# EDGAR Filing Document

**Accession Number:** 0001491419
**File Stem:** 0001213900-23-008720
**Filing Date:** 2023-2
**Character Count:** 302666
**Document Hash:** 27406f76914e0446995579f803f52903
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-008720.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0001213900-23-008720

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230203

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LiveOne, Inc.
- **CENTRAL INDEX KEY:** 0001491419
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **IRS NUMBER:** 980657263
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38249
- **FILM NUMBER:** 23592812

**BUSINESS ADDRESS:**
- **STREET 1:** 9200 SUNSET BOULEVARD
- **STREET 2:** SUITE #1201
- **CITY:** WEST HOLLYWOOD
- **STATE:** CA
- **ZIP:** 90069
- **BUSINESS PHONE:** (310) 601-2505

**MAIL ADDRESS:**
- **STREET 1:** 9200 SUNSET BOULEVARD
- **STREET 2:** SUITE #1201
- **CITY:** WEST HOLLYWOOD
- **STATE:** CA
- **ZIP:** 90069

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LiveXLive Media, Inc.
- **DATE OF NAME CHANGE:** 20170808

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LOTON, CORP
- **DATE OF NAME CHANGE:** 20100507

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 3, 2023**

**LIVEONE, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38249** | **98-0657263** |
| (State or other jurisdiction<br> of incorporation) | (Commission File Number) | (I.R.S. Employer<br> Identification No.) |

---

**269 South Beverly Drive, Suite 1450** 

**<u>Beverly Hills, CA 90212</u>**

(Address of principal executive offices) (Zip Code)

**<u>(310) 601-2505</u>**

(Registrant's telephone number, including area code)

**<u>n/a</u>**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common stock, $0.001 par value per share** | **LVO** | **The NASDAQ Capital Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01 Entry into a Material Definitive Agreement.**

As of February 3, 2023 (the "Effective Date"), LiveOne, Inc. (the "Company") entered into an exchange agreement (collectively, the "Exchange Agreements") with (i) Harvest Small Cap Partners Master, Ltd. ("HSCPM") in regard to that certain 8.5% Senior Secured Convertible Note in the aggregate amount of $10,503,965 issued by the Company on September 15, 2020, as amended on June 3, 2021 and July 6, 2022, to HSCPM (the "HSCPM Note"), (ii) Harvest Small Cap Partners, L.P. ("HSCP") in regard to that certain 8.5% Senior Secured Convertible Note in the aggregate amount of $4,496,035 issued by the Company on September 15, 2020, as amended on June 3, 2021 and July 6, 2022, to HSCP (the "HSCP Note"); and (iii) Trinad Capital Master Fund Ltd., a fund controlled by Mr. Ellin, the Company's Chief Executive Officer, Chairman, director and principal stockholder ("Trinad Capital" and collectively with HSCPM and HSCP, the "Holders") in regard to all promissory notes in the aggregate principal and interest amount of $6,177,218 issued by the Company to Trinad Capital (the "Trinad Notes" and collectively with the HSCPM Note and the HSCP Note, the "Notes"). Pursuant to the Exchange Agreements, the Holders exchanged the Notes, and with respect to Trinad Capital, together with interest, due and payable thereon, and relinquished any and all rights thereunder, for 21,177 shares of the Company's newly designated and issued Series A Perpetual Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"), with a stated value of $1,000 per share (the "Stated Value"), having the terms as set forth in the Company's Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock (the "Certificate of Designation") filed by the Company on February 2, 2023 with the Secretary of State of the State of Delaware.

The Series A Preferred Stock is convertible at any time at a Holder's option into shares of the Company's common stock, $0.001 par value per share, at a price of $2.10 per share of common stock, bears a dividend of 12% per annum, is perpetual and has no maturity date. At the option of the Company, the dividend may be paid in-kind for the first 12 months after the Effective Date, and thereafter, the Holders shall have the option to select whether subsequent dividend payments shall be paid in kind or in cash; provided, that as long as any Series A Preferred Stock is held by HSCPM and/or HSCP (the "Harvest Funds"), Trinad Capital shall receive the dividend solely in kind. The Series A Preferred Stock shall have no voting rights, except as set forth in the Certificate of Designation or as otherwise required by law.

The Company may, at its option (the "Optional Redemption Right"), on or before the Mandatory Redemption Date (as defined herein), purchase up to $5,000,000 in aggregate of the then outstanding shares of Series A Preferred Stock held by the Harvest Funds at a cash redemption price per share of Series A Preferred Stock equal to the Stated Value (the "Redemption Price"). The Company shall be required on or before the 18-month anniversary of the Effective Date (the "Mandatory Redemption Date"), and in any event if prior to the Mandatory Redemption Date the Company consummates any financing transaction in which the Company, directly or indirectly, raises, in aggregate, gross proceeds of more than $20,000,000 of new capital, to purchase $5,000,000 in aggregate of the then outstanding shares of Series A Preferred Stock held by the Harvest Funds (the "Mandatory Redemption Amount") at the Redemption Price (the "Mandatory Redemption"). If the Optional Redemption Right is exercised up to the full $5,000,000 amount, the Mandatory Redemption requirement shall be terminated; provided, that if the Optional Redemption Right is exercised in any amount less than $5,000,000, the Mandatory Redemption Amount shall be reduced by the amount that the Optional Redemption Right has been elected and exercised. Without the prior express consent of the majority of the votes entitled to be cast by the holders of Series A Preferred Stock outstanding at the time of such vote (the "Majority Holders"), the Company shall not authorize or issue any additional or other shares of its capital stock that are (i) of senior rank to the Series A Preferred Stock or (ii) of pari passu rank to the Series A Preferred Stock, in each case in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company.

Pursuant to the Exchange Agreements, the Company agreed that at any time that any of the shares of Series A Preferred Stock issued to the Harvest Funs are outstanding, (i) to directly or through its 100% owned subsidiaries (as applicable), to own on a fully diluted basis at least 66% of the total equity and voting rights of any and all classes of securities of each of the Company's Courtside Group, Inc. (dba PodcastOne) ("PodcastOne"), Slacker, Inc., PPV One, Inc., and LiveXLive Events, LLC subsidiaries, (ii) not to issue shares of its common stock or convertible equity securities at a price less than $2.10 per share (subject to certain exceptions), provided, that such consent shall not be required in connection with any merger, acquisition or other business combinations of the Company and/or any of its subsidiaries with any unaffiliated third party, (iii) not to raise more than an aggregate of $20,000,000 of capital in one or more offerings, including without limitation, one or more equity or debt offerings or a combination thereof, on an accumulated basis commencing after the Effective Date (the "Qualified Offering"); provided, that such consent shall not be required for any equity financing of the Company at a price of $2.25 per share or above, and (iv) if after the Effective Date the Company distributes any of its assets or any shares of its common stock or Common Stock Equivalents (as defined in the Exchange agreements) of any of its subsidiaries pro rata to the record holders of any class of shares of its common stock, the Company shall distribute to the Holders its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the then outstanding Series A Preferred Stock) concurrently with the distribution to the then record holders of any class of its common stock (including an applicable distribution of shares of PodcastOne's common stock to the Harvest Funds in connection with the Company's recently announced spin-out and special dividend of PodcastOne's common stock to the Company's stockholders of record), in each case without the Majority Holders' prior written consent. Any breach of the aforementioned covenants or the terms of the Ellin Letter (as defined below) shall constitute a material breach, which if uncured, shall result in the issuance of an aggregate of 56,473 shares of the Company's restricted common stock (the "Default Shares") to the Holders for each five trading days (or pro rata thereof) after the date of the breach; provided, that if such breach is cured within the applicable cure period, no Default Shares shall be issued.

In consideration for entry into the Exchange Agreements and the Holders' willingness to forego certain rights to common stock of the Company previously agreed by the parties, the Company issued to the Harvest Funds an aggregate of 600,000 shares of its common stock (the "Harvest Shares") and to Trinad Capital 200,000 shares of its common stock. Additionally, the Company issued 25,000 shares of its common stock to the Harvest Funds as consideration for them previously agreeing to extend interest payment dates on the HSCPM Note and the HSCP Note (the "Extension Shares"). In connection with and as a condition to the entry of the Exchange Agreements, pursuant to a letter agreement among the Company, the Harvest Funds and Mr. Ellin (the "Ellin Letter"), unless otherwise agreed to by the Harvest Funds, Mr. Ellin agreed to (i) to serve as the Company's Chief Executive Officer and (ii) extend the period during which he cannot dispose of any equity or convertible securities of the Company owned by him or any entity of which he is the beneficial owner and not to cease to be the beneficial owner of any other equity or convertible securities of the Company of which Mr. Ellin is the beneficial owner (subject to certain exceptions), in each case until the time that the Harvest Funds no longer own any shares of the Series A Preferred Stock. The Harvest Shares and the Series A Preferred Stock were issued, and the shares of common stock underlying the shares of Series A Preferred Stock, to the extent applicable, will be issued, to the Holders as restricted securities in a private placement transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").

The Company further agreed, on or prior to the date that is 45 days after the consummation of any Qualified Offering and in any event no later than July 15, 2023, to prepare and file with the U.S. Securities and Exchange Commission (the SEC") a Registration Statement on Form S-3 (or such other form as applicable) covering the resale under the Securities Act of all the shares of the Company's common stock underlying the Series A Preferred Stock (including any dividends paid in kind) issued to the Harvest Funds and the Harvest Shares and the Extension Shares. The Company shall use its commercially reasonable best efforts to cause such registration statement to be declared effective promptly thereafter on or before 60 days after the filing of such registration statement (or if the SEC issues any comments with respect to such registration statement, on or before 120 days after the filing of such registration statement).

The foregoing summary of the terms of the Certificate of Designation and the Exchange Agreements is incomplete and subject to, and qualified in their entirety by, the actual terms of the Certificate of Designation and the Exchange Agreements, which are attached hereto as Exhibits 4.1, 10.1, 10.2 and 10.3, respectively, and are hereby incorporated by reference.

The information described under Item 5.02 below is incorporated by reference in this Item 1.01.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

The information described under Item 1.01 above is incorporated by reference in this Item 2.03.

**Item 3.02 Unregistered Sales of Equity Securities.**

The information described under Item 1.01 above is incorporated by reference in this Item 3.02.

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On February 6, 2023 and effective as of January 7, 2023, the Company and Mr. Ellin entered into Amendment No. 2 to Mr. Ellin's Employment Agreement, dated as of September 7, 2017 (the "Employment Agreement"), pursuant to which the term of the Employment Agreement was extended until September 7, 2023. In addition, effective as of January 1, 2023, the Company resumed paying the monthly base salary of Mr. Ellin in cash instead of shares of the Company's restricted common stock. As previously announced, from August 2021 until December 31, 2022, Mr. Ellin agreed to receive his monthly base salary in shares of common stock.

**Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.**

On February 2, 2023, the Company filed the Certificate of Designation with the Secretary of State of the State of Delaware designating 100,000 shares of the Company's preferred stock as "Series A Perpetual Convertible Preferred Stock".

**Item 7.01 Regulation FD Disclosure.** 

On February 3, 2023, the Company and SoundExchange, Inc. ("SX") entered into an agreement to settle the dispute between the parties with respect to SX's complaint filed in the U.S. District Court, Central District of California, against the Company and Slacker, and related court judgement entered against the defendants on October 13, 2022, pursuant to which the Company agreed to make certain monthly payments to SX for a period of 24 months and certain other payments in the event the Company obtains additional financing(s), unless the Company repays the judgment amount earlier pursuant to the terms of the agreement, and SX agreed not to take any action to enforce such judgment, so long as the defendants are not in default under the agreement.

The information in this Item 7.01 of this Current Report on Form 8-K shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by reference in such a filing.

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 4.1\* | [Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock of the Company, dated as of February 2, 2023.](ea172780ex4-1_liveoneinc.htm) |
| 10.1\* | [Exchange Agreement, dated as of February 3, 2023, between the Company and Harvest Small Cap Partners, L.P.](ea172780ex10-1_liveoneinc.htm) |
| 10.2\* | [Exchange Agreement, dated as of February 3, 2023, between the Company and Harvest Small Cap Partners, Ltd.](ea172780ex10-2_liveoneinc.htm) |
| 10.3\* | [Exchange Agreement, dated as of February 3, 2023, between the Company and Trinad Capital Master Fund Ltd.](ea172780ex10-3_liveoneinc.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* Filed herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **LIVEONE, INC.** | **LIVEONE, INC.** |
| Dated: February 7, 2023 | By: | /s/ *Robert S. Ellin* |
|  | Name: | Robert S. Ellin |
|  | Title: | Chief Executive Officer and <br> Chairman of the Board of Directors |

---

## Exhibit 4.1

**Exhibit 4.1**

**LIVEONE, INC.**

**CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS**

**OF**

**SERIES A PERPETUAL CONVERTIBLE PREFERRED STOCK**

Pursuant to Section 151 of the

Delaware General Corporation Law

The undersigned, Robert S. Ellin does hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. He is the Chief Executive Officer and Chairman of LiveOne, Inc., a Delaware corporation (the "<u>Corporation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Corporation is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value per share (the "<u>Preferred Stock</u>"), none of which are outstanding as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The following resolutions were duly adopted by the board of directors of the Corporation (the "<u>Board of Directors</u>"):

WHEREAS, the Certificate of Incorporation of the Corporation (as amended, the "<u>Certificate of Incorporation</u>") provides for a class of its authorized stock known as Preferred Stock, issuable from time to time in one or more series;

WHEREAS, the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation preferences of any wholly unissued series of Series A Preferred Stock and the number of shares constituting any series and the designation thereof, of any of them; and

WHEREAS, pursuant to the Certificate of Incorporation the Board of Directors desires to create and fix the powers, designations, preferences and relative, participating, optional and other special rights, and the qualifications, limitations and restrictions, of the Series A Perpetual Convertible Preferred Stock.

NOW, THEREFORE, BE IT RESOLVED, that, pursuant to the authority vested in the Board of Directors of the Corporation and the provisions of the Certificate of Incorporation, this Certificate of Designation is being filed with the office of the Secretary of State of Delaware on or about the date hereof, to create a class of authorized Series A Perpetual Convertible Preferred Stock to be designated as Series A Perpetual Convertible Preferred Stock, and that the designation and number of shares thereof and the voting powers, preferences and other rights of the shares of Series A Perpetual Convertible Preferred Stock, and the qualifications, limitation and restrictions thereof, are as follows:

**TERMS OF SERIES A PREFERRED STOCK**

<u>Section 1</u>. <u>Definitions</u>. For the purposes hereof, the following terms shall have the following meanings:

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.

"<u>Alternate Consideration</u>" shall have the meaning set forth in Section 7(d).

"<u>Beneficial Ownership Limitation</u>" shall have the meaning set forth in Section 6(d).

"<u>Business Day</u>" means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the Corporation's common stock, $0.001 par value per share, and stock of any other class of securities into which such securities may hereafter be reclassified or changed.

"<u>Common Stock Equivalents</u>" means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, Series A Preferred Stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"<u>Conversion Amount</u>" means the sum of the Stated Value at issue.

"<u>Conversion Date</u>" shall have the meaning set forth in Section 6(a).

"<u>Conversion Price</u>" shall have the meaning set forth in Section 6(b).

"<u>Conversion Shares</u>" means, collectively, the shares of Common Stock issuable upon conversion of the shares of Series A Preferred Stock in accordance with the terms hereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Fundamental Transaction</u>" shall have the meaning set forth in Section 7(d).

"<u>Harvest Funds</u>" shall mean collectively Harvest Small Cap Partners, L.P., a Delaware limited partnership, and Harvest Small Cap Partners Master, Ltd., a Cayman Islands company, and any of their assignees and designees.

"<u>Holder</u>" shall have the meaning given such term in Section 2.

"<u>Junior Stock</u>" shall have the meaning set forth in Section 9.

"<u>Liquidation</u>" shall have the meaning set forth in Section 5.

"<u>Majority Holders</u>" shall have the meaning set forth in Section 4(a).

"<u>Notice of Conversion</u>" shall have the meaning set forth in Section 6(a).

"<u>Original Issue Date</u>" means the date of the first issuance of any shares of the Series A Preferred Stock regardless of the number of transfers of any particular shares of Series A Preferred Stock and regardless of the number of certificates which may be issued to evidence such Series A Preferred Stock.

"<u>Parity Stock</u>" shall have the meaning set forth in Section 9.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Qualified Offering</u>" means any financing transaction consummated after the Original Issue Date in which the Corporation, directly or indirectly, raises, in aggregate, gross proceeds of more than $20,000,000 of new capital.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Preferred Stock</u>" shall have the meaning set forth in the WHEREAS clauses.

"<u>Senior Preferred Stock</u>" shall have the meaning set forth in Section 9.

"<u>Series A Preferred Stock</u>" shall have the meaning set forth in Section 2.

"<u>Share Delivery Date</u>" shall have the meaning set forth in Section 6(d)(i).

