Document:

Exhibit 10.1

 

DAQO
New energy corp.

 

2018 SHARE INCENTIVE PLAN

 

ARTICLE 1

 

PURPOSE

 

The purpose of this
DAQO New Energy Corp. 2018 Share Incentive Plan (the “Plan”) is to promote the success and enhance the value
of DAQO New Energy Corp., a company formed under the laws of the Cayman Islands (the “Company”), by linking
the personal interests of the members of the Board, Employees, and Consultants to those of the Company’s shareholders and,
by providing such individuals with an incentive for outstanding performance, to generate superior returns to the Company’s
shareholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain
the services of recipients of share incentives hereunder upon whose judgment, interest, and special effort the successful conduct
of the Company’s operation is largely dependent.

 

ARTICLE 2

 

DEFINITIONS AND CONSTRUCTION

 

Wherever the following
terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular
pronoun shall include the plural where the context so indicates.

 

2.1           “Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate,
securities, tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national
market system, of any jurisdiction applicable to Awards granted to residents therein.

 

2.2           “Award”
means an Option, Restricted Share or Restricted Share Unit award granted to a Participant pursuant to the Plan.

 

2.3           “Award
Agreement” means any written agreement, contract, or other instrument or document evidencing an Award, including through
electronic medium.

 

2.4           “Award
Pool” shall have the meaning set forth in Section 3.1(a).

 

2.5           “Board”
means the Board of Directors of the Company.

 

2.6           “Cause”
with respect to a Participant means (unless otherwise expressly provided in the applicable Award Agreement, or another applicable
contract with the Participant that defines such term for purposes of determining the effect that a “for cause” termination
has on the Participant’s Awards) a termination of employment or service based upon a finding by the Service Recipient, acting
in good faith and based on its reasonable belief at the time, that the Participant:

 

    	 	 	 

     

    

 

(a)              
has been negligent in the discharge of his or her duties to the Service Recipient, has refused to perform stated or assigned
duties or is incompetent in or (other than by reason of a disability or analogous condition) incapable of performing those duties;

 

(b)               has
been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of confidentiality, an unauthorized
disclosure or use of inside information, customer lists, trade secrets or other confidential information;

 

(c)               has
breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or policy of the Service
Recipient; or has been convicted of, or plead guilty or nolo contendere to, a felony or misdemeanor (other than minor traffic
violations or similar offenses);

 

(d)              
has materially breached any of the provisions of any agreement with the Service Recipient;

 

(e)               has
engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets
of, the Service Recipient; or

 

(f)                has
improperly induced a vendor or customer to break or terminate any contract with the Service Recipient or induced a principal for
whom the Service Recipient acts as agent to terminate such agency relationship.

 

2.7          
“Code” means the Internal Revenue Code of 1986 of the United States, as amended.

 

2.8          
“Committee” means the Board or a committee of the Board described in ARTICLE 10.

 

2.9           “Consultant”
means any consultant or adviser if: (a) the consultant or adviser renders bona fide services to a Service Recipient; (b) the services
rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser
is a natural person who has contracted directly with the Service Recipient to render such services.

 

2.10        
“Corporate Transaction”, unless otherwise defined in an Award Agreement, means any of the following transactions,
provided, however, that the Committee shall determine under (d) and (e) whether multiple transactions are related, and its determination
shall be final, binding and conclusive:

 

(a)              
an amalgamation, arrangement or consolidation or scheme of arrangement (i) in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or (ii)
following which the holders of the voting securities of the Company do not continue to hold more than 50% of the combined voting
power of the voting securities of the surviving entity;

 

(b)               the
sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

(c)               the
complete liquidation or dissolution of the Company;

 

(d)              
any reverse takeover or series of related transactions culminating in a reverse takeover (including, but not limited to,
a tender offer followed by a reverse takeover) in which the Company is the surviving entity but (A) the Company’s equity
securities outstanding immediately prior to such takeover are converted or exchanged by virtue of the takeover into other property,
whether in the form of securities, cash or otherwise, or (B) in which securities possessing more than fifty percent (50%)
of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different
from those who held such securities immediately prior to such takeover or the initial transaction culminating in such takeover,
but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction;
or

 

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(e)              
acquisition in a single or series of related transactions by any person or related group of persons (other than the Company
or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act)
of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities
but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction.

 

2.11         “Disability”,
unless otherwise defined in an Award Agreement, means that the Participant qualifies to receive long-term disability payments
under the Service Recipient’s long-term disability insurance program, as it may be amended from time to time, to which the
Participant provides services regardless of whether the Participant is covered by such policy. If the Service Recipient to which
the Participant provides service does not have a long-term disability plan in place, “Disability” means that a Participant
is unable to carry out the responsibilities and functions of the position held by the Participant by reason of any medically determinable
physical or mental impairment for a period of not less than ninety (90) consecutive days. A Participant will not be considered
to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Committee in its discretion.

 

2.12        
“Effective Date” shall have the meaning set forth in Section 11.1.

 

2.13        
“Employee” means any person, including an officer or a member of the Board of the Company or any Parent
or Subsidiary of the Company, who is in the employment of a Service Recipient, subject to the control and direction of the Service
Recipient as to both the work to be performed and the manner and method of performance. The payment of a director’s fee by
a Service Recipient shall not be sufficient to constitute “employment” by the Service Recipient.

 

2.14        
“Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended.

 

2.15        
“Fair Market Value” means, as of any date, the value of Shares determined as follows:

 

(a)              
If the Shares are listed on one or more established stock exchanges or national market systems, including without limitation,
The New York Stock Exchange and The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such shares
(or the closing bid, if no sales were reported) as quoted on the principal exchange or system on which the Shares are listed (as
determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date,
as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Committee deems reliable;

 

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(b)              
If the Shares are regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, its Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities
dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of a Share shall be the mean
between the high bid and low asked prices for the Shares on the date of determination (or, if no such prices were reported on that
date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Committee
deems reliable; or

 

(c)              
In the absence of an established market for the Shares of the type described in (a) and (b), above, the Fair Market Value
thereof shall be determined by the Committee in good faith and in its discretion by reference to (i) the placing price of the latest
private placement of the Shares and the development of the Company’s business operations and the general economic and market
conditions since such latest private placement, (ii) other third party transactions involving the Shares and the development of
the Company’s business operation and the general economic and market conditions since such sale, (iii) an independent valuation
of the Shares, or (iv) such other methodologies or information as the Committee determines to be indicative of Fair Market Value
and relevant.

 

2.16        
“Incentive Share Option” means an Option that is intended to meet the requirements of Section 422 of
the Code or any successor provision thereto.

 

2.17         “Independent
Director” means (i) if the Shares or other securities representing the Shares are not listed on a stock exchange, a
member of the Board who is a Non-Employee Director; and (ii) if the Shares or other securities representing the Shares are listed
on a stock exchange, a member of the Board who meets the independence standards under the applicable corporate governance rules
of the stock exchange.

 

2.18         “Non-Employee
Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3)
of the Exchange Act, or any successor definition adopted by the Board.

 

2.19        
“Non-Qualified Share Option” means an Option that is not intended to be an Incentive Share Option.

 

2.20        
“Option” means a right granted to a Participant pursuant to ARTICLE 5 of the Plan to purchase a specified
number of Shares at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified
Share Option.

 

2.21        
“Participant” means a person who, as a member of the Board, Consultant or Employee, has been granted
an Award pursuant to the Plan.

 

2.22        
“Parent” means a parent corporation under Section 424(e) of the Code.

 

2.23        
“Plan” means this DAQO New Energy Corp. 2018 Share Incentive Plan, as it may be amended from time to
time.

 

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2.24        
“Related Entity” means any business, corporation, partnership, limited liability company or other entity
in which the Company, a Parent or Subsidiary of the Company holds a substantial ownership interest, directly or indirectly, but
which is not a Subsidiary and which the Board designates as a Related Entity for purposes of the Plan.

 

2.25        
“Restricted Share” means a Share awarded to a Participant pursuant to ARTICLE 6 that is subject to certain
restrictions and may be subject to risk of forfeiture.

 

2.26        
“Restricted Share Unit” means the right granted to a Participant pursuant to ARTICLE 7 to receive a Share
at a future date.

 

2.27        
“Securities Act” means the Securities Act of 1933 of the United States, as amended.

 

2.28        
“Service Recipient” means the Company, any Parent or Subsidiary of the Company and any Related Entity
to which a Participant provides services as an Employee, a Consultant, or a Director.

 

2.29        
“Share” means ordinary shares of the Company, par value US$0.0001 per share, and such other securities
of the Company that may be substituted for Shares pursuant to ARTICLE 9.

 

2.30        
“Subsidiary” means any corporation or other entity of which a majority of the outstanding voting shares
or voting power is beneficially owned or controlled directly or indirectly by the Company.

 

2.31        
“Trading Date” means the closing of the first sale to the general public of the Shares pursuant to a
registration statement filed with and declared effective by the U.S. Securities and Exchange Commission under the Securities Act.

 

ARTICLE 3

 

SHARES SUBJECT TO THE PLAN

 

3.1          
Number of Shares.

 

(a)              
Subject to the provisions of ARTICLE 9 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant
to all Awards (including Incentive Share Options) under the Plan (the “Award Pool”) shall be 38,600,000 Shares.

 

(b)              
To the extent that an Award terminates, expires, or lapses for any reason, any Shares subject to the Award shall again be
available for the grant of an Award pursuant to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption
of, or in substitution for, any outstanding awards of any entity acquired in any form or combination by the Company or any Parent
or Subsidiary of the Company shall not be counted against Shares available for grant pursuant to the Plan. Shares delivered by
the Participant or withheld by the Company upon the exercise of any Award under the Plan, in payment of the exercise price thereof
or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a).
If any Restricted Shares are forfeited by the Participant or repurchased by the Company, such Shares may again be optioned, granted
or awarded hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares
may again be optioned, granted or awarded if such action would cause an Incentive Share Option to fail to qualify as an Incentive
Share Option under Section 422 of the Code.

 

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3.2          
Shares Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and
unissued Shares, treasury shares (subject to Applicable Laws) or Shares purchased on the open market. Additionally, in the discretion
of the Committee, American Depository Shares in an amount equal to the number of Shares which otherwise would be distributed pursuant
to an Award may be distributed in lieu of Shares in settlement of any Award. If the number of Shares represented by an American
Depository Share is other than on a one-to-one basis, the limitations of Section 3.1 shall be adjusted to reflect the distribution
of American Depository Shares in lieu of Shares.

 

ARTICLE 4 

 

ELIGIBILITY AND PARTICIPATION

 

4.1          
Eligibility. Those eligible to participate in this Plan include Employees, Consultants, and all members of the Board,
and other individuals, as determined, authorized and approved by the Committee.

 

4.2          
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from among all
eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual
shall have any right to be granted an Award pursuant to this Plan.

 

4.3          
Jurisdictions. In order to assure the viability of Awards granted to Participants in various jurisdictions, the Committee
may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy,
or custom applicable in the jurisdiction in which the Participant resides, is employed, operates or is incorporated. Moreover,
the Committee may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider
necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose;
provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the share
limitations contained in Section 3.1 of the Plan. Notwithstanding the foregoing, the Committee may not take any actions hereunder,
and no Awards shall be granted, that would violate any Applicable Laws.

 

ARTICLE 5 

 

OPTIONS

 

5.1          
General. The Committee is authorized to grant Options to Participants on the following terms and conditions:

 

(a)              
Exercise Price. The exercise price per Share subject to an Option shall be determined by the Committee and set forth
in the Award Agreement which may be a fixed or variable price related to the Fair Market Value of the Shares. The exercise price
per Share subject to an Option may be amended or adjusted in the absolute discretion of the Committee, the determination of which
shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Laws or any exchange
rule, a downward adjustment of the exercise prices of Options mentioned in the preceding sentence shall be effective without the
approval of the Company’s shareholders or the approval of the affected Participants.

 

(b)              
Time and Conditions of Exercise. The Committee shall determine the time or times at which an Option may be exercised
in whole or in part, including exercise prior to vesting; provided that the term of any Option granted under the Plan shall
not exceed fifteen years, except as provided in Section 12.1. The Committee shall also determine any conditions, if any, that must
be satisfied before all or part of an Option may be exercised.

 

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(c)              
Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form
of payment, including, without limitation (i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the
Applicable Laws, cash or check in Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved by
the Committee, (iv) Shares held for such period of time as may be required by the Committee in order to avoid adverse financial
accounting consequences and having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option
or exercised portion thereof, (v) after the Trading Date the delivery of a notice that the Participant has placed a market sell
order with a broker with respect to Shares then issuable upon exercise of the Option, and that the broker has been directed to
pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; provided
that payment of such proceeds is then made to the Company upon settlement of such sale, (vi) other property acceptable to the Committee
with a Fair Market Value equal to the exercise price, or (vii) any combination of the foregoing. Notwithstanding any other provision
of the Plan to the contrary, no Participant who is a member of the Board or an “executive officer” of the Company within
the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of an Option in any method which
would violate Section 13(k) of the Exchange Act.

 

(d)              
Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant.
The Award Agreement shall include such additional provisions as may be specified by the Committee.

 

(e)              
Effects of Termination of Employment or Service on Options. Termination of employment or service shall have the following
effects on Options granted to the Participants:

 

(i)                
Dismissal for Cause. Unless otherwise provided in the Award Agreement or determined by the Committee, if a Participant’s
employment by or service to the Service Recipient is terminated by the Service Recipient for Cause, the Participant’s Options
will terminate upon such termination, whether or not the Option is then vested and/or exercisable;

 

(ii)             
Death or Disability. Unless otherwise provided in the Award Agreement, if a Participant’s employment by or
service to the Service Recipient terminates as a result of the Participant’s death or Disability:

 

		(a)	the Participant (or his or her legal representative or beneficiary, in the case of the Participant’s Disability or death,
respectively), will have until the date that is 12 months after the Participant’s termination of Employment to exercise the
Participant’s Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of the
Participant’s termination of Employment on account of death or Disability;

 

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		(b)	the Options, to the extent not vested and exercisable on the date of the Participant’s termination of Employment or service,
shall terminate upon the Participant’s termination of Employment or service on account of death or Disability; and

 

		(c)	the Options, to the extent exercisable for the 12-month period following the Participant’s termination of Employment
or service and not exercised during such period, shall terminate at the close of business on the last day of the 12-month period.

 

(iii)           
Other Terminations of Employment or Service. Unless otherwise provided in the Award Agreement, if a Participant’s
employment by or service to the Service Recipient terminates for any reason other than a termination by the Service Recipient for
Cause or because of the Participant’s death or Disability:

 

		(a)	the Participant will have until the date that is 90 days after the Participant’s termination of Employment or service
to exercise his or her Options (or portion thereof) to the extent that such Options were vested and exercisable on the date of
the Participant’s termination of Employment or service;

 

		(b)	the Options, to the extent not vested and exercisable on the date of the Participant’s termination of Employment or service,
shall terminate upon the Participant’s termination of Employment or service; and

 

		(c)	the Options, to the extent exercisable for the 90-day period following the Participant’s termination of Employment or
service and not exercised during such period, shall terminate at the close of business on the last day of the 90-day period.

 

5.2          
Incentive Share Options. Incentive Share Options may be granted to Employees of the Company, a Parent or Subsidiary
of the Company. Incentive Share Options may not be granted to Employees of a Related Entity or to Independent Directors or Consultants.
The terms of any Incentive Share Options granted pursuant to the Plan, in addition to the requirements of Section 5.1, must comply
with the following additional provisions of this Section 5.2:

 

(a)            Expiration of Option. An Incentive Share Option may not be exercised to any extent by anyone after the first to occur
of the following events:

 

(i)                
Fifteen years from the date it is granted, unless an earlier time is set in the Award Agreement;

 

(ii)             
Three months after the Participant’s termination of employment as an Employee; and

 

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(iii)           
One year after the date of the Participant’s termination of employment or service on account of Disability or death.
Upon the Participant’s Disability or death, any Incentive Share Options exercisable at the Participant’s Disability
or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled
to do so pursuant to the Participant’s last will and testament, or, if the Participant fails to make testamentary disposition
of such Incentive Share Option or dies intestate, by the person or persons entitled to receive the Incentive Share Option pursuant
to the applicable laws of descent and distribution.

 

(b)            Individual Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of
all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed
$100,000 or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive
Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified
Share Options.

 

(c)            Exercise Price. The exercise price of an Incentive Share Option shall be equal to the Fair Market Value on the date
of grant. However, the exercise price of any Incentive Share Option granted to any individual who, at the date of grant, owns Shares
possessing more than ten percent of the total combined voting power of all classes of shares of the Company may not be less than
110% of Fair Market Value on the date of grant and such Option may not be exercisable for more than five years from the date of
grant.

