Document:

Exhibit 10.1

 

Execution
Version 

 

SETTLEMENT AGREEMENT

 

This Settlement Agreement
(this “Agreement”) is made as of September 28, 2017 (the “Effective Date”)
by and between IOENGINE, LLC, a Delaware limited liability company (“IOENGINE”), GlassBridge Enterprises,
Inc. f/k/a Imation Corp., a Delaware corporation (“GlassBridge”), and Scott F. McNulty (“McNulty”
and together with IOENGINE and GlassBridge, each a “Party” and collectively, the “Parties”).

 

WHEREAS, on December
31, 2014 IOENGINE brought suit against GlassBridge for infringement of United States Patent No. 8,539,047 (the “’047
Patent”) in the proceeding currently styled as IOENGINE, LLC v. GlassBridge Enterprises, Inc., f/k/a Imation Corp.,
C.A. No. 14-01572-GMS (the “Lawsuit”), in the United States District Court for the District of Delaware
(the “Court”);

 

WHEREAS, GlassBridge,
as Counterclaim-Plaintiff, brought counterclaims against IOENGINE and McNulty, as Counterclaim-Defendants, in the Lawsuit;

 

WHEREAS, after a five-day
jury trial held in February 2017, the jury returned a verdict finding that each accused GlassBridge product infringes the asserted
claims of the ’047 Patent, that each asserted claim of the ’047 Patent was not shown to be invalid, and that no one
other than McNulty was shown to be the inventor of the inventions claimed in the ’047 Patent;

 

WHEREAS, none of the
Parties concedes the sufficiency or validity of any claims, counterclaims, or defenses that were asserted or could be asserted
in the Lawsuit by any of the Parties or any other person; and

 

WHEREAS, the Parties
now desire to settle the Lawsuit and enter into this Agreement providing for a full, final, complete, and global settlement of
the subject matter of the Lawsuit and for certain releases and covenants, all on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the above premises and the mutual covenants and releases and the other good and valuable consideration contained
herein, the sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

1.0        DEFINITIONS

 

1.1       “IOENGINE
Patents” means U.S. Patent No. 8,539,047 (the “’047 Patent”) and all patents in all
jurisdictions worldwide that claim priority based upon or in common with the ’047 Patent, including any divisional, continuation,
continuation-in-part, reissue, reexamination, foreign counterpart, or extension thereof.

 

1.2       “GlassBridge
Products” means all products, services, devices, systems, or components that were designed, branded, made, used,
sold, offered for sale, imported, exported, supplied or otherwise provided by or for GlassBridge, in all cases on or before February
1, 2016. For the avoidance of doubt, “GlassBridge Products” shall not include any product, service, device,
system, or component, that was designed, branded, made, used, sold, offered for sale, imported, exported, supplied or otherwise
provided by or for any third party, or by or for GlassBridge after February 1, 2016.

 

1.3       “Release
Conditions” means each of the following: (1) the payment by GlassBridge to IOENGINE of the Upfront Payment Amount
as specified in Section 3.1(a); (2) the issuance and delivery by GlassBridge to IOENGINE of the Settlement Note as specified
in Section 3.1(b); and (3) the execution by GlassBridge and delivery to IOENGINE of the Pledge Agreement as specified in
Section 3.1(b).

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page
                                         1 of 9

     

    

 

 

		2.0	COVENANT AND RELEASE

 

2.1       
Release by IOENGINE. Subject to the occurrence of the Release Conditions specified in Section 1.3, IOENGINE, on behalf
of itself and its successors and assigns hereby releases, acquits, and forever discharges GlassBridge from any and all actions,
causes of action, claims, demands, liabilities, losses, defenses, counterclaims, damages, attorneys’ fees, court costs, or
any other form of claim or compensation, whether known or unknown as of the Effective Date, arising out of the facts, circumstances,
events, transactions or occurrences underlying or giving rise to or otherwise related to the allegations in the Lawsuit or the
infringement of the IOENGINE Patents by the GlassBridge Products, provided that none of the foregoing shall be construed
as releasing any third party.

 

2.2        Release
by GlassBridge. Subject to the satisfaction of the conditions on the Release by IOENGINE specified in Section 2.1, GlassBridge,
on behalf of itself and its successors and assigns hereby releases, acquits, and forever discharges IOENGINE and McNulty from any
and all actions, causes of action, claims, demands, liabilities, losses, defenses, counterclaims, damages, attorneys’ fees,
court costs, or any other form of claim or compensation, whether known or unknown as of the Effective Date, arising out of the
facts, circumstances, events, transactions or occurrences underlying or giving rise to or otherwise related to the allegations
in the Lawsuit or the ownership, validity, or enforceability of the IOENGINE Patents, provided that none of the foregoing
shall be construed as releasing any third party.

 

2.3       Dismissal.
Within three (3) business days of the occurrence of the Release Conditions, IOENGINE, GlassBridge and McNulty shall file with the
Court a joint stipulation substantially in the form attached hereto as Exhibit A, or in such other form as required for
approval by the Court, to effectuate the dismissal with prejudice of all claims, defenses, and counterclaims brought in the Lawsuit.

 

2.4       Covenant
by IOENGINE. Subject to the occurrence of the Release Conditions specified in Section 1.3, IOENGINE, on behalf of itself
and its successors and assigns, hereby covenants and agrees not to sue or threaten to sue GlassBridge for direct, indirect, contributory,
or induced infringement arising out of the facts, circumstances, events, transactions or occurrences underlying or giving rise
to or otherwise related to the allegations in the Lawsuit of any IOENGINE Patent by any products, services, devices, systems, or
components designed, branded, made, used, sold, offered for sale, imported, exported, supplied or otherwise provided by or for
GlassBridge, including by way of litigation, arbitration, claim, counterclaim, or any other allegation or proceeding in any court
or patent office, anywhere in the world.

 

2.5       Covenant
by GlassBridge. Subject to the satisfaction of the conditions on the Covenant by IOENGINE specified in Section 2.4,
GlassBridge, on behalf of itself and its successors and assigns, hereby covenants and agrees not to contest or challenge, directly
or indirectly, the validity or enforceability of any IOENGINE Patent or its ownership by IOENGINE, including by way of litigation,
arbitration, claim, counterclaim, or any other allegation or proceeding in any court or patent office, anywhere in the world, or
to aid, abet, assist, or cooperate with, directly or indirectly, any third party in contesting or challenging the validity or enforceability
of any IOENGINE Patent, or its ownership by IOENGINE.