"<u>Stated Value</u>" shall have the meaning set forth in Section 2.

"<u>Successor Entity</u>" shall have the meaning set forth in Section 7(d).

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for business.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

"<u>Transfer Agent</u>" means VStock Transfer, LLC, with an address at 18 Lafayette Place, Woodmere, NY 11598, telephone number is (212) 828-8436, and any successor transfer agent of the Corporation.

"<u>Trinad Capital</u>" means Trinad Capital Master Fund Ltd. or its assignees or designees holding its Series A Preferred Stock.

<u>Section 2</u>. <u>Designation, Amount and Par Value</u>. The series of Preferred Stock shall be designated as its Series A Perpetual Convertible Preferred Stock (the "<u>Series A Preferred Stock</u>") and the number of shares so designated shall be one hundred thousand (100,000) (which shall not be subject to increase without the written consent of the holders of the Series A Preferred Stock (each, a "<u>Holder</u>" and collectively, the "<u>Holders</u>") constituting Majority Holders). Each share of Series A Preferred Stock shall have a par value of $0.001 per share and a stated value per share equal to $1,000 (the "<u>Stated Value</u>"). The Series A Preferred Stock will initially be issued in book-entry form registered in the name of the applicable Holders, or as otherwise directed by the applicable Holders. A beneficial owner of Series A Preferred Stock shall have all the rights and remedies of a Holder hereunder. A beneficial owner of Series A Preferred Stock has the right, upon written notice by such beneficial owner to the Corporation, to request the exchange of some or all of such beneficial owner's interest in Series A Preferred Stock represented by one or more global Series A Preferred Stock certificates in book-entry from for a physical Series A Preferred Stock certificate (a "<u>Series A Preferred Stock Certificate Request Notice</u>" and the date of delivery of such Series A Preferred Stock Certificate Request Notice by a beneficial owner, the "<u>Series A Preferred Stock Certificate Request Notice Date</u>" and the deemed surrender upon delivery by the beneficial owner of a number of book-entry shares of Series A Preferred Stock for the same number of shares of Series A Preferred Stock represented by a physical stock certificate, a "<u>Series A Preferred Stock Exchange</u>", and such physical certificate(s), a "<u>Series A Preferred Stock Certificate</u>"). Upon delivery of a Series A Preferred Stock Certificate Request Notice, the Corporation shall promptly effect the Series A Preferred Stock Exchange and shall promptly issue and deliver to the beneficial owner a physical Series A Preferred Stock Certificate for such number of shares of Series A Preferred Stock represented by its interest in such book-entry certificates in the name of the beneficial owner. Such Series A Preferred Stock Certificate shall be dated the Original Issue Date and shall be executed by the authorized signatories of the Corporation. In connection with a Series A Preferred Stock Exchange, the Corporation agrees to deliver the Series A Preferred Stock Certificate to the Holder within three (3) Business Days of the delivery of a properly completed and executed Series A Preferred Stock Certificate Request Notice pursuant to the delivery instructions in the Series A Preferred Stock Certificate Request Notice. The Corporation covenants and agrees that, upon the date of delivery of the properly completed and executed Series A Preferred Stock Certificate Request Notice, the Holder shall be deemed to be the holder of the Series A Preferred Stock Certificate and, notwithstanding anything to the contrary set forth herein, the Series A Preferred Stock Certificate shall be deemed for all purposes to represent all of the terms and conditions of the Series A Preferred Stock evidenced by such book-entry Series A Preferred Stock certificates and the terms hereof.

<u>Section 3</u>. <u>Dividends</u>. Holders shall be entitled to receive, and the Corporation shall pay, by issuing shares of Series A Preferred Stock or paying in cash to Holders, subject to and as provided in this Section 3, dividends on each share of Series A Preferred Stock, based on the Stated Value, at a rate of twelve percent (12%) per annum (the "<u>Interest</u>"), commencing on the Original Issue Date until the date that such share of Series A Preferred Stock is converted to Common Stock (the "<u>Interest Termination Date</u>"). So long as a Holder's shares of Series A Preferred Stock are outstanding, Interest payments shall accrue and be compounded daily on the basis of a 360-day day year and twelve (12) 30-day months and shall be paid in arrears to such Holder on the earlier of the following dates (i) the Interest Termination Date and (ii) quarterly on April 1<sup>st</sup>, July 1<sup>st</sup>, October 1<sup>st</sup> and January 1<sup>st</sup> of each year (each such date, an "<u>Interest Payment Date</u>"). At the option of the Corporation, the Interest payments may be made in shares of Series A Preferred Stock valued at a price per share equal to the Stated Value (the "<u>Interest Shares</u>") for the Interest Payment Dates occurring during the first twelve (12) months after the Original Issue Date, and thereafter in Interest Shares or in cash at the sole option of the Holder; provided, that Trinad Capital shall receive Interest payments solely in Interest Shares. Holders other than Trinad Capital shall receive the Interest payments in cash on the Interest Payment Date unless such Holder provides written notice to the Corporation (email notice will suffice) at least ten (10) days prior to the applicable Interest Payment Date indicating such Holder's election to receive Interest Shares in lieu of a cash payment for the applicable Interest Payment Date; provided, that during such notice period a Holder may provide Conversion Notice to the Corporation as provided in this Certificate of Designation. In addition, in the event the Corporation declares any distribution or dividend of any of its assets or any shares of capital stock of any of its subsidiaries pro rata to the record holders of any class of shares of Common Stock, the Corporation shall calculate and distribute to each Holder its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the shares of Series A Preferred Stock then outstanding as of the record date set by the Company for such distribution or dividend) concurrently with the distribution to the then record holders of any class of Common Stock. Except as provided in this Section 3, Section 5 and Section 7, no other dividends shall be paid on shares of Series A Preferred Stock.

<u>Section 4</u>. <u>Voting Rights</u>. The Series A Preferred Stock shall have no voting rights, except as set forth in this Section 4 or as otherwise required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the period any shares of Series A Preferred Stock remain outstanding, unless the Corporation has received the approval of the majority of the votes entitled to be cast by the holders of Series A Preferred Stock outstanding at the time of such vote (voting together as a single class) (the "<u>Majority Holders</u>"), either at a meeting of holders of Series A Preferred Stock or by written consent, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, recapitalization, reclassification, or otherwise, do any of the following without (in addition to any other vote required by law), and any such act or transaction entered into without such consent or vote shall be null and void *ab initio*, and of no force or effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase the number of authorized shares of Series A Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) issue or obligate itself to issue additional shares Series A Preferred Stock other than Interest Shares;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amend, alter or repeal any provision of this Certificate of Designation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) amend, alter or repeal any provision of the Certificate of Incorporation or other charter documents in
a manner that adversely affects the powers, preferences or rights of the Series A Preferred Stock or in any manner that adversely affects
any rights of the Holders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) enter into any agreement with respect to the foregoing.

For purposes of the foregoing voting requirements, the increase in the amount of the authorized Preferred Stock (other than Series A Preferred Stock) or Common Stock, or the creation or issuance of any other series of Preferred Stock or Common Stock that the Corporation may issue, or any increase in the amount of authorized shares of such series, shall not in itself be deemed to materially and adversely affect the rights, preferences or voting powers of the Series A Preferred Stock. The restrictions in this Section 4(a) shall not be deemed to limit or waive any other rights or remedies available to the Holders by written agreement or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The above voting provisions will not apply with respect to shares of Series A Preferred Stock if, at or before the time when the act with respect to which the vote would otherwise be required is effected, such outstanding shares of Series A Preferred Stock are subject to a notice of redemption pursuant to the provisions in Section 8(a) or Section 8(b) below and funds sufficient to pay the applicable redemption price, including accumulated and unpaid Interest and other due and unpaid dividends or distributions, for all of such shares of Series A Preferred Stock called for redemption have been paid to the applicable Holder in full; provided, that any conversion or redemption of any shares of Series A Preferred Stock outstanding as of the applicable vote date or record date (as applicable) shall not prevent the Holder thereof from exercising its voting rights provided pursuant to this Section 4 with respect to the action or vote the Holder of such converted or redeemed shares of Series A Preferred Stock would have been otherwise entitled to vote as of such applicable vote date or record date (as applicable); provided, further that for purposes of any unpaid dividends or distributions that are due and paid after any conversion of a Holder's shares of Series A Preferred Stock, the Holder shall continue to be entitled to such due and unpaid dividends or distributions with respect to such Holder's Conversion Shares resulting from such Holder's conversion of its Series A Preferred Stock then held as of the record date applicable to determine eligibility for such dividend or distribution, which Conversion Shares such Holder continues to hold from the date of conversion through the payment date of such applicable dividends or distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) When the Series A Preferred Stock is entitled to vote, such shares are entitled to one thousand (1000) votes per share of Series A Preferred Stock. In any matter in which the Series A Preferred Stock may vote as a single class with any other series of Preferred Stock (as may be required by law), each share of Series A Preferred Stock shall be entitled to one thousand (1000) votes per share of Series A Preferred Stock. Except as provided in this Section 4, the Corporation may create additional series or classes of Preferred Stock, increase the authorized number of shares of Preferred Stock and issue additional series of Preferred Stock without the consent of any holder of the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The holders of Series A Preferred Stock are not entitled to vote separately as a class or series on any amendment, modification or restatement Certificate of Incorporation, except as would be unlawful under the laws of the State of Delaware or except as required by this Section 4.

<u>Section 5</u>. <u>Liquidation</u>. Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a "<u>Liquidation</u>"), the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation the greater of the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate Stated Value of the Series A Preferred Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the amount the Holder would be entitled to receive if the Series A Preferred Stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to Common Stock which amounts shall be paid <u>pari</u> <u>passu</u> with all holders of Common Stock.

In addition, in the case of either (a) or (b) above, the Holders will be entitled to the payment of all accrued but unpaid Interest and other declared and due but unpaid dividends or distributions, if any, on the Series A Preferred Stock and, in the event any of such dividends or distributions are payable in shares of Common Stock, the cash value of such shares of Common Stock upon Liquidation. The Corporation shall mail written notice of any such Liquidation, not less than forty-five (45) days prior to the payment date stated therein, to each Holder.

<u>Section 6</u>. <u>Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversions at Option of Holder</u>. Each share of Series A Preferred Stock shall be convertible, at any time and from time to time on or after the Original Issue Date, at the option of the Holder thereof, into that number of shares of Common Stock (subject to the limitations set forth in Section 6(d), which limitation shall not be applicable to Trinad Capital) determined by dividing the Stated Value of such share of Series A Preferred Stock by the Conversion Price. Holders shall also be paid (i) any accrued and unpaid Interest at the same time that such Conversion Shares are issued to the Holder, and (ii) other declared and due but unpaid dividends or distributions, if any, payable to holders of record of Common Stock (including for such purpose payable on shares of Series A Preferred Stock based on the applicable rate of conversion calculated on an as-converted basis with respect to such shares of Series A Preferred Stock then outstanding as of the record date set by the Company for such dividend or distribution), at the same time such due but unpaid dividends or distributions are paid to holders of record of Common Stock; provided, that for purposes of any unpaid dividends or distributions that are due and paid after any conversion of a Holder's shares of Series A Preferred Stock, the Holder shall continue to be entitled to such due and unpaid dividends or distributions with respect to such Holder's Conversion Shares resulting from such Holder's conversion of its Series A Preferred Stock then held as of the record date applicable to determine eligibility for such dividend or distribution, which Conversion Shares such Holder continues to hold from the date of conversion through the payment date of such applicable dividends or distributions. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as <u>Annex A</u> (a "<u>Notice of Conversion</u>"). Each Notice of Conversion shall specify the number of shares of Series A Preferred Stock to be converted, the number of shares of Series A Preferred Stock owned prior to the conversion at issue, the number of shares of Series A Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile or email such Notice of Conversion to the Corporation (such date, the "<u>Conversion Date</u>"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder if such Notice of Conversion is delivered prior to 5:30 p.m. (New York City time). No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error. To effect conversions of shares of Series A Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing the shares of Series A Preferred Stock to the Corporation unless all of the shares of Series A Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of Series A Preferred Stock promptly following the Conversion Date at issue. Shares of Series A Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conversion Price</u>. The conversion price for the Series A Preferred Stock shall equal $2.10 (the "<u>Conversion Price</u>"), subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the Original Issue Date as set forth in Section 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Delivery of Conversion Shares Upon Conversion</u>. Not later than three (3) Trading Days after each Conversion Date (the "<u>Share Delivery Date</u>"), the Corporation shall deliver, or cause to be delivered, to the converting Holder (A) Conversion Shares in book-entry form through the Corporation's transfer agent, which (x) if such Conversion Shares are subject to a then effective registration statement or accompanied by a legal opinion reasonably acceptable to the Corporation, shall be free of restrictive legends and trading restrictions, or (y) if such Conversion Shares are not subject to a then effective registration statement and are not accompanied by a legal opinion reasonably acceptable to the Corporation, shall bear restrictive legends and trading restrictions as provided herein, in each case whether under clause (x) or (y) representing the number of Conversion Shares being acquired upon the conversion of the Series A Preferred Stock, and (B) (1) a check or a wire payment in the amount of accrued and unpaid cash dividends or other declared and but unpaid cash dividends or distributions, if any, payable at such time, and (2) additional shares of Common Stock (or Common Stock Equivalents, if applicable) or assets (as applicable) with respect to accrued and unpaid dividends or other declared but unpaid dividends or distributions, if any, payable at such time in shares of Common Stock (or Common Stock Equivalents, if applicable) or assets to the record holders of any class of shares of Common Stock (including for such purpose payable on shares of Series A Preferred Stock calculated on an as-converted basis with respect to the shares of Series A Preferred Stock then outstanding as of the record date and payment date set by the Company for such distribution or dividend); provided, that for purposes of any unpaid dividends or distributions that are due and paid after any conversion of a Holder's shares of Series A Preferred Stock, the Holder shall continue to be entitled to such due and unpaid dividends or distributions with respect to such Holder's Conversion Shares resulting from such Holder's conversion of its Series A Preferred Stock then held as of the record date applicable to determine eligibility for such dividend or distribution, which Conversion Shares such Holder continues to hold from the date of conversion through the payment date of such applicable dividends or distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Failure to Deliver Conversion Shares</u>. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original Series A Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Notice of Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Obligation Absolute; Partial Liquidated Damages</u>. The Corporation's obligation to issue and deliver the Conversion Shares and payment of all accrued or declared but unpaid dividends or distributions, if any, payable at such time(s) as provided in this Certificate of Designation, upon conversion of Series A Preferred Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by such Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to such Holder in connection with the issuance of such Conversion Shares; <u>provided</u>, <u>however</u>, that such delivery shall not operate as a waiver by the Corporation of any such action that the Corporation may have against such Holder. In the event a Holder shall elect to convert any or all of the Stated Value of its Series A Preferred Stock, the Corporation may not refuse conversion based on any claim that such Holder or any one associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of the Series A Preferred Stock of such Holder shall have been sought and obtained, and the Corporation posts a surety bond for the benefit of such Holder in the amount of 150% of the sum of the Stated Value of Series A Preferred Stock plus all accrued or declared and due but unpaid dividends or distributions, if any, payable at such time, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the Corporation shall issue Conversion Shares and, if applicable, cash, upon a properly noticed conversion. If the Corporation fails to deliver to a Holder such Conversion Shares or all accrued and unpaid dividends and other declared and due but unpaid dividends or distributions, if any, payable at such time, pursuant to Section 6(c)(i) by the Share Delivery Date applicable to such conversion, the Corporation shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated Value of Series A Preferred Stock being converted, $20 per Trading Day (increasing to $40 per Trading Day on the fourth Trading Day after such damages begin to accrue) for each Trading Day after the Share Delivery Date until such Conversion Shares and all such dividends and distributions that are declared and due and unpaid and are payable at such time are delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder's right to pursue actual damages for the Corporation's failure to deliver Conversion Shares or dividends or distributions within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Compensation for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion</u>. In addition to any other rights available to the Holder, if the Corporation fails for any reason to deliver to a Holder the applicable Conversion Shares to which the Holder is entitled under this Certificate of Designation by the Share Delivery Date pursuant to Section 6(c)(i), and if after such Share Delivery Date such Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which such Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a "<u>Buy-In</u>"), then the Corporation shall (A) pay in cash to such Holder (in addition to any other remedies available to or elected by such Holder) the amount, if any, by which (x) such Holder's total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that such Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of such Holder, either reissue (if surrendered) the shares of Series A Preferred Stock equal to the number of shares of Series A Preferred Stock submitted for conversion (in which case, such conversion shall be deemed rescinded) or deliver to such Holder the number of shares of Common Stock that would have been issued if the Corporation had timely complied with its delivery requirements under Section 6(c)(i). For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Series A Preferred Stock with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation shall be required to pay such Holder $1,000. The Holder shall provide the Corporation written notice indicating the amounts payable to such Holder in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Corporation's failure to timely deliver Conversion Shares upon conversion of the shares of Series A Preferred Stock as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Reservation of Shares Issuable Upon Conversion and Payment of Interest in Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purposes of issuance upon conversion of the Series A Preferred Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Series A Preferred Stock), not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Series A Preferred Stock and the payment of any and all dividends and distributions payable to the Holders in shares of Common Stock. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Series A Preferred Stock for the sole purposes of issuance of the Series A Preferred Stock as Interest Shares as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Series A Preferred Stock), not less than such aggregate number of shares of the Series A Preferred Stock as shall be issuable as the payment of any and all accruing dividends payable to the Holders in shares of Series A Preferred Stock. The Corporation covenants that all shares of Series A Preferred Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Fractional Shares</u>. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Series A Preferred Stock or the payment of dividends in Common Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion or any shares of Common Stock issuable upon the payment of dividends in shares of Common Stock, the Corporation shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share. Notwithstanding anything to the contrary contained herein, but consistent with the provisions of this subsection with respect to fractional Conversion Shares, nothing shall prevent any Holder from converting fractional shares of Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Transfer Taxes and Expenses</u>. The issuance of Conversion Shares on conversion of this Series A Preferred Stock and the issuance of Interest Shares, shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares or Interest Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such Conversion Shares or Interest Shares upon conversion in a name other than that of the Holders of such shares of Series A Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares or Interest Shares unless or until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares and/or any Interest Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Beneficial Ownership Limitation</u>. The Corporation shall not effect any conversion of the Series A Preferred Stock, and a Holder shall not have the right to convert any portion of the Series A Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable Notice of Conversion, such Holder (together with such Holder's Affiliates, and any Persons acting as a group together with such Holder or any of such Holder's Affiliates (such Persons, "<u>Attribution Parties</u>")) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted Stated Value of Series A Preferred Stock beneficially owned by such Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Series A Preferred Stock) beneficially owned by such Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 6(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 6(d) applies, the determination of whether the Series A Preferred Stock is convertible (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and of how many shares of Series A Preferred Stock are convertible shall be in the sole discretion of such Holder, and the submission of a Notice of Conversion shall be deemed to be such Holder's determination of whether the shares of Series A Preferred Stock may be converted (in relation to other securities owned by such Holder together with any Affiliates and Attribution Parties) and how many shares of the Series A Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, each Holder will be deemed to represent to the Corporation each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 6(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Corporation's most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Corporation or (iii) a more recent written notice by the Corporation or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request (which may be via email) of a Holder, the Corporation shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including the Series A Preferred Stock, by such Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of Series A Preferred Stock held by the applicable Holder. A Holder, upon notice to the Corporation, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 6(d) applicable to its Series A Preferred Stock. Except for any such increases consented to in the applicable Exchange Agreement, dated on or about the date hereof (collectively, the "<u>Exchange Agreements</u>"), entered into by such Holder (which increase shall be effective at the time the shares of Series A Preferred Stock are issued to such Holder), any such increase in the Beneficial Ownership Limitation will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Corporation and shall only apply to such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of Series A Preferred Stock. This Section 6(d) shall not be applicable to any Series A Preferred Stock held by Trinad Capital.