 

(d)            Transfer
Restriction. The Participant shall give the Company prompt notice of any disposition of Shares acquired by exercise of an
Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer
of such Shares to the Participant.

 

(e)            Expiration of Incentive Share Options. No Award of an Incentive Share Option may be made pursuant to this Plan after
the fifteenth anniversary of the Effective Date.

 

(f)             Right
to Exercise. During a Participant’s lifetime, an Incentive Share Option may be exercised only by the Participant.

 

ARTICLE 6

 

RESTRICTED SHARES 

 

6.1          
Grant of Restricted Shares. The Committee, at any time and from time to time, may grant Restricted Shares to Participants
as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of
Restricted Shares to be granted to each Participant.

 

6.2          
Restricted Shares Award Agreement. Each Award of Restricted Shares shall be evidenced by an Award Agreement that
shall specify the period of restriction, the number of Restricted Shares granted, and such other terms and conditions as the Committee,
in its sole discretion, shall determine. Unless the Committee determines otherwise, Restricted Shares shall be held by the Company
as escrow agent until the restrictions on such Restricted Shares have lapsed.

 

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6.3          
Issuance and Restrictions. Restricted Shares shall be subject to such restrictions on transferability and other restrictions
as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to
receive dividends on Restricted Shares). These restrictions may lapse separately or in combination at such times, pursuant to such
circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the Award or thereafter.

 

6.4          
Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter,
upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject
to restrictions shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, the Committee
may (a) provide in any Restricted Share Award Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted
Shares will be waived in whole or in part in the event of terminations resulting from specified causes, and (b) in other cases
waive in whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted Shares.

 

6.5          
Certificates for Restricted Shares. Restricted Shares granted pursuant to the Plan may be evidenced in such manner
as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant,
certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted
Shares, and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable
restrictions lapse.

 

6.6          
Removal of Restrictions. Except as otherwise provided in this ARTICLE 6, Restricted Shares granted under the Plan
shall be released from escrow as soon as practicable after the last day of the period of restriction. The Committee, in its discretion,
may accelerate the time at which any restrictions shall lapse or be removed. After the restrictions have lapsed, the Participant
shall be entitled to have any legend or legends under Section 6.5 removed from his or her Share certificate, and the Shares shall
be freely transferable by the Participant, subject to applicable legal restrictions. The Committee (in its discretion) may establish
procedures regarding the release of Shares from escrow and the removal of legends, as necessary or appropriate to minimize administrative
burdens on the Company.

 

ARTICLE 7 

 

RESTRICTED SHARE UNITS

 

7.1          
Grant of Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share Units
to Participants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine
the number of Restricted Share Units to be granted to each Participant.

 

7.2          
Restricted Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement
that shall specify any vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as
the Committee, in its sole discretion, shall determine.

 

7.3          
Performance Objectives and Other Terms. The Committee, in its discretion, may set performance objectives or other
vesting criteria which, depending on the extent to which they are met, will determine the number or value of Restricted Share Units
that will be paid out to the Participants.

 

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7.4          
Form and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the date
or dates on which the Restricted Share Units shall become fully vested and nonforfeitable. Upon vesting, the Committee, in its
sole discretion, may pay Restricted Share Units in the form of cash, in Shares or in a combination thereof.

 

7.5          
Forfeiture/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter,
upon termination of employment or service during the applicable restriction period, Restricted Share Units that are at that time
unvested shall be forfeited or repurchased in accordance with the Award Agreement; provided, however, the Committee may
(a) provide in any Restricted Share Unit Award Agreement that restrictions or forfeiture and repurchase conditions relating to
Restricted Share Units will be waived in whole or in part in the event of terminations resulting from specified causes, and (b)
in other cases waive in whole or in part restrictions or forfeiture and repurchase conditions relating to Restricted Share Units.

 

ARTICLE 8

 

PROVISIONS APPLICABLE TO AWARDS

 

8.1          
Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions
and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s
employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel
or rescind an Award.

 

8.2          
Limits on Transfer. No right or interest of a Participant in any Award may be pledged, encumbered, or hypothecated
to or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of
such Participant to any other party other than the Company or a Subsidiary. Except as otherwise provided by the Committee, no Award
shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or the laws of descent and distribution.
The Committee by express provision in the Award or an amendment thereto may permit an Award (other than an Incentive Share Option)
to be transferred to, exercised by and paid to certain persons or entities related to the Participant, including but not limited
to members of the Participant’s family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial
owners are members of the Participant’s family and/or charitable institutions, or to such other persons or entities as may
be expressly approved by the Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted
transfer shall be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made
for estate and/or tax planning purposes (or to a “blind trust” in connection with the Participant’s termination
of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational or
similar non-profit institution) and on a basis consistent with the Company’s lawful issue of securities.

 

8.3          
Beneficiaries. Notwithstanding Section 8.2, a Participant may, in the manner determined by the Committee, designate
a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and
Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the
Participant is married and resides in a community property state, a designation of a person other than the Participant’s
spouse as his or her beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be effective
without the prior written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant,
payment shall be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution.
Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change
or revocation is filed with the Committee.

 

    	 	11	 

     

    

 

8.4          
Share Certificates. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or
deliver any certificates evidencing the Shares pursuant to the exercise of any Award, unless and until the Committee has determined,
with advice of counsel, that the issuance and delivery of such certificates is in compliance with all Applicable Laws, regulations
of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded. All
Share certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee
deems necessary or advisable to comply with all Applicable Laws, and the rules of any national securities exchange or automated
quotation system on which the Shares are listed, quoted, or traded. The Committee may place legends on any Share certificate to
reference restrictions applicable to the Shares. In addition to the terms and conditions provided herein, the Committee may require
that a Participant make such reasonable covenants, agreements, and representations as the Committee, in its discretion, deems advisable
in order to comply with any such laws, regulations, or requirements. The Committee shall have the right to require any Participant
to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period
limitation, as may be imposed in the discretion of the Committee.

 

8.5          
Paperless Administration. Subject to Applicable Laws, the Committee may make Awards, provide applicable disclosure
and procedures for exercise of Awards by an internet website or interactive voice response system for the paperless administration
of Awards.

 

8.6          
Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the exercise price
of any Award were acquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws,
including foreign exchange control laws and regulations. In the event the exercise price for an Award is paid in Chinese Renminbi
or other foreign currency, as permitted by the Committee, the amount payable will be determined by conversion from U.S. dollars
at the official rate promulgated by the People’s Bank of China for Chinese Renminbi, or, for jurisdictions other than the
Peoples Republic of China, the exchange rate as selected by the Committee on the date of exercise.

 

ARTICLE 9

 

changes
in capital structure

 

9.1          
Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation, arrangement
or consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to its
shareholders, or any other change affecting the shares of Shares or the share price of a Share, the Committee shall make such proportionate
adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such change with respect to (a) the aggregate
number and type of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section
3.1); (b) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets
or criteria with respect thereto); and (c) the grant or exercise price per share for any outstanding Awards under the Plan.

 

    	 	12	 

     

    

 

9.2          
Corporate Transactions. Except as may otherwise be provided in any Award Agreement or any other written agreement
entered into by and between the Company and a Participant, if a Corporate Transaction occurs:

 

(a)              
The Committee upon, or in anticipation of, a Corporate Transaction, may in its sole discretion provide for (i) any and all
Awards outstanding hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise
such Awards during a period of time as the Committee shall determine, (ii) either the purchase of any Award for an amount of cash
equal to the amount that could have been attained upon the exercise of such Award or realization of the Participant’s rights
had such Award been currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of such date the Committee
determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s
rights, then such Award may be terminated by the Company without payment), (iii) the replacement of such Award with other rights
or property selected by the Committee in its sole discretion, the assumption of or substitution of such Award by the successor
or surviving corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and
prices, or (iv) provide for payment of Awards in cash based on the value of Shares on the date of the Corporate Transaction plus
reasonable interest on the Award through the date such Award would otherwise be vested or have been paid in accordance with its
original terms, if necessary to comply with Section 409A of the Code.

 

(b)              
If a Participant’s Awards are not converted, assumed, or replaced by a successor, as described in (c) below, such
Awards shall become fully exercisable and all forfeiture restrictions on such Awards shall lapse immediately prior to the specified
effective date of such Corporate Transaction, provided that the Participant remains an Employee, Consultant or Director on the
effective date of the Corporate Transaction.

 

(c)              
If the Award either is (i) assumed by the successor entity or Parent thereof or replaced with a comparable Award (as
determined by the Committee) with respect to shares of the capital stock of the successor entity or Parent thereof or (ii) replaced
with a cash incentive program of the successor entity which preserves the compensation element of such Award existing at the time
of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such
Award, then such Award (if assumed), the replacement Award (if replaced), or the cash incentive program automatically shall become
fully vested, exercisable and payable and be released from any restrictions on transfer (other than transfer restrictions applicable
to Options) and repurchase or forfeiture rights, immediately upon termination of the Participant’s employment or service
with all Service Recipient within twelve (12) months of the Corporate Transaction without cause.

 

9.3          
Outstanding Awards – Other Changes. In the event of any other change in the capitalization of the Company or
corporate change other than those specifically referred to in this ARTICLE 9, the Committee may, in its absolute discretion, make
such adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in
the per share grant or exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement
of rights.

 

    	 	13	 

     

    

 

9.4          
No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any
subdivision or consolidation of Shares of any class, the payment of any dividend, any increase or decrease in the number of shares
of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly
provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the Company of shares of any class,
or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number of shares subject to an Award or the grant or exercise price of any Award.

 

ARTICLE 10

 

ADMINISTRATION

 

10.1        
Committee. The Plan shall be administered by the Board or a committee of one or more members of the Board to whom
the Board shall delegate the authority to grant or amend Awards to Participants other than any of the Committee members. Any grant
or amendment of Awards to any Committee member shall then require an affirmative vote of a majority of the Board members who are
not on the Committee.

 

10.2        
Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members
of the Committee present at any meeting at which a quorum is present, and acts approved in writing by a majority of the Committee
in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely
or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Subsidiary,
the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained
by the Company to assist in the administration of the Plan.

 

10.3        
Authority of the Committee. Subject to any specific designation in the Plan, the Committee has the exclusive power,
authority and discretion to:

 

(a)        
designate Participants to receive Awards;

 

(b)        
determine the type or types of Awards to be granted to each Participant;

 

(c)        
determine the number of Awards to be granted and the number of Shares to which an Award will relate;

 

(d)        
determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise
price, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions
or restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions related to non-competition
and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines;

 

(e)        
determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price
of an Award may be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

    	 	14	 

     

    

 

(f)         
prescribe the form of each Award Agreement, which need not be identical for each Participant;

 

(g)        
decide all other matters that must be determined in connection with an Award;

 

(h)        
establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;

 

(i)          
interpret the terms of, and any matter arising pursuant to, the Plan or any Award Agreement; and

 

(j)          
make all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary
or advisable to administer the Plan.

 

10.4        
Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan, any
Award Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive
on all parties.

 

ARTICLE 11

 

EFFECTIVE AND EXPIRATION DATE

 

11.1        
Effective Date. This Plan shall become effective on the date on which the Plan is approved by the Board (the “Effective
Date”), provided that the Plan is approved by the shareholders of the Company within twelve (12) months after the Effective
Date.

 

11.2        
Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the fifteenth anniversary
of the Effective Date. Any Awards that are outstanding on the fifteenth anniversary of the Effective Date shall remain in force
according to the terms of the Plan and the applicable Award Agreement.

 

ARTICLE 12

 

AMENDMENT, MODIFICATION, AND TERMINATION

 

12.1      
Amendment, Modification, And Termination. At any time and from time to time, the Board or the Committee may terminate,
amend or modify the Plan; provided, however, that to the extent necessary to comply with Applicable Laws, the Company shall
obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required, including (a) to increase
the number of Shares available under the Plan (other than any adjustment as provided by ARTICLE 9), or (b) to permit the Committee
to extend the term of the Plan or the exercise period for an Option beyond fifteen years from the date of grant; provided, further,
that to the extent permissible under the Applicable Laws, the Board may decide to follow home country practice not to seek shareholder
approval for any amendment or modification of the Plan.

 

    	 	15	 

     

    

 

ARTICLE 13

 

GENERAL PROVISIONS

 

13.1        
No Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any Award pursuant
to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly.

 

13.2       
No Shareholders Rights. No Award gives the Participant any of the rights of a Shareholder of the Company unless and
until Shares are in fact issued to such Participant in connection with such Award.

 

13.3        
Taxes. No Shares shall be delivered under the Plan to any Participant until such Participant has made arrangements
acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws.
The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy all applicable taxes (including the Participant’s payroll tax obligations) required
or permitted by Applicable Laws to be withheld with respect to any taxable event concerning a Participant arising as a result of
this Plan. The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to
have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having a Fair Market Value equal
to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may be withheld
with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant of such
Award after such Shares were acquired by the Participant from the Company) in order to satisfy any income and payroll tax liabilities
applicable to the Participant with respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically
approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase
equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for the applicable income and
payroll tax purposes that are applicable to such supplemental taxable income.

 

13.4        
No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or limit in any
way the right of the Service Recipient to terminate any Participant’s employment or services at any time, nor confer upon
any Participant any right to continue in the employment or services of any Service Recipient.

 

13.5      
  Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation.
With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement
shall give the Participant any rights that are greater than those of a general creditor of the Company or any Subsidiary.

 

13.6        
Indemnification. To the extent allowable pursuant to Applicable Laws, each member of the Committee or of the Board
shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a
party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from
any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided
he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle
and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled pursuant to the Company’s Memorandum of Association and Articles of Association, as
a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

    	 	16	 

     

    

 

13.7        
Relationship to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits
pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or
any Subsidiary except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

13.8        
Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.

 

13.9        
Titles and Headings. The titles and headings of the Sections in the Plan are for convenience of reference only and,
in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 

13.10  
    Fractional Shares. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether
cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down as
appropriate.

 

13.11  
    Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan and any Award
granted or awarded to any Participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3
of the Exchange Act) that is a requirement for the application of such exemptive rule. To the extent permitted by the Applicable
Laws, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable
exemptive rule.

 

13.12  
    Government and Other Regulations. The obligation of the Company to make payment of awards in Shares or otherwise
shall be subject to all Applicable Laws, and to such approvals by government agencies as may be required. The Company shall be
under no obligation to register any of the Shares paid pursuant to the Plan under the Securities Act or any other similar law in
any applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant
to the Securities Act or other Applicable Laws, the Company may restrict the transfer of such Shares in such manner as it deems
advisable to ensure the availability of any such exemption.

 

13.13  
    Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of
the Cayman Islands.

 

13.14  
    Section 409A. To the extent that the Committee determines that any Award granted under the Plan is or may become
subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required
by Section 409A of the Code. To the extent applicable, the Plan and the Award Agreements shall be interpreted in accordance with
Section 409A of the Code and the U.S. Department of Treasury regulations and other interpretative guidance issued thereunder, including
without limitation any such regulation or other guidance that may be issued after the Effective Date. Notwithstanding any provision
of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject
to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may
be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or
adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or
preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of
Section 409A of the Code and related U.S. Department of Treasury guidance.

 

13.15      
Appendices. The Committee may approve such supplements, amendments or appendices to the Plan as it may consider necessary
or appropriate for purposes of compliance with Applicable Laws or otherwise and such supplements, amendments or appendices shall
be considered a part of the Plan; provided, however, that no such supplements shall increase the share limitation contained in
Section 3.1 of the Plan without the approval of the Board.

 

    	 	17AMENDED
AND RESTATED Credit Agreement

 

BETWEEN

 

RAYCOM
MEDIA, INC.

 

–
and –

 

FRANKLY
INC.