 

2.6       The
releases, dismissals and covenants in this Section 2 are personal to the Parties and shall not confer or extend any benefit
or protection to any third party.

 

2.7To the extent
that the Parties do not have the right to grant fully the releases, covenants, and other rights set out in this Agreement, each
party grants the broadest such rights that it is entitled to grant consistent with the terms set out herein.

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page
                                         2 of 9

     

    

 

		3.0	CONSIDERATION

 

3.1       In
consideration for the releases, dismissals and covenants granted by IOENGINE herein, GlassBridge shall pay to IOENGINE the sum
of seven million, seven hundred and fifty thousand United States dollars ($7,750,000) (the “Settlement Amount”),
payable as follows:

 

a.       A
cash payment of three million, seven hundred and fifty thousand United States dollars ($3,750,000), payable in cash on or before
October 5, 2017 (the “Upfront Payment Amount”); and

 

b.       The
issuance and delivery by GlassBridge to IOENGINE of that certain Secured Promissory Note in the principal amount of four million
dollars ($4,000,000) attached hereto as Exhibit B (the “Settlement Note”), secured by the grant
of collateral pursuant to the terms and conditions of that certain Pledge Agreement (the “Pledge Agreement”)
attached hereto as Exhibit C.

 

3.2.        All
payments made under this Agreement and the Settlement Note shall be made by electronic transfer of funds to Simpson Thacher and
Bartlett LLP’s client trust fund bank account, on behalf of IOENGINE, as follows:

 

	Bank Name:
    
	Bank Address:
	Account No.:
	ABA No.:  
	Swift Code: 
	Account Name:
	Payee Name: 
	Payee Address: 
	Payee Phone number: 

 

3.3       Payment
of the Settlement Amount shall be made by GlassBridge without any deduction, set off, or withholding for, or on account of, any
tax, claim for reimbursement, or other charge.

 

		4.0	WARRANTIES

 

4.1       GlassBridge
represents and warrants to IOENGINE that: (a) it is a validly existing business in good standing under the laws of the State of
Delaware and has the full power and authority to enter into this Agreement and to perform its obligations hereunder and consummate
the transactions contemplated herein; and (b) there are no licenses liens, conveyances, mortgages, assignments, encumbrances, or
other agreements that would prevent or impair the full and complete exercise of the terms of this Agreement.

 

4.2      IOENGINE represents
and warrants to GlassBridge that: (a) it is a validly existing business in good standing under the laws of the respective jurisdictions
in which it has activities, and has the full power and authority to enter into this Agreement and to perform its obligations hereunder
and consummate the transactions contemplated herein; (b) it owns the IOENGINE Patents as of the Effective Date, and no third party
owns any right to enforce or recover for infringement of the IOENGINE Patents by GlassBridge on or before the Effective Date; and
(c) there are no licenses liens, conveyances, mortgages, assignments, encumbrances, or other agreements that would prevent or impair
the full and complete exercise of the terms of this Agreement.

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page
                                         3 of 9

     

    

 

4.3      Except for
those representations and warranties set forth in this Section 4, neither Party makes any other representations or warranties
herein.

 

		5.0	TERM AND TERMINATION

 

5.1       This
Agreement shall not be binding on the Parties until it has been signed below by all Parties, at which time it shall be deemed effective
as of its Effective Date.

 

5.2       This
Agreement may only be terminated by mutual written agreement of the Parties.

 

		6.0	ASSIGNABILITY

 

None of the Parties may transfer, grant,
or assign any rights or delegate any duties or obligations under this Agreement to any third party without the prior written consent
of the other Parties, and any attempted assignment without such consent shall be null and void. Notwithstanding the foregoing,
IOENGINE may assign its rights under this Agreement to an Approved Assignee provided that such Approved Assignee unconditionally
assumes all of IOENGINE’s obligations arising under this Agreement.  For purposes of this Section 6.0, “Approved
Assignee” means: (a) an acquirer of all or substantially all of the equity or assets of IOENGINE’s business
to which this Agreement relates, or (b) the surviving entity in any merger, consolidation, equity exchange, or reorganization of
IOENGINE’s business to which this Agreement relates; or (c) any entity with respect to which GlassBridge expressly approves
in a prior writing, such consent not to be unreasonably withheld. All covenants contained herein shall run with the IOENGINE Patents
and shall be binding on any permitted successors-in-interest or assigns thereof. This Agreement shall be binding upon, inure to
the benefit of, and be enforceable by the Parties and their permitted successors and assigns. Nothing in this Agreement precludes
IOENGINE from assigning, selling, or exclusively licensing the IOENGINE Patents to any third party, provided the assignment, sale,
or exclusive license does not conflict with the terms of this Agreement.

 

		7.0	CONFIDENTIALITY, DISCLOSURE & PUBLICITY

 

7.1              
General Confidentiality Provisions. The terms and conditions of this Agreement, the Settlement Note and the Pledge
Agreement (collectively, the “Settlement Agreements”) and all correspondence relating to the Settlement
Agreements are confidential. The Parties and their successors, assigns and affiliates, shall keep the terms and conditions of the
Settlement Agreements strictly confidential and no Party or any successor, assignee or affiliate shall now or hereafter disclose
such terms and conditions to any third party for so long as such terms and conditions remain confidential except: (i) with the
prior written consent of the other Parties, which consent shall not be unreasonably withheld, (ii) as may be required by applicable
law, regulation, or order of a governmental authority of competent jurisdiction other than as contemplated by Section 7.2
below, (iii) as contemplated in Section 7.2 and Section 7.3 below, (iv) during the course of litigation, provided
that any such disclosure is subject to the same restrictions as is the confidential information of the other litigating parties
and such restrictions are embodied in a court-entered protective order limiting disclosure to outside counsel, or (v) in confidence
to the professional legal and financial counsel representing such Party. With respect to the foregoing (ii) and (iv), such disclosing
Party shall, to the extent legally permissible, provide the other Parties with prior written notice of such applicable law, regulation,
or order and, at the request of such other Parties, use reasonable efforts to limit the disclosure to the minimum necessary terms
and conditions of this Agreement, and, in the disclosing Party’s sole and absolute discretion, to obtain a protective order
or other confidential treatment. Notwithstanding the foregoing, and subject to Section 7.3, IOENGINE may disclose the terms
of the Settlement Agreements to third parties in licensing discussions that are subject to non-disclosure or confidentiality obligations.