<u>Section 7</u>. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Stock Splits</u>. If the Corporation, at any time while this Series A Preferred Stock is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, this Series A Preferred Stock or the payment of Interest as contemplated by the Exchange Documents), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification, and shall be calculated on an as-converted basis with respect to the shares of Series A Preferred Stock then outstanding as of both the record date and the payment date or the effective date (as applicable) set by the Company for such distribution, dividend, subdivision, combination or re-classification, as applicable; provided, that for purposes of any adjustment that is required to be made pursuant to this Section 7(a) that is to be made after any conversion of a Holder's shares of Series A Preferred Stock, the Holder shall continue to be entitled to such adjustment with respect to such Holder's Conversion Shares resulting from such Holder's conversion of its Series A Preferred Stock then held as of the record date applicable to determine eligibility for such adjustment, which Conversion Shares such Holder continues to hold from the date of conversion through the date of effectiveness of such applicable adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Subsequent Rights Offerings</u>. During such time as this Series A Preferred Stock is outstanding, in addition to any adjustments pursuant to Section 7(a) above, if at any time the Corporation grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "<u>Purchase Rights</u>"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of such Holder's Series A Preferred Stock (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) outstanding immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Pro Rata Distributions</u>. During such time as this Series A Preferred Stock is outstanding, if the Corporation declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "<u>Distribution</u>"), then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of such Holder's Series A Preferred Stock (without regard to any limitations on conversion hereof, including without limitation, the Beneficial Ownership Limitation) outstanding immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (<u>provided</u>, <u>however</u>, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fundamental Transaction</u>. If, at any time while this Series A Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "<u>Fundamental Transaction</u>"), then, upon any subsequent conversion of a Holder's Series A Preferred Stock then outstanding, such Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Series A Preferred Stock), the number of shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving corporation, and any additional consideration (the "<u>Alternate Consideration</u>") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which such Holder's Series A Preferred Stock is outstanding and convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Series A Preferred Stock). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of such Holder's Series A Preferred Stock following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions and issue to the Holders new Series A Preferred Stock consistent with the foregoing provisions and evidencing the Holders' right to convert such Holder's Series A Preferred Stock then outstanding into Alternate Consideration. The Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation is not the survivor (the "<u>Successor Entity</u>") to assume in writing all of the obligations of the Corporation under this Certificate of Designation in accordance with the provisions of this Section 7(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Series A Preferred Stock, deliver to such Holder in exchange for such Holder's Series A Preferred Stock then outstanding a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Series A Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of such Holder's Series A Preferred Stock (without regard to any limitations on the conversion of this Series A Preferred Stock) outstanding immediately prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of the Series A Preferred Stock outstanding immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designation referring to the "Corporation" shall refer instead to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation with the same effect as if such Successor Entity had been named as the Corporation herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notice to the Holders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment to Conversion Price</u>. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation shall promptly deliver to each record Holder by facsimile or email a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Notice to Allow Conversion by Holder</u>. If (A) the Corporation shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Corporation shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Corporation shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially all of the assets of the Corporation, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Corporation, then, in each case, the Corporation shall cause to be filed at each office or agency maintained for the purpose of conversion of this Series A Preferred Stock, and shall cause to be delivered by facsimile or email to each record Holder at its last facsimile number or email address as it shall appear upon the stock books of the Corporation, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. Each Holder acknowledges receipt of written notice of the Company's intended special dividend to the Company's stockholders of record as of January 16, 2023 of a certain number of shares of common stock of PC1, as set forth in the SEC Reports (as defined in the Exchange Agreements), and no additional notice shall be required with respect to such dividend. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Corporation or any of the Subsidiaries, the Corporation shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert the Conversion Amount of this Series A Preferred Stock (or any part hereof) during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

<u>Section 8</u>. <u>Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional Redemption</u>. The Series A Preferred Stock is perpetual and has no maturity date. The Corporation may, at its option (the "<u>Optional Redemption Right</u>"), by delivery of a Notice of Redemption at any time after the Original Issue Date but before the Mandatory Redemption Date, if all of the Harvest Funds' shares of Series A Preferred Stock have not been converted into shares of Common Stock prior to the Redemption Date, purchase up to $5,000,000 in aggregate of the outstanding shares of Series A Preferred Stock held by the Harvest Funds, in whole or in part, at a cash redemption price per share of Series A Preferred Stock equal to the Stated Value (the "<u>Redemption Price</u>"). The Redemption Price for any shares of Series A Preferred Stock shall be payable to the Holder of such shares of Series A Preferred Stock against surrender of the certificate(s) evidencing such shares, if any, to the Corporation or its agent, if the shares of the Preferred are issued in certificated form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Redemption</u>. The Corporation shall be required on or before the eighteen (18) month anniversary of the Original Issue Date (the "<u>Mandatory Redemption Date</u>"), and in any event if prior to the Mandatory Redemption Date, the Corporation consummates a Qualified Offering, if all of the shares of Series A Preferred Stock have not been converted to shares of Common Stock prior to the Mandatory Redemption Date, to purchase $5,000,000 in aggregate of the outstanding shares of Series A Preferred Stock held by the Harvest Funds (the "<u>Mandatory Redemption Amount</u>") at the Redemption Price (the "<u>Mandatory Redemption</u>"). If the Optional Redemption Right is elected and exercised up to the full $5,000,000 amount, the Mandatory Redemption requirement shall be terminated; provided, that if the Optional Redemption Right is elected and exercised in any amount less than $5,000,000, the Mandatory Redemption Amount shall be reduced by the amount that the Optional Redemption Right has been elected and exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Sinking Fund</u>. The Series A Preferred Stock will not be subject to any mandatory redemption, sinking fund or other similar provisions, except as provided herein. Except as provided herein, holders of the Series A Preferred Stock will have no right to require redemption of any shares of Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice of Redemption</u>. Notice of every redemption of shares of Series A Preferred Stock shall be given to the Holders in the manner provided for notices in Section 10(a) hereafter (a "<u>Redemption Notice</u>"). Such notice shall be provided at least twenty (20) days and not more than sixty (60) days before the date fixed for redemption. Any notice sent as provided in this subsection shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice, but failure duly to give such notice by mail or email, or any defect in such notice or in the mailing or delivery thereof, to any Holder of shares of Series A Preferred Stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock. Each notice of redemption given to a Holder shall state: (1) the redemption date on which payment shall occur, (2) the number of shares of Series A Preferred Stock to be redeemed and, if less than all the shares held by such Holder are to be redeemed, the number of such shares of Series A Preferred Stock to be redeemed from such Holder, (3) the Redemption Price and (4) the place or places where certificates for such shares are to be surrendered for payment of the Redemption Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Partial Redemption</u>. In case of any redemption of only part of the shares of Series A Preferred Stock at the time outstanding, the shares of Series A Preferred Stock to be redeemed shall be redeemed, by the Corporation, pro rata from the Holders of record of the shares of Series A Preferred Stock in proportion to the number of shares of Series A Preferred Stock held by such Holders. Subject to the provisions hereof, the Board of Directors shall have full power and authority to prescribe the terms and conditions on which shares of Series A Preferred Stock shall be redeemed from time to time. If the Corporation shall have issued certificates for the Series A Preferred Stock and fewer than all shares represented by any certificates are redeemed, new certificates shall be issued representing the unredeemed shares of Series A Preferred Stock without charge to the Holders thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Effectiveness of Redemption; Payment of Redemption Amounts</u>. If notice of redemption has been duly given, then, notwithstanding that any certificate for any share so called for redemption has not been surrendered for cancellation in the case that the shares of Series A Preferred Stock are issued in certificated form, on and after the redemption date all shares so called for redemption shall no longer be deemed outstanding and all rights with respect to such shares shall forthwith on such redemption date cease and terminate, except only the right of the Holders thereof to receive the amount payable on such redemption, without interest. For clarity, each Holder, at its option, shall be entitled to convert its shares of Series A Preferred Stock into Common Stock pursuant to Section 6, and such shares shall not be subject to redemption hereunder, by delivery of a Notice of Conversion any time prior to the applicable redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Section 8 shall not be applicable to any Series A Preferred Stock held by Trinad Capital.

<u>Section 9</u>. <u>Ranking</u>. Except to the extent that the Majority Holders expressly consent to the creation of Parity Stock or Senior Preferred Stock, all shares of Common Stock and all shares of capital stock of the Corporation authorized or designated after the date of the designation of the Series A Preferred Stock shall be junior in rank to the Series A Preferred Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (such junior stock is referred to herein collectively as "<u>Junior Stock"</u>). Without limiting any other provision of this Certificate of Designation, without the prior express consent of the Majority Holders, voting separate as a single class, the Corporation shall not hereafter authorize or issue any additional or other shares of capital stock that is (i) of senior rank to the Series A Preferred Stock in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (collectively, the "<u>Senior Preferred Stock</u>") or (ii) of pari passu rank to the Series A Preferred Stock in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (collectively, the "<u>Parity Stock</u>").

<u>Section 10</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Any and all notices or other communications or deliveries to be provided by the Holders or the Corporation hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile or email, or sent by a nationally recognized overnight courier service, addressed to (i) the Corporation at the address set forth above Attention: Robert S. Ellin, Chief Executive Officer, email address <u>rob@liveone.com</u> (with a copy to (which shall not constitute notice) Aaron Sullivan, CFO, at aaron@liveone.com, Tenia Muhammad at tenia@liveone.com and Sasha Ablovatskiy, Esq. of Foley Shechter Ablovatskiy LLP at sablovatskiy@foleyshechter.com) or such other email address or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section 10, or (ii) the applicable Holder at the most current address for such Holder, in the Corporation's records, or such other email address or address as such Holder may specify for such purposes by notice to the Corporation delivered in accordance with this Section 10. Any and all notices or other communications or deliveries to be provided by the Corporation or the Holders hereunder shall be in writing and delivered personally, by email, or sent by a nationally recognized overnight courier service addressed to each record Holder or at the email address or address of such Holder appearing on the books of the Corporation or to the Corporation at the address set forth above. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email at the email address set forth in this Section 10 prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email at the email address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Absolute Obligation</u>. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay liquidated damages and accrued dividends or other declared but unpaid dividends or distributions (if any), as applicable, and payable on the shares of Series A Preferred Stock at the time, place, and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Lost or Mutilated Series A Preferred Stock Certificate</u>. If a Holder's Series A Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Series A Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Certificate of Designation (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the County of New Castle. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Certificate of Designation and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation on any other occasion. Any waiver by the Corporation or a Holder must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Severability</u>. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Next Business Day</u>. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Headings</u>. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Status of Converted or Redeemed Series A Preferred Stock</u>. If any shares of Series A Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume the status of authorized but unissued shares of Preferred Stock and shall no longer be designated as Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Preemptive Rights</u>. No holders of Series A Preferred Stock will, as holders of Series A Preferred Stock, have any preemptive rights to purchase or subscribe for the Common Stock or any of its other securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Record Holders</u>. The Corporation, the Corporation's transfer agent and the transfer agent for the Series A Preferred Stock shall deem and treat the record holder of any shares of Series A Preferred Stock as the true and lawful owner thereof for all purposes, and neither the Corporation nor such transfer agent(s) shall be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Status of Acquired Shares</u>. All shares of Series A Preferred Stock redeemed by the Corporation in accordance with the terms hereof, or otherwise acquired by the Corporation, shall be restored to the status of authorized but unissued shares of undesignated Preferred Stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Miscellaneous</u>. The Series A Preferred Stock shall not have any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption other than expressly set forth in the Certificate of Incorporation, this Certificate of Designation and any other written agreements applicable to such Holder and the Company (including, without limitation, the Exchange Agreements). The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof. If any preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series A Preferred Stock set forth in this Certificate of Designation are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of Series A Preferred Stock set forth in this Certificate of Designation which can be given effect without the invalid, unlawful or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the Series A Preferred Stock herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

RESOLVED, FURTHER, that the Chief Executive Officer of the Corporation be and he hereby is authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

[*Signature page follows*]

IN WITNESS WHEREOF, the undersigned has executed this Certificate this 2<sup>nd</sup> day of February 2023.

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| | |
|:---|:---|
| **LiveOne, Inc.** | **LiveOne, Inc.** |
| By: | /s/ *Robert S. Ellin* |
| Name: | Robert S. Ellin |
| Title: | CEO & Chairman |

---

**ANNEX A**

NOTICE OF CONVERSION

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF SERIES A PREFERRED STOCK)

The undersigned hereby elects to convert the number of shares of Series A Perpetual Convertible Preferred Stock indicated below into shares of common stock, $0.001 par value per share (the "<u>Common Stock</u>"), of LiveOne Inc., a Delaware corporation (the "<u>Corporation</u>"), according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

Conversion calculations:

Date to Effect Conversion:

Number of shares of Series A Preferred Stock owned prior to Conversion:

Number of shares of Series A Preferred Stock to be Converted:

Stated Value of shares of Series A Preferred Stock to be Converted:

Number of shares of Common Stock to be Issued:

Applicable Conversion Price:

Number of shares of Series A Preferred Stock subsequent to Conversion:

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| | |
|:---|:---|
| [HOLDER] | [HOLDER] |
| By: |  |
|  | Name: |
|  | Title: |

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## Exhibit 10.1

**Exhibit 10.1**

**EXCHANGE AGREEMENT**

This EXCHANGE AGREEMENT (the "<u>Agreement</u>"), dated as of February 3, 2023 (the "<u>Closing Date</u>"), is made by and between LiveOne, Inc., a Delaware corporation (the "<u>Company</u>"), and the holder of the Note (as defined below) signatory hereto (the "<u>Holder</u>"). All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Certificate of Designation (as defined below).