 

–
and –

 

FRANKLY
CO

 

–
and –

 

FRANKLY
MEDIA LLC

 

MAY
7, 2018

 

    	 

    	 

    

 

	Article
    1 INTERPRETATION	2
	 	 
	1.1   Definitions	2
	1.2   Certain
    Rules of Interpretation	25
	1.3   Governing
    Law	26
	1.4   Amendment
    and Restatement	26
	1.5   Entire
    Agreement	28
	1.6   Business
    Day	28
	1.7   Conflicts	28
	1.8   Guaranteed
    Amounts	28
	1.9   Accounting
    Changes	28
	1.10   Schedules
    and Exhibits	29
	 	 
	Article
    2 CREDIT FACILITy	29
	 	 
	2.1   Facility	29
	2.2   Purpose	32
	2.3   Drawdowns—Notices
    and Limitations	32
	2.4   Lender’s
    Records	33
	2.5   Current
    Contractual Arrangements	33
	 	 
	Article
    3 CALCULATION OF INTEREST, FEES AND EXPENSES	34
	 	 
	3.1   Calculation
    and Payment of Interest	34
	3.2   Expenses	35
	3.3   General
    Provisions Regarding Interest	35
	3.4   Maximum
    Return	36
	 	 
	Article
    4 REDUCTION OF COMMITMENT AND REPAYMENT	36
	 	 
	4.1   Optional
    Repayment of Loans under the Facility	36
	4.2   Repayment
    of Facility	37
	4.3   Other
    Mandatory Repayments	37
	4.4   Payments—General	38
	4.5   Subordination
    of Term B Facility to Term A Facility	38
	 	 
	Article
    5 INDEMNITIES	41
	 	 
	5.1   General
    Indemnity	41
	5.2   Environmental
    Indemnity	42
	5.3   Taxes	42
	 	 
	Article
    6 CONDITIONS PRECEDENT	44
	 	 
	6.1   Conditions
    Precedent to the Initial Drawdown	44
	6.2   Conditions
    Precedent to all Loans	47
	6.3   Waiver
    of a Condition Precedent	48
	 	 
	Article
    7 SECURITY DOCUMENTS	48
	 	 
	7.1   Security
    Documents	48
	7.2   Registration
    of Security Documents	50
	7.3   Dealing
    with Security Documents	50
	7.4   Permitted
    Liens	50

 

    	 	 -i-	 

    	 

    

 

	Article
    8 REPRESENTATIONS AND WARRANTIES	51
	 	 
	8.1   Representations
    and Warranties	51
	8.2   Repetition
    of Representations and Warranties	57
	8.3   Survival
    of Representations and Warranties	57
	 	 
	Article
    9 COVENANTS	58
	 	 
	9.1   Positive
    Covenants	58
	9.2   Financial
    Covenants	64
	9.3   Negative
    Covenants	64
	 	 
	Article
    10 EVENTS OF DEFAULT	66
	 	 
	10.1   Events
    of Default	66
	10.2   Acceleration
    and Remedies	69
	10.3   Application
    of Proceeds of Realization	70
	10.4   Waivers	70
	10.5   Non-Merger	70
	10.6   Lender
    May Perform Covenants	70
	10.7   Grant
    of Licence	70
	 	 
	Article 11 71 Between the Lenders	71
	 	 
	11.1   Decision-Making	71
	11.2   Amendments	71
	11.3   Enforcement	72
	11.4   Independent
    Reliance	73
	11.5   Sharing	73
	 	 
	Article
    12 General	74
	 	 
	12.1   Time
    of Essence	74
	12.2   Notices	74
	12.3   Severability	75
	12.4   Submission
    to Jurisdiction	75
	12.5   Amendment
    and Waiver	75
	12.6   Further
    Assurances	76
	12.7   Assignment	76
	12.8   Enurement	76
	12.9   Counterparts
    and Electronic Delivery	76
	12.10   Conduct
    of Parties	76
	12.11   Remedies
    Cumulative	77
	12.12   Survival	77
	12.13   Telephone
    Instructions	77
	12.14   Judgment
    Currency	77
	12.15   No
    Contra Proferentem	77
	12.16   Consent
    to Disclosure of Information	77

 

    	 	 -ii-	 

    	 

    

 

Credit
Agreement

 

THIS
AGREEMENT is dated as of May 7, 2018

 

BETWEEN:

 

RAYCOM
MEDIA, INC., as Lender, including as Initial Lender

 

-
and -

 

FRANKLY
INC., as Borrower

 

-
and -

 

FRANKLY
CO. and FRANKLY MEDIA LLC, as Guarantors

 

CONTEXT

 

	A.	The
                                         Initial Lender and Borrower are parties to a Credit Agreement dated as of August 31,
                                         2016 (if and as heretofore amended, the “Original Credit Agreement”)
                                         whereunder (i) US$14.5 million was advanced to the Borrower under Section 2.1.1 of the
                                         Original Credit Agreement, (ii) an additional US$1.0 million was advanced to the Borrower
                                         under Section 2.1.3 of the Original Credit Agreement (the “2018 Advance”),
                                         and (iii) such advances remain outstanding on the date hereof (the aggregate of such
                                         advances, together with interest capitalized thereon from January 1, 2018 to the Closing
                                         Date, and any other amounts owed by the Obligors to the Initial Lender as of the Closing
                                         Date, is herein, collectively, called the “Existing Indebtedness”).

 

	B.	Each
                                         of the Guarantors has guaranteed payment of the Existing Indebtedness to the Initial
                                         Lender and has provided security to the Initial Lender under and in accordance with the
                                         terms of the Original Credit Agreement.

 

	C.	The
                                         Initial Lender has agreed to provide additional funding to the Borrower in the principal
                                         amount of US$7.5 million (which sum includes the 2018 Advance), and for such purposes,
                                         the Initial Lender and Borrower have agreed to amend and restate the Original Credit
                                         Agreement in accordance with the terms of this Agreement.

 

	D.	Each
                                         of the Guarantors has consented and agreed to the amendment and restatement of the Original
                                         Credit Agreement in accordance with the provisions of this Agreement, which shall completely
                                         amend and restate the Original Credit Agreement in all respects.

 

	E.	Each
                                         of the Guarantors has agreed, along with the Borrower, that its respective guarantee
                                         and any security granted by it in connection with the Original Credit Agreement shall
                                         remain in full force and effect as security for the Outstanding Obligations.

 

	F.	The
                                         Initial Lender may assign a portion of the Term A Loan Commitments and of the Outstanding
                                         Obligations comprising a portion of the Term A Loans to one or more Persons as additional
                                         Lenders.

 

	G.	The
                                         Borrower and the Guarantors have agreed to execute and deliver to the Initial Lender
                                         and any other Lenders all such additional Loan Documents to which they are a party and
                                         to comply with the terms set out in this Agreement.

 

    	 	 	 

    	 	- 2 -	 

    

 

THEREFORE,
the Parties agree as follows:

 

Article
1

INTERPRETATION

 

	1.1	Definitions

 

In
this Agreement, in addition to terms defined elsewhere in this Agreement, the following terms have the following meanings:

 

		1.1.1	“2018
                                         Advance” is defined in the Recitals hereto.

 

		1.1.2	“Accounting
                                         Changes” means (i) changes in accounting principles of IFRS as issued by the
                                         International Accounting Standards Board (or successor thereto or any agency with similar
                                         functions); or (ii) (x) changes in the application of such accounting principles adopted;
                                         or (y) the adoption of different accounting principles and standards by the Borrower
                                         and in each case concurred in by the Borrower’s independent chartered accountants
                                         and the Required Lenders.

 

		1.1.3	“Acquisition”
                                         means any transaction, or any series of related transactions, by which any Person, directly
                                         or indirectly, by means of a takeover bid, tender offer, amalgamation, merger, purchase
                                         of Property or otherwise:

 

		1.1.3.1	acquires
                                         any business, line of business or business unit of any other Person;

 

		1.1.3.2	acquires
                                         all or substantially all of the Property of any other Person;

 

		1.1.3.3	acquires,
                                         or acquires Control of, Equity Securities of any other Person representing more than
                                         50% of the ordinary voting power for the election of directors or other governing position,
                                         if the business affairs of that Person are managed by a board of directors or other governing
                                         body;

 

		1.1.3.4	acquires,
                                         or acquires Control of, more than 50% of the ownership or economic interest in any other
                                         Person; or

 

		1.1.3.5	acquires
                                         Control of any other Person.

 

		1.1.4	“Adjusted
                                         EBITDA” means, for any period, the Net Income of a Person on a consolidated
                                         basis for that period, plus:

 

		1.1.4.1	without
                                         duplication, but only to the extent any of those amounts were deducted in determining
                                         the Net Income for that period:

 

		1.1.4.1.1	the
                                         Interest Expense of that Person for that period;

 

		1.1.4.1.2	the
                                         Income Tax Expense of that Person for that period;

 

		1.1.4.1.3	the
                                         Depreciation Expense of that Person for that period;

 

		1.1.4.1.4	the
                                         actual amortization expenses of that Person for that period;

 

    	 	 	 

    	 	- 3 -	 

    

 

		1.1.4.1.5	extraordinary
                                         and non-recurring losses of that Person for that period; and

 

		1.1.4.1.6	any
                                         non-cash equity-based compensation; less

 

		1.1.4.2	without
                                         duplication, but only to the extent any of those amounts were added in determining Net
                                         Income for that period, extraordinary and non-recurring gains of that Person for that
                                         period.

 

		1.1.5	“Affiliate”
                                         means, with respect to a specified Person, another Person that directly, or indirectly
                                         through one or more intermediaries, Controls or is Controlled by or is under common Control
                                         with the Person specified.

 

		1.1.6	“Agreement”
                                         means this amended and restated credit agreement between the Borrower and the Initial
                                         Lender, including all Schedules and Exhibits, as it may be confirmed, amended, extended,
                                         supplemented or restated by written agreement between the Parties from time to time.

 

		1.1.7	“Anti-Money
                                         Laundering Legislation” means the Proceeds of Crime (Money Laundering) and
                                         Terrorist Financing Act (Canada) and other Applicable Laws relating to anti-money
                                         laundering, anti-terrorist financing, government sanctions and “know your client”
                                         matters, whether in Canada or elsewhere, together with any guidelines or orders under
                                         those laws.

 

		1.1.8	“Applicable
                                         Law” means, at any time, and whether or not having the force of law:

 

		1.1.8.1	any
                                         domestic or foreign statute, law (including common and civil law), treaty, code, ordinance,
                                         rule, regulation, restriction or by-law;

 

		1.1.8.2	any
                                         judgment, order, writ, injunction, decision, ruling, decree or award issued or made by
                                         any Governmental Authority;

 

		1.1.8.3	any
                                         regulatory policy, practice, guideline or directive of any Governmental Authority; or

 

		1.1.8.4	any
                                         other Authorization,

 

in
each case binding on or affecting the Person referred to in the context in which the term is used or binding on or affecting the
Property of that Person.

 

		1.1.9	“Applicable
                                         Period” is defined in Section 1.1.35.

 

		1.1.10	“Arm’s
                                         Length” means arm’s length as that term is interpreted in connection
                                         with its use in the Income Tax Act.

 

		1.1.11	“Asset
                                         Disposition” means, at any time, the direct or indirect sale, transfer, assignment,
                                         conveyance, lease or other disposition of any Property by any Person.

 

		1.1.12	“Assignment
                                         and Assumption” means an assignment and assumption agreement entered into by
                                         a Lender, as assignor, and any Person, as assignee, pursuant to the terms and provisions
                                         of this Agreement, a copy of which has been given to the Initial Lender, substantially
                                         in the form of Exhibit A.

 

    	 	 	 

    	 	- 4 -	 

    

 

		1.1.13	“Authorization”
                                         means any authorization, order, permit, approval, grant, licence, qualification, consent,
                                         exemption, waiver, right, franchise, privilege, certificate, judgment, writ, injunction,
                                         award, determination, direction, decree, by-law, rule or regulation of any Governmental
                                         Authority having jurisdiction over any Person, whether or not having the force of law.

 

		1.1.14	“Bankruptcy
                                         Code” means the Federal Bankruptcy Reform Act of 1978.

 

		1.1.15	“Borrower”
                                         means Frankly Inc., a corporation continued under the laws of British Columbia, and its
                                         successors and permitted assigns.

 

		1.1.16	“Borrowing”
                                         means a borrowing hereunder consisting of Loans made to or for the benefit of the Borrower
                                         by any Lender hereunder.

 

		1.1.17	“Borrower’s
                                         Obligations” means, at any time, all of the indebtedness, liabilities and obligations,
                                         absolute or contingent, direct or indirect, matured or not matured, liquidated or unliquidated,
                                         of the Borrower to the Initial Lender and any other Lender arising under the Facility
                                         or created by reason of or relating to this Agreement (and for greater certainty, including
                                         under the Original Credit Agreement) or any other Loan Document, including all Loans
                                         and any unpaid interest on them, all fees due under this Agreement and all reasonable
                                         costs and expenses of the Lenders, and any other sums payable by the Borrower to the
                                         Lenders, under the Loan Documents.

 

		1.1.18	“Business
                                         Day” means any day excluding a Saturday, Sunday or other day on which commercial
                                         banking institutions are generally closed in Toronto, Ontario or New York, New York and,
                                         when determined in connection with notices and determinations in respect of LIBOR or
                                         any Term A Loan or payment of any Term A Loan, that is also a day on which dealings in
                                         Dollar deposits are carried on in the London interbank market.

 

		1.1.19	“Capital
                                         Expenditure” means any expense classified and accounted for as a capital expenditure
                                         pursuant to IFRS.

 

		1.1.20	“Capital
                                         Lease” means any lease of Property by a Person as lessee that is required by
                                         IFRS to be classified and accounted for as a capital lease on the balance sheet of that
                                         Person.

 

		1.1.21	“Capital
                                         Lease Obligations” means, for any Person, as of the date of determination,
                                         the obligations of that Person to pay rent and other amounts under a Capital Lease.

 

		1.1.22	“Class”
                                         (a) when used with respect to any Lender, refers to whether such Lender has a Loan or
                                         Commitment with respect to a particular class of Loans or Commitments hereunder, (b)
                                         when used with respect to Commitments, refers to whether such Commitments are Term A
                                         Loan Commitments or Term B Loan Commitments, and (c) when used with respect to a Loan
                                         or a Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
                                         are Term A Loans or Term B Loans, in each case, under this Agreement.

 

		1.1.23	“Closing
                                         Date” means the date upon which this Amended and Restated Credit Agreement
                                         becomes operative and enforceable against the Lender and Borrower, namely May 7, 2018
                                         or any other date agreed to in writing by the Lender and the Borrower.

 

    	 	 	 

    	 	- 5 -	 

    

 

		1.1.24	“Code”
                                         means the U.S. Internal Revenue Code of 1986, as amended.

 

		1.1.25	“Collateral”
                                         means all of the property, assets and undertaking (whether real or personal, tangible
                                         or intangible, moveable or immoveable, rights or privileges), now owned or hereafter
                                         acquired, of any Obligor subject to any Lien granted by any of the Security Documents.

 

		1.1.26	“Commitment(s)”
                                         means, at any time, the commitment(s) of the Lender(s) to make Loans available under
                                         (i) the Term A Facility in the maximum principal amount of US$7,500,000 (the “Term
                                         A Loan Commitment”)(inclusive of the 2018 Advance), and (ii) the Term B Facility
                                         in the maximum principal amount of US$14,500,000 (the “Term B Loan Commitment”)(which
                                         is fully advanced as of the Closing Date), in each case, as that amount may be reduced,
                                         adjusted or amended at any time under and in accordance with the terms of this Agreement.

 

		1.1.27	“Commitment
                                         Percentage” means, as to a Lender, the percentage equivalent of such Lender’s
                                         Term A Loan Commitment or Term B Loan Commitment divided by the aggregate of all Term
                                         A Loan Commitments or Term B Loan Commitments, as applicable; provided that after the
                                         Term A Loans or Term B Loans have been funded, the Commitment Percentages shall be determined
                                         for the Term A Loans and Term B Loans by reference to the outstanding principal balance
                                         thereof as of any date of determination rather than the Commitments therefor; provided,
                                         further, following acceleration of the Loans and with respect to either Class of Term
                                         A Loans or Term B Loans, such term shall mean, as to the Lender, the percentage equivalent
                                         of the principal amount of the Loans in such Class (or all together, as the context permits
                                         or requires) held by such Lender, divided by the aggregate principal amount of the Loans
                                         held by all the Lenders in such Class (or all together, as the context permits or requires).

 

		1.1.28	“Communication”
                                         means any notice, demand, request, consent, approval or other communication which is
                                         required or permitted by this Agreement to be given or made by a Party.

 

		1.1.29	“Compliance
                                         Certificate” means a compliance certificate substantially in the form attached
                                         to this Agreement as Exhibit 9.1.1.4, to be executed by a Responsible Officer of the
                                         Borrower and delivered to the Initial Lender as set out in Section 9.1.1.4.

 

		1.1.30	“Consolidated
                                         Basis” means, in relation to any Financial Statements or financial results
                                         of the Borrower (or any determination derived from them), the Financial Statements and
                                         financial results of the Borrower and the other Obligors, prepared and calculated on
                                         a consolidated basis all in accordance with IFRS.

 

		1.1.31	“Constating
                                         Documents” means:

 

		1.1.31.1	for
                                         a corporation, unlimited liability company, limited liability company or other body corporate,
                                         its articles of incorporation, amalgamation, arrangement or continuance or similar organizational
                                         documents, by-laws and any unanimous shareholder agreement or other shareholder agreement;

 

    	 	 	 

    	 	- 6 -	 

    

 

		1.1.31.2	for
                                         a partnership, limited liability partnership or limited partnership, its partnership
                                         declaration, partnership agreement or similar related organizational documents;

 

		1.1.31.3	for
                                         a trust, the declaration, indenture or agreement under which it is created and its affairs
                                         are governed, or similar related organizational documents; or

 

		1.1.31.4	for
                                         any other entity or relationship of entities, the documents and agreements by which they
                                         are created and organized.