  

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 4
                                                                                                 of 9

     

    

   

7.2              
GlassBridge Form 8-K. The Parties acknowledge that GlassBridge may, in GlassBridge’s sole and absolute discretion:
(a) disclose the terms and conditions of the Settlement Agreements as a “Material Definitive Agreement” on a Current
Report on Form 8-K in substantially the form attached hereto as Exhibit C (the “Form 8-K”) promulgated
by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934,
as amended, (b) file each of the Settlement Agreements as exhibits to the Form 8-K and (c) make reference to the Form 8-K disclosures
in filings with the SEC subsequent to the Form 8-K. GlassBridge shall not criticize, disparage, or otherwise denigrate IOENGINE
or the IOENGINE Patents in the Form 8-K. Subject to the obligations of the Parties set forth in Section 7.3, any Party shall
be permitted to disclose (but not publicize) or refer to any terms or conditions of the Settlement Agreements that are made or
become non-confidential pursuant to GlassBridge’s filing of a Form 8-K.

 

7.3       Public
Statements. No Party shall be permitted to facilitate the publication of press releases, announcements or other public statements
with respect to the settlement of the Lawsuit (collectively, each a “Public Statement”). The Parties
shall maintain the confidentiality of the material terms of the Settlement Agreements and the transactions contemplated by the
Settlement Agreements to the extent they remain confidential, and further provided that neither Party shall criticize, disparage,
or otherwise denigrate the other Parties or the IOENGINE Patents. If any Public Statement is required by law, the disclosing Party
agrees to provide the non-disclosing Parties prior notice and an opportunity to comment on the proposed Public Statement. Nothing
contained in this Section 7.3 shall have the effect of limiting the rights of GlassBridge set forth in Section 7.2
above.

 

		8.0	DISPUTE RESOLUTION

 

In the event of any dispute arising under
this Agreement between the Parties, the dispute shall be settled by binding arbitration in the manner described below:

 

8.1.       Arbitration
Request. If a Party intends to begin an arbitration to resolve a dispute arising under this Agreement, such Party shall provide
written notice (the “Arbitration Request”) to the other Parties of such intention and the issues for
resolution.

 

8.2       Additional
Issues. Within ten (10) business days after the receipt of the Arbitration Request, the other Parties may, by written notice,
add additional issues for resolution.

 

8.3       Arbitration
Procedure. The arbitration shall be held in Wilmington, Delaware, under the rules of the American Arbitration Association (“AAA”).
Discovery shall be under the U.S. Federal Rules of Civil Procedure then in effect in the District Court for the District of Delaware.
The arbitration shall be conducted by three (3) arbitrators who are knowledgeable in the subject matter at issue in the dispute.
One (1) arbitrator will be selected by IOENGINE, one (1) arbitrator will be selected by GlassBridge, and the third arbitrator will
be selected by mutual agreement of the two (2) arbitrators selected by the Parties. The arbitrators may proceed to an award, notwithstanding
the failure of any Party to participate in the proceedings. The arbitrators shall, within fifteen (15) days after the conclusion
of the arbitration hearing, issue a written award and statement of decision describing the essential findings and conclusions on
which the award is based, including the calculation of any damages awarded. The arbitrators shall be authorized to award compensatory
damages, but shall not be authorized to award non-economic damages or punitive damages, to reform, modify, or materially change
this Agreement or any other agreements contemplated hereunder, or to adjudge the validity, enforceability, or ownership of any
IOENGINE Patent. The arbitrators also shall be authorized to grant any temporary, preliminary, or permanent equitable remedy or
relief the arbitrators deem just and equitable and within the scope of this Agreement, including, without limitation, an injunction
or order for specific performance. The arbitrators’ award shall be the sole and exclusive remedy of the Parties. Judgment
on the award rendered by the arbitrators may be enforced in any court having competent jurisdiction thereof, subject only to revocation
on grounds of fraud or clear bias on the part of the arbitrators. Notwithstanding anything contained in this Section 8 to
the contrary, each Party shall have the right to institute judicial proceedings against the other Parties or anyone acting by,
through, or under such other Parties, in order to enforce the instituting Party’s rights hereunder through specific performance,
injunction, or similar equitable relief.

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 5
                                                                                                 of 9

     

    

 

 

8.4       Costs;
Satisfaction. Each Party shall bear its own attorneys’ fees, costs, and disbursements arising out of any arbitration,
and IOENGINE and McNulty on the one hand, and GlassBridge on the other hand, shall pay an equal share of the fees and costs of
the arbitrators. Absent the filing of an application to correct or vacate the arbitration award as permitted by applicable law,
each Party shall fully perform and satisfy the arbitration award within fifteen (15) days of the service of the award.

 

8.5      Waiver.
By agreeing to this binding arbitration provision, the Parties understand that they are waiving certain rights and protections
which may otherwise be available if a dispute between the Parties were determined by litigation in court, including, without limitation,
the right to seek or obtain certain types of damages precluded by this provision, the right to a jury trial, certain rights of
appeal, and a right to invoke formal rules of procedure and evidence.

 

		9.0	NOTICES

 

9.1      All notices
required or permitted to be given hereunder shall be in writing and shall be deemed delivered (i) upon receipt if delivered by
hand, (ii) the next business day after being sent by prepaid, nationally-recognized, overnight air courier, (iii) five (5) business
days after being sent by registered or certified airmail, return receipt required, postage prepaid, or (iv) upon transmittal when
transmitted by confirmed telecopy (provided that such notice is followed notice pursuant to any of (i) – (iii) above).

 

9.2      All notices shall be addressed as
follows:

 

If to
IOENGINE, to:

 

IOENGINE, LLC

22 Ensign Road

Norwalk, CT 06853

Attn:Scott McNulty, CEO

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Ave.