WHEREAS, on September 15, 2020, the Company issued to Holder that certain 8.5% Senior Secured Convertible Note (the "<u>Note</u>"), in the aggregate amount of $4,496,035, pursuant to the terms of the Securities Purchase Agreement, dated as of July 2, 2020 (the "<u>SPA</u>"), as amended on July 30, 2020, entered into between the Company and No Street Capital LLC, a Delaware limited liability company, which Note and SPA were further amended on June 3, 2021 and July 6, 2022 (the Note, the SPA, such amendments and all documents and agreements entered into in connection therewith are collectively referred to herein as the "<u>Transaction Documents</u>");

WHEREAS, the Company has authorized a new series of preferred stock designated as Series A Perpetual Convertible Preferred Stock, $0.001 par value per share, the terms of which are set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock (the "<u>Certificate of Designation</u>"), in the form attached hereto as <u>Exhibit A</u> (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the "<u>Series A Preferred Stock</u>"), which Series A Preferred Stock shall be convertible into shares (the "<u>Conversion Shares</u>") of the Company's common stock, $0.001 par value per share (the "<u>Common Stock</u>"), in accordance with the terms of the Certificate of Designation; and

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Note for Series A Preferred Stock and such other consideration as provided herein.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Holder agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Terms of the Exchange</u>. The Company and the Holder agree that the Holder will exchange the Note, and will relinquish any and all rights the Holder may have under the Note and the Transaction Documents in exchange for 4,496 shares of the Series A Preferred Stock (the "<u>Exchange Shares</u>" and collectively with the Conversion Shares and the Additional Shares (as defined below), the "<u>Securities</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Closing</u>. Upon satisfaction of the conditions set forth herein, on the Closing Date, the closing (the "<u>Closing</u>") of the transactions contemplated under this Agreement, the Certificate of Designation and the Side Letter (as defined below) (collectively, the "<u>Transactions</u>") shall occur at the principal offices of the Company, or such other location as the parties shall mutually agree. At Closing, Holder shall deliver a copy of the Note to the Company and the Company shall deliver to such Holder a certificate or other evidence representing the Exchange Shares, in the name(s) and amount(s) as requested by the Holder. To the extent that the original Note is not surrendered by the Holder to the Company or its counsel at Closing, the Holder shall deliver the original Note to the Company promptly after the Closing Date, and in any event within twenty (20) calendar day thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties of the Holder</u>. The Holder represents and warrants, as of the date hereof and as of the closing, to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Holder has the requisite power and authority to enter into and to consummate the Transactions and otherwise to carry out its obligations hereunder and the Certificate of Designation and the Side Letter (collectively, the "<u>Exchange Documents</u>"). The execution and delivery of this Agreement and the Side Letter by the Holder and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder. The Exchange Documents have been (or upon delivery will have been) duly executed by the Holder (to the extent the Holder is a signatory thereto) and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Legal, Tax or Investment Advice</u>. The Holder understands that nothing in the Exchange Documents or any other materials presented to such Person in connection with the exchange for the Note and/or the issuance of the Exchange Shares, the Conversion Shares and/or the Additional Shares constitutes legal, tax or investment advice. Such Person has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its exchange of the Note for the Exchange Shares and the issuance of the Conversion Shares and/or the Additional Shares. Such Person acknowledges that it has not relied on any representation or warranty from the Company or any other Person in making its investment or decision to invest in the Company, except as expressly set forth in this Agreement and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the Transactions. "<u>Person</u>" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Regarding Holder</u>. Holder is an "accredited investor", as such term is defined in Rule 501(a) of Regulation D promulgated by the United States Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Exchange Shares. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Legend</u>. The Holder understands that Exchange Shares have been issued (or will be issued in the case of the other Securities) pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Removal of Legends</u>. Certificates evidencing the Conversion Shares and/or the Additional Shares shall not be required to contain the legend set forth in Section 4(d) above or any other legend (i) while a registration statement covering the resale of such Conversion Shares and/or the Additional Shares, as applicable, is effective under the Securities Act, (ii) following any sale of such Conversion Shares and/or the Additional Shares, as applicable, pursuant to Rule 144 (as defined herein) (assuming the transferor is not an affiliate of the Company), (iii) if such Conversion Shares and/or the Additional Shares, as applicable, are eligible to be sold, assigned or transferred under Rule 144 and the subscriber is not an affiliate of the Company (provided that the Holder provides the Company with reasonable assurances that such Conversion Shares and/or the Additional Shares, as applicable, are eligible for sale, assignment or transfer under Rule 144 which shall be accompanied by an opinion of the Holder's counsel as required above), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, in a generally acceptable form, to the effect that such sale, assignment or transfer of such Conversion Shares and/or the Additional Shares, as applicable, may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business days following the delivery by the Holder to the Company or the transfer agent (with notice to the Company) of a legended certificate representing the Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be reasonably required by the Company and/or its transfer agent, as directed by the Holder, either: (A) provided that the Company's transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such securities are Conversion Shares, credit the aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company's transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Conversion Shares and/or the Additional Shares, as applicable, that is free from all restrictive and other legends, registered in the name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Exchange Shares and the removal of any legends with respect to any Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable, in accordance herewith, including, but not limited to, fees for the opinions of counsel rendered to the transfer agent in connection with the removal of any legends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Securities</u>. The Holder understands that: (i) none of the Securities have been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, to the effect that such Securities, as applicable, to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Securities, as applicable, can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, "<u>Rule 144</u>"); and (ii) any sale of the Securities, as applicable, made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities, as applicable, under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties of the Company</u>. The Company hereby makes the following representations and warranties to the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the Exchange Documents and each of the other agreements entered into by the parties hereto in connection with the Transactions and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Exchange Documents by the Company and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Company and the Company's shareholders, in accordance with the rules of The NASDAQ Capital Market, if required, and no further action is required by the Company or the Board of Directors of the Company in connection therewith. The Exchange Documents have been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organization and Qualification</u>. The Company is an entity duly organized and validly existing and in good standing under the laws of the State of Delaware, and has the requisite power and authorization to own their properties and to carry on its business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, "<u>Material Adverse Effect</u>" means any material adverse effect on (i) the results of operations, assets, business, or financial condition of the Company and its subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution, delivery and performance by the Company of this Agreement and the other Exchange Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the Transactions do not and will not: (i) conflict with or violate any provision of the Company's certificate of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, charge or other encumbrance (other than pursuant to the Transaction Documents) upon any of the properties or assets of the Company or any of its subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or its subsidiaries debt or otherwise) or other understanding to which the Company or any subsidiary is a party or by which any property or asset of the Company or any subsidiary is bound or affected, or (iii) subject to the receipt of the Required Approvals (as defined below), conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or any governmental authority to which the Company or any of its subsidiaries is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or any of its subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Consents</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other foreign, federal, state, local or other governmental authority in connection with the execution, delivery and performance by the Company of the Exchange Documents, other than: (i) the notice and/or application(s) to the Principal Market for the issuance of the Conversion Shares and the Additional Shares, (ii) the filing of the Form D with the Commission, (iii) the filing contemplated by Section 7(l) and (iv) consent of East West Bank to the Transactions (collectively, the "<u>Required Approvals</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Securities Law Exemptions</u>. Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the Exchange Shares is exempt from registration under the Securities Act. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Issuance of Securities</u>. The issuance of the Exchange Shares and the Additional Shares is duly authorized and upon issuance in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. Upon issuance or conversion in accordance with the Certificate of Designation, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shell Company Status</u>. The Company is not an issuer identified in Rule 144(i)(1) of the Securities Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>SPA Representations</u>. The Company represents and warrants that all representations and warranties set forth in Section 3.1 of the SPA, which are hereby incorporated by reference, are true and correct on and as of the Closing as if fully restated herein, except for the representations and warranties as modified above in this Section 5 or those set forth in Sections 3.1(a). 3.1(g), 3.1(i), 3.1(q), 3.1(v), and 3.1(ee) of the SPA, which are amended and restated as follows. Notwithstanding anything to the contrary herein, capitalized terms used but not defined in this Section 5(h) shall have the meanings ascribed to such terms in the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Subsidiaries</u>. All of the direct and indirect Subsidiaries of the Company are set forth on <u>Schedule 5(h)(i)</u>. The Company owns, directly or indirectly, all of the Equity Interests of each Subsidiary free and clear of any Liens (other than Permitted Liens or as set forth on <u>Schedule 5(h)(i)</u>), options or warrants, and all of the issued and outstanding Equity Interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. "<u>Senior Lender</u>" means East West Bank and its assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Capitalization</u>. The capitalization of the Company is as set forth on <u>Schedule 5(h)(ii)</u>. The Company has not issued any capital stock since its most recently issued SEC Reports, other than as set forth on <u>Schedule 5(h)(ii)</u> pursuant to the exercise of employee stock options under the Company's stock incentive plans, the issuance of shares of Common Stock to employees or consultants pursuant to the Company's stock incentive plans or in the ordinary course of business and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Exchange Documents. Except as set forth in the SEC Reports or in the Exchange Documents, there are no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as set forth on <u>Schedule 5(h)(ii)</u> or in the Transaction Documents, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. Except as set forth on <u>Schedule 5(h)(ii)</u>, there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary, and there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance with all applicable foreign, federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) neither the Company nor any Subsidiary has incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on <u>Schedule 5(h)(iii)</u>, to the knowledge of the Company, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Registration Rights</u>. Except as described in the SEC Reports or as contemplated by the Exchange Documents, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Solvency; Seniority</u>. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the Transactions: (i) the fair saleable value of the Company's tangible assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth on Schedule 5(h)(v), the Company has no knowledge of any facts or circumstances, which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 5(h)(v)sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. As of the Closing Date and giving effect to the consummation of the Transactions, other than Indebtedness with the Senior Lender and as set forth on Schedule 5(h)(v), no Indebtedness or other claim against the Company is senior to the Series A Preferred Stock in right of payment, whether with respect to dividends or upon liquidation or dissolution, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Listing and Maintenance Requirements</u>. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market. Except as set forth in the SEC Reports, the Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository Trust Company and the Company is current in payment of the fees to the Depository Trust Company in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Other Conditions to Closing; Covenants</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuance of Shares</u>. In consideration of the Holder (i) agreeing to the terms of this Agreement and the Holder's willingness to forego certain rights previously agreed by the parties, the Company shall issue 179,841 shares of Common Stock to Holder (the "<u>First Additional Shares</u>"), and (ii) agreeing to extend the payment date of the quarterly interest payment due to Holder under the Note for the fiscal quarters ended September 30, 2022 and December 31, 2022, until January 25, 2023, the Company shall issue 7,493 shares of Common Stock to Holder (the "<u>Second Additional Shares</u>" and together with the First Additional Shares, the "<u>Additional Shares</u>"). The issuance of the First Additional Shares shall be conditioned on the closing of the Transactions, and the Additional Shares shall be issued within three (3) business days after the Closing Date. In addition, the Company shall cause PC1 to issue 48,658 shares of PC1's common stock to the Holder within three (3) business days after the completion of the issuance, if any, of the shares of PC1's common stock being issued as a dividend to LiveOne's stockholders of record as of the record date of January 16, 2023 (or such other record date as LiveOne shall determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Trinad Capital</u>. Effective as of the Closing Date and the closing of the Transactions, Trinad Capital Master Fund Ltd. ("<u>Trinad Capital</u>") shall have agreed to convert all of its outstanding promissory notes payable into shares of Series A Preferred Stock on the same terms as set forth in the Exchange Documents, except for such terms as are applicable to Trinad Capital. The amount and description of the Company's outstanding promissory notes payable to Trinad Capital is as set forth in the SEC Reports (as defined in the SPA), which constitutes all of the outstanding promissory notes payable by the Company to Trinad Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Ellin Agreement</u>. Effective as of the Closing Date and the closing of the Transactions, Robert S. Ellin, the Company's Chief Executive Officer and Chairman, shall have entered into the letter agreement, in the form attached hereto as <u>Exhibit B</u> (the "<u>Ellin Letter Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Release</u>. (i) The Holder hereby (y) acknowledges and agrees that the issuance of the Exchange Shares as provided herein will constitute payment in full of all of the indebtedness, liabilities and other obligations of the Company and its subsidiaries under the Note and all other agreements and documents entered into by the parties in connection therewith (including, without limitation, the Transaction Documents, as defined in the SPA), except for the Exchange Documents, and (z) agrees that, upon such receipt by the Holder of the Exchange Shares and the Additional Shares: (A) all security interests, encumbrances and other liens (including, without limitation, liens granted pursuant to the Note, Security Agreement or any other Transaction Document) which the Company and/or any of its subsidiaries may have granted to the Holder and/or its secured parties, on or against the Company's and/or any of its subsidiaries' collateral shall be automatically released and terminated and the Note, the Security Agreement (as defined in the SPA) and any other Transaction Document) shall automatically terminate; (B) all Subsidiary Guarantees (as defined in the SPA) which any of the Company's subsidiaries or other persons may have issued to the Holder and/or their secured parties in connection with the Note shall be automatically released and terminated and all of the existing documents supporting such guarantees shall automatically terminate; (C) at the request of the Company and solely at the expense of the Company, the Holder shall promptly take such commercially reasonable actions necessary or appropriate to further effect and evidence the foregoing; and (D) the Company and its attorneys shall be, and hereby are, authorized, without any further authorization or consent of the Holder and/or its secured parties, to (i) terminate any Deposit Control Account Agreement or similar agreements established by the Company or any subsidiaries of the Company for the benefit of the Holder and/or its secured parties, and (ii) file termination statements with respect to all Uniform Commercial Code financing statements filed by or for the benefit of the Holder and/or its secured parties against the Company or any subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of its subsidiaries (the "<u>Company Parties</u>" and each a "<u>Company Party</u>") hereby acknowledge that as of the date hereof no Company Party has any defense, counterclaim, offset, cross-complaint, claim or demand of any kind or nature whatsoever that can be asserted to reduce or eliminate all or any part of its liability to issue the Securities or to seek affirmative relief or damages of any kind or nature from the Holder, or any of its respective affiliates, directors, officers, agents, employees or attorneys under the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except for such party's obligation under the Exchange Documents, for good and valuable consideration, each party hereto for itself, its subsidiaries and their respective successors, assigns, officers, directors, employees, limited partners, general partners, investors, attorneys, subsidiaries, shareholders, trustees, advisors, agents, representatives and other professionals, and any person acting for or on behalf of, or claiming through such party or persons (collectively, the "<u>Representatives</u>") hereby voluntarily and knowingly releases and forever discharges the other party hereto, its affiliates and each of their respective Representatives from all possible claims, counterclaims, demands, actions, causes of action, damages, costs, expenses, and liabilities whatsoever, known or unknown, anticipated or unanticipated, suspected or unsuspected, fixed, contingent, or conditional, at law or in equity, that such releasing party may now or hereafter have against the other party hereto, its affiliates and/or any of their respective Representatives in connection with or related to the Note and the other Transaction Documents, and irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise. Each releasing party hereby covenants and agrees never to institute any action or suit at law or in equity, nor institute, prosecute, or in any way aid in the institution or prosecution of any claim, counterclaim, action or cause of action, rights to recover debts or demands of any nature against the other party hereto, its affiliates and their respective Representatives arising out of or related to the Note and the other Transaction Documents, including, without limitation, any of such person's actions, omissions, statements, requests or demands in administering, enforcing, monitoring, collecting or attempting to collect the obligations, except for such party's rights to enforce the terms of this Agreement and the other Exchange Documents.