 

		1.1.32	“Control”
                                         means the power to direct or cause the direction of the management or policies of a Person,
                                         whether through the ability to exercise voting power, by contract or otherwise, and “Controlled”
                                         has a corresponding meaning.

 

		1.1.33	“Criminal
                                         Code” means the Criminal Code, R.S.C. 1985, c. C-46.

 

		1.1.34	“Current
                                         Year Excess Cash Flow Amount” means, with respect to any Fiscal Year, commencing
                                         the Fiscal Year ending December 31, 2017, and as of any date of determination during
                                         the period (the “Applicable Period”) commencing with the date of receipt
                                         by the Initial Lender of the consolidated financial statements required by Section 9.1.1.1
                                         for the Fiscal Year ending December 31, 2017, the amount of Excess Cash Flow (which shall
                                         not be less than zero) for such Fiscal Year as determined by the Borrower in good faith
                                         and supported by calculations of such Excess Cash Flow amount in form and substance satisfactory
                                         to the Required Lenders. For avoidance of doubt, the Current Year Excess Cash Flow Amount
                                         shall be zero on any date that is not part of the Applicable Period and all references
                                         to the definition of Excess Cash Flow to “Fiscal Year” shall be deemed to
                                         refer to the Applicable Period.

 

		1.1.35	“Debt”
                                         means, at any time, without duplication, and on a Consolidated Basis, the obligations
                                         of any Person that are considered as debt in accordance with IFRS, including:

 

		1.1.35.1	all
                                         indebtedness of that Person for money borrowed by or otherwise advanced to it for which
                                         the principal bears interest, including bankers’ acceptances, letters of credit
                                         or letters of guarantee and all indemnity and reimbursement obligations under them;

 

		1.1.35.2	all
                                         indebtedness of that Person for the deferred purchase price of Property or services;

 

		1.1.35.3	all
                                         indebtedness of that Person created or arising under any conditional sale or other title
                                         retention agreement with respect to Property acquired by that Person, including indebtedness
                                         under agreements that limit the rights and remedies of the seller or lender if default
                                         occurs to repossession or sale of that Property;

 

		1.1.35.4	all
                                         interest or other obligations of that Person that are capitalized;

 

    	 	 	 

    	 	- 7 -	 

    

 

		1.1.35.5	all
                                         Capital Lease Obligations of that Person;

 

		1.1.35.6	the
                                         aggregate amount at which any Equity Securities of that Person that are redeemable or
                                         retractable at the option of the holder may be redeemed or retracted for cash or other
                                         payment, provided that all conditions precedent for the redemption or retraction have
                                         been satisfied;

 

		1.1.35.7	all
                                         other obligations of that Person upon which interest charges are customarily paid by
                                         that Person;

 

		1.1.35.8	all
                                         obligations arising from any right of recourse against that Person relating to any sale
                                         of accounts receivable to a Person that is not a Related Party, including in any securitization
                                         transaction;

 

		1.1.35.9	all
                                         obligations of that Person under any Guarantee; and

 

		1.1.35.10	all
                                         Debt of any other Person secured by (or for which a holder of that Debt has an existing
                                         right, contingent or otherwise, to be secured by) any Lien on Property, including accounts
                                         and contract rights, owned by the first Person, whether or not that Person has assumed
                                         or become liable for the payment of the obligation, provided that the amount of that
                                         Debt will be deemed to be the lesser of the unpaid amount of that Debt or the fair market
                                         value of that Property.

 

		1.1.36	“Default”
                                         means any event or condition that with the passage of any time specified, the giving
                                         of any notice or the satisfaction of any condition subsequent would constitute an Event
                                         of Default.

 

		1.1.37	“Depreciation
                                         Expense” means, for any period, depreciation, amortization, depletion and other
                                         similar reductions to income of a Person for that period not involving any outlay of
                                         cash, all determined in accordance with IFRS.

 

		1.1.38	“Distribution”
                                         means any payment by a Person:

 

		1.1.38.1	of
                                         any dividends or other distributions in cash on any of its Equity Securities;

 

		1.1.38.2	on
                                         account of, or for the purpose of setting apart any Property for, the purchase, redemption,
                                         retirement or other acquisition of any of the Equity Securities of that Person or any
                                         of its Subsidiaries or any warrants, options or rights to acquire any of those Equity
                                         Securities, or the making by that Person of any other distribution in cash relating to
                                         any of those Equity Securities;

 

		1.1.38.3	of
                                         any principal of, or interest or premium on or of, any Debt of that Person to a shareholder
                                         of that Person or to any other Person not at Arm’s Length to that Person or shareholder;

 

		1.1.38.4	of
                                         any:

 

		1.1.38.4.1	management,
                                         consulting or similar fee or any bonus payment or comparable payment;

 

		1.1.38.4.2	gift
                                         or other gratuity; or

 

    	 	 	 

    	 	- 8 -	 

    

 

		1.1.38.4.3	amounts
                                         for services rendered, Property leased or acquired, or for any other reason,

 

in
each case, to any Related Party or to any Person not at Arm’s Length to that Person; or

 

		1.1.38.5	the
                                         setting aside of any cash or other Property to make any of the payments referred to above.

 

		1.1.39	“Dollars”,
                                         “dollars”, “US$” and “$” each
                                         mean lawful money of the United States of America.

 

		1.1.40	“Drawdown
                                         Date” means the Business Day specified as the date on which the Borrower is
                                         requesting that a Loan occur or on which it will occur pursuant to this Agreement.

 

		1.1.41	“Enforcement
                                         Action” is defined in Section 4.5.4.

 

		1.1.42	“Environmental
                                         Activity” means any past, present or future activity, event or circumstance
                                         in respect of any Hazardous Materials, including their storage, use, holding, collection,
                                         purchase, accumulation, assessment, generation, manufacture, construction, processing,
                                         treatment, stabilization, disposition, handling or transportation, or their Release,
                                         escape, leaching, dispersal or migration into or movement through the Natural Environment.

 

		1.1.43	“Environmental
                                         Laws” means, at any time, all Applicable Laws relating to Hazardous Materials,
                                         Environmental Activity and to the protection and regulation of the Natural Environment,
                                         or to human health and safety as it relates to Environmental Activity or the Natural
                                         Environment.

 

		1.1.44	“Environmental
                                         Liabilities” means all Losses of any kind suffered by or against any Person
                                         or its business or Property, including or as a result of any order, investigation or
                                         action by any Governmental Authority, arising from or with respect to any one or more
                                         of the following:

 

		1.1.44.1	the
                                         Release, threat of Release or presence of any Hazardous Materials, affecting any Property,
                                         whether or not originating or emanating from a Person’s Property or any contiguous
                                         Real Property or immovable Property, including any loss of value of any Property as a
                                         result of that Release, threat of Release or presence of any Hazardous Materials;

 

		1.1.44.2	the
                                         Release of any Hazardous Materials owned by, or under the charge, management or Control
                                         of, that Person, or any assign of that Person;

 

		1.1.44.3	liability
                                         incurred under any Environmental Laws for any costs incurred by any Governmental Authority
                                         or any other Person, or for damages from injury to, destruction of, or loss of natural
                                         resources in relation to, a Person’s Property or related Property, including the
                                         reasonable costs of assessing that injury, destruction or loss; and

 

		1.1.44.4	liability
                                         for personal injury or Property damage arising in connection with breach of any Environmental
                                         Laws, including by reason of any civil law offences or quasi-criminal offences or under
                                         any statutory or common law tort or similar theory, including damages assessed for the
                                         maintenance of a public or private nuisance or for the carrying on of a dangerous activity
                                         at, near, or with respect to a Person’s Property or elsewhere.

 

    	 	 	 

    	 	- 9 -	 

    

 

		1.1.45	“Equity
                                         Incentive Plan” means the Borrower’s Stock Option and RSU Plan, as it
                                         exists as of the date hereof.

 

		1.1.46	“Equity
                                         Securities” means, at any time, all shares or stock of, units of interest in,
                                         or participations or rights in, any Person’s capital (or other equivalents), whether
                                         voting or non-voting, including any interest in a partnership, limited partnership or
                                         other similar Person and any beneficial interest in a trust, and all rights, warrants,
                                         debt securities, options or other rights exchangeable for or convertible into any of
                                         the equity securities and related interests listed above.

 

		1.1.47	“Event
                                         of Default” is defined in Section 10.1.

 

		1.1.48	“Excess
                                         Cash Flow” means Adjusted EBITDA less Interest Expense paid in cash for any
                                         Fiscal Year, aggregate tax expenses of the Borrower to the extent paid in cash during
                                         such Fiscal Year, Capital Expenditures to the extent paid in cash during such Fiscal
                                         Year, the aggregate of all scheduled payments of principal on Debt (including mandatory
                                         prepayments of Loans) made in cash by the Borrower during such Fiscal Year, but only
                                         to the extent that such payments or repayments by their terms cannot be reborrowed or
                                         redrawn.

 

		1.1.49	“Excluded
                                         Tax” means, with respect to any Lender: (a) Taxes measured by net income (including
                                         branch profit Taxes), franchise Taxes and branch profits Taxes imposed in lieu of net
                                         income Taxes, in each case (i) imposed on such Lender as a result of being organized
                                         under the laws of, or having its principal office or, in the case of any Lender, its
                                         applicable lending office located in, the jurisdiction imposing such Tax (or any political
                                         subdivision thereof) or (ii) that are Other Connection Taxes; (b) Taxes that are directly
                                         attributable to the failure by such Lender to deliver the documentation required to be
                                         delivered pursuant to this Agreement; and (c) any United States federal withholding Taxes
                                         imposed under FATCA.

 

		1.1.50	“Expenses”
                                         shall be determined in accordance with IFRS, and means, for the relevant period under
                                         consideration, the sum total of the Obligors’ expenses for such period, calculated
                                         and presented in a form and manner historically consistent with developed practice between
                                         the Obligors and the Initial Lender since Loan inception; provided that (i) for
                                         greater certainty, for the purposes of calculating Operating Profit for any period, Obligor
                                         expenses for such period may not exclude capitalized software costs properly allocated
                                         to such period in accordance with prior practice in calculating Adjusted EBITDA, and
                                         (ii) the Obligors hereby further agree that the aggregate severance payouts paid by the
                                         Obligors to officers or employees of the Obligors during the period between March 1,
                                         2018 and August 31, 2018 shall not exceed US$450,000.

 

		1.1.51	“Facility”
                                         means, collectively, the Term A Facility and the Term B Facility, which, in the case
                                         of the Term B Facility, has, as of the date hereof, been fully drawn by the Borrower
                                         under the provisions of the Original Credit Agreement and remains outstanding hereunder.

 

    	 	 	 

    	 	- 10 -	 

    

 

		1.1.52	“FATCA”
                                         means Sections 1471, 1472, 1473 and 1474 of the Code, as of the date of this Agreement
                                         (or any amended or successor version that is substantively comparable and not materially
                                         more onerous to comply with), current or future United States Treasury Regulations promulgated
                                         thereunder and published guidance with respect thereto, any agreements entered into pursuant
                                         to Section 1471(b)(1) of the Code and any applicable intergovernmental agreements, treaties,
                                         regulations, and any official interpretations thereof.

 

		1.1.53	“Final
                                         Availability Date” means, with respect to the Term A Facility, the earlier
                                         of (i) September 30, 2018, (ii) the Maturity Date, (iii) the occurrence of a Default
                                         or Event of Default hereunder, and (iv) the date on which the Required Term A Lenders
                                         advise the Borrower in writing that no further Loans will be extended to the Borrower
                                         by it under the Term A Facility; it being agreed that no further Borrowings are available
                                         under the Term B Facility.

 

		1.1.54	“Financial
                                         Statements” means a balance sheet, statement of income and retained earnings,
                                         statement of cash flow and any other statements required by IFRS, together with all schedules
                                         and notes to them.

 

		1.1.55	“Fiscal
                                         Quarter” means, relating to any Person, the fiscal quarter of that Person.

 

		1.1.56	“Fiscal
                                         Year” means, relating to any Person, the fiscal year of that Person.

 

		1.1.57	“Governmental
                                         Authority” means:

 

		1.1.57.1	any
                                         federal, provincial, state, local, municipal, regional, territorial, aboriginal, or other
                                         government, governmental or public department, branch, ministry, or court, domestic or
                                         foreign, including any district, agency, commission, board, arbitration panel or authority
                                         and any subdivision of any of them exercising or entitled to exercise any administrative,
                                         executive, judicial, ministerial, prerogative, legislative, regulatory, or taxing authority
                                         or power of any nature; and

 

		1.1.57.2	any
                                         quasi-governmental or private body exercising any regulatory, expropriation or taxing
                                         authority under or for the account of any of them, and any subdivision of any of them.

 

		1.1.58	“Guarantee”
                                         means any absolute or contingent liability of any Person under any guarantee, agreement,
                                         endorsement (other than for collection or deposit in the ordinary course of business),
                                         discount with recourse or other obligation to pay, purchase, repurchase or otherwise
                                         be or become liable or obligated upon any Debt of any other Person, and including any
                                         absolute or contingent obligations to:

 

		1.1.58.1	advance
                                         or supply funds for the payment or purchase of any Debt of any other Person;

 

		1.1.58.2	purchase,
                                         sell or lease (as lessee or lessor) any Property, services, materials or supplies primarily
                                         for the purpose of enabling any other Person to pay its Debt or to assure the holder
                                         of it against loss relating to payment of that Debt; or

 

    	 	 	 

    	 	- 11 -	 

    

 

		1.1.58.3	indemnify
                                         or hold harmless any other Person from or against any losses, liabilities or damages,
                                         in circumstances intended to enable that other Person to incur or pay any of its Debt
                                         or to comply with any agreement relating to it or otherwise to assure or protect creditors
                                         against loss relating to that Debt.

 

		1.1.59	“Guaranteed
                                         Obligations” means all indebtedness, liabilities and obligations, absolute
                                         or contingent, direct or indirect, matured or not matured, liquidated or unliquidated,
                                         of the Guarantors and each of them to the Initial Lender and other Lenders under the
                                         Guarantee granted by each Guarantor to the Initial Lender at any time.

 

		1.1.60	“Guarantors”
                                         means, collectively:

 

		1.1.60.1	Frankly
                                         Co. and Frankly Media LLC;

 

		1.1.60.2	each
                                         present or future Subsidiary of the Borrower; and

 

		1.1.60.3	each
                                         other Person who at any time grants a Guarantee of the Borrower’s Obligations to
                                         the Lenders, in form and substance satisfactory to the Required Lenders,

 

and
“Guarantor” means any one of them.

 

		1.1.61	“Hazardous
                                         Materials” means any substance that when Released into the Natural Environment
                                         creates a material risk of causing material harm or degradation, immediately or at some
                                         future time, to the Natural Environment, or any ascertainable risk to human health or
                                         safety, including any pollutant, contaminant, waste, hazardous waste, dangerous goods
                                         (as defined by applicable Environmental Laws), asbestos and polychlorinated biphenyls.

 

		1.1.62	“IFRS”
                                         means the International Financial Reporting Standards as issued by the International
                                         Accounting Standards Board, provided that at any time hereunder that the Borrower is
                                         required to report its financial statements under United States Generally Accepted Accounting
                                         Principles (“US GAAP”), references herein to IFRS will be deemed references
                                         US GAAP.

 

		1.1.63	“Income
                                         Tax Act” means the Income Tax Act, R.S.C. 1985, c. 1 (5th
                                         Supp.).

 

		1.1.64	“Income
                                         Tax Expense” means, with respect to any period, the aggregate of all Taxes
                                         on the income or capital of a Person, determined in accordance with IFRS, for that period.

 

		1.1.65	“Indemnified
                                         Party” is defined in Section 5.1.

 

		1.1.66	“Indemnified
                                         Tax” means (a) any Taxes (other than an Excluded Tax) imposed on or with respect
                                         to any payment made by or on account of any obligation of any Obligor under any Loan
                                         Document, and (b) Other Taxes (other than an Excluded Tax).

 

		1.1.67	“Initial
                                         Lender” means Raycom Media Inc.

 

		1.1.68	“Insolvency
                                         Law” means the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, the
                                         Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, the Winding-up
                                         and Restructuring Act, R.S.C. 1985, c. W-11, the Bankruptcy Code, and any other laws
                                         relating to bankruptcy, insolvency, reorganization, compromise of debts or similar laws
                                         of any jurisdiction affecting creditors’ rights generally.

 

    	 	 	 

    	 	- 12 -	 

    

 

		1.1.69	“Insurance”
                                         is defined in Section 9.1.16.1.