New York, NY 10017

Attn:Noah M. Leibowitz, Esq. & Greg Chuebon,
Esq.

 

If to
McNulty, to:

 

Scott McNulty

22 Ensign Road

Norwalk, CT 06853

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 6
                                                                                                 of 9

     

    

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Ave.

New York, NY 10017

Attn:Noah M. Leibowitz, Esq. & Greg Chuebon,
Esq.

 

 

If to GlassBridge, to:

 

GlassBridge Enterprises, Inc.

1099 Helmo Avenue, Suite 250

Oakdale, MN 55128

Attn:Danny Zheng, Chief Financial
Officer

 

with a
copy to:

 

GlassBridge Enterprises, Inc.

1099 Helmo Avenue, Suite 250

Oakdale, MN 55128

Attn: Tavis J. Morello, General Counsel

 

and to:

 

Quinn Emanuel Urquhart & Sullivan, LLP

50 California Street, 22nd Floor

San Francisco, California 94111

Attn:Charles
K. Verhoeven, Esq. & Carl G. Anderson, Esq.

 

		10.0	MISCELLANEOUS

 

10.1       This
Agreement represents the settlement of disputed claims asserted by each Party. Nothing contained herein is or is to be construed
as an admission or evidence of fault, liability or wrongdoing of any kind by any Party.

 

10.2       IOENGINE
has no obligation hereunder to institute any action or suit against any third party for infringement of any IOENGINE Patent, or
to defend against any action challenging the validity or enforceability of any IOENGINE Patent. GlassBridge has no right to institute
any action against any third party for infringement of any IOENGINE Patent.

 

10.3       Nothing
in this Agreement is intended or shall be deemed to constitute a partnership, agency, employer-employee, or joint venture relationship
between the Parties. No Party shall incur any debts or make any commitments for any other Party under this Agreement. There is
no fiduciary duty or special relationship of any kind arising between the Parties due to this Agreement. Each Party expressly disclaims
any reliance on any act, word, or deed of the other Parties in entering into this Agreement.

 

10.4       Nothing
contained in this Agreement shall be construed as conferring any right to a license or to otherwise use any intellectual property,
including without limitation any patent, patent application, trademark, service name, service mark, trade dress, trade secret or
any other intellectual property belonging to IOENGINE or McNulty, including the IOENGINE Patents.

 

  

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 7 of 9

     

    

 

10.5       This
Agreement is solely for the benefit of the Parties, there are no intended third-party beneficiaries of this Agreement, and no provision
hereof shall be deemed to confer upon any third party, including without limitation Kingston Technology Corporation and any affiliates
or subsidiaries thereof, any remedy, defense, release, reimbursement, or other right, or any covenant, consent, waiver, or acquiescence
with respect to such third party’s conduct.

 

10.6       If
any portion of this Agreement is found to be invalid, illegal, or unenforceable for any reason, the remainder of the Agreement
shall continue in force and, if needed, the Parties or a court of competent jurisdiction shall substitute suitable provisions having
like economic effect and intent.

 

10.7       This
Agreement, together with the attached Exhibits, constitutes the full, complete and entire understanding of the Parties with respect
to the subject matter of this Agreement, the Lawsuit, and the IOENGINE Patents, and replaces any prior oral or written communications,
discussions, or agreements between them. This Agreement cannot be modified, terminated, or amended in any respect orally or by
conduct of the Parties. Any termination, modification, or amendment of this Agreement may be made only by a writing signed by all
Parties. No waiver of any provision of this Agreement shall be binding in any event unless executed in writing by the Party making
such waiver.

 

10.8       This
Agreement may be executed in several counterparts, each of which is deemed to be an original but all of which constitute one and
the same instrument.

 

10.9       Each
Party and its counsel have reviewed and approved this Agreement, and accordingly any presumption or rule of construction permitting
ambiguities to be resolved against the drafting party shall not be employed in the interpretation or application of this Agreement.

 

10.10       This
Agreement shall be construed, and the relationship between the Parties determined, in accordance with the laws of the State of
New York, notwithstanding any choice-of-law principle that might dictate a different governing law. Notwithstanding the content
of Section 8 herein, each Party irrevocably agrees, consents, and submits to jurisdiction and venue in the federal and state
courts located within Wilmington, Delaware, with respect to any other dispute arising out of or relating in any way to this Agreement,
and the Parties hereby waive all defenses based upon forum non conveniens, improper venue, or personal jurisdiction. Neither
Party shall use the choice of law or venue provision in this Agreement to support or oppose a transfer motion in any litigation.

 

10.11       With
respect to claims released under this Agreement, the Parties acknowledge that they may have sustained damages, losses, costs, or
expenses which are presently unknown and unsuspected and that such damages, losses, costs, or expenses as may have been sustained
may give rise to additional damages, losses, costs, or expenses in the future. The Parties further acknowledge that they have negotiated
this Agreement taking into account presently unsuspected and unknown claims, counterclaims, causes of action, damages, losses,
costs, and expenses arising from or relating to the Action and the relationship between the Parties, and the Parties voluntarily
and with full knowledge of its significance, expressly waive and relinquish any and all rights they may have under any state or
federal statute, rule, or common law principle, in law or equity, relating to limitations on general releases.

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 8
                                                                                                 of 9

     

    

 

 

10.12       EXCEPT
AS PROVIDED EXPLICITLY HEREIN, IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANY OTHER PARTY OR ANY OTHER PERSON OR ENTITY (UNDER CONTRACT,
STRICT LIABILITY, NEGLIGENCE, OR OTHER THEORY) FOR SPECIAL, INDIRECT, EXEMPLARY, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING
LOST PROFITS, OPPORTUNITIES, OR SAVINGS, ARISING OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT.

 

[Signature Page Follows]

 

 

 

    	SETTLEMENT
                                         AGREEMENT (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Page 9
                                                                                                 of 9

     

    

 

 

IN WITNESS WHEREOF,
this Agreement has been duly executed by the Parties as of the Effective Date.