Each party hereto, on behalf of itself and its affiliates and their respective Representatives, waives and relinquishes any and all rights and benefits under the terms of Section 1542 of the California Civil Code, which provides as follows:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Other Agreements of the Parties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>PC1 Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly or through its 100% owned subsidiary LiveXLive PodcastOne, Inc., a Delaware corporation, own no less than 66% of the total equity and voting rights of Courtside Group, Inc. (dba PodcastOne), a Delaware corporation ("<u>PC1</u>"), and all classes of PC1 securities on a fully diluted basis, assuming all PC1 shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Offerings Limitation</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not issue shares of Common Stock or Common Stock Equivalents with a conversion price less than $2.10 per share (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock), without Majority Holders' prior written consent; except for any issuances in any fiscal year (i) (x) of shares, stock options or warrants to the Company's and/or its subsidiaries' employees, officers, directors, talent, business partners, consultants, advisors and/or service providers, (y) pursuant to any existing or future equity incentive plan(s) or compensation plans of the Company, and (z) of shares and/or warrants in connection with any non-convertible debt financing(s) of the Company and/or its subsidiaries (collectively, the "<u>Excluded Issuances</u>"), provided, that the Excluded Issuances during each fiscal year of the Company commencing after the Closing Date (for clarification, the period from the Closing Date until March 31, 2023 (inclusive) shall be considered the Company's 2023 fiscal year) shall not equal or exceed 5% of the Common Stock then outstanding on a fully diluted basis, and (ii) in connection with any merger, acquisition or other business combinations of the Company and/or any of its subsidiaries with any unaffiliated third party. For the avoidance of doubt, if Excluded Issuances in any fiscal year do not equal or exceed 5% then outstanding on a fully diluted basis, the balance shall not be carried over to the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subsidiary Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly own no less than 66% of the total equity and voting rights of any and all classes of securities of each of Slacker, Inc., a Delaware corporation, PPV One, Inc., a Delaware corporation, or LiveXLive Events, LLC, a Delaware limited liability company, in each case on a fully diluted basis assuming all such company's shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consent to Financing</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not raise more than an aggregate of $20,000,000 of capital in one or more offerings, including without limitation, one or more equity or debt offerings or a combination thereof, on an accumulated basis commencing after the Closing Date, without the prior written approval of the Majority Holders; provided, that such approval shall not be required for any equity financing of the Company at a price of $2.25 per share or above (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Asset Dispositions</u>. If after the Closing Date, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, the Company distributes any of its assets or any shares of Common Stock or Common Stock Equivalents of any of its subsidiaries pro rata to the record holders of any class of shares of Common Stock, the Company shall calculate and distribute to Holder its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the then outstanding Exchange Shares) concurrently with the distribution to the then record holders of any class of Company Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Holder's Rights</u>. A breach by the Company of any of Sections 7(a)-(e) (inclusive) of this Agreement, any of Sections (a) or (b) of the Ellin Letter Agreement, or Sections 3 or 8(b) of the Certificate of Designation (each, a "<u>Protective Provision</u>") shall trigger the following: at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding upon (i) an uncured breach of any Protective Provision, or (ii) any uncured default of payment of any Interest or other dividend to Holder required by the Certificate of Designation, and such uncured breach is ongoing, the Company shall issue to Holder 11,989 shares of its Common Stock (the "<u>Default Shares</u>") for each five (5) Trading Days (or pro rata thereof) that such breach or default is ongoing commencing on the date that such breach or default occurred; provided, that such number of shares shall be pro rata decreased for any conversion of Holder's Exchange Shares into Common Stock; provided, further, that for any period during which two or more breaches or defaults are simultaneously occurring, Holder shall be entitled to receive the applicable amount of Default Shares for only one such breach or default so as to avoid the double issuance of Default Shares for the same default or breach period. The Company shall have the right to cure any such breach or default within three (3) business days without triggering the issuance of the Default Shares. "<u>Trading Day</u>" means a day on which the Principal Market is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Listing</u>. The Company shall use reasonable best efforts to promptly secure the listing of all of the Conversion Shares and the Additional Shares on the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Registration Statement</u>. On or prior to the date that is forty-five (45) days after the consummation of any Qualified Offering and in any event no later than July 15, 2023, the Company shall prepare and file with the SEC a Registration Statement on Form S-3 (or such other form as applicable) covering the resale under the Securities Act of all the Conversion Shares and the Additional Shares issued to the Holder and Harvest Small Cap Partners Master, Ltd. for an offering to be made on a continuous basis pursuant to Rule 415 (the "<u>Registration Statement</u>"). The Company shall use its commercially reasonable best efforts to cause the Registration Statement to be declared effective promptly thereafter on or before sixty (60) days after the filing of the Registration Statement (or if the SEC issues any comments with respect to the Registration Statement, on or before one hundred twenty (120) days after the filing of the Registration Statement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Information Rights</u>. Until the time that no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding, (i) the Company shall maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act and to otherwise cause all public information requirements of Rule 144(c), and, if applicable, all information requirements of Rule 144(i) to be satisfied, and (ii) neither the Company nor any of its subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock from the Principal Market. "<u>Principal Market</u>" means the Nasdaq Capital Market or such other Trading Market where the Common Stock is then listed or quoted. "<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the Principal Market (or any successors to any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Board Representation</u>. The Holder shall not be entitled to (i) elect a member of the Board of Directors or (ii) access to any material nonpublic information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Holder Cooperation Related to Note Shares and Informational Requirements</u>. The Holder will reasonably cooperate with the Company in connection with the issuance of the Conversion Shares and the Additional Shares through the book-entry facilities of The Depository Trust Company, if and when such shares are eligible to be issued through the book-entry facilities of The Depository Trust Company. The Holder shall provide the Company and its transfer agent and legal counsel a customary Rule 144 representation letter and such documents as the Company and its transfer agent and/or legal counsel shall reasonably request and cause its broker or custodian to provide a customary broker or custodian Rule 144 representation letter. Holder agrees that it will not effect any resale of the Conversion Shares and the Additional Shares unless (i) such resale is pursuant to an effective registration statement under the Securities Act, (ii) the Company is then in compliance with the informational requirements of Rule 144(c), if applicable, and the requirements of Rule 144(i)(2) or (iii) such Holder provides to the Company an opinion of its counsel, which opinion and counsel are reasonably acceptable to the Company, that such sale is otherwise permissible in accordance with Section 4(a)(1) of the Securities Act. Upon request by any Holder, the Company will promptly confirm (as promptly as practicable after the Holder's request if such request is made between the Open of Business and the Close of Business on a Business Day) whether or not such informational and other requirements are satisfied, and the Holder will be entitled to rely on such confirmation. In addition, the Holder shall cause its broker to provide an undertaking from such broker that prior to executing any sale of the Conversion Shares and/or the Additional Shares on behalf of the Holder, such broker will confirm the Company has filed with the Commission the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q required to be filed under Section 13 or 15(d) of the Exchange Act within the preceding 12 months (a "<u>Broker Undertaking</u>"). The Broker Undertaking shall further provide that no sales of any Conversion Shares or Additional Shares shall be made by such broker if the Holder has received a Company Non-Compliance Notice (as defined below). Notwithstanding the foregoing, the Company shall promptly notify the Holder in the event the Company is not in compliance with the informational requirements of Rule 144(c) (until such time as those requirements cease to apply under Rule 144(b)(1)) or the requirements of Rule 144(i)(2) (a "<u>Company Non-Compliance Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Securities Laws Disclosure; Publicity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Holder shall be deemed to be in possession of material non-public information regarding the transactions contemplated by the Exchange Documents. The Company shall promptly after the Closing Date (or in any case, by no later than 5:30 p.m. (local time in New York, New York) on or before the fourth Trading Day immediately following the Closing Date, file with the Commission a Current Report on Form 8-K disclosing all of the material terms of the Exchange Documents and this Agreement and the Certificate of Designation as exhibits thereto (the "<u>Current Report</u>"). Upon the filing of such Current Report, the Company represents to the Holder that it shall have publicly disclosed all "material, non-public information" made available to the Holder by the Company or any of its subsidiaries, or any of their respective officers, directors, employees or agents; provided that in the event that the Company does not make the disclosures set forth in this Section, the Holder is authorized to make any such disclosures deemed reasonably necessary by the Holder to ensure that any such information is no longer deemed material non-public information and such disclosure by the Holder shall not be a breach of any of Holder's confidentiality obligations to the Company. The Company and the Holder shall consult with each other in issuing any other public announcements or press releases with respect to the transactions contemplated hereby, and neither the Company nor the Holder shall issue any such public announcement or press release nor otherwise make any such public statement or communication without the prior consent of the Company, with respect to any disclosure of the Holder, or without the prior consent of the Holder, with respect to any disclosure of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, then the disclosing party shall, to the extent lawful and practicable (having regard to time and in the case of the Company, the Company's continuous disclosure obligations), promptly provide the other party with prior notice of such public announcement, press release, public statement or communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except with respect to the material terms and conditions of the transactions contemplated by the Exchange Documents and the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, has provided prior to the date hereof or will in the future provide Holder or its agents or counsel with any information that the Company believes constitutes material non-public information unless prior thereto Holder shall have entered into a written agreement with the Company regarding the confidentiality and use of such information in the form reasonably acceptable to the Company and Holder. The Company understands and confirms that Holder shall be relying on the foregoing covenant in effecting transactions in securities of the Company. In the event of a breach of the foregoing covenant by the Company, or any of its subsidiaries, or any of its or their respective officers, directors, employees and agents, in addition to any other remedy provided herein or in the Transaction Documents, the Company shall, unless otherwise agreed by Holder, publicly disclose any "material, non-public information" in a Current Report on Form 8-K filed with the Commission within four (4) Trading Days following the date that it discloses such information to Holder or such earlier time as may be required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Miscellaneous.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including without limitation, any beneficial owner of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law; Jurisdiction; Waiver of Jury Trial</u>. All questions concerning the construction, validity, enforcement and interpretation of the Exchange Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Exchange Documents (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the County of New Castle. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Exchange Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. **IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Severability</u>. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>. Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, (ii) electronic mail or (iii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

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| | |
|:---|:---|
| If to the Company, to: | LiveOne, Inc. |
|  | 269 S. Beverly Dr., Suite #1450 |
|  | Beverly Hills, CA 90212 |
|  | Attention: Robert S. Ellin, CEO<br> Email: rob@liveone.com<br>with a copy to (which shall not constitute notice)<br> Tenia Muhammad at tenia@livone.com and Sasha Ablovatskiy,<br> Esq. of Foley Shechter Ablovatskiy LLP at<br> sablovatskiy@foleyshechter.com |

---

If to Holder, to the address set forth on the signature page of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legal Fees and Expenses</u>. The Company agrees to pay, within five (5) business days of the Closing Date, all of Holder's out-of-pocket legal fees incurred in connection with this Agreement and the Exchange Documents. In addition, in the event of (i) any breach of any Protective Provision, (ii) any default of payment of any Interest or other dividend to Holder, or (iii) any breach of the Company's obligation to deliver Securities required by the terms of the Exchange Documents, in each case which is not cured within the permitted time period, the Company shall pay all of Holder's out-of-pocket legal fees incurred in connection therewith. Except as otherwise provided for herein, the parties hereto shall pay their own costs and expenses in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Amendments</u>. This Agreement, the Certificate of Designation and the Exchange Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Headings</u>. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Authorization</u>. Each party represents and warrants to the other party that such first party has full power and authority to enter into this Agreement, and such agreement constitutes its valid and legally binding obligation, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited bylaws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Certificate of Designation</u>. Except as set forth herein, the Company hereby ratifies and reaffirms the Certificate of Designation, which shall remain in full force and effect. Except as set forth herein, this Agreement is not a novation and the terms and conditions of this Agreement shall be in addition to and supplemental to all terms and conditions set forth in the Certificate of Designation. In the event of any conflict or inconsistency between this Agreement and the terms of the Certificate of Designation, the terms of this Agreement shall be controlling, but the Certificate of Designation shall not otherwise be affected or the rights therein impaired. The parties agree to take all such further action(s) as may reasonably be necessary to carry out the transactions contemplated hereunder as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Termination</u>. This Agreement and the obligations of the Company pursuant to this Agreement and the other Exchange Documents shall terminate, without further action by either party hereto, at such time as no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Stock Splits</u>. Any shares of the Company's capital stock or other securities to be issued in connection with the Transactions or as a result of any conversion of the Series A Preferred Stock and any applicable conversion price or number of shares required to be issued hereunder shall be subject to all adjustments in the number of shares of the Company's capital stock as a result of any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock underlying the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Execution</u>. This Agreement may be executed in two (2) or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| **LIVEONE, INC.** | **LIVEONE, INC.** |
| By: | /s/ *Robert S. Ellin* |
| Name: | Robert S. Ellin |
| Title: | CEO & Chairman |
| **HOLDER:**<br>**Harvest Small Cap Partners, L.P.** | **HOLDER:**<br>**Harvest Small Cap Partners, L.P.** |
| By: | /s/ *Jeff Osher* |
| Name: | Jeff Osher |
| Title: | Managing Member |
| Email address for delivery of Notices: jeff@nostreetcapital.com | Email address for delivery of Notices: jeff@nostreetcapital.com |
| Address for delivery of Exchange Shares: | Address for delivery of Exchange Shares: |
| 505 Montgomery Street, Suite 1250 | 505 Montgomery Street, Suite 1250 |
| San Francisco, California 94111 | San Francisco, California 94111 |

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**Exhibit A**

**<u>Certificate of Designation</u>**

[*see attached*]

**Exhibit B**

**<u>Ellin Letter Agreement</u>**

[*see attached*]

## Exhibit 10.2

**Exhibit 10.2** 

**EXCHANGE AGREEMENT**

This EXCHANGE AGREEMENT (the "<u>Agreement</u>"), dated as of February 3, 2023 (the "<u>Closing Date</u>"), is made by and between LiveOne, Inc., a Delaware corporation (the "<u>Company</u>"), and the holder of the Note (as defined below) signatory hereto (the "<u>Holder</u>"). All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Certificate of Designation (as defined below).

WHEREAS, on September 15, 2020, the Company issued to Holder that certain 8.5% Senior Secured Convertible Note (the "<u>Note</u>"), in the aggregate amount of $10,503,965, pursuant to the terms of the Securities Purchase Agreement, dated as of July 2, 2020 (the "<u>SPA</u>"), as amended on July 30, 2020, entered into between the Company and No Street Capital LLC, a Delaware limited liability company, which Note and SPA were further amended on June 3, 2021 and July 6, 2022 (the Note, the SPA, such amendments and all documents and agreements entered into in connection therewith are collectively referred to herein as the "<u>Transaction Documents</u>");

WHEREAS, the Company has authorized a new series of preferred stock designated as Series A Perpetual Convertible Preferred Stock, $0.001 par value per share, the terms of which are set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock (the "<u>Certificate of Designation</u>"), in the form attached hereto as <u>Exhibit A</u> (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the "<u>Series A Preferred Stock</u>"), which Series A Preferred Stock shall be convertible into shares (the "<u>Conversion Shares</u>") of the Company's common stock, $0.001 par value per share (the "<u>Common Stock</u>"), in accordance with the terms of the Certificate of Designation; and