 

		1.1.70	“Intellectual
                                         Property” means trade-marks and trade-mark applications, trade names, certification
                                         marks, patents and patent applications, copyrights, domain names, industrial designs,
                                         trade secrets, know-how, formulae, processes, inventions, technical expertise, research
                                         data and other similar property, all associated registrations and applications for registration,
                                         and all associated rights, including moral rights.

 

		1.1.71	“Intellectual
                                         Property Rights” is defined in Section 8.1.17.

 

	 	1.1.71A	“Interest
    Coverage Ratio” means, as of any date of determination, the ratio of (a) Adjusted EBITDA for the then applicable
    Reference Period to (b) Interest Expense for the then applicable Reference Period.

 

		1.1.72	“Interest
                                         Expense” means, with respect to any Reference Period and on a consolidated
                                         basis, the aggregate amount of interest and other financing charges incurred by a Person,
                                         determined in accordance with, and characterized under, IFRS as interest, during that
                                         period with respect to Debt (including, without duplication, interest, capitalized interest,
                                         discount and financing fees, unused commitment fees, commissions, discounts, costs related
                                         to factoring or securitizing accounts receivable and other fees and charges payable with
                                         respect to letters of credit and bankers’ acceptances, standby fees and the interest
                                         component of Capital Lease Obligations and PMSI Obligations).

 

		1.1.73	“Interest
                                         Payment Date” means, the first Business Day of each month.

 

		1.1.74	“Investment”
                                         means:

 

		1.1.74.1	any
                                         direct or indirect purchase or other acquisition by any Investor of Equity Securities,
                                         or a beneficial interest in them, of any other Person that does not otherwise constitute
                                         an Acquisition, including any exchange of Equity Securities for indebtedness;

 

		1.1.74.2	any
                                         direct or indirect loan, advance (other than Loans to employees for moving and travel
                                         expenses, drawing accounts and similar expenditures in the ordinary course of business)
                                         or capital contribution (by way of cash or Property) by any Investor to any other Person,
                                         including all indebtedness and accounts receivable owing to the Investor from that other
                                         Person that did not arise from sales or services rendered to that other Person in the
                                         ordinary course of the Investor’s business; or

 

		1.1.74.3	any
                                         direct or indirect purchase or other acquisition by any Investor of bonds, notes, debentures
                                         or other debt securities of any other Person.

 

		1.1.75	“Investor”
                                         means any Person who makes an Investment.

 

		1.1.76	Not
                                         Used.

 

    	 	 	 

    	 	- 13 -	 

    

 

		1.1.77	“Judgment
                                         Conversion Date” is defined in Section 12.14.1.

 

		1.1.78	“Judgment
                                         Currency” is defined in Section 12.14.1.

 

		1.1.79	“Knowledge
                                         of the Obligors” means the knowledge that the Obligors or any of them either
                                         have, or would have obtained, after having made or caused to be made all reasonable inquiries
                                         necessary to obtain informed knowledge, including inquiries of the records of any Obligor
                                         and the management employees of any Obligor who are reasonably likely to have knowledge
                                         of the relevant matter.

 

		1.1.80	“Lender”
                                         means the Initial Lender and its successors and assigns, and any other Person which becomes
                                         a Lender hereunder pursuant to an executed Assignment and Assumption.

 

		1.1.81	“LIBOR”
                                         means, for each interest period, the higher of (a) 1.00% per annum, and (b) the Libor
                                         (1 month) rate prevailing on the first (1st) day in such interest period that appears
                                         in the “Market Data Center – London Interbank Offered Rates” section
                                         of The Wall Street Journal website (WSJ.com), or if not available thereon, that appears
                                         in another national publication or on another appropriate website reasonably selected
                                         by the Required Term A Lenders; it being agreed that the Libor (1 month) rate shall be
                                         treated and considered for all purposes hereunder as a per annum rate of interest which
                                         shall vary from time to time as changes to the Libor (1 month) rate appear in the “Market
                                         Data Center – London Interbank Offered Rates” section of The Wall Street
                                         Journal website (WSJ.com) or in such other national publication or on such other website,
                                         and no regard shall be given to the customary 360 day convention normally applicable
                                         in the calculation thereof. If no such offered rate exists, such rate will be the rate
                                         of interest per annum, as reasonably determined by the Required Term A Lenders, at which
                                         deposits of Dollars in immediately available funds are offered at 11:00 A.M. (London,
                                         England time) two (2) Business Days prior to the first (1st) day of such interest period
                                         by major financial institutions reasonably satisfactory to the Required Term A Lenders
                                         in the London interbank market for a one month period for the applicable principal amount
                                         on such date of determination. If, for any applicable interest period, the Libor (1 month)
                                         rate is less than 1.00%, then LIBOR shall be deemed 1.00%. For greater certainty, the
                                         parties agree that, although the Libor (1 month) rate that appears in the “Market
                                         Data Center – London Interbank Offered Rates” section of The Wall Street
                                         Journal website (WSJ.com) or in such other publication or on such other website may vary
                                         daily, for purposes of this Agreement, variations in the Libor (1 month) rate occurring
                                         in the applicable interest period after the rate has been set for such interest period
                                         shall be disregarded, such that the Libor (1 month) rate as so set shall apply for the
                                         entire interest period, with variations in the Libor (1 month) rate only being recognized
                                         and given effect to on the 1st day of each succeeding interest period.

 

		1.1.82	“Lien”
                                         means any Security Interest, lien (statutory, common law, equitable or otherwise), privilege,
                                         charge, trust deemed to exist under any Applicable Law or other encumbrance of any kind,
                                         or any other agreement or arrangement creating in favour of any claimant or creditor
                                         a right relating to any particular Property that is in priority to the right of any ordinary
                                         creditors relating to that Property, and including the right of a lessor under a Capital
                                         Lease or Operating Lease.

 

		1.1.83	“Loan
                                         Documents” means this Agreement, the Security Documents and any other instruments
                                         and agreements entered into between the Initial Lender and any Obligor relating to the
                                         Facility, and, in each case, as may be amended, supplemented, restated, replaced or otherwise
                                         modified from time to time, including Security Documents and any other instruments and
                                         agreements entered into between any Obligor and any other Lender from time to time as
                                         security for the Outstanding Obligations; provided that for greater certainty, all security
                                         documents, instruments and agreements delivered by any Obligor in connection with the
                                         Original Credit Agreement shall be deemed to be a Loan Document hereunder.

 

    	 	 	 

    	 	- 14 -	 

    

 

		1.1.84	“Loans”
                                         means loans made under the Term A Facility or the Term B Facility by any Lender to the
                                         Borrower, including the outstanding Term A Loans and the Term B Loans, whether considered
                                         together or separately, as the context requires or permits.

 

		1.1.85	“Losses”
                                         means all claims, suits, actions, debts, damages, costs, losses, liabilities, penalties,
                                         obligations, judgments, charges, expenses and disbursements, including all reasonable
                                         legal fees and disbursements on a solicitor and its own client basis.

 

		1.1.86	“Material
                                         Adverse Change” means any event, development or circumstance that has had,
                                         or could reasonably be expected to have, a Material Adverse Effect.

 

		1.1.87	“Material
                                         Adverse Effect” means any fact, circumstance or event that could result in
                                         a material adverse effect on:

 

		1.1.87.1	the
                                         business, financial condition, operations or Property of the Obligors on a Consolidated
                                         Basis;

 

		1.1.87.2	the
                                         validity or enforceability of any Loan Document;

 

		1.1.87.3	the
                                         ability of any Obligor to perform its material obligations under the Loan Documents;
                                         or

 

		1.1.87.4	the
                                         filing, registration, perfection or priority of any Security Interests created by the
                                         Security Documents, other than as a result of Permitted Liens that have priority under
                                         Applicable Law, against any Property of any Obligor or the rights and remedies of the
                                         Lenders against that Property.

 

		1.1.88	“Material
                                         Permits” means those Authorizations the breach, non-performance or cancellation
                                         of which, or the failure of which to renew, could reasonably be expected to result in
                                         a Material Adverse Effect.

 

		1.1.89	“Maturity
                                         Date” means December 31, 2020, subject to any earlier date that may result
                                         from any acceleration of the requirement to pay the Outstanding Obligations under this
                                         Agreement.

 

		1.1.90	“Maximum
                                         Term A Loan Amount” is defined in Section 2.1.1.

 

		1.1.91	“Maximum
                                         Term B Loan Amount” is defined in Section 2.1.1.

 

		1.1.92	“Natural
                                         Environment” means the air, land, subsoil and water (including surface water
                                         and ground water), or any combination or part of them.

 

		1.1.93	“Net
                                         Income” means, relating to any period, the net income or loss, as applicable,
                                         of a Person for that period determined in accordance with IFRS and after Income Tax Expenses
                                         but excluding extraordinary items, as shown on that Person’s statement of operations
                                         for that period.

 

    	 	 	 

    	 	- 15 -	 

    

 

		1.1.94	“Non-U.S.
                                         Lender Party” means each Lender that is not a United States person as defined
                                         in Section 7701(a)(30) of the Code.

 

		1.1.95	“Obligation
                                         Currency” is defined in Section 12.14.

 

		1.1.96	“Obligor
                                         Location” means, for each Obligor, its sole place of business or chief executive
                                         office and, if different, its location as determined under the location of debtor rules
                                         in section 7(3) of the Personal Property Security Act (Ontario).

 

		1.1.97	“Obligors”
                                         means, collectively, the Borrower and the Guarantors, and “Obligor”
                                         means any one of them.

 

		1.1.98	“Operating
                                         Lease” means any lease of Property by a Person as lessee that is required by
                                         IFRS to be classified and accounted for as an operating lease.

 

		1.1.99	“Operating
                                         Lease Obligations” means, under any Operating Lease entered into by any Obligor
                                         as lessee, the aggregate amount of the lease payments of the lessee, including all rent
                                         and payments to be made by the lessee in connection with the return of the leased Property,
                                         during the remaining term of the Operating Lease, including any period for which the
                                         Operating Lease has been extended.

 

	 	1.1.99A	“Operating
    Profit” means, for the relevant period under consideration, Revenues for such period less Expenses for such period.

 

		1.1.100	“Optional
                                         Repayment Date” is defined in Section 4.1.1.

 

		1.1.101	“Other
                                         Connection Taxes” means, with respect to any Lender, Taxes imposed as a result
                                         of a present or former connection between such Lender and the jurisdiction imposing such
                                         Tax, other than any such connection arising solely from such Lender having executed,
                                         delivered, become a party to, performed its obligations or received a payment under,
                                         received or perfected as a security interest under, engaged in any other transaction
                                         pursuant to or enforced under any Loan Document or sold or assigned an interest in any
                                         Loan or Loan Document.

 

		1.1.102	“Other
                                         Taxes” is defined in Section 5.3.3.

 

		1.1.103	“Outstanding
                                         Obligations” means, collectively, the Borrower’s Obligations, the Guaranteed
                                         Obligations and all reasonable expenses and charges, whether for legal expenses or otherwise,
                                         incurred by any Lender in collecting or enforcing any of the Borrower’s Obligations
                                         or the Guaranteed Obligations, or in realizing on or protecting or preserving any security
                                         held for those obligations, including the Security Documents.

 

		1.1.104	“Paid
                                         in Full” or “Payment in Full”, with respect to Senior Debt,
                                         means the payment in full in cash or immediately available funds of all Senior Debt.

 

		1.1.105	“Parties”
                                         means, collectively, the Borrower, the Guarantors and the Initial Lender and any other
                                         Lender hereunder from time to time, and their respective successors and permitted assigns,
                                         and “Party” means any one of them.

 

    	 	 	 

    	 	- 16 -	 

    

 

		1.1.106	“Pension
                                         Plan” means any pension plan, fund or other similar program, other than a government
                                         sponsored plan, that covers employees of an Obligor who are employed in Canada and either:

 

		1.1.106.1	is
                                         subject to any statutory funding requirement that, if not satisfied, results in a Lien
                                         or other statutory requirement permitting any Governmental Authority to accelerate the
                                         obligation of that Obligor to fund all or a substantial portion of the unfunded, accrued
                                         benefit liabilities of that plan; or

 

		1.1.106.2	is,
                                         or is intended to be, a “registered pension plan”, as that term is defined
                                         in the Income Tax Act.

 

		1.1.107	“Permitted
                                         Acquisition” means an Acquisition by an Obligor (i) under which the aggregate
                                         consideration is less than $500,000 and the aggregate consideration for Acquisitions
                                         by all of the Obligors in the Fiscal Year of the Borrower in which the Acquisition takes
                                         place is less than $500,000, and (ii) which has been approved by the Required Lenders;
                                         provided that at the time of and immediately after completing the Acquisition no Default
                                         or Event of Default will have occurred and be continuing or could reasonably be expected
                                         to result from it.

 

		1.1.108	“Permitted
                                         Debt” means any of the following types of Debt:

 

		1.1.108.1	the
                                         Outstanding Obligations;

 

		1.1.108.2	any
                                         Debt listed on Schedule 1.1.108.2 and any renewals, extensions and modifications that
                                         do not increase the principal amount of that Debt or otherwise make the terms of it more
                                         burdensome;

 

		1.1.108.3	any
                                         PMSI Obligations, provided that the aggregate amount of all PMSI Obligations outstanding
                                         at any time does not exceed $2,000,000;

 

		1.1.108.4	any
                                         other unsecured Debt of the Obligors or any of them not exceeding at any time $200,000
                                         in aggregate principal amount outstanding;

 

		1.1.108.5	secured
                                         credit facilities from an arm’s length financial institution in a principal amount
                                         of not more than $5,000,000 on terms and conditions satisfactory to the Required Lenders,
                                         acting reasonably; and

 

		1.1.108.6	Secured
                                         Debt that is subordinated to the Outstanding Obligations on terms satisfactory to the
                                         Required Lender, at their discretion.

 

		1.1.109	“Permitted
                                         Disposition” means:

 

		1.1.109.1	the
                                         sale of Inventory by any Obligor in the ordinary course of business;

 

		1.1.109.2	the
                                         sale or other disposition of any Property other than Inventory by any Obligor in the
                                         ordinary course of business, provided that the aggregate value of Property so sold or
                                         disposed of by all of the Obligors in any Fiscal Year of the Borrower, valued in each
                                         case at its purchase price or exchange value (in the case of Property exchanges) does
                                         not exceed $350,000; provided that at the time of and immediately after making a sale
                                         or other disposition referred to in this Section, no Default or Event of Default will
                                         have occurred and be continuing or could reasonably be expected to result from it.

 

    	 	 	 

    	 	- 17 -	 

    

 

		1.1.110	“Permitted
                                         Distribution” means:

 

		1.1.110.1	any
                                         dividends declared by any Obligor under its Equity Securities that are payable solely
                                         in additional Equity Securities, other than any Equity Securities constituting Debt;

 

		1.1.110.2	Distributions
                                         by any Obligor to its shareholders, provided that the aggregate amount of those Distributions
                                         made by all of the Obligors in any Fiscal Year of the Borrower does not exceed (i) $0
                                         if the Borrower’s Total Leverage Ratio is equal to or more than 3.00:1.00; or (ii)
                                         $250,000, annually, if the Borrower’s Total Leverage Ratio is less than 3.00:1.00
                                         and

 

		1.1.110.3	Distributions
                                         under any one or more stock option plans, profit sharing plans, employment agreements
                                         and other compensation plans for directors, officers or employees of any Obligor, provided
                                         that the aggregate amount of the payments made by all of the Obligors in any Fiscal Year
                                         of the Borrower under all of those plans and agreements will not exceed amounts that
                                         are customary for the Borrower’s past practice and in the ordinary course of business.
                                         provided that at the time of and immediately after paying or making a dividend or Distribution,
                                         no Default or Event of Default will have occurred and be continuing or could reasonably
                                         be expected to result from it.

 

		1.1.111	“Permitted
                                         Fundamental Change” means:

 

		1.1.111.1	any
                                         amalgamation of a Wholly-Owned Subsidiary with the Obligor that owns it, if that Obligor
                                         is the continuing or surviving corporation, or with or into one or more other Wholly-Owned
                                         Subsidiaries of an Obligor if one of the Wholly-Owned Subsidiaries will be the continuing
                                         or surviving corporation, provided that:

 

		1.1.111.1.1	the
                                         amalgamated corporation confirms to the Lenders in writing, in form and substance satisfactory
                                         to the Required Lenders, that the amalgamated corporation is an Obligor under this Agreement
                                         and is liable for the Outstanding Obligations;

 

		1.1.111.1.2	the
                                         amalgamated corporation immediately delivers to the Lenders a certificate of a senior
                                         officer attaching the new Constating Documents and incumbency information for that corporation;
                                         and

 

		1.1.111.1.3	the
                                         Lenders receive all Security Documents, legal opinions and other acknowledgements or
                                         agreements from all applicable Persons as the Required Lenders may reasonably require;
                                         or

 

    	 	 	 

    	 	- 18 -	 

    

 

		1.1.111.2	any
                                         sale, lease, transfer or other disposition by a Wholly-Owned Subsidiary of any or all
                                         of its Property, upon voluntary liquidation or otherwise, to the Obligor that owns it
                                         or any other Wholly-Owned Subsidiary of an Obligor; 

 

provided
that at the time of and immediately after any such change, no Default or Event of Default will have occurred and be continuing
or could reasonably be expected to result from it.