 

 

	 	[GLASSBRIDGE:]
	 	 	 
	 	GLASSBRIDGE ENTERPRISES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Danny Zheng
	 	Name:	Danny Zheng
	 	Title:	Chief Financial Officer
	 	 	Interim Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	[IOENGINE:]
	 	 	 
	 	IOENGINE, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Scott McNulty
	 	Name:	Scott McNulty
	 	Title:	CEO
	 	 	 
	 	 	 
	 	 	 
	 	[MCNULTY:]
	 	 	 
	 	 	 
	 	          /s/ Scott  McNulty
	 	Scott  McNulty 

 

 

 

 

    	Signature
                                         Page to Settlement Agreement

     

    

 

 

 

EXHIBIT A

 

Form of Stipulation of Dismissal

 

 

     

     

    

 

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF DELAWARE

 

	IOENGINE, LLC, 	)	 
	 	)	 
	PLAINTIFF,	)	 
	 	)	 
	v.	)	 
	 	)	 
	GLASSBRIDGE ENTERPRISES, INC., f/k/a IMATION CORP.,	)	 
	 	)	 
	DEFENDANT.	)	CIVIL ACTION NO. 14-1572-GMS
	 	)	 
	 	)	 
	 	)	 
	GLASSBRIDGE ENTERPRISES, INC., f/k/a IMATION CORP.,	)	 
	 	)	 
	COUNTERCLAIM-PLAINTIFF,	)	 
	 	)	 
	v.	)	 
	 	)	 
	IOENGINE, LLC and SCOTT F. McNULTY,	)	 
	 	)	 
	COUNTERCLAIM-DEFENDANTS.	)	 
	 	)	 

 

STIPULATION OF DISMISSAL

 

WHEREAS, on December
31, 2014, Plaintiff IOENGINE, LLC (“IOENGINE”) sued Defendant GlassBridge Enterprises, Inc., f/k/a Imation Corp. (“GlassBridge”)
for patent infringement (D.I. 1);

 

WHEREAS, the parties
participated in a five-day jury trial in the above-referenced action from February 13, 2017 through February 17, 2017;

 

WHEREAS, on February
17, 2017, the jury delivered its verdict, finding in favor of IOENGINE that all asserted claims of U.S. Patent 8,539,047 are infringed
by each of the accused products, are not invalid, and that no individual other than Mr. McNulty made a significant contribution
to the idea claimed in any claim of U.S. Patent 8,539,047 (D.I. 201); and

 

     

     

    

 

WHEREAS, the parties
have informed the Court that they have settled their respective claims for relief asserted in this case.

 

IT IS HEREBY STIPULATED
by the parties, subject to the approval of the Court, that all claims for relief asserted herein against GlassBridge, IOENGINE,
and Scott F. McNulty by IOENGINE and GlassBridge shall be dismissed, with prejudice; and

 

IT IS HEREBY STIPULATED
by the parties, subject to the approval of the Court, that all attorneys’ fees, costs of court, and expenses shall be borne
by each party incurring the same.

 

	SMITH, KATZENSTEIN & JENKINS LLP	 	MORRIS JAMES LLP
	 	 	 
	/s/  	 	/s/  
	Neal C. Belgam (No. 2721)	 	Kenneth L. Dorsney (No. 3726)
	Eve H. Ormerod (No. 5369)	 	500 Delaware Avenue, Suite 1500
	1000 West Street, Suite 1501	 	Wilmington, DE  19801-1494
	Wilmington, DE 19801	 	(302) 888-6800
	302-652-8400	 	kdorsney@morrisjames.com
	nbelgam@skjlaw.com	 	 
	eormerod@skjlaw.com	 	 
	 	 	 
	Attorneys for Plaintiff IOENGINE LLC	 	Attorneys for Defendant GlassBridge
	 	 	Enterprises, Inc.
	 	 	 
	Dated:  September 28, 2017	 	
	 	 	 
	SO ORDERED this _____ day of __________, 2017
	 	 	 
	 	 	 
	 	 	United States District Court Judge

 

     

     

    

 

 

EXHIBIT B

 

Settlement Note

 

 

 

 

 

 

     

     

    

 

EXHIBIT C

 

Pledge Agreement

 

 

 

 

 

 

     

     

    

 

EXHIBIT D

 

Form of Current Report on Form 8-KExhibit 10.2

 

Execution
Version

 

THIS SECURED PROMISSORY NOTE HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), NOR UNDER ANY STATE SECURITIES
LAW AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS GLASSBRIDGE ENTERPRISES, INC. HAS EXPRESSLY
CONSENTED IN WRITING THERETO AND (I) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT, AND ANY
APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR (II) EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES
ACT AND THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE AVAILABLE. 

 

GLASSBRIDGE ENTERPRISES, INC.

Secured Promissory Note

 

	$4,000,000.00	September 28, 2017

 

FOR VALUE RECEIVED, the undersigned, GlassBridge
Enterprises, Inc., a Delaware corporation f/k/a Imation Corp. (the “Company”), hereby promises to pay to the
order of IOENGINE, LLC, a Delaware limited liability company (the “Noteholder”), on or before September 28,
2020 (the “Maturity Date”), the principal amount of Four Million Dollars ($4,000,000.00) plus the PIK Interest
Accrual Amount (as defined below) and interest on the unpaid principal amount of this Note as provided below.

 

1.            THE NOTE

 

This Secured Promissory Note (this “Note”)
is issued pursuant to that certain Settlement Agreement dated as of even date with this Note, by and between the Company and the
Noteholder. The Company’s obligations under this Note are secured by the collateral granted pursuant to that certain Pledge
Agreement, also dated as of even date with this Note, by and between the Company and the Noteholder (as amended or supplemented
from time to time, the “Pledge Agreement”).

 

2.            INTEREST RATE

 

All unpaid principal amounts under this
Note (including any PIK Interest Accrual Amount capitalized into principal as of the PIK Interest Payment Date, if any (each as
defined below)) shall accrue interest at an annual rate equal to four percent (4%). Notwithstanding the foregoing, the interest
rate shall be automatically reduced, without any amendment by the parties, to be equal to an annual rate of two percent (2%) with
respect to any portion of the outstanding principal amount (including any PIK Interest Accrual Amount capitalized into principal
as of the PIK Interest Payment Date, if any (each as defined below)) that is fully secured by Bank Collateral (as defined in the
Pledge Agreement) in accordance with the terms of the Pledge Agreement and only for such periods so fully secured. Interest shall
be computed on the basis of a 365-day year and the actual days elapsed and shall be payable in arrears on the PIK Interest Payment
Date (by capitalizing such accrued interest as of such date in accordance with Section 3.2) and on each Cash Payment Date
(as defined below).