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Note for Series A Preferred Stock and such other consideration as provided herein.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Holder agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Terms of the Exchange</u>. The Company and the Holder agree that the Holder will exchange the Note, and will relinquish any and all rights the Holder may have under the Note and the Transaction Documents in exchange for 10,504 shares of the Series A Preferred Stock (the "<u>Exchange Shares</u>" and collectively with the Conversion Shares and the Additional Shares (as defined below), the "<u>Securities</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Closing</u>. Upon satisfaction of the conditions set forth herein, on the Closing Date, the closing (the "<u>Closing</u>") of the transactions contemplated under this Agreement, the Certificate of Designation and the Side Letter (as defined below) (collectively, the "<u>Transactions</u>") shall occur at the principal offices of the Company, or such other location as the parties shall mutually agree. At Closing, Holder shall deliver a copy of the Note to the Company and the Company shall deliver to such Holder a certificate or other evidence representing the Exchange Shares, in the name(s) and amount(s) as requested by the Holder. To the extent that the original Note is not surrendered by the Holder to the Company or its counsel at Closing, the Holder shall deliver the original Note to the Company promptly after the Closing Date, and in any event within twenty (20) calendar day thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties of the Holder</u>. The Holder represents and warrants, as of the date hereof and as of the closing, to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Holder has the requisite power and authority to enter into and to consummate the Transactions and otherwise to carry out its obligations hereunder and the Certificate of Designation and the Side Letter (collectively, the "<u>Exchange Documents</u>"). The execution and delivery of this Agreement and the Side Letter by the Holder and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder. The Exchange Documents have been (or upon delivery will have been) duly executed by the Holder (to the extent the Holder is a signatory thereto) and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Legal, Tax or Investment Advice</u>. The Holder understands that nothing in the Exchange Documents or any other materials presented to such Person in connection with the exchange for the Note and/or the issuance of the Exchange Shares, the Conversion Shares and/or the Additional Shares constitutes legal, tax or investment advice. Such Person has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its exchange of the Note for the Exchange Shares and the issuance of the Conversion Shares and/or the Additional Shares. Such Person acknowledges that it has not relied on any representation or warranty from the Company or any other Person in making its investment or decision to invest in the Company, except as expressly set forth in this Agreement and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the Transactions. "<u>Person</u>" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Regarding Holder</u>. Holder is an "accredited investor", as such term is defined in Rule 501(a) of Regulation D promulgated by the United States Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Exchange Shares. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Legend</u>. The Holder understands that Exchange Shares have been issued (or will be issued in the case of the other Securities) pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Removal of Legends</u>. Certificates evidencing the Conversion Shares and/or the Additional Shares shall not be required to contain the legend set forth in Section 4(d) above or any other legend (i) while a registration statement covering the resale of such Conversion Shares and/or the Additional Shares, as applicable, is effective under the Securities Act, (ii) following any sale of such Conversion Shares and/or the Additional Shares, as applicable, pursuant to Rule 144 (as defined herein) (assuming the transferor is not an affiliate of the Company), (iii) if such Conversion Shares and/or the Additional Shares, as applicable, are eligible to be sold, assigned or transferred under Rule 144 and the subscriber is not an affiliate of the Company (provided that the Holder provides the Company with reasonable assurances that such Conversion Shares and/or the Additional Shares, as applicable, are eligible for sale, assignment or transfer under Rule 144 which shall be accompanied by an opinion of the Holder's counsel as required above), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, in a generally acceptable form, to the effect that such sale, assignment or transfer of such Conversion Shares and/or the Additional Shares, as applicable, may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business days following the delivery by the Holder to the Company or the transfer agent (with notice to the Company) of a legended certificate representing the Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be reasonably required by the Company and/or its transfer agent, as directed by the Holder, either: (A) provided that the Company's transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such securities are Conversion Shares, credit the aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company's transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Conversion Shares and/or the Additional Shares, as applicable, that is free from all restrictive and other legends, registered in the name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Exchange Shares and the removal of any legends with respect to any Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable, in accordance herewith, including, but not limited to, fees for the opinions of counsel rendered to the transfer agent in connection with the removal of any legends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Securities</u>. The Holder understands that: (i) none of the Securities have been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, to the effect that such Securities, as applicable, to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Securities, as applicable, can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, "<u>Rule 144</u>"); and (ii) any sale of the Securities, as applicable, made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities, as applicable, under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties of the Company</u>. The Company hereby makes the following representations and warranties to the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the Exchange Documents and each of the other agreements entered into by the parties hereto in connection with the Transactions and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Exchange Documents by the Company and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Company and the Company's shareholders, in accordance with the rules of The NASDAQ Capital Market, if required, and no further action is required by the Company or the Board of Directors of the Company in connection therewith. The Exchange Documents have been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organization and Qualification</u>. The Company is an entity duly organized and validly existing and in good standing under the laws of the State of Delaware, and has the requisite power and authorization to own their properties and to carry on its business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, "<u>Material Adverse Effect</u>" means any material adverse effect on (i) the results of operations, assets, business, or financial condition of the Company and its subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution, delivery and performance by the Company of this Agreement and the other Exchange Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the Transactions do not and will not: (i) conflict with or violate any provision of the Company's certificate of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, charge or other encumbrance (other than pursuant to the Transaction Documents) upon any of the properties or assets of the Company or any of its subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or its subsidiaries debt or otherwise) or other understanding to which the Company or any subsidiary is a party or by which any property or asset of the Company or any subsidiary is bound or affected, or (iii) subject to the receipt of the Required Approvals (as defined below), conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or any governmental authority to which the Company or any of its subsidiaries is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or any of its subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Consents</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other foreign, federal, state, local or other governmental authority in connection with the execution, delivery and performance by the Company of the Exchange Documents, other than: (i) the notice and/or application(s) to the Principal Market for the issuance of the Conversion Shares and the Additional Shares, (ii) the filing of the Form D with the Commission, (iii) the filing contemplated by Section 7(l) and (iv) consent of East West Bank to the Transactions (collectively, the "<u>Required Approvals</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Securities Law Exemptions</u>. Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the Exchange Shares is exempt from registration under the Securities Act. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Issuance of Securities</u>. The issuance of the Exchange Shares and the Additional Shares is duly authorized and upon issuance in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. Upon issuance or conversion in accordance with the Certificate of Designation, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shell Company Status</u>. The Company is not an issuer identified in Rule 144(i)(1) of the Securities Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>SPA Representations</u>. The Company represents and warrants that all representations and warranties set forth in Section 3.1 of the SPA, which are hereby incorporated by reference, are true and correct on and as of the Closing as if fully restated herein, except for the representations and warranties as modified above in this Section 5 or those set forth in Sections 3.1(a). 3.1(g), 3.1(i), 3.1(q), 3.1(v), and 3.1(ee) of the SPA, which are amended and restated as follows. Notwithstanding anything to the contrary herein, capitalized terms used but not defined in this Section 5(h) shall have the meanings ascribed to such terms in the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Subsidiaries</u>. All of the direct and indirect Subsidiaries of the Company are set forth on <u>Schedule 5(h)(i)</u>. The Company owns, directly or indirectly, all of the Equity Interests of each Subsidiary free and clear of any Liens (other than Permitted Liens or as set forth on <u>Schedule 5(h)(i)</u>), options or warrants, and all of the issued and outstanding Equity Interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. "<u>Senior Lender</u>" means East West Bank and its assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Capitalization</u>. The capitalization of the Company is as set forth on <u>Schedule 5(h)(ii)</u>. The Company has not issued any capital stock since its most recently issued SEC Reports, other than as set forth on <u>Schedule 5(h)(ii)</u> pursuant to the exercise of employee stock options under the Company's stock incentive plans, the issuance of shares of Common Stock to employees or consultants pursuant to the Company's stock incentive plans or in the ordinary course of business and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Exchange Documents. Except as set forth in the SEC Reports or in the Exchange Documents, there are no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as set forth on <u>Schedule 5(h)(ii)</u> or in the Transaction Documents, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. Except as set forth on <u>Schedule 5(h)(ii)</u>, there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary, and there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance with all applicable foreign, federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) neither the Company nor any Subsidiary has incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on <u>Schedule 5(h)(iii)</u>, to the knowledge of the Company, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Registration Rights</u>. Except as described in the SEC Reports or as contemplated by the Exchange Documents, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Solvency; Seniority</u>. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the Transactions: (i) the fair saleable value of the Company's tangible assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth on Schedule 5(h)(v), the Company has no knowledge of any facts or circumstances, which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 5(h)(v)sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. As of the Closing Date and giving effect to the consummation of the Transactions, other than Indebtedness with the Senior Lender and as set forth on Schedule 5(h)(v), no Indebtedness or other claim against the Company is senior to the Series A Preferred Stock in right of payment, whether with respect to dividends or upon liquidation or dissolution, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Listing and Maintenance Requirements</u>. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market. Except as set forth in the SEC Reports, the Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository Trust Company and the Company is current in payment of the fees to the Depository Trust Company in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Other Conditions to Closing; Covenants</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuance of Shares</u>. In consideration of the Holder (i) agreeing to the terms of this Agreement and the Holder's willingness to forego certain rights previously agreed by the parties, the Company shall issue 420,159 shares of Common Stock to Holder (the "<u>First Additional Shares</u>"), and (ii) agreeing to extend the payment date of the quarterly interest payment due to Holder under the Note for the fiscal quarters ended September 30, 2022 and December 31, 2022, until January 25, 2023, the Company shall issue 17,507 shares of Common Stock to Holder (the "<u>Second Additional Shares</u>" and together with the First Additional Shares, the "<u>Additional Shares</u>"). The issuance of the First Additional Shares shall be conditioned on the closing of the Transactions, and the Additional Shares shall be issued within three (3) business days after the Closing Date. In addition, the Company shall cause PC1 to issue 113,680 shares of PC1's common stock to the Holder within three (3) business days after the completion of the issuance, if any, of the shares of PC1's common stock being issued as a dividend to LiveOne's stockholders of record as of the record date of January 16, 2023 (or such other record date as LiveOne shall determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Trinad Capital</u>. Effective as of the Closing Date and the closing of the Transactions, Trinad Capital Master Fund Ltd. ("<u>Trinad Capital</u>") shall have agreed to convert all of its outstanding promissory notes payable into shares of Series A Preferred Stock on the same terms as set forth in the Exchange Documents, except for such terms as are applicable to Trinad Capital. The amount and description of the Company's outstanding promissory notes payable to Trinad Capital is as set forth in the SEC Reports (as defined in the SPA), which constitutes all of the outstanding promissory notes payable by the Company to Trinad Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Ellin Agreement</u>. Effective as of the Closing Date and the closing of the Transactions, Robert S. Ellin, the Company's Chief Executive Officer and Chairman, shall have entered into the letter agreement, in the form attached hereto as <u>Exhibit B</u> (the "<u>Ellin Letter Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Release</u>. (i) The Holder hereby (y) acknowledges and agrees that the issuance of the Exchange Shares as provided herein will constitute payment in full of all of the indebtedness, liabilities and other obligations of the Company and its subsidiaries under the Note and all other agreements and documents entered into by the parties in connection therewith (including, without limitation, the Transaction Documents, as defined in the SPA), except for the Exchange Documents, and (z) agrees that, upon such receipt by the Holder of the Exchange Shares and the Additional Shares: (A) all security interests, encumbrances and other liens (including, without limitation, liens granted pursuant to the Note, Security Agreement or any other Transaction Document) which the Company and/or any of its subsidiaries may have granted to the Holder and/or its secured parties, on or against the Company's and/or any of its subsidiaries' collateral shall be automatically released and terminated and the Note, the Security Agreement (as defined in the SPA) and any other Transaction Document) shall automatically terminate; (B) all Subsidiary Guarantees (as defined in the SPA) which any of the Company's subsidiaries or other persons may have issued to the Holder and/or their secured parties in connection with the Note shall be automatically released and terminated and all of the existing documents supporting such guarantees shall automatically terminate; (C) at the request of the Company and solely at the expense of the Company, the Holder shall promptly take such commercially reasonable actions necessary or appropriate to further effect and evidence the foregoing; and (D) the Company and its attorneys shall be, and hereby are, authorized, without any further authorization or consent of the Holder and/or its secured parties, to (i) terminate any Deposit Control Account Agreement or similar agreements established by the Company or any subsidiaries of the Company for the benefit of the Holder and/or its secured parties, and (ii) file termination statements with respect to all Uniform Commercial Code financing statements filed by or for the benefit of the Holder and/or its secured parties against the Company or any subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of its subsidiaries (the "<u>Company Parties</u>" and each a "<u>Company Party</u>") hereby acknowledge that as of the date hereof no Company Party has any defense, counterclaim, offset, cross-complaint, claim or demand of any kind or nature whatsoever that can be asserted to reduce or eliminate all or any part of its liability to issue the Securities or to seek affirmative relief or damages of any kind or nature from the Holder, or any of its respective affiliates, directors, officers, agents, employees or attorneys under the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except for such party's obligation under the Exchange Documents, for good and valuable consideration, each party hereto for itself, its subsidiaries and their respective successors, assigns, officers, directors, employees, limited partners, general partners, investors, attorneys, subsidiaries, shareholders, trustees, advisors, agents, representatives and other professionals, and any person acting for or on behalf of, or claiming through such party or persons (collectively, the "<u>Representatives</u>") hereby voluntarily and knowingly releases and forever discharges the other party hereto, its affiliates and each of their respective Representatives from all possible claims, counterclaims, demands, actions, causes of action, damages, costs, expenses, and liabilities whatsoever, known or unknown, anticipated or unanticipated, suspected or unsuspected, fixed, contingent, or conditional, at law or in equity, that such releasing party may now or hereafter have against the other party hereto, its affiliates and/or any of their respective Representatives in connection with or related to the Note and the other Transaction Documents, and irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise. Each releasing party hereby covenants and agrees never to institute any action or suit at law or in equity, nor institute, prosecute, or in any way aid in the institution or prosecution of any claim, counterclaim, action or cause of action, rights to recover debts or demands of any nature against the other party hereto, its affiliates and their respective Representatives arising out of or related to the Note and the other Transaction Documents, including, without limitation, any of such person's actions, omissions, statements, requests or demands in administering, enforcing, monitoring, collecting or attempting to collect the obligations, except for such party's rights to enforce the terms of this Agreement and the other Exchange Documents.

Each party hereto, on behalf of itself and its affiliates and their respective Representatives, waives and relinquishes any and all rights and benefits under the terms of Section 1542 of the California Civil Code, which provides as follows:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Other Agreements of the Parties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>PC1 Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly or through its 100% owned subsidiary LiveXLive PodcastOne, Inc., a Delaware corporation, own no less than 66% of the total equity and voting rights of Courtside Group, Inc. (dba PodcastOne), a Delaware corporation ("<u>PC1</u>"), and all classes of PC1 securities on a fully diluted basis, assuming all PC1 shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Offerings Limitation</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not issue shares of Common Stock or Common Stock Equivalents with a conversion price less than $2.10 per share (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock), without Majority Holders' prior written consent; except for any issuances in any fiscal year (i) (x) of shares, stock options or warrants to the Company's and/or its subsidiaries' employees, officers, directors, talent, business partners, consultants, advisors and/or service providers, (y) pursuant to any existing or future equity incentive plan(s) or compensation plans of the Company, and (z) of shares and/or warrants in connection with any non-convertible debt financing(s) of the Company and/or its subsidiaries (collectively, the "<u>Excluded Issuances</u>"), provided, that the Excluded Issuances during each fiscal year of the Company commencing after the Closing Date (for clarification, the period from the Closing Date until March 31, 2023 (inclusive) shall be considered the Company's 2023 fiscal year) shall not equal or exceed 5% of the Common Stock then outstanding on a fully diluted basis, and (ii) in connection with any merger, acquisition or other business combinations of the Company and/or any of its subsidiaries with any unaffiliated third party. For the avoidance of doubt, if Excluded Issuances in any fiscal year do not equal or exceed 5% then outstanding on a fully diluted basis, the balance shall not be carried over to the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subsidiary Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly own no less than 66% of the total equity and voting rights of any and all classes of securities of each of Slacker, Inc., a Delaware corporation, PPV One, Inc., a Delaware corporation, or LiveXLive Events, LLC, a Delaware limited liability company, in each case on a fully diluted basis assuming all such company's shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consent to Financing</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not raise more than an aggregate of $20,000,000 of capital in one or more offerings, including without limitation, one or more equity or debt offerings or a combination thereof, on an accumulated basis commencing after the Closing Date, without the prior written approval of the Majority Holders; provided, that such approval shall not be required for any equity financing of the Company at a price of $2.25 per share or above (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Asset Dispositions</u>. If after the Closing Date, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, the Company distributes any of its assets or any shares of Common Stock or Common Stock Equivalents of any of its subsidiaries pro rata to the record holders of any class of shares of Common Stock, the Company shall calculate and distribute to Holder its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the then outstanding Exchange Shares) concurrently with the distribution to the then record holders of any class of Company Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Holder's Rights</u>. A breach by the Company of any of Sections 7(a)-(e) (inclusive) of this Agreement, any of Sections (a) or (b) of the Ellin Letter Agreement, or Sections 3 or 8(b) of the Certificate of Designation (each, a "<u>Protective Provision</u>") shall trigger the following: at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding upon (i) an uncured breach of any Protective Provision, or (ii) any uncured default of payment of any Interest or other dividend to Holder required by the Certificate of Designation, and such uncured breach is ongoing, the Company shall issue to Holder 28,011 shares of its Common Stock (the "<u>Default Shares</u>") for each five (5) Trading Days (or pro rata thereof) that such breach or default is ongoing commencing on the date that such breach or default occurred; provided, that such number of shares shall be pro rata decreased for any conversion of Holder's Exchange Shares into Common Stock; provided, further, that for any period during which two or more breaches or defaults are simultaneously occurring, Holder shall be entitled to receive the applicable amount of Default Shares for only one such breach or default so as to avoid the double issuance of Default Shares for the same default or breach period. The Company shall have the right to cure any such breach or default within three (3) business days without triggering the issuance of the Default Shares. "<u>Trading Day</u>" means a day on which the Principal Market is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Listing</u>. The Company shall use reasonable best efforts to promptly secure the listing of all of the Conversion Shares and the Additional Shares on the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Registration Statement</u>. On or prior to the date that is forty-five (45) days after the consummation of any Qualified Offering and in any event no later than July 15, 2023, the Company shall prepare and file with the SEC a Registration Statement on Form S-3 (or such other form as applicable) covering the resale under the Securities Act of all the Conversion Shares and the Additional Shares issued to the Holder and Harvest Small Cap Partners, L.P. for an offering to be made on a continuous basis pursuant to Rule 415 (the "<u>Registration Statement</u>"). The Company shall use its commercially reasonable best efforts to cause the Registration Statement to be declared effective promptly thereafter on or before sixty (60) days after the filing of the Registration Statement (or if the SEC issues any comments with respect to the Registration Statement, on or before one hundred twenty (120) days after the filing of the Registration Statement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Information Rights</u>. Until the time that no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding, (i) the Company shall maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act and to otherwise cause all public information requirements of Rule 144(c), and, if applicable, all information requirements of Rule 144(i) to be satisfied, and (ii) neither the Company nor any of its subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock from the Principal Market. "<u>Principal Market</u>" means the Nasdaq Capital Market or such other Trading Market where the Common Stock is then listed or quoted. "<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the Principal Market (or any successors to any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Board Representation</u>. The Holder shall not be entitled to (i) elect a member of the Board of Directors or (ii) access to any material nonpublic information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Holder Cooperation Related to Note Shares and Informational Requirements</u>. The Holder will reasonably cooperate with the Company in connection with the issuance of the Conversion Shares and the Additional Shares through the book-entry facilities of The Depository Trust Company, if and when such shares are eligible to be issued through the book-entry facilities of The Depository Trust Company. The Holder shall provide the Company and its transfer agent and legal counsel a customary Rule 144 representation letter and such documents as the Company and its transfer agent and/or legal counsel shall reasonably request and cause its broker or custodian to provide a customary broker or custodian Rule 144 representation letter. Holder agrees that it will not effect any resale of the Conversion Shares and the Additional Shares unless (i) such resale is pursuant to an effective registration statement under the Securities Act, (ii) the Company is then in compliance with the informational requirements of Rule 144(c), if applicable, and the requirements of Rule 144(i)(2) or (iii) such Holder provides to the Company an opinion of its counsel, which opinion and counsel are reasonably acceptable to the Company, that such sale is otherwise permissible in accordance with Section 4(a)(1) of the Securities Act. Upon request by any Holder, the Company will promptly confirm (as promptly as practicable after the Holder's request if such request is made between the Open of Business and the Close of Business on a Business Day) whether or not such informational and other requirements are satisfied, and the Holder will be entitled to rely on such confirmation. In addition, the Holder shall cause its broker to provide an undertaking from such broker that prior to executing any sale of the Conversion Shares and/or the Additional Shares on behalf of the Holder, such broker will confirm the Company has filed with the Commission the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q required to be filed under Section 13 or 15(d) of the Exchange Act within the preceding 12 months (a "<u>Broker Undertaking</u>"). The Broker Undertaking shall further provide that no sales of any Conversion Shares or Additional Shares shall be made by such broker if the Holder has received a Company Non-Compliance Notice (as defined below). Notwithstanding the foregoing, the Company shall promptly notify the Holder in the event the Company is not in compliance with the informational requirements of Rule 144(c) (until such time as those requirements cease to apply under Rule 144(b)(1)) or the requirements of Rule 144(i)(2) (a "<u>Company Non-Compliance Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Securities Laws Disclosure; Publicity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Holder shall be deemed to be in possession of material non-public information regarding the transactions contemplated by the Exchange Documents. The Company shall promptly after the Closing Date (or in any case, by no later than 5:30 p.m. (local time in New York, New York) on or before the fourth Trading Day immediately following the Closing Date, file with the Commission a Current Report on Form 8-K disclosing all of the material terms of the Exchange Documents and this Agreement and the Certificate of Designation as exhibits thereto (the "<u>Current Report</u>"). Upon the filing of such Current Report, the Company represents to the Holder that it shall have publicly disclosed all "material, non-public information" made available to the Holder by the Company or any of its subsidiaries, or any of their respective officers, directors, employees or agents; provided that in the event that the Company does not make the disclosures set forth in this Section, the Holder is authorized to make any such disclosures deemed reasonably necessary by the Holder to ensure that any such information is no longer deemed material non-public information and such disclosure by the Holder shall not be a breach of any of Holder's confidentiality obligations to the Company. The Company and the Holder shall consult with each other in issuing any other public announcements or press releases with respect to the transactions contemplated hereby, and neither the Company nor the Holder shall issue any such public announcement or press release nor otherwise make any such public statement or communication without the prior consent of the Company, with respect to any disclosure of the Holder, or without the prior consent of the Holder, with respect to any disclosure of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, then the disclosing party shall, to the extent lawful and practicable (having regard to time and in the case of the Company, the Company's continuous disclosure obligations), promptly provide the other party with prior notice of such public announcement, press release, public statement or communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except with respect to the material terms and conditions of the transactions contemplated by the Exchange Documents and the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf, has provided prior to the date hereof or will in the future provide Holder or its agents or counsel with any information that the Company believes constitutes material non-public information unless prior thereto Holder shall have entered into a written agreement with the Company regarding the confidentiality and use of such information in the form reasonably acceptable to the Company and Holder. The Company understands and confirms that Holder shall be relying on the foregoing covenant in effecting transactions in securities of the Company. In the event of a breach of the foregoing covenant by the Company, or any of its subsidiaries, or any of its or their respective officers, directors, employees and agents, in addition to any other remedy provided herein or in the Transaction Documents, the Company shall, unless otherwise agreed by Holder, publicly disclose any "material, non-public information" in a Current Report on Form 8-K filed with the Commission within four (4) Trading Days following the date that it discloses such information to Holder or such earlier time as may be required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including without limitation, any beneficial owner of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law; Jurisdiction; Waiver of Jury Trial</u>. All questions concerning the construction, validity, enforcement and interpretation of the Exchange Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Exchange Documents (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the County of New Castle. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Exchange Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. **IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Severability</u>. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>. Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, (ii) electronic mail or (iii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