 

		1.1.112	“Permitted
                                         Investment” means:

 

		1.1.112.1	certificates
                                         of deposit, time deposits or overnight bank deposits that mature in six months or less
                                         from the date of acquisition of them, with or issued by any bank listed on Schedule I
                                         to the Bank Act (Canada);

 

		1.1.112.2	Investments
                                         by one Obligor in or to another Obligor, provided that if the Investments are in the
                                         Equity Securities of an Obligor, the Lenders have a Security Interest in those Equity
                                         Securities under a Security Document;

 

		1.1.112.3	at
                                         any time that no Default or Event of Default has occurred and is continuing, Investments
                                         by an Obligor in any Obligor’s Wholly-Owned Subsidiary which is not itself an Obligor,
                                         provided that the aggregate amount of those Investments made by all of the Obligors in
                                         any Fiscal Year of the Borrower does not exceed $500,000;

 

		1.1.112.4	Investments
                                         existing on the Closing Date in Equity Securities listed on Schedule 1.1.112.4 or any
                                         Replacement Schedule;

 

		1.1.112.5	loans
                                         to officers of an Obligor, provided that the aggregate principal amount of all of those
                                         loans outstanding at any time does not exceed $150,000; and

 

		1.1.112.6	Investments
                                         approved by the Borrower’s shareholders for securities into other companies for
                                         an Obligor under which at the time of and immediately after completing the Acquisition,
                                         no Default or Event of Default will have occurred and be continuing or could reasonably
                                         be expected to result from it; such Investments not to exceed $5,000,000.

 

		1.1.113	“Permitted
                                         Liens” means, at any time, any of the following:

 

		1.1.113.1	any
                                         Lien for Taxes levied or imposed by a Governmental Authority against an Obligor:

 

		1.1.113.1.1	that
                                         are not due or delinquent at that time; or

 

		1.1.113.1.2	the
                                         validity of which the Obligor is contesting in good faith at that time and relating to
                                         which the Obligor has set aside a reserve sufficient to pay those Taxes, or which at
                                         that time is not a material risk to the Property of the Obligor, whether because no steps
                                         or proceedings to enforce that Lien have been initiated at that time or because the value
                                         of the Property affected by the Lien is not material to the Property of the Obligors
                                         collectively;

 

    	 	 	 

    	 	- 19 -	 

    

 

		1.1.113.2	any
                                         Lien for any judgment rendered, or order filed, against Property of an Obligor which
                                         the Obligor is contesting in good faith at that time:

 

		1.1.113.2.1	relating
                                         to which the Obligor has set aside a reserve sufficient to pay that judgment or order
                                         in accordance with IFRS; or

 

		1.1.113.2.2	that
                                         is not material, because the value of the Property affected by the Lien is not material
                                         to the Property of the Obligors collectively;

 

		1.1.113.3	any
                                         Lien against an Obligor or Property of an Obligor imposed or permitted by Applicable
                                         Law which:

 

		1.1.113.3.1	is
                                         inchoate and relates to obligations of an Obligor not yet due or delinquent;

 

		1.1.113.3.2	in
                                         the case of any repairer’s or storer’s Lien that has been filed, the aggregate
                                         amount of the obligations to which the Lien relates does not exceed $250,000, and that
                                         Lien is not a material risk to the Property subject to it, whether because no steps or
                                         proceedings to enforce the Lien have been initiated at that time or because the value
                                         of the Property affected by the Lien is not material to the Property of the Obligors
                                         collectively; or

 

		1.1.113.3.3	is
                                         not a material risk to the Property of the Obligor, whether because no steps or proceedings
                                         to enforce the Lien have been initiated at that time or because the value of the Property
                                         affected by the Lien is not material to the Property of the Obligors collectively;

 

		1.1.113.4	any
                                         undetermined or inchoate Lien against an Obligor or Property of an Obligor arising in
                                         the ordinary course of and incidental to construction by or current operations of that
                                         Obligor:

 

		1.1.113.4.1	that
                                         relates to obligations that are not yet due or delinquent;

 

		1.1.113.4.2	that
                                         has not been filed under Applicable Law against an Obligor or its Property, or if filed,
                                         the Obligor has obtained an order of a court of competent jurisdiction discharging that
                                         Lien within 15 days of the filing of it;

 

		1.1.113.4.3	relating
                                         to which no steps or proceedings to enforce that Lien have been initiated; or

 

		1.1.113.4.4	that
                                         is not a material risk to Property of the Obligors, because the value of the Property
                                         affected by the Lien is not material to the Property of the Obligors collectively;

 

		1.1.113.5	easements,
                                         rights-of-way, servitudes or other similar rights or restrictions relating to land in
                                         which any Obligor has an interest (including rights-of-way and servitudes for railways,
                                         sewers, drains, pipe lines, gas and water mains, and electric light, power, telephone
                                         internet and cable television conduits, poles, wires, cables and optic fibre cables),
                                         granted to or reserved or taken by other Persons, which either alone or in the aggregate
                                         do not materially detract from the value of the Property of the Obligors collectively
                                         or materially impair the use or operation of that Property;

 

    	 	 	 

    	 	- 20 -	 

    

 

		1.1.113.6	any
                                         Lien given by an Obligor to a public utility or any Governmental Authority when and to
                                         the extent required by that public utility or Governmental Authority that relates to
                                         obligations that are not yet due or delinquent and which Lien does not, either alone
                                         or in the aggregate, materially detract from the value of the Property of the Obligors
                                         subject to that Lien or materially impair the use or operation of that Property;

 

		1.1.113.7	the
                                         reservation in any original grant from the Crown of any Real Property of an Obligor or
                                         interests in it, and statutory exceptions to title;

 

		1.1.113.8	any
                                         Lien attaching to or against any Property of an Obligor which is in favour of another
                                         Obligor and is subordinated in favour of the Lenders;

 

		1.1.113.9	cash,
                                         marketable securities or bonds deposited by an Obligor in connection with bids or tenders,
                                         deposited with a court as security for costs in any litigation, deposited to secure workers’
                                         compensation or unemployment insurance liabilities, or deposited to secure the performance
                                         of statutory obligations of an Obligor;

 

		1.1.113.10	Liens
                                         securing the performance of statutory obligations, surety or performance bonds and other
                                         obligations of similar nature incurred in the ordinary course of business of an Obligor,
                                         provided that those Liens are subordinate to the Security Interests created by the Security
                                         Documents;

 

		1.1.113.11	Purchase
                                         Money Security securing PMSI Obligations that constitute Permitted Debt;

 

		1.1.113.12	any
                                         Operating Leases of an Obligor under which the aggregate Operating Lease Obligations
                                         outstanding at any time under leases of personal Property do not exceed $2,000,000, and
                                         the aggregate Operating Lease Obligations outstanding at any time under any Real Property
                                         Leases of an Obligor constituting Operating Leases do not exceed $10,000,000;

 

		1.1.113.13	Security
                                         Interests securing Debt permitted pursuant section 1.1.108.5, which may permit the lender
                                         providing such Debt to have a first priority security interest on cash and accounts receivable
                                         of the Obligors, subject to an intercreditor arrangement satisfactory to the Required
                                         Lenders, acting reasonably;

 

		1.1.113.14	any
                                         Lien securing Permitted Debt;

 

		1.1.113.15	the
                                         current Liens listed in Schedule 1.1.113.15; and

 

		1.1.113.16	the
                                         Security Interests created by the Security Documents.

 

    	 	 	 

    	 	- 21 -	 

    

 

		1.1.114	“Permitted
                                         Subordinate Debt Payments” means: (a) regularly scheduled payments of interest
                                         on the Term B Loans at the non-default rate of up to 10% per annum; (b) the payment of
                                         any fees chargeable hereunder from time to time in connection with the Subordinate Debt,
                                         if any, (c) the entire amount (or any part) of Subordinate Debt on the Maturity Date
                                         (or such later date as the holders of Subordinate Debt and the Obligors may expressly
                                         agree in writing), subject always to the subordination provisions of Section 4.5 hereof,
                                         (d) fees payable to holders of Subordinate Debt in consideration for any amendment, consent,
                                         waiver or forbearance relating to this Agreement (to the extent customary and not in
                                         excess of generally prevailing market rates at such time); (e) payments of interest (including
                                         default interest) on a “paid-in-kind” basis and not in cash, including the
                                         capitalization of interest on Term B Loans as provided hereunder; and (f) payments of
                                         the reasonable costs and expenses of the holders of Subordinate Debt.

 

		1.1.115	“Person”
                                         will be broadly interpreted and includes:

 

		1.1.115.1	a
                                         natural person, whether acting in his or her own capacity, or in his or her capacity
                                         as executor, administrator, estate trustee, trustee or personal or legal representative,
                                         and the heirs, executors, administrators, estate trustees, trustees or other personal
                                         or legal representatives of a natural person;

 

		1.1.115.2	a
                                         corporation or a company of any kind, a partnership of any kind, a sole proprietorship,
                                         a trust, a joint venture, an association, an unincorporated association, an unincorporated
                                         syndicate, an unincorporated organization or any other association, organization or entity
                                         of any kind; and

 

		1.1.115.3	a
                                         Governmental Authority.

 

		1.1.116	“PMSI
                                         Obligation” means:

 

		1.1.116.1	the
                                         unpaid purchase price of any tangible Property purchased or acquired by an Obligor;

 

		1.1.116.2	any
                                         indebtedness incurred or assumed by an Obligor to enable it to acquire rights in any
                                         tangible Property, to the extent that the indebtedness is applied to acquire those rights;
                                         and

 

		1.1.116.3	any
                                         Capital Lease Obligations of an Obligor,

 

provided
that before entering into the agreement creating the obligations described above in this definition, no Obligor or any Related
Party to an Obligor owned or had any interest in that Property or any portion of it; and

 

		1.1.116.4	any
                                         extensions, renewals, refinancings or replacements, whether from the same or another
                                         lender or lessor, in whole or in part, of any indebtedness or lease obligations described
                                         above in this definition, provided that the principal amount of indebtedness of an Obligor
                                         secured by, or of the Capital Lease Obligations of an Obligor after, any extension, renewal,
                                         refinancing or replacement does not exceed the principal amount outstanding immediately
                                         before the extension, renewal, refinancing or replacement, and the Liens granted in respect
                                         of that indebtedness or those Capital Lease Obligations will be limited to all or a part
                                         of the Property or assets which secured that indebtedness or those Capital Lease Obligations
                                         immediately prior to that extension, renewal, refinancing or replacement.

 

    	 	 	 

    	 	- 22 -	 

    

 

		1.1.117	“PPSA”
                                         means the Personal Property Security Act (British Columbia) and the regulations thereunder,
                                         as from time to time in effect, provided, however, if attachment, perfection or priority
                                         of any security interest in any Collateral are governed by the personal property security
                                         laws of any jurisdiction other than British Columbia, PPSA shall mean those personal
                                         property security laws in such other jurisdiction for the purposes of the provisions
                                         hereof relating to such attachment, perfection or priority and for the definitions related
                                         to such provisions.

 

		1.1.118	“Priority
                                         Claims” means, at the time of any determination of them, the aggregate amount
                                         due and payable at that time which is subject to or secured by one or more statutory
                                         Liens created or arising, without any necessity for the consent or agreement of any Obligor,
                                         by operation of Applicable Law that rank or are capable of ranking in priority to or
                                         pari passu with the Security Interests created by the Security Documents, including
                                         all claims that are due and payable or past due relating to employee salaries and wages,
                                         vacation pay, employee withholdings, pension plan contributions, workers’ compensation
                                         assessment, Taxes (including municipal Taxes) and claims by public utilities.

 

		1.1.119	“Pro
                                         Rata Share” means, at any time of determination, with respect to any Lender
                                         in respect of any Commitment for any portion of the Facility, the ratio of: (i) the Commitment
                                         of such Lender, to (ii) the aggregate of the Commitments of all Lenders for that portion
                                         of the Facility as determined by this Agreement and taking into account any Assignment
                                         and Assumption Agreements which may then exist; provided that, if the Commitments have
                                         been funded or terminated, the ratio shall be based on the Loans outstanding under the
                                         relevant portion of the Facility at the time of determination, after taking into account
                                         any adjustments made pursuant to this Agreement from time to time.

 

		1.1.120	“Proceeding”
                                         means any insolvency, bankruptcy, receivership, custodianship, liquidation, reorganization,
                                         assignment for the benefit of creditors or other proceeding for the liquidation, dissolution
                                         or other winding up of a Person under any Insolvency Law.

 

		1.1.121	“Property”
                                         means present and after-acquired property, assets, undertakings and privileges, whether
                                         real or personal, tangible or intangible, moveable or immoveable, and all interests in
                                         them.

 

		1.1.122	“Purchase
                                         Money Security” means any Security Interest created or assumed by an Obligor
                                         to secure PMSI Obligations that extends only to the Property that the Obligor acquired
                                         or leased in incurring or assuming those PMSI Obligations, and the identifiable or traceable
                                         proceeds of that Security Interest.

 

		1.1.123	“Real
                                         Property” means all present and future real property and all interests in it,
                                         whether held in fee simple or any lesser estate, including all Real Property Leases,
                                         mortgages, easements, rights-of-way, licences, privileges, benefits, and rights related
                                         to or connected with that real property.

 

    	 	 	 

    	 	- 23 -	 

    

 

		1.1.124	“Real
                                         Property Leases” means all leases, agreements to lease or sub-leases relating
                                         to any Real Property, including all easements, rights-of-way, licences, privileges, benefits,
                                         and rights related to or connected with that Real Property, and all present and future
                                         licences under which the licencee is given the right to use or occupy any Real Property,
                                         all as amended, extended or renewed.

 

		1.1.125	“Receivable”
                                         means a trade account receivable of or owned by an Obligor, and all related instruments
                                         and documents.

 

		1.1.126	“Reference
                                         Period” means, with respect to any date of determination, the most recent four
                                         (4) consecutive Fiscal Quarter period then ended or most recently ended for which financial
                                         statements have been made available to the Lenders;

 

		1.1.127	“Related
                                         Parties” means, with respect to any Person, that Person’s Affiliates
                                         and the directors, officers, employees, agents and advisors of that Person and of that
                                         Person’s Affiliates, and “Related Party” means any one of them.

 

		1.1.128	“Release”
                                         includes deposit, leak, emit, add, spray, inject, inoculate, abandon, spill, seep, pour,
                                         empty, throw, dump, place and exhaust, and when used as a noun has a corresponding meaning.

 

		1.1.129	“Required
                                         Lenders” means the Required Term A Lenders and the Required Term B Lenders.

 

		1.1.130	“Required
                                         Term A Lenders” means at any time (a) Lenders then holding more than fifty
                                         percent (50%) of the aggregate Term A Loan Commitments then in effect, or (b) if the
                                         Term A Facility has been funded or terminated, Lenders then holding more than fifty percent
                                         (50%) of the aggregate unpaid principal amount of the Term A Loans then outstanding.

 

		1.1.131	“Required
                                         Term B Lenders” means at any time Lenders then holding more than fifty percent
                                         (50%) of the aggregate unpaid principal amount of the Term B Loans then outstanding.

 

		1.1.132	“Revenue”
                                         shall be determined in accordance with IFRS, and means, for the relevant period under
                                         consideration, the sum total of the Obligors’ revenues calculated and presented
                                         in a form and manner historically consistent with developed practice between the Obligors
                                         and the Initial Lender since Loan inception.

 

		1.1.133	“Risk
                                         Management Transaction” means any foreign exchange or interest rate risk management
                                         transaction, commodity swap, option, cap, collar, floor or similar arrangement or other
                                         risk management arrangement to which any Person is a party.

 

		1.1.134	“Security
                                         Documents” is defined in Section 7.1.1.

 

		1.1.135	“Security
                                         Interest” means any mortgage, charge, pledge, assignment, hypothecation, title
                                         retention, finance lease or security interest, including any trust obligations, creating
                                         in favour of any creditor a right in respect of any Property.

 

		1.1.136	“Senior
                                         Covenant Default” shall mean any “Event of Default” under this
                                         Agreement, other than a Senior Payment Default.

 

		1.1.137	“Senior
                                         Debt” is defined in Section 4.5.1.