 

3.            ACCRUAL AND PAYMENT PROVISIONS

 

3.1              
Certain Definitions.

 

3.1.1         
“Cash Payment Dates” means each of June 30, 2019; September 30, 2019; December 31, 2019; March 31, 2020;
June 30, 2020; and the Maturity Date.

 

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page
                                         1 of 7

     

    

 

3.1.2         
“Issuance Date” shall mean September 28, 2017.

 

3.1.3         
“PIK Interest Accrual Period” shall mean the period commencing as of the Issuance Date and concluding
on June 30, 2019.

 

3.1.4         
“PIK Interest Accrual Amount” shall mean the amount of interest accrued during the PIK Interest Accrual
Period on the outstanding principal amount hereunder from time to time at the rate(s) set forth in Section 2 above.

 

3.1.5         
“PIK Interest Payment Date” shall mean June 30, 2019.

 

3.2              
PIK Interest Accrual and Payment. During the PIK Interest Accrual Period, interest shall accrue at the rates
set forth in Section 2 but no payments of principal or accrued interest shall be due (other than by an acceleration after an Event
of Default); provided that upon any prepayment of principal during the PIK Interest Accrual Period, all accrued interest
on such principal shall be due on the date of such prepayment and must be paid together with such principal. On the PIK Interest
Payment Date, the PIK Interest Accrual Amount shall be paid in kind such that effective as of the PIK Interest Payment Date the
PIK Interest Accrual Amount shall be deemed to constitute, and shall be capitalized into, outstanding principal.

 

3.3              
Cash Payments. On each of the Cash Payment Dates, cash payments of outstanding principal and interest shall
be due and payable as follows: (a) the payment amount on each Cash Payment Date shall be an amount not less than sixteen and two-thirds
percent (16.67%) of the unpaid outstanding principal and accrued interest as of the PIK Interest Payment Date (after giving effect
to the capitalization of the PIK Interest Accrual Amount) and (b) subject to the foregoing Section 3.3(a), estimated on
a pro forma basis such that each such cash payment is an amount roughly equal with all subsequent cash payments; (c) all
accrued interest shall be paid in cash on each Cash Payment Date; and (d) on the Maturity Date, the Company will pay in cash the
sum of any remaining outstanding principal (including any remaining PIK Interest Accrual Amount) together with any remaining accrued
and unpaid interest. For illustrative purposes, Schedule A sets forth the payment schedule contemplated above assuming (a)
no acceleration pursuant to Section 4.3; (b) an Issuance Date of September 30, 2017; (c) the continuous applicability of
a four percent (4%) interest rate for the period of time commencing on the Issuance Date and concluding on the Maturity Date; and
(c) no prepayments of principal or interest.

 

3.4              
Payments Due on Business Days. “Business Day” means any day other than a Saturday, a Sunday
or a day on which commercial banks in New York City, New York are required or authorized to be closed. Notwithstanding anything
in this Note to the contrary, any payment of principal or interest on this Note that is due on a date other than a Business Day
may be made on the next Business Day.

 

3.5              
Optional Prepayment. At any time and from time to time, the Company may prepay this Note, in whole or in part,
at any time without premium or penalty at a price equal to 100% of the principal amount of the Note so prepaid or redeemed, together
with all accrued and unpaid interest thereon (including the PIK Interest Accrual Amount), to the extent applicable. Any voluntary
prepayments shall be applied by the Noteholder to principal or interest as directed by the Company but any prepayment of principal
shall be accompanied with a corresponding payment of accrued interest as of such date.

 

3.6              
Notice of Optional Prepayment. Notice of each optional prepayment of this Note pursuant to Section 3.3
above must be given in accordance with Section 9.1 hereof not fewer than two (2) Business Days before the prepayment date,
which such notice must specify the date of prepayment, the aggregate principal amount to be prepaid on such date, the accrued and
unpaid interest applicable to the portion of the Note subject to such prepayment and the application of such payments.

 

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page 2
                                                                                                                                                                            of 7

     

    

 

 

3.7              
Payment Mechanics. All payments to be made hereunder shall be made in lawful money of the United States of
America in immediately available funds (other than paid in kind interest permitted under Section 3.1) by wire transfer to
the Noteholder’s account, as provided by Noteholder to the Company from time to time.

 

4.            DEFAULTS

 

4.1              
Certain Definitions.

 

4.1.1         
“Reorganization” means (i) any insolvency or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding in connection therewith, relative to the Company or its assets, (ii) any liquidation,
dissolution or other winding up of the Company, whether voluntary or involuntary and whether or not involving insolvency or bankruptcy.

 

4.1.2         
“Permitted Transaction” means (a) sales or transfers to an affiliate or related entity as part of a corporate
restructuring provided such affiliate and related entity become an obligor under this Note contemporaneously with such sale or
transfer; (b) sales or transfers to which the Noteholder consents in writing, such consent not to be unreasonably withheld and
(c) a sale or transfer of the Pledged Note in a manner that complies with the terms and conditions of the Pledge Agreement.

 

4.2              
An “Event of Default” will exist if any of the following conditions or events occurs and is continuing:

 

4.2.1         
The Company defaults in the payment, when due, of any principal payment under Section 3, or the Company defaults
in the payment, when due, of any interest payment under Section 3, and such payment default is not remedied within fifteen
(15) days after the same becomes due and payable; or

 

4.2.2         
The Company (i) files, or consents by answer or otherwise to the filing against it of, a petition or Reorganization (as
defined below), (ii) makes an assignment for the benefit of its creditors, (iii) consents to the appointment of a custodian, receiver,
trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (iv) is
adjudicated as insolvent or to be liquidated, or (v) takes corporate action for the purpose of approving a Reorganization with
respect to the Company, or any of the foregoing; or

 

4.2.3         
A governmental authority enters an order appointing, without consent by the Company, a custodian, receiver, trustee or other
officer with similar powers with respect to the Company or with respect to any substantial part of the Company’s property,
or constituting an order for relief or approving a petition for Reorganization, or any such petition is filed against the Company
and such petition is not dismissed within 60 days; or