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| | |
|:---|:---|
| If to the Company, to: | LiveOne, Inc. |
|  | 269 S. Beverly Dr., Suite #1450 |
|  | Beverly Hills, CA 90212 |
|  | Attention: Robert S. Ellin, CEO<br> Email: rob@liveone.com<br>with a copy to (which shall not constitute notice)<br> Tenia Muhammad at tenia@livone.com and Sasha Ablovatskiy, <br> Esq. of Foley Shechter Ablovatskiy LLP at<br> sablovatskiy@foleyshechter.com |

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If to Holder, to the address set forth on the signature page of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legal Fees and Expenses</u>. The Company agrees to pay, within five (5) business days of the Closing Date, all of Holder's out-of-pocket legal fees incurred in connection with this Agreement and the Exchange Documents. In addition, in the event of (i) any breach of any Protective Provision, (ii) any default of payment of any Interest or other dividend to Holder, or (iii) any breach of the Company's obligation to deliver Securities required by the terms of the Exchange Documents, in each case which is not cured within the permitted time period, the Company shall pay all of Holder's out-of-pocket legal fees incurred in connection therewith. Except as otherwise provided for herein, the parties hereto shall pay their own costs and expenses in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Amendments</u>. This Agreement, the Certificate of Designation and the Exchange Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Headings</u>. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Authorization</u>. Each party represents and warrants to the other party that such first party has full power and authority to enter into this Agreement, and such agreement constitutes its valid and legally binding obligation, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited bylaws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Certificate of Designation</u>. Except as set forth herein, the Company hereby ratifies and reaffirms the Certificate of Designation, which shall remain in full force and effect. Except as set forth herein, this Agreement is not a novation and the terms and conditions of this Agreement shall be in addition to and supplemental to all terms and conditions set forth in the Certificate of Designation. In the event of any conflict or inconsistency between this Agreement and the terms of the Certificate of Designation, the terms of this Agreement shall be controlling, but the Certificate of Designation shall not otherwise be affected or the rights therein impaired. The parties agree to take all such further action(s) as may reasonably be necessary to carry out the transactions contemplated hereunder as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Termination</u>. This Agreement and the obligations of the Company pursuant to this Agreement and the other Exchange Documents shall terminate, without further action by either party hereto, at such time as no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Stock Splits</u>. Any shares of the Company's capital stock or other securities to be issued in connection with the Transactions or as a result of any conversion of the Series A Preferred Stock and any applicable conversion price or number of shares required to be issued hereunder shall be subject to all adjustments in the number of shares of the Company's capital stock as a result of any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock underlying the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Execution</u>. This Agreement may be executed in two (2) or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| **LIVEONE, INC.** | **LIVEONE, INC.** |
| By: | /s/ *Robert S. Ellin* |
| Name: | Robert S. Ellin |
| Title: | CEO & Chairman |

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| | |
|:---|:---|
| **HOLDER:**<br>**Harvest Small Cap Partners Master, Ltd.**  | **HOLDER:**<br>**Harvest Small Cap Partners Master, Ltd.**  |
| By: | /s/ *Jeff Osher* |
| Name: | Jeff Osher |
| Title: | Managing Member |

---

Email address for delivery of Notices: jeff@nostreetcapital.com <br>Address for delivery of Exchange Shares:

505 Montgomery Street, Suite 1250 <br> San Francisco, California 94111

**Exhibit A**

**<u>Certificate of Designation</u>**

[*see attached*]

**Exhibit B**

**<u>Ellin Letter Agreement</u>**

[*see attached*]

## Exhibit 10.3

**Exhibit 10.3**

**EXCHANGE AGREEMENT**

This EXCHANGE AGREEMENT (the "<u>Agreement</u>"), dated as of February 3, 2023 (the "<u>Closing Date</u>"), is made by and between LiveOne, Inc., a Delaware corporation (the "<u>Company</u>"), and the holder of the Notes (as defined below) signatory hereto (the "<u>Holder</u>"). All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Certificate of Designation (as defined below).

WHEREAS, as of January 25, 2023, the Company had outstanding 8.5% unsecured convertible notes payable in aggregate principal and accrued interest amount of $6,177,218 (the "<u>Notes</u>") issued to the Holder (the Notes and all documents and agreements entered into in connection therewith are collectively referred to herein as the "<u>Transaction Documents</u>");

WHEREAS, the Company has authorized a new series of preferred stock designated as Series A Perpetual Convertible Preferred Stock, $0.001 par value per share, the terms of which are set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series A Perpetual Convertible Preferred Stock (the "<u>Certificate of Designation</u>"), in the form attached hereto as <u>Exhibit A</u> (together with any convertible preferred shares issued in replacement thereof in accordance with the terms thereof, the "<u>Series A Preferred Stock</u>"), which Series A Preferred Stock shall be convertible into shares (the "<u>Conversion Shares</u>") of the Company's common stock, $0.001 par value per share (the "<u>Common Stock</u>"), in accordance with the terms of the Certificate of Designation; and

WHEREAS, subject to the terms and conditions set forth in this Agreement, the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Notes for Series A Preferred Stock and such other consideration as provided herein.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Holder agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Terms of the Exchange</u>. The Company and the Holder agree that the Holder will exchange the Notes, and will relinquish any and all rights the Holder may have under the Notes and the Transaction Documents in exchange for 6,177 shares of the Series A Preferred Stock (the "<u>Exchange Shares</u>" and collectively with the Conversion Shares and the Additional Shares (as defined below), the "<u>Securities</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Closing</u>. Upon satisfaction of the conditions set forth herein, on the Closing Date, the closing (the "<u>Closing</u>") of the transactions contemplated under this Agreement, the Certificate of Designation and the Side Letter (as defined below) (collectively, the "<u>Transactions</u>") shall occur at the principal offices of the Company, or such other location as the parties shall mutually agree. At Closing, Holder shall deliver a copy of the Notes to the Company and the Company shall deliver to such Holder a certificate or other evidence representing the Exchange Shares, in the name(s) and amount(s) as requested by the Holder. To the extent that the original Notes are not surrendered by the Holder to the Company or its counsel at Closing, the Holder shall deliver the original Notes to the Company promptly after the Closing Date, and in any event within twenty (20) calendar day thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties of the Holder</u>. The Holder represents and warrants, as of the date hereof and as of the closing, to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Holder has the requisite power and authority to enter into and to consummate the Transactions and otherwise to carry out its obligations hereunder and the Certificate of Designation and the Side Letter (collectively, the "<u>Exchange Documents</u>"). The execution and delivery of this Agreement and the Side Letter by the Holder and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder. The Exchange Documents have been (or upon delivery will have been) duly executed by the Holder (to the extent the Holder is a signatory thereto) and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with their terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Legal, Tax or Investment Advice</u>. The Holder understands that nothing in the Exchange Documents or any other materials presented to such Person in connection with the exchange for the Notes and/or the issuance of the Exchange Shares, the Conversion Shares and/or the Additional Shares constitutes legal, tax or investment advice. Such Person has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its exchange of the Notes for the Exchange Shares and the issuance of the Conversion Shares and/or the Additional Shares. Such Person acknowledges that it has not relied on any representation or warranty from the Company or any other Person in making its investment or decision to invest in the Company, except as expressly set forth in this Agreement and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the Transactions. "<u>Person</u>" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Regarding Holder</u>. Holder is an "accredited investor", as such term is defined in Rule 501(a) of Regulation D promulgated by the United States Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Exchange Shares. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Legend</u>. The Holder understands that Exchange Shares have been issued (or will be issued in the case of the other Securities) pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Removal of Legends</u>. Certificates evidencing the Conversion Shares and/or the Additional Shares shall not be required to contain the legend set forth in Section 4(d) above or any other legend (i) while a registration statement covering the resale of such Conversion Shares and/or the Additional Shares, as applicable, is effective under the Securities Act, (ii) following any sale of such Conversion Shares and/or the Additional Shares, as applicable, pursuant to Rule 144 (as defined herein) (assuming the transferor is not an affiliate of the Company), (iii) if such Conversion Shares and/or the Additional Shares, as applicable, are eligible to be sold, assigned or transferred under Rule 144 and the subscriber is not an affiliate of the Company (provided that the Holder provides the Company with reasonable assurances that such Conversion Shares and/or the Additional Shares, as applicable, are eligible for sale, assignment or transfer under Rule 144 which shall be accompanied by an opinion of the Holder's counsel as required above), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company with an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, in a generally acceptable form, to the effect that such sale, assignment or transfer of such Conversion Shares and/or the Additional Shares, as applicable, may be made without registration under the applicable requirements of the Securities Act or (v) if such legend is not required under applicable requirements of the Securities Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) business days following the delivery by the Holder to the Company or the transfer agent (with notice to the Company) of a legended certificate representing the Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be reasonably required by the Company and/or its transfer agent, as directed by the Holder, either: (A) provided that the Company's transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such securities are Conversion Shares, credit the aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company's transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to the Holder, a certificate representing such Conversion Shares and/or the Additional Shares, as applicable, that is free from all restrictive and other legends, registered in the name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance of Exchange Shares and the removal of any legends with respect to any Exchange Shares and/or such Conversion Shares and/or the Additional Shares, as applicable, in accordance herewith, including, but not limited to, fees for the opinions of counsel rendered to the transfer agent in connection with the removal of any legends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Securities</u>. The Holder understands that: (i) none of the Securities have been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, which counsel and opinion are satisfactory to the Company, to the effect that such Securities, as applicable, to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Securities, as applicable, can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, "<u>Rule 144</u>"); and (ii) any sale of the Securities, as applicable, made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities, as applicable, under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties of the Company</u>. The Company hereby makes the following representations and warranties to the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by the Exchange Documents and each of the other agreements entered into by the parties hereto in connection with the Transactions and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Exchange Documents by the Company and the consummation by it of the Transactions have been duly authorized by all necessary action on the part of the Company and the Company's shareholders, in accordance with the rules of The NASDAQ Capital Market, if required, and no further action is required by the Company or the Board of Directors of the Company in connection therewith. The Exchange Documents have been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organization and Qualification</u>. The Company is an entity duly organized and validly existing and in good standing under the laws of the State of Delaware, and has the requisite power and authorization to own their properties and to carry on its business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, "<u>Material Adverse Effect</u>" means any material adverse effect on (i) the results of operations, assets, business, or financial condition of the Company and its subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution, delivery and performance by the Company of this Agreement and the other Exchange Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the Transactions do not and will not: (i) conflict with or violate any provision of the Company's certificate of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, charge or other encumbrance (other than pursuant to the Transaction Documents) upon any of the properties or assets of the Company or any of its subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or its subsidiaries debt or otherwise) or other understanding to which the Company or any subsidiary is a party or by which any property or asset of the Company or any subsidiary is bound or affected, or (iii) subject to the receipt of the Required Approvals (as defined below), conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or any governmental authority to which the Company or any of its subsidiaries is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or any of its subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Consents</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other foreign, federal, state, local or other governmental authority in connection with the execution, delivery and performance by the Company of the Exchange Documents, other than: (i) the notice and/or application(s) to the Principal Market for the issuance of the Conversion Shares and the Additional Shares, (ii) the filing of the Form D with the Commission, (iii) the filing contemplated by Section 7(l) and (iv) consent of East West Bank to the Transactions (collectively, the "<u>Required Approvals</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Securities Law Exemptions</u>. Assuming the accuracy of the representations and warranties of the Holder contained herein, the offer and issuance by the Company of the Exchange Shares is exempt from registration under the Securities Act. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Issuance of Securities</u>. The issuance of the Exchange Shares and the Additional Shares is duly authorized and upon issuance in accordance with the terms of the Exchange Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. Upon issuance or conversion in accordance with the Certificate of Designation, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shell Company Status</u>. The Company is not an issuer identified in Rule 144(i)(1) of the Securities Act. The Company is, and has been for a period of at least 90 days, subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>SPA Representations</u>. The Company represents and warrants that all representations and warranties set forth in Section 3.1 of the Securities Purchase Agreement, dated as of July 2, 2020, entered into between the Company and No Street Capital LLC (the "<u>SPA</u>"), which are hereby incorporated by reference, are true and correct on and as of the Closing as if fully restated herein, except for the representations and warranties as modified above in this Section 5 or those set forth in Sections 3.1(a). 3.1(g), 3.1(i), 3.1(q), 3.1(v), and 3.1(ee) of the SPA, which are amended and restated as follows. Notwithstanding anything to the contrary herein, capitalized terms used but not defined in this Section 5(h) shall have the meanings ascribed to such terms in the SPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Subsidiaries</u>. All of the direct and indirect Subsidiaries of the Company are set forth on <u>Schedule 5(h)(i)</u>. The Company owns, directly or indirectly, all of the Equity Interests of each Subsidiary free and clear of any Liens (other than Permitted Liens or as set forth on <u>Schedule 5(h)(i)</u>), options or warrants, and all of the issued and outstanding Equity Interests of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. "<u>Senior Lender</u>" means East West Bank and its assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Capitalization</u>. The capitalization of the Company is as set forth on <u>Schedule 5(h)(ii)</u>. The Company has not issued any capital stock since its most recently issued SEC Reports, other than as set forth on <u>Schedule 5(h)(ii)</u> pursuant to the exercise of employee stock options under the Company's stock incentive plans, the issuance of shares of Common Stock to employees or consultants pursuant to the Company's stock incentive plans or in the ordinary course of business and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Exchange Documents. Except as set forth in the SEC Reports or in the Exchange Documents, there are no outstanding options, warrants, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. Except as set forth on <u>Schedule 5(h)(ii)</u> or in the Transaction Documents, the issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. Except as set forth on <u>Schedule 5(h)(ii)</u>, there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary, and there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance with all applicable foreign, federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) neither the Company nor any Subsidiary has incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice, and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company equity incentive plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on <u>Schedule 5(h)(iii)</u>, to the knowledge of the Company, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Registration Rights</u>. Except as described in the SEC Reports or as contemplated by the Exchange Documents, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Solvency; Seniority</u>. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the Transactions: (i) the fair saleable value of the Company's tangible assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth on Schedule 5(h)(v), the Company has no knowledge of any facts or circumstances, which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 5(h)(v)sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. As of the Closing Date and giving effect to the consummation of the Transactions, other than Indebtedness with the Senior Lender and as set forth on Schedule 5(h)(v), no Indebtedness or other claim against the Company is senior to the Series A Preferred Stock in right of payment, whether with respect to dividends or upon liquidation or dissolution, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Listing and Maintenance Requirements</u>. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof, received notice from the Principal Market to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market. Except as set forth in the SEC Reports, the Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible for electronic transfer through the Depository Trust Company and the Company is current in payment of the fees to the Depository Trust Company in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Other Conditions to Closing; Covenants</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Issuance of Shares</u>. In consideration of the Holder (i) agreeing to the terms of this Agreement and the Holder's willingness to forego certain rights previously agreed by the parties, the Company shall issue 200,000 shares of Common Stock to Holder (the "<u>Additional Shares</u>"). The issuance of the Additional Shares shall be conditioned on the closing of the Transactions, and such shares shall be issued within three (3) business days after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Harvest Funds</u>. Effective as of the Closing Date and the closing of the Transactions, Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. (collectively, the "<u>Harvest Funds</u>") shall have agreed to convert all of their outstanding promissory notes payable into shares of Series A Preferred Stock on the same terms as set forth in the Exchange Documents, except for such terms as are applicable to the Harvest Funds. The amount and description of the Company's outstanding promissory notes payable to the Harvest Funds is as set forth in the SEC Reports (as defined in the SPA), which constitutes all of the outstanding promissory notes payable by the Company to the Harvest Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Release</u>. (i) The Holder hereby (y) acknowledges and agrees that the issuance of the Exchange Shares as provided herein will constitute payment in full of all of the indebtedness, liabilities and other obligations of the Company and its subsidiaries under the Notes and all other agreements and documents entered into by the parties in connection therewith (including, without limitation, the Transaction Documents), except for the Exchange Documents, and (z) agrees that, upon such receipt by the Holder of the Exchange Shares and the Additional Shares: (A) all security interests, encumbrances and other liens which the Company and/or any of its subsidiaries may have granted to the Holder and/or its secured parties, on or against the Company's and/or any of its subsidiaries' collateral shall be automatically released and terminated and the Notes and any other Transaction Document) shall automatically terminate; (B) at the request of the Company and solely at the expense of the Company, the Holder shall promptly take such commercially reasonable actions necessary or appropriate to further effect and evidence the foregoing; and (C) the Company and its attorneys shall be, and hereby are, authorized, without any further authorization or consent of the Holder and/or its secured parties, to (i) terminate any Deposit Control Account Agreement or similar agreements established by the Company or any subsidiaries of the Company for the benefit of the Holder and/or its secured parties, and (ii) file termination statements with respect to all Uniform Commercial Code financing statements filed by or for the benefit of the Holder and/or its secured parties against the Company or any subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and each of its subsidiaries (the "<u>Company Parties</u>" and each a "<u>Company Party</u>") hereby acknowledge that as of the date hereof no Company Party has any defense, counterclaim, offset, cross-complaint, claim or demand of any kind or nature whatsoever that can be asserted to reduce or eliminate all or any part of its liability to issue the Securities or to seek affirmative relief or damages of any kind or nature from the Holder, or any of its respective affiliates, directors, officers, agents, employees or attorneys under the Exchange Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except for such party's obligation under the Exchange Documents, for good and valuable consideration, each party hereto for itself, its subsidiaries and their respective successors, assigns, officers, directors, employees, limited partners, general partners, investors, attorneys, subsidiaries, shareholders, trustees, advisors, agents, representatives and other professionals, and any person acting for or on behalf of, or claiming through such party or persons (collectively, the "<u>Representatives</u>") hereby voluntarily and knowingly releases and forever discharges the other party hereto, its affiliates and each of their respective Representatives from all possible claims, counterclaims, demands, actions, causes of action, damages, costs, expenses, and liabilities whatsoever, known or unknown, anticipated or unanticipated, suspected or unsuspected, fixed, contingent, or conditional, at law or in equity, that such releasing party may now or hereafter have against the other party hereto, its affiliates and/or any of their respective Representatives in connection with or related to the Notes and the other Transaction Documents, and irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise. Each releasing party hereby covenants and agrees never to institute any action or suit at law or in equity, nor institute, prosecute, or in any way aid in the institution or prosecution of any claim, counterclaim, action or cause of action, rights to recover debts or demands of any nature against the other party hereto, its affiliates and their respective Representatives arising out of or related to the Notes and the other Transaction Documents, including, without limitation, any of such person's actions, omissions, statements, requests or demands in administering, enforcing, monitoring, collecting or attempting to collect the obligations, except for such party's rights to enforce the terms of this Agreement and the other Exchange Documents.