 

    	 	 	 

    	 	- 24 -	 

    

 

		1.1.138	“Senior
                                         Default Notice” means a written notice from the Required Term A Lenders to
                                         the holders of Subordinate Debt pursuant to which such holders are notified of the existence
                                         of a Senior Covenant Default or Senior Payment Default, which incorporates a reasonably
                                         detailed description of such Senior Covenant Default or Senior Payment Default.

 

		1.1.139	“Senior
                                         Payment Default” means an Event of Default described in Section 10.1.1 or 10.1.2
                                         of this Agreement resulting from the failure of any Obligor to pay, on a timely basis,
                                         any principal, interest, fees or other obligations under this Agreement, including, without
                                         limitation, in each case, any default in payment of Senior Debt after acceleration thereof.

 

		1.1.140	“Software
                                         Escrow Agreement” is defined in Section 7.1.1.4.

 

		1.1.141	“Subordinate
                                         Debt” is defined in Section 4.5.1.

 

		1.1.142	“Subordinate
                                         Default” shall mean a default in the payment of the Subordinate Debt, or performance
                                         of any term, covenant or condition contained in this Agreement or the other Loan Documents
                                         or the occurrence of any other event or condition constituting a default or event of
                                         default thereunder.

 

		1.1.143	“Subordinate
                                         Default Notice” means a written notice by the Required Term B Lenders to the
                                         holders of Senior Debt pursuant to which the holders of Senior Debt are notified of the
                                         existence of an Event of Default, which notice incorporates a reasonably detailed description
                                         of such Event of Default.

 

		1.1.144	“Subsidiary”
                                         means, with respect to any Person (in this Section 1.1.143 the “Parent”),
                                         at any time, any corporation, limited liability company, trust, partnership, limited
                                         partnership, association or other entity the accounts of which would be consolidated
                                         with those of the Parent in the Parent’s consolidated Financial Statements if those
                                         Financial Statements were prepared in accordance with IFRS as of that date, as well as
                                         any other corporation, limited liability company, trust, partnership, limited partnership,
                                         association or other entity:

 

		1.1.144.1	of
                                         which Equity Securities representing more than 50% of the equity or economic interest
                                         in them or more than 50% of the ordinary voting power, or, in the case of a partnership,
                                         more than 50% of the general or limited partnership interests or the economic interest
                                         in them are, as at that time, owned, Controlled or held by any combination of the Parent
                                         and one or more Subsidiaries of the Parent; or

 

		1.1.144.2	that
                                         is, as at that time, otherwise Controlled by any combination of the Parent and one or
                                         more Subsidiaries of the Parent.

 

		1.1.145	“Taxes”
                                         means all present and future taxes, levies, imposts, duties, deductions, withholdings
                                         (including backup withholding), assessments, fees or other charges imposed by any Governmental
                                         Authority, including any interest, additions to tax or penalties applicable to them.

 

		1.1.146	“Term
                                         A Facility” is defined in Section 2.1.

 

    	 	 	 

    	 	- 25 -	 

    

 

		1.1.147	“Term
                                         A Lender” means any Lender (in its capacity as such) holding, at the time of
                                         determination, a Term A Loan.

 

		1.1.148	“Term
                                         B Facility” is defined in Section 2.1.

 

		1.1.149	“Term
                                         B Lender” means any Lender (in its capacity as such) holding, at the time of
                                         determination, a Term B Loan.

 

		1.1.150	“Term
                                         A Loan Commitments” is defined under “Commitments”.

 

		1.1.1	“Term
                                         B Loan Commitments” is defined under “Commitments”.

 

		1.1.2	“Term
                                         A Loans” means Loans under the Term A Facility on which interest is calculated
                                         by reference to LIBOR as specified hereunder.

 

		1.1.3	“Term
                                         B Loans” means Loans under the Term B Facility on which interest is calculated
                                         by reference to the fixed interest rate as specified under Article 3 hereof.

 

		1.1.4	“Three
                                         Party Escrow Agreement” is defined in Section 7.1.1.5.

 

		1.1.5	“Total
                                         Leverage Ratio” means, at any time, without duplication and on a Consolidated
                                         Basis, the ratio of:

 

		1.1.5.1	the
                                         aggregate amount of Debt of the Borrower; to

 

		1.1.5.2	Adjusted
                                         EBITDA of the Borrower,

 

in
each case, for the applicable Reference Period of the Borrower.

 

		1.1.6	“UCC”
                                         means the Uniform Commercial Code of any applicable jurisdiction and, if the applicable
                                         jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code
                                         as in effect from time to time in the State of New York.

 

		1.1.7	“U.S.
                                         Dollars” or “US$” each means currency of the United States
                                         of America which, as at the time of payment or determination, is legal tender in the
                                         United States of America for the payment or determination of public or private debts.

 

		1.1.8	“Wholly-Owned
                                         Subsidiary” means any Subsidiary of a Person in which that Person owns, directly
                                         or indirectly, 100% of the issued and outstanding Equity Securities.

 

	1.2	Certain
                                         Rules of Interpretation

 

		1.2.1	In
                                         this Agreement, words signifying the singular number include the plural and vice versa,
                                         and words signifying gender include all genders. Every use of the words “including”
                                         or “includes” in this Agreement is to be construed as meaning “including,
                                         without limitation” or “includes, without limitation”, respectively.

 

		1.2.2	The
                                         division of this Agreement into Articles and Sections, the insertion of headings and
                                         the inclusion of a table of contents are for convenience of reference only and do not
                                         affect the construction or interpretation of this Agreement.

 

    	 	 	 

    	 	- 26 -	 

    

 

		1.2.3	References
                                         in this Agreement to an Article, Section, Schedule or Exhibit are to be construed as
                                         references to an Article, Section, Schedule or Exhibit of or to this Agreement unless
                                         otherwise specified.

 

		1.2.4	Unless
                                         otherwise specified in this Agreement:

 

		1.2.4.1	time
                                         periods within which or following which any calculation or payment is to be made, or
                                         action is to be taken, will be calculated by excluding the day on which the period begins
                                         and including the day on which the period ends; and

 

		1.2.4.2	if
                                         the last day of a time period is not a Business Day, the time period will end on the
                                         next Business Day.

 

		1.2.5	Unless
                                         otherwise specified, any reference in this Agreement to any statute includes all regulations
                                         and subordinate legislation made under or in connection with that statute at any time
                                         and is to be construed as a reference to that statute as amended, modified, restated,
                                         supplemented, extended, re-enacted, replaced or superseded at any time.

 

		1.2.6	References
                                         to an amount of money in this Agreement will, unless otherwise expressly stated, be to
                                         that amount in United States Dollars.

 

	1.3	Governing
                                         Law

 

This
Agreement is governed by and is to be construed and interpreted in accordance with the laws of the Province of Ontario and the
laws of Canada applicable therein.

 

	1.4	Amendment
                                         and Restatement

 

(a)
Existing Indebtedness. The Borrower and each other Obligor and the Lenders agree, acknowledge and confirm that the amount
of the Existing Indebtedness under the Original Credit Agreement as at the date of this Agreement is as described in Recital A
hereto and that the terms and conditions of and relating to the Existing Indebtedness shall be amended and restated in accordance
with the terms of this Agreement.

 

(b)
Continuing Obligations. Effective as of the Closing Date, the Original Credit Agreement and the rights, obligations and
liabilities of the Borrower, each other Obligor and the Lenders shall be amended and restated in accordance with the provisions
of this Agreement and this Agreement shall replace and supersede the Original Credit Agreement. All amounts owing or outstanding
under the Original Credit Agreement shall be deemed to be Borrowings and Outstanding Obligations, as the context may permit or
require, under this Agreement as of the Closing Date. All agreements, documents and instruments evidencing, relating to or securing
any obligation that forms part of the Existing Indebtedness shall each be deemed to be a Loan Document under this Agreement and
shall continue in full force and effect and are hereby ratified and confirmed.

 

(c)
Existing Security Documents. The Borrower, each Guarantor and the Lenders and any other Lenders party to this Agreement
from time to time agree, acknowledge and confirm that all security documents previously delivered by the Borrower and each Guarantor
to the Lender (the “Existing Security Documents”) shall continue in full force and effect, unamended, except
as may be provided herein, and the security interests constituted thereby shall stand as general and continuing collateral security
for the payment and performance of the Outstanding Obligations. Without affecting the generality of the foregoing, and for greater
certainty, each of the Borrower, each Guarantor and the Lenders agree that:

 

    	 	 	 

    	 	- 27 -	 

    

 

		(i)	any
                                         and all references in any Guarantee or Security Document to the “Credit Agreement”
                                         (whether or not such reference is also accompanied by said credit agreement as it may
                                         be amended or restated from time to time) shall be deemed to be to the Original Credit
                                         Agreement, as amended and restated by this Agreement;

 

		(ii)	any
                                         and all references in any Guarantee or Security Document to “Loans” or “Borrower’s
                                         Obligations” includes the Loans made available to, and the Borrower’s Obligations
                                         incurred by, the Borrower under the Original Credit Agreement and under this Agreement;
                                         and

 

		(iii)	any
                                         and all references in any Guarantee or Security Document to “Outstanding Obligations”
                                         includes the Outstanding Obligations incurred by the Obligors under the Original Credit
                                         Agreement, this Agreement and the other Loan Documents.

 

(d)
Guarantees. Each of the Guarantors: (i) ratifies each existing Guarantee issued by such Guarantor of all or part of the
Outstanding Obligations and acknowledges and agrees that: (A) each such Guarantee and any Security Document delivered in connection
therewith shall remain in full force and effect, be binding on and enforceable against it notwithstanding the execution, delivery
and performance of this Agreement by the parties hereof, and shall be a guarantee of all the Outstanding Obligations in accordance
with the terms of such guarantee, and (B) the Lenders shall not be estopped prior to any realization by the Lenders on any Collateral
pursuant to the terms of this Agreement or the Security Documents, from taking any action necessary to preserve its rights against
any of the Guarantors or to preserve its rights against any Guarantor after such realization by the Lenders, and (C) its guarantee
shall not be revoked or terminated and each Guarantor shall not be released from its liability thereunder unless and until all
Outstanding Obligations have been paid and satisfied in full, all Commitments under this Agreement have been cancelled or terminated,
and there are no further obligations of the Lenders under the Loan Documents pursuant to which further Outstanding Obligations
might arise; and (ii) agrees to do, execute, acknowledge or deliver or cause to be done, executed, acknowledged or delivered any
and all such acts, documents, agreements, deeds, assurances, information and other matters and things upon the request of the
Required Lenders as may be reasonably necessary or desirable to give effect to the provisions of this Agreement and any other
Loan Document.

 

(e)
No Novation. This Agreement is and shall for all purposes be deemed to be an amendment and restatement of the provisions
of the Original Credit Agreement. While this Agreement will supersede the Original Credit Agreement insofar as it constitutes
the entire agreement between the parties concerning the subject matter of this Agreement, this Agreement merely amends and restates
the Original Credit Agreement and does not constitute or result in a novation or rescission of the Original Credit Agreement,
the Existing Indebtedness, the Existing Security Documents or any other Loan Document.

 

(f)
Additional Indebtedness. Each Guarantor consents to the transactions contemplated by this Agreement, and without limitation
thereof, agrees that its Guarantee shall guarantee the repayment of the increased principal and additional indebtedness that will
be available to the Borrower hereunder and that the Borrower will incur under this Agreement.

 

    	 	 	 

    	 	- 28 -	 

    

 

	1.5	Entire
                                         Agreement

 

This
Agreement, together with, any other agreement or agreements and other documents delivered or to be delivered under this Agreement
or under the Original Credit Agreement, constitutes the entire agreement between the Parties pertaining to the subject matter
of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written,
of the Parties, and there are no representations, warranties or other agreements between the Parties in connection with the subject
matter of this Agreement except as specifically set out in this Agreement or in any of the other agreements and documents delivered
under this Agreement or the Original Credit Agreement. No Party has been induced to enter into this Agreement in reliance on,
and there will be no liability assessed, either in tort or contract, with respect to, any warranty, representation, opinion, advice
or assertion of fact, except to the extent it has been reduced to writing and included as a term in this Agreement or in any of
the other agreements and documents (including other Loan Documents) delivered under this Agreement or the Original Credit Agreement.

 

	1.6	Business
                                         Day

 

Whenever
any calculation or payment to be made or action to be taken under this Agreement is required to be made or taken on a day other
than a Business Day, then unless otherwise specified in this Agreement, the calculation or payment is to be made, or action is
to be taken, on the next Business Day.

 

	1.7	Conflicts

 

In
the event of a conflict in or between the provisions of this Agreement and the provisions of any other Loan Document, then, despite
anything contained in that other Loan Document, the provisions of this Agreement will prevail, and those provisions of that other
Loan Document will be deemed to be amended to the extent necessary to eliminate the conflict. If any act or omission is expressly
prohibited under a Loan Document, other than this Agreement, but this Agreement does not expressly permit that act or omission,
or if any act is expressly required to be performed under a Loan Document, other than this Agreement, but this Agreement does
not expressly relieve the applicable Obligor from that performance, that circumstance will not constitute a conflict in or between
the provisions of this Agreement and the provisions of that other Loan Document.

 

	1.8	Guaranteed
                                         Amounts

 

In
this Agreement, a Guarantee will be deemed to be in an amount equal to the amount of the Debt relating to which the Guarantee
is given, unless the Guarantee is limited to a determinable amount, in which case the amount of the Guarantee will be deemed to
be the lesser of the amount of the Debt relating to which the Guarantee is given and that determinable amount.

 

	1.9	Accounting
                                         Changes

 

If
any Accounting Changes occur and such changes result in a material change in the calculation of the financial covenants, standards
or terms used in this Agreement or any other Loan Document, the Borrower and the Lender agree to enter into negotiations in order
to amend such provisions of this Agreement or such Loan Document, as applicable, so as to equitably reflect such Accounting Changes
with the desired result that the criteria for evaluating the Borrower’s financial condition shall be the same after such
accounting changes as if such accounting changes had not been made.

 

    	 	 	 

    	 	- 29 -	 

    

 

If
the Borrower and the Required Lenders agree upon the required amendments, then after appropriate amendments have been executed
and the underlying Accounting Changes with respect thereto has been implemented, any reference to IFRS contained in this Agreement
or in any other Loan Document shall, only to the extent of such Accounting Changes, refer to IFRS, consistently applied after
giving effect to the implementation of such Accounting Changes.

 

If
the Borrower and the Required Lenders cannot agree upon the required amendments within thirty (30) days following the date of
implementation of any Accounting Change, then all calculations of financial covenants and other standards and terms in this Agreement
and the other Loan Documents shall continue to be prepared, delivered and made without regard to the underlying Accounting Change.
In such case, Borrower shall, in connection with the delivery of any financial statements under this agreement, provide a management
prepared reconciliation of the financial covenants to such financial statements in light of such Accounting Changes.