 

4.2.4         
The Company shall be in default under the material covenants set forth herein (other than a covenant described in Section
4.2.1 above) or in the Pledge Agreement and shall fail to cure such default on the earlier of thirty (30) days following (i)
written notice from the Noteholder of such default or (ii) the Company having actual knowledge of the existence of such default;
or

 

4.2.5         
Any representation or warranty made by the Company under or in connection with this Note or the Pledge Agreement shall have
been incorrect in any material respect when made;

 

4.2.6         
This Note or the Pledge Agreement shall cease, for any reason other than the actions or omissions of the Noteholder, to
be in full force and effect, or the Company shall so assert, or any lien created by the Pledge Agreement shall cease to be enforceable
and of the same priority purported to be created thereby; or

 

 

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page 3
                                                                                                                                                                            of 7

     

    

 

 

4.2.7         
The Company merges with another entity and is not the surviving entity, or sells or transfers all or substantially all of
its assets other than a Permitted Transaction.

 

4.3              
Acceleration. Upon the occurrence and during the continuance of any Event of Default specified in Section
4.2.2 or Section 4.2.3, this Note and all outstanding principal and other amounts due and owing hereunder will automatically,
without notice, become immediately due and payable. Upon the occurrence and during the continuance of any Event of Default other
than the type specified in Section 4.2.2 or 4.2.3, the Noteholder may declare this Note due and payable by giving
notice to the Company. Upon the occurrence and during the continuance of an Event of Default, the Noteholder shall be entitled
to exercise the rights of a secured party under the Uniform Commercial Code and other applicable law.

 

5.             RePRESENTATIONS AND WARRANTIES; CoveNANTS

 

As of the Issuance Date, the Company hereby
represents and warrants to the Noteholder that:

 

5.1              
The Company is duly formed, validly existing and in good standing under the laws of the State of Delaware, has full
power, authority and legal right to execute, deliver and perform this Note and the Pledge Agreement and has taken all necessary
corporate and legal action to authorize the execution, delivery and performance of this Note and the Pledge Agreement on the terms
and conditions hereof and thereof and has duly executed and delivered this Note and the Pledge Agreement;

 

5.2              
this Note and the Pledge Agreement constitute the legal, valid and binding obligation of the Company enforceable
against the Company in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law);

 

5.3              
the execution, delivery and performance by the Company of this Note and the Pledge Agreement will not violate the
restated certificate of incorporation and bylaws of the Company or, to the knowledge of the Company, any provision of law or regulation
or of any judgment, order or decree of any court, arbitrator or governmental authority or of any agreement of any nature whatsoever,
binding upon the Company or its assets;

 

5.4              
no consent, authorization or approval of, filing with, notice to or exemption from any governmental authority (other
than disclosures or filings with the U.S. Securities and Exchange Commission), creditor of the Company or any other person or entity
is required in connection with the execution, delivery, performance, validity or enforceability of this Note or the Pledge Agreement;
and

 

5.5              
no Event of Default has occurred and is continuing, is currently contemplated to occur, or will occur immediately
after giving effect to this Note. 

 

The Company makes no
representations or warranties in this Note, express or implied, other than the express foregoing representations and warranties
of the Company made as of the Issuance Date set forth in this Section 5.

  

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page
                                         4 of 7

     

    

  

6.             NO TRANSFERS

 

This Note may not be sold, assigned, transferred
or pledged (“Transferred”) by the Noteholder unless the Company has expressly consented in writing thereto,
which consent shall not be unreasonably withheld, delayed or conditioned; provided (i) such consent shall not be required
during the occurrence of an Event of Default; (ii) such consent shall not be required for a Transfer to an affiliate of the Noteholder;
(iii) the Company may withhold consent in its sole and absolute discretion for any Transfer to a competitor or to any party with
a then existing business relationship with GlassBridge Enterprises, Inc.; and (iv) the Company shall be deemed to consent to a
Transfer unless the Company shall object thereto by written notice to the Noteholder within twenty (20) days after having received
notice thereof. In addition, this Note may not be Transferred by the Noteholder unless (i) a registration statement with respect
thereto is effective under the Securities Act, and any applicable state securities law requirements have been met (the costs and
expenses of any such registration to be borne by Noteholder) or (ii) exemptions from the registration requirements under the Securities
Act and the registration or qualification requirements of applicable state securities laws are available.

 

7.             COMPANY WAIVERS

 

The Company hereby waives presentment,
demand, notice of nonpayment, protest and all other demands and notices (except as expressly provided herein) in connection with
the delivery, acceptance, performance or enforcement of this Note.

 

8.             AMENDMENT AND WAIVER

 

8.1              
Requirements. This Note may be amended and the observance of this Note may be waived (either retroactively
or prospectively) as follows:

 

		(a)	in the case of a waiver, by a written waiver or consent signed by the party against whom the waiver
is to be enforced;

 

		(b)	in the case of an amendment, by a written instrument signed by the Company and the Noteholder.

 

8.2              
Binding Effect, etc. Any amendment, waiver or consent consented to as provided in this Section 8 will
be binding upon the Noteholder and upon the Company without regard to whether such Note has been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, default or Event of Default
not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the Noteholder
nor any delay in exercising any rights hereunder will operate as a waiver of any rights of the Noteholder.

 

9.             MISCELLANEOUS

 

9.1              
Notices. All notices and other communications required or permitted to be given or otherwise provided under
this Note must be in writing and must be given or otherwise provided: (a) by hand (in which case, it will be effective upon delivery);
(b) by facsimile (in which case, it will be effective upon receipt of confirmation of good transmission by the intended recipient;
provided, that such communication is also sent by some other means permitted by this Section 9.1); or (c) by overnight delivery
by a nationally recognized courier service (in which case, it will be effective on the Business Day after being deposited with
such courier service); in each case, to the address (or facsimile number) listed below:

 

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page
                                         5 of 7

     

    

  

If to
the Noteholder, to:

 

IOENGINE, LLC

22 Ensign Road

Norwalk, CT 06853

Attn:Scott McNulty, CEO

 

with a copy to:

 

Simpson Thacher & Bartlett, LLP

425 Lexington Ave.

New York, NY 10017

Attn:Noah M. Leibowitz, Esq.