Each party hereto, on behalf of itself and its affiliates and their respective Representatives, waives and relinquishes any and all rights and benefits under the terms of Section 1542 of the California Civil Code, which provides as follows:

"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Other Agreements of the Parties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>PC1 Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly or through its 100% owned subsidiary LiveXLive PodcastOne, Inc., a Delaware corporation, own no less than 66% of the total equity and voting rights of Courtside Group, Inc. (dba PodcastOne), a Delaware corporation ("<u>PC1</u>"), and all classes of PC1 securities on a fully diluted basis, assuming all PC1 shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Offerings Limitation</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not issue shares of Common Stock or Common Stock Equivalents with a conversion price less than $2.10 per share (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock), without Majority Holders' prior written consent; except for any issuances in any fiscal year (i) (x) of shares, stock options or warrants to the Company's and/or its subsidiaries' employees, officers, directors, talent, business partners, consultants, advisors and/or service providers, (y) pursuant to any existing or future equity incentive plan(s) or compensation plans of the Company, and (z) of shares and/or warrants in connection with any non-convertible debt financing(s) of the Company and/or its subsidiaries (collectively, the "<u>Excluded Issuances</u>"), provided, that the Excluded Issuances during each fiscal year of the Company commencing after the Closing Date (for clarification, the period from the Closing Date until March 31, 2023 (inclusive) shall be considered the Company's 2023 fiscal year) shall not equal or exceed 5% of the Common Stock then outstanding on a fully diluted basis, and (ii) in connection with any merger, acquisition or other business combinations of the Company and/or any of its subsidiaries with any unaffiliated third party. For the avoidance of doubt, if Excluded Issuances in any fiscal year do not equal or exceed 5% then outstanding on a fully diluted basis, the balance shall not be carried over to the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subsidiary Ownership</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, directly own no less than 66% of the total equity and voting rights of any and all classes of securities of each of Slacker, Inc., a Delaware corporation, PPV One, Inc., a Delaware corporation, or LiveXLive Events, LLC, a Delaware limited liability company, in each case on a fully diluted basis assuming all such company's shares issuable upon conversion or exercise of any securities or options outstanding at any time, unless otherwise approved in advance in writing by the Majority Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consent to Financing</u>. The Company shall, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, not raise more than an aggregate of $20,000,000 of capital in one or more offerings, including without limitation, one or more equity or debt offerings or a combination thereof, on an accumulated basis commencing after the Closing Date, without the prior written approval of the Majority Holders; provided, that such approval shall not be required for any equity financing of the Company at a price of $2.25 per share or above (subject to adjustment with respect to any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Asset Dispositions</u>. If after the Closing Date, at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding, the Company distributes any of its assets or any shares of Common Stock or Common Stock Equivalents of any of its subsidiaries pro rata to the record holders of any class of shares of Common Stock, the Company shall calculate and distribute to Holder its pro rata portion of any such distribution (calculated on an as-converted basis with respect to the then outstanding Exchange Shares) concurrently with the distribution to the then record holders of any class of Company Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Holder's Rights</u>. A breach by the Company of any of Sections 7(a)-(e) (inclusive) of this Agreement or Section 3 of the Certificate of Designation (each, a "<u>Protective Provision</u>") shall trigger the following: at any time that any of the shares of Series A Preferred Stock issued to Harvest Small Cap Partners, L.P. and/or Harvest Small Cap Partners Master, Ltd. are outstanding upon (i) an uncured breach of any Protective Provision, or (ii) any uncured default of payment of any Interest or other dividend to Holder required by the Certificate of Designation, and such uncured breach is ongoing, the Company shall issue to Holder 16,473 shares of its Common Stock (the "<u>Default Shares</u>") for each five (5) Trading Days (or pro rata thereof) that such breach or default is ongoing commencing on the date that such breach or default occurred; provided, that such number of shares shall be pro rata decreased for any conversion of Holder's Exchange Shares into Common Stock; provided, further, that for any period during which two or more breaches or defaults are simultaneously occurring, Holder shall be entitled to receive the applicable amount of Default Shares for only one such breach or default so as to avoid the double issuance of Default Shares for the same default or breach period. The Company shall have the right to cure any such breach or default within three (3) business days without triggering the issuance of the Default Shares. "<u>Trading Day</u>" means a day on which the Principal Market is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Listing</u>. The Company shall use reasonable best efforts to promptly secure the listing of all of the Conversion Shares and the Additional Shares on the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Information Rights</u>. Until the time that no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding, (i) the Company shall maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act and to otherwise cause all public information requirements of Rule 144(c), and, if applicable, all information requirements of Rule 144(i) to be satisfied, and (ii) neither the Company nor any of its subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock from the Principal Market. "<u>Principal Market</u>" means the Nasdaq Capital Market or such other Trading Market where the Common Stock is then listed or quoted. "<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the Principal Market (or any successors to any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Holder Cooperation Related to Notes Shares and Informational Requirements</u>. The Holder will reasonably cooperate with the Company in connection with the issuance of the Conversion Shares and the Additional Shares through the book-entry facilities of The Depository Trust Company, if and when such shares are eligible to be issued through the book-entry facilities of The Depository Trust Company. The Holder shall provide the Company and its transfer agent and legal counsel a customary Rule 144 representation letter and such documents as the Company and its transfer agent and/or legal counsel shall reasonably request and cause its broker or custodian to provide a customary broker or custodian Rule 144 representation letter. Holder agrees that it will not effect any resale of the Conversion Shares and the Additional Shares unless (i) such resale is pursuant to an effective registration statement under the Securities Act, (ii) the Company is then in compliance with the informational requirements of Rule 144(c), if applicable, and the requirements of Rule 144(i)(2) or (iii) such Holder provides to the Company an opinion of its counsel, which opinion and counsel are reasonably acceptable to the Company, that such sale is otherwise permissible in accordance with Section 4(a)(1) of the Securities Act. Upon request by any Holder, the Company will promptly confirm (as promptly as practicable after the Holder's request if such request is made between the Open of Business and the Close of Business on a Business Day) whether or not such informational and other requirements are satisfied, and the Holder will be entitled to rely on such confirmation. In addition, the Holder shall cause its broker to provide an undertaking from such broker that prior to executing any sale of the Conversion Shares and/or the Additional Shares on behalf of the Holder, such broker will confirm the Company has filed with the Commission the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q required to be filed under Section 13 or 15(d) of the Exchange Act within the preceding 12 months (a "<u>Broker Undertaking</u>"). The Broker Undertaking shall further provide that no sales of any Conversion Shares or Additional Shares shall be made by such broker if the Holder has received a Company Non-Compliance Notice (as defined below). Notwithstanding the foregoing, the Company shall promptly notify the Holder in the event the Company is not in compliance with the informational requirements of Rule 144(c) (until such time as those requirements cease to apply under Rule 144(b)(1)) or the requirements of Rule 144(i)(2) (a "<u>Company Non-Compliance Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Other Waivers</u>. Until the time that no shares of Series A Preferred Stock issued to the Harvest Funds in connection with the transactions contemplated hereby remain outstanding, Trinad Capital agrees to (i) waive the redemption rights set forth in Section 8 of the Certificate Designation, and (ii) accept the Interest payments solely in kind as provided in the Certificate of Designation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including without limitation, any beneficial owner of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law; Jurisdiction; Waiver of Jury Trial</u>. All questions concerning the construction, validity, enforcement and interpretation of the Exchange Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Exchange Documents (whether brought against a party hereto or its respective affiliates, directors, officers, stockholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the County of New Castle. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Exchange Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. **IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Severability</u>. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>. Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, (ii) electronic mail or (iii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

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| | |
|:---|:---|
| If to the Company, to: | LiveOne, Inc. |
|  | 269 S. Beverly Dr., Suite #1450 |
|  | Beverly Hills, CA 90212 |
|  | Attention: Robert S. Ellin, CEO<br> Email: rob@liveone.com<br>with a copy to (which shall not constitute notice)<br> Tenia Muhammad at tenia@livone.com and Sasha Ablovatskiy, <br> Esq. of Foley Shechter Ablovatskiy LLP at <br> sablovatskiy@foleyshechter.com |
| If to Holder, to the address set forth on the signature page of the Holder. | If to Holder, to the address set forth on the signature page of the Holder. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legal Fees and Expenses</u>. The Company agrees to pay, within five (5) business days of the Closing Date, all of Holder's out-of-pocket legal fees incurred in connection with this Agreement and the Exchange Documents. In addition, in the event of (i) any breach of any Protective Provision, (ii) any default of payment of any Interest or other dividend to Holder, or (iii) any breach of the Company's obligation to deliver Securities required by the terms of the Exchange Documents, in each case which is not cured within the permitted time period, the Company shall pay all of Holder's out-of-pocket legal fees incurred in connection therewith. Except as otherwise provided for herein, the parties hereto shall pay their own costs and expenses in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement; Amendments</u>. This Agreement, the Certificate of Designation and the Exchange Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Headings</u>. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Authorization</u>. Each party represents and warrants to the other party that such first party has full power and authority to enter into this Agreement, and such agreement constitutes its valid and legally binding obligation, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited bylaws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Certificate of Designation</u>. Except as set forth herein, the Company hereby ratifies and reaffirms the Certificate of Designation, which shall remain in full force and effect. Except as set forth herein, this Agreement is not a novation and the terms and conditions of this Agreement shall be in addition to and supplemental to all terms and conditions set forth in the Certificate of Designation. In the event of any conflict or inconsistency between this Agreement and the terms of the Certificate of Designation, the terms of this Agreement shall be controlling, but the Certificate of Designation shall not otherwise be affected or the rights therein impaired. The parties agree to take all such further action(s) as may reasonably be necessary to carry out the transactions contemplated hereunder as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Termination</u>. This Agreement and the obligations of the Company pursuant to this Agreement and the other Exchange Documents shall terminate, without further action by either party hereto, at such time as no shares of Series A Preferred Stock issued to Holder in connection with the transactions contemplated hereby remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Stock Splits</u>. Any shares of the Company's capital stock or other securities to be issued in connection with the Transactions or as a result of any conversion of the Series A Preferred Stock and any applicable conversion price or number of shares required to be issued hereunder shall be subject to all adjustments in the number of shares of the Company's capital stock as a result of any splits, consolidations, recapitalizations, combinations or other similar transactions affecting the Company's capital stock underlying the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Execution</u>. This Agreement may be executed in two (2) or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| **LIVEONE, INC.** | **LIVEONE, INC.** |
| By: | /s/ *Aaron Sullivan* |
| Name: | Aaron Sullivan |
| Title: | Interim CFO |

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| | |
|:---|:---|
| **HOLDER:**<br>**Trinad Capital Master Fund Ltd.** | **HOLDER:**<br>**Trinad Capital Master Fund Ltd.** |
| By: | Trinad Capital Management, LLC, the Managing Director of Trinad Capital Master Fund Ltd. |
| By: | /s/ *Robert S. Ellin* |
| Name: | Robert S. Elin |
| Title: | Managing Member |

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Email address for delivery of Notices: rellin@trinadcapital.com <br>Address for delivery of Exchange Shares:

269 South Beverly Drive, Suite 1450 <br> Beverly Hills, CA 90212

**Exhibit A**

**<u>Certificate of Designation</u>**

[*see attached*]

**Exhibit B**

**<u>Ellin Letter Agreement</u>**

[*see attached*]