name:  Title:  BANK USE ONLY  Received by: _____________________  AUTHORIZED SIGNER  Date:  _________________________  Verified: ________________________  AUTHORIZED SIGNER  Date:  _________________________  Compliance Status: Yes     No  





 






Schedule I  Financial Covenants of Borrower  In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall  govern.  Dated: ____________________  Adjusted Quick Ratio (Section 5.10(a))  Required: 1.30:1.00  Actual:  ___________  A. Aggregate value of the unrestricted and unencumbered cash of Borrower and its Subsidiaries $ B. Aggregate value of the net billed accounts receivable of Borrower and its Subsidiaries $ C. Quick Assets (the sum of lines A and B) $ D. Aggregate value of Obligations to Bank $ E. Aggregate value of liabilities of Borrower and its Subsidiaries (including all Indebtedness) that matures within one (1) year and current portion of Subordinated Debt permitted by Bank to be paid by Borrower $  F. Current Liabilities (the sum of lines D and E) $ G. Aggregate value of all amounts received or invoiced by Borrower and its Subsidiaries in advance of performance under contracts and not yet recognized as revenue $  H. Line F minus line G $ I. Adjusted Quick Ratio (line C divided by line H) Is line I equal to or greater than 1.30:1:00?    No, not in compliance   Yes, in compliance  and, if line I equal to or greater than 1.50:1:00:  Minimum Adjusted EBITDA (Section 5.10(b))  Required: Testing Date Minimum Adjusted  EBITDA  





 






Calendar quarter ending on March 31, 2022 ($3,500,000)  Calendar quarter ending on June 30, 2022 $750,000  Calendar quarter ending on September 30,  2022  $1,500,000  Calendar quarter ending on December 31, 2022 $3,000,000  Calendar quarter ending on March 31, 2023 ($3,500,000)  Calendar quarter ending on June 30, 2023 $1,500,000  Calendar quarter ending on September 30,  2023  $3,000,000  Calendar quarter ending on December 31, 2023 $5,000,000  Actual:      _________  No, not in compliance ________   Yes, in compliance