 

If to the Company, to:

 

GlassBridge Enterprises, Inc.

1099 Helmo Avenue, Suite 250

Oakdale, MN 55128

Attn:Danny Zheng, Chief Financial
Officer

 

with a
copy to:

 

GlassBridge Enterprises, Inc.

1099 Helmo Avenue, Suite 250

Oakdale, MN 55128

Attn: Tavis J. Morello, General Counsel

 

and to:

 

Quinn Emanuel Urquhart & Sullivan, LLP

50 California Street, 22nd Floor

San Francisco, California 94111

Attn:Charles
K. Verhoeven, Esq. & Carl G. Anderson, Esq.

 

The Company and the Noteholder may specify
different address or facsimile number by giving notice in accordance with this Section 9.1 to the other party.

 

9.2              
Governing Law. This Note, the negotiation, terms and performance of this Note, the rights of the parties under
this Note, and all actions arising in whole or in part under or in connection with this Note shall be governed by and construed
in accordance with the domestic substantive laws of the State of New York, without giving effect to any choice or conflict of law
provision or rule that would cause the application of the laws of any other jurisdiction.

 

9.3              
Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTIES
HERETO HEREBY WAIVE, AND COVENANT THAT THEY SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL
BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS NOTE, or
the negotiation, terms or performance hereof or thereof, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. THE PARTIES HERETO AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES HERETO IRREVOCABLY TO WAIVE THEIR RIGHT TO TRIAL
BY JURY IN ANY PROCEEDING SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

  

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page
                                         6 of 7

     

    

 

9.4              
Construction; Headings. This Note shall be deemed to be jointly drafted by the Company and the Noteholder
and shall not be construed against any person as the drafter hereof. The headings of this Note are for convenience of reference
and shall not form part of, or affect the interpretation of, this Note.

 

9.5              
Successors and Assigns. All covenants and other agreements contained in this Note by or on behalf of any of
the parties hereto bind and inure to the benefit of their respective successors and permitted assigns whether so expressed or not;
provided that neither the Company, nor the Noteholder may assign or otherwise transfer its rights and obligations hereunder without
the prior written consent of the other party.

 

[Remainder of Page Intentionally Left
Blank]

 

 

 

 

    	SECURED
                                         PROMISSORY NOTE (GlassBridge Enterprises, Inc. / IOENGINE LLC)
	Page 7
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IN WITNESS WHEREOF,
the undersigned has caused this Note to be executed by a duly authorized officer as of the date first written above.

 

	 	GLASSBRIDGE ENTERPRISES, INC.
	 	 	 
	 	 	 
	 	By: 	/s/ Danny Zheng
	 	Name:	Danny Zheng 
	 	Title:	Chief Financial Officer,
	 	 	Interim Chief Executive Officer

 

 

 

Accepted and Agreed:

 

IOENGINE, LLC

 

 

	By:	 Scott McNulty

Name: Scott McNulty

Title:  CEO

 

 

    	Signature
                                         Page to Secured Promissory Note

     

    

 

SCHEDULE A

Illustration of Amortization &
Payment Schedule

 

 

	Date	 	Principal 

Outstanding	 	 	PIK Interest 

Accrual	 	 	Non-PIK Interest 

Accrual	 	 	Payment	 	 	Payment 

Application to 

Principal	 	 	Payment 

Application to Interest	 	 	Outstanding 

Balance	 
	Issuance Date 

(09/28/17)	 	$	4,000,000.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,000,000.00	 
	

                                                                                 12/31/17
	 	$	4,000,000.00	 	 	$	41,205.48	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,041,205.48	 
	03/31/18	 	$	4,000,000.00	 	 	$	39,452.05	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,080,657.53	 
	06/30/18	 	$	4,000,000.00	 	 	$	39,890.41	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,120,547.95	 
	09/30/18	 	$	4,000,000.00	 	 	$	40,328.77	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,160,876.71	 
	12/31/18	 	$	4,000,000.00	 	 	$	40,328.77	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,201,205.48	 
	03/31/19	 	$	4,000,000.00	 	 	$	39,452.05	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	4,240,657.53	 
	06/30/19	 	$	4,240,657.53	 	 	$	0.00	 	 	$	42,290.39	 	 	$	(731,754.96	)	 	$	(689,464.57	)	 	$	(42,290.39	)	 	$	3,551,192.97	 
	09/30/19	 	$	3,551,192.97	 	 	$	0.00	 	 	$	35,803.81	 	 	$	(731,754.96	)	 	$	(695,951.15	)	 	$	(35,803.81	)	 	$	2,855,241.81	 
	12/31/19	 	$	2,855,241.81	 	 	$	0.00	 	 	$	28,787.10	 	 	$	(731,754.96	)	 	$	(702,967.87	)	 	$	(28,787.10	)	 	$	2,152,273.95	 
	03/31/20	 	$	2,152,273.95	 	 	$	0.00	 	 	$	21,463.77	 	 	$	(731,754.96	)	 	$	(710,291.19	)	 	$	(21,463.77	)	 	$	1,441,982.76	 
	06/30/20	 	$	1,441,982.76	 	 	$	0.00	 	 	$	14,380.32	 	 	$	(731,754.96	)	 	$	(717,374.64	)	 	$	(14,380.32	)	 	$	724,608.12	 
	Maturity Date 

(09/28/20)	 	$	724,608.12	 	 	$	0.00	 	 	$	7,146.84	 	 	$	(731,754.96	)	 	$	(724,608.12	)	 	$	(7,146.84	)	 	$	0.00	 
	TOTALS:	 	 	$	240,657.53	 	 	$	149,872.23	 	 	$	(4,390,529.77	)	 	$	(4,240,657.54	)	 	$	(149,872.23	)	 	 	 	 

  

The foregoing illustration of amortization
and payment schedule assumes: (a) an Issuance Date of September 28, 2017; (b) the continuous applicability of a four percent (4%)
interest rate for the period of time commencing on the Issuance Date and concluding on the Maturity Date; and (c) assumes no prepayments
of principal or interest.

 

 

    	Secured
                                         Promissory Note (GlassBridge
                                         Enterprises, Inc. / IOENGINE LLC)	Schedule
                                         A

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