 

	1.10	Schedules
                                         and Exhibits

 

The
following is a list of Schedules and Exhibits:

 

	Schedules	Subject
    Matter
	1.108.2	Permitted
    Debt
	1.1.112.4	Investments
    on Closing Date
	1.1.113.15	Current
    Permitted Liens
	8.1.6	Litigation
	8.1.8	Organizational
    Structure
	8.1.9	Equity
    Securities
	8.1.10.2	Taxes
	8.1.11.1	Owned
    and Leased Real Property
	8.1.11.2	Operating
    Leases and Capital Leases
	8.1.15	Environmental
    Disclosure
	8.1.17	Intellectual
    Property Rights
	8.1.18	Software
	 	 
	Exhibits	Subject
    Matter
	7.1.1.4	Code
    Escrow Agreement
	7.1.1.5	Three-Party
    Escrow Service Agreement
	9.1.1.4	Compliance
                                         Certificate

        

	 	 
	A	Assignment
    and Assumption Agreement

 

Article
2

CREDIT FACILITy

 

	2.1	Facility

 

	2.1.1	(a)
                                         Subject to the terms and conditions of this Agreement, the Initial Lender (and any other
                                         Term A Lenders party hereto on the Closing Date or thereafter pursuant to an Assignment
                                         and Assumption Agreement), severally and not jointly or jointly and severally, and in
                                         accordance with their Pro Rata Share of the Maximum Term A Loan Amount and the Maximum
                                         Monthly Borrowing Amount (as defined below), hereby establishes in favour of the Borrower,
                                         a non-revolving credit facility as described in this Section 2.1.1(a) (the “Term
                                         A Facility”) for the period from and after the Closing Date to and until the
                                         Final Availability Date, and agrees to make Term A Loans available to the Borrower under
                                         the Facility during such period; it being further agreed that:

 

    	 	 	 

    	 	- 30 -	 

    

 

(i)
$1.0 million of indebtedness already incurred by the Borrower under Section 2.1.3 of the Original Credit Agreement (i.e., the
2018 Advance) shall, as and from the Closing Date, be treated as already having been extended to the Borrower as a Term A Loan
hereunder, with such amount being considered to have been advanced to the Borrower for month of March 2018, as shown in the right
hand column of the table below in this Section 2.1.1(a) (the “Table”);

 

(ii)
the aggregate principal amount of all Term A Loans outstanding under the Term A Facility (inclusive of the amount referred to
in clause (i) above) shall not at any time exceed US$7,500,000 (disregarding capitalized interest), as such amount may be adjusted
in accordance with this Section (the “Maximum Term A Loan Amount”);

 

(iii)
the maximum principal amount that the Borrower shall be permitted to borrow under the Term A Facility in any month during the
period between March 1, 2018 and December 31, 2018 (inclusive) (the “Borrowing Period”), and not beyond, shall
be the Maximum Monthly Borrowing Amount set forth for such month in the right hand column of the Table (each, a “Maximum
Monthly Borrowing Amount”);

 

(iv)
advances to be made in respect of any particular month shown in the Table during the Borrowing Period shall be made in compliance
with Section 2.3 of this Agreement;

 

(v)
the Borrower shall not be entitled to make any borrowing in respect of any particular month in the Table if the Borrower is unable
to satisfy the Required Term A Lenders, acting in their sole discretion, including by the provision to the Term A Lenders of such
monthly financial information as the Required Term A Lenders shall require, that the Operating Profit for the immediately preceding
month exceeded the Minimum Operating Profit shown for such preceding month in the Table;

 

(vi)
if the Borrower is not permitted to make any borrowing in respect of any particular month shown in the Table, or if it is permitted
to make a borrowing in respect of such month and does not do so or only makes a borrowing of a lesser amount than the Maximum
Monthly Borrowing Amount for such month, it may not carryforward such unused monthly availability to any succeeding month, and
the Maximum Term A Loan Amount shall be forever reduced by the lesser of (x) the Maximum Monthly Borrowing Amount for such month,
if no amount was borrowed for such month, and (y) the principal amount not borrowed for such month, if only a partial borrowing
is made, unless the Required Term A Lenders otherwise agree in writing;

 

(vii)
any monthly Operating Profit earned in a particular month in excess of the Minimum Operating Profit shown for such month shown
in the Table may not be carried forward or otherwise added to Operating Profit for any succeeding month for the purposes of satisfying
the conditions in this Section 2.1.1(a), unless the Required Term A Lenders otherwise agree in writing;

 

    	 	 	 

    	 	- 31 -	 

    

 

	Month	 	Minimum
    Operating Profit	 	 	Maximum
    Monthly Borrowing Amount for such month (based on compliance with the Minimum Operating Profit criteria for the immediately
    preceding month as per Section 2.1.1(a)(v) above)	 
	February
    2018	 	 	Satisfied	 	 	 	Not
                                         Applicable	 
	March
    2018	 	$	(29,289	)	 	 	$1,000,000
                                         (the 2018 Advance already advanced)	 
	April
    2018	 	$	(246,499	)	 	$	2,000,000	 
	May
    2018	 	$	5,337	 	 	$	1,200,000	 
	June
    2018	 	$	5,337	 	 	$	1,300,000	 
	July
    2018	 	$	(5,520	)	 	$	0.00	 
	August
    2018	 	$	(5,520	)	 	$	1,500,000	 
	September
    2018	 	 	Not
                                         Applicable	 	 	$	500,000	 

 

(viii)
as of and from the date of each advance of a Term A Loan, interest shall, unless and until the Required Term A Lenders advise
the Borrower by written notice otherwise, be capitalized annually and the same shall be added to the principal amount of the Term
A Facility outstanding at the end of each calendar year, whereafter interest shall thereafter be paid on (x) the aggregate principal
amount of the Term A Loans, and (y) such interest as so capitalized, in accordance with this Agreement; and

 

(ix)
if, at any time prior to the Final Availability Date, any Obligor receives, directly or indirectly, any amount from any of Meredith
Corporation, Quincy Media, Inc. or Cordillera Communications (individually, a “Creditor Party” and collectively
the “Creditor Parties”) for the early termination of any contractual arrangement between the Obligors and any
Creditor Party, or for any reason other than the payment of fees pursuant to the existing contractual relationship between them,
then the Borrower will immediately notify the Lenders and the Maximum Term A Loan Amount shall be reduced by the amount so received;
provided further that (i) the Required Term A Lenders shall be entitled to reduce any Maximum Monthly Borrowing Amount
set out in the Table to reflect such reduction; and (ii) if such receipt is for an amount in excess of the then remaining principal
amount that the Borrower is then entitled to borrow under this Section 2.1.1(a), the Borrower shall, within two Business Days
of such receipt thereof, make a prepayment of the Term A Loans in an amount equal to such excess.

 

(b)
Subject to the terms and conditions of this Agreement, the Initial Lender and Borrower confirm the prior establishment under the
Original Credit Agreement, and the continuance of the same hereunder, as and from the Closing Date until the Maturity Date, of
a non-revolving credit facility in favour of the Borrower (the “Term B Facility”); it being agreed that (i)
the Term B Facility is fully extended to the Borrower as of the Closing Date and no further Term B Loans are available hereunder,
(ii) as of and from January 1, 2018, interest on the Term B Loans has been and shall, unless and until the Required Term B Lenders
advise the Borrower by written notice otherwise, be capitalized annually and the same shall be, and continue to be, added to the
principal amount of the Term B Facility outstanding at the end of each calendar year, whereafter interest shall be paid on (x)
the aggregate principal amount of the Term B Loans and (y) such interest as so capitalized, in accordance with this Agreement,
and (iii) the aggregate principal amount of all Term B Loans outstanding under the Term B Facility (disregarding capitalized interest)
will not at any time exceed US$14,500,000 (the “Maximum Term B Loan Amount”).

 

    	 	 	 

    	 	- 32 -	 

    

 

	2.1.2	Within
                                         the limits and restrictions set out in Section 2.1.1, the principal amount outstanding
                                         under the Facility may not revolve but the Borrower may repay Loans in part or in full
                                         in accordance with the terms hereof without penalty. All principal payments made hereunder
                                         shall be made firstly to the Term A Lenders according to their Pro Rata Share, and thereafter
                                         to the Term B Lenders according to their Pro Rata Share.

 

	2.2	Purpose

 

The
Borrower will use the Loans obtained by it under the Facility solely to finance the working capital and other general operating
requirements of the Obligors.

 

	2.3	Drawdowns—Notices
                                         and Limitations

 

		2.3.1	Until
                                         the Final Availability Date, Borrowings under the Term A Facility up to the Maximum Term
                                         A Loan Amount:

 

(a)
will be made available to the Borrower by the Term A Lenders, by no later than by the last Business Day of the calendar month
for which the Borrowing is requested, provided that (i) the Term A Lenders have received a borrowing notice from the Borrower
specifying the principal amount of the Borrowing desired for such month in accordance with the limitations of the Table in Section
2.1.1, and (ii) such borrowing notice is given to the Term A Lenders not less than ten Business Days prior to the date the Borrowing
is desired by the Borrower, the Parties noting that in respect of any borrowing for a particular month set forth in the Table
in Section 2.1.1, the amount will be advanced by the Lenders, severally and not jointly or jointly and severally according to
their Pro Rata Shares;

 

(b)
will be in a minimum amount of $500,000 and in multiples of $100,000, up to the maximum aggregate amount set forth in the Table
in Section 2.1.1 for any particular month set out therein; and

 

(c)
will not be made available to the Borrower unless, in the Required Term A Lenders’ sole determination, the Borrower shall
meet the requirements of Section 2.1.1; provided that no Lender shall be responsible for advancing the Pro Rata Share of any Borrowing
which is to be advanced by another Lender, according to their Pro Rata Shares thereof.

 

    	 	 	 

    	 	- 33 -	 

    

 

		2.3.2	No
                                         further Borrowings will be permitted or available under the Term B Facility.

 

		2.3.3	Notwithstanding
                                         anything in this Agreement to the contrary, no Borrowing may be made or Loan occur if
                                         a Default or Event of Default is subsisting at the time of the Borrowing request, or
                                         would be existing after the Borrowing is made, or if all of the conditions precedent
                                         in Article 6 have not been satisfied, or if all other terms and conditions of this Agreement
                                         have not been met.

 

	2.4	Lender’s
                                         Records

 

Each
Lender will maintain records of:

 

		2.4.1	the
                                         Borrower’s Obligations for outstanding Loans and accrued interest on them, fees
                                         relating to them, and other amounts payable under this Agreement; and

 

		2.4.2	the
                                         amounts paid at any time by the Borrower to such Lender under this Agreement for Loans,
                                         interest, fees and other amounts.

 

The
Borrower agrees that all records kept by any Lender will constitute prima facie evidence of the matters referred to in
this Section, but the failure of any Lender to make any entry in its records will not limit or otherwise affect the obligations
of the Borrower under this Agreement or with respect to any Loans, interest, fees or other amounts owed by it to such Lender.

 

	2.5	Current
                                         Contractual Arrangements

 

As
additional consideration to the Initial Lender for making the Term A Loans available to the Borrower hereunder, each of the Obligors
hereby agrees and acknowledges that the current contractual arrangements between the Obligors (or any one of them) and the Initial
Lender pertaining to the supply and provision of web-hosting, platform, software and other services to the Initial Lender, including
without limitation, the Website Software and Services Agreement dated October 1, 2011 between Gannoway Web Holdings LLC and Raycom
Media Inc. and the amendment thereto dated August 25, 2015 (the “Amendment”), shall be and are hereby amended, with
effect from the Closing Date, to provide that the Initial Lender may terminate such contractual arrangements effective on December
31, 2018, upon the prior provision of notice to such effect by the Initial Lender to the Obligors (or the appropriate one thereof
under such contractual arrangements) on or before September 30, 2018. This right is intended to be additional to and cumulative
with any and all other rights that the Initial Lender may now have under such contractual arrangements to terminate such contractual
arrangements, including those additional rights set out in the Amendment, and as such, shall not derogate or amend any other rights
that the Initial Lender has available to it thereunder, including any existing or other rights of termination thereunder or in
connection therewith.

 

    	 	 	 

    	 	- 34 -	 

    

 

Article
3

CALCULATION OF INTEREST, FEES AND EXPENSES

 

	3.1	Calculation
                                         and Payment of Interest

 

		3.1.1	The
                                         Borrower will pay interest on each Term A Loan outstanding from the date when made, and
                                         all interest which is not paid when due shall bear interest, at LIBOR plus 800bps. Each
                                         determination of LIBOR by the Required Term A Lenders in respect of the Term A Facility
                                         shall be conclusive and binding on Borrower in the absence of manifest error. Unless
                                         and until the Required Term A Lenders advise the Borrower in writing that the Borrower
                                         shall no longer have the option to capitalize interest on the Term A Loans, all interest
                                         accruing on the Term A Loans to the Maturity Date shall, unless paid by the Borrower,
                                         be capitalized annually and added at the end of each calendar year, to the principal
                                         balance of the Term A Loans, and thereafter interest shall be calculated on such increased
                                         principal balance at the same rate applicable to the Term A Loans as specified above.

 

		3.1.2	The
                                         Borrower will pay interest on each Term B Loan outstanding from the date when made, and
                                         all interest which is not paid when due shall bear interest, at a rate per annum equal
                                         to 10%. Unless and until the Required Term B Lenders advise the Borrower in writing that
                                         the Borrower shall no longer have the option to capitalize interest on the Term B Loans,
                                         all interest accruing on the Term B Loans from and after January 1, 2018 to the Maturity
                                         Date shall, unless paid by the Borrower, be capitalized annually and added at the end
                                         of each calendar year, to the principal balance of the Term B Loans, and thereafter interest
                                         shall be calculated on such increased principal balance at the same rate applicable to
                                         the Term B Loans as specified above.

 

		3.1.3	All
                                         computations of interest payable under this Agreement, including of LIBOR, shall be made
                                         on the basis of a three hundred sixty-five (365)-day year (or three hundred sixty six
                                         (366) days in the case of a leap year), in each case, based on actual days elapsed.

 

		3.1.4	To
                                         the maximum extent permitted by Applicable Law, the Borrower will pay interest on all
                                         overdue amounts owing by the Borrower under this Agreement (other than on amounts which
                                         have been capitalized in accordance with Sections 3.1.1 and 3.1.2, which capitalized
                                         interest, for greater certainty, shall not be considered to be overdue but shall bear
                                         interest as provided in Sections 3.1.1 and 3.1.2), including on any overdue interest
                                         payments, from the date each of those amounts is due until the date each of those amounts
                                         is paid in full at the applicable rate specified in clause 3.1.1 or 3.1.2 above, plus
                                         two (2) percent, which amount will be calculated daily, added to the outstanding principal
                                         balance of the applicable Loans monthly, and shall be payable on demand of any Lender.

 

    	 	 	 

    	 	- 35 -	 

    

 

	3.2	Expenses

 

The
Borrower will pay to the Lenders on the Closing Date, or reimburse the Lenders for, the following reasonable out-of-pocket expenses,
including reasonable legal fees and disbursements (on a solicitor and its own client basis):

 

		3.2.1	the
                                         expenses of the Lenders incurred in negotiating, preparing, registering and executing
                                         the Loan Documents; and

 

		3.2.2	the
                                         expenses of the Lenders incurred in enforcing the Loan Documents, including the costs
                                         of legal counsel acting on behalf of the Lender.

 

	3.3	General
                                         Provisions Regarding Interest

 

		3.3.1	Each
                                         determination by the Required Lenders (or a subset thereof as provided in this Agreement)
                                         of the amount of interest, fees or other amounts payable by the Borrower to the Lenders
                                         (or subset) under this Agreement will be prima facie evidence of the accuracy
                                         of the determination.

 

		3.3.2	Except
                                         as otherwise provided in this Agreement, all interest, fees and other amounts payable
                                         by the Borrower under this Agreement (i) will accrue and be calculated daily, but not
                                         compounded, on the principal amount of each Loan as described in this Agreement, (ii)
                                         will be payable on each Interest Payment Date, and both before and after demand, maturity,
                                         default and judgment, and (iii) when in arrears, will be added to the outstanding principal
                                         balance of the applicable Loans monthly and shall be payable on demand; it being understood
                                         and agreed that interest will not be considered to be in arrears hereunder as long as
                                         it is being capitalized in accordance with Sections 3.1.1 or 3.1.2. Interest and fees
                                         shall accrue during each interest period during which interest or fees are computed from
                                         and including the first (1st) day thereof to and including the last day thereof. For
                                         greater certainty, the term “interest period”, where used herein, shall mean
                                         a calendar month (or portion thereof, as applicable) from and including the first (1st)
                                         day thereof to and including the last day thereof.

 

		3.3.3	To
                                         the full extent permitted by Applicable Law, the covenant of the Borrower to pay interest
                                         at the rates provided in this Agreement will not merge in any judgment relating to any
                                         obligation of the Borrower to the Lenders.

 

		3.3.4	For
                                         the purposes of the Interest Act, R.S.C. 1985, c. I-15:

 

		3.3.4.1	the
                                         principle of deemed reinvestment of interest will not apply to any calculation or determination
                                         of interest under this Agreement;

 

		3.3.4.2	the
                                         rates of interest specified in this Agreement are intended to be nominal rates and not
                                         effective rates; and

 

		3.3.4.3	unless
                                         otherwise stated, each rate of interest specified in this Agreement as an interest rate
                                         “per annum” or a similar expression, is to be calculated on the basis of
                                         a calendar year of 365 or 366 days, as applicable, and the annual rate of interest which
                                         is equivalent to that interest rate will be that rate multiplied by a fraction, the numerator
                                         of which is the total number of days in each year and the denominator of which is 365
                                         or 366 days, as applicable. If the amount of any interest is determined or expressed
                                         on the basis of a period of less than a year of 365 or 366 days, as applicable, the equivalent
                                         annual rate is equal to the rate so determined or expressed, divided by the number of
                                         days in the period, and multiplied by the actual number of days in that calendar year.

 

    	 	 	 

    	 	- 36 -	 

    

 

	3.4	Maximum
                                         Return

 

		3.4.1	In
                                         no event will any interest, fees or other amounts payable under this Agreement exceed
                                         the maximum rate permitted by Applicable Law. If any provisions of this Agreement would
                                         require the Borrower to pay any interest or make any other payment that is construed
                                         by a court of competent jurisdiction to be interest in an amount or calculated at a rate
                                         that would be prohibited by Applicable Law or would result in receipt by any Lender of
                                         interest at a criminal rate (as those terms are construed under the Criminal Code), then
                                         despite those provisions, that amount or rate will be deemed to have been reduced to
                                         the maximum amount or rate recoverable under Applicable Law, as if the Parties had agreed
                                         to that amount or rate by contract. That reduction will be effected, to the extent necessary:

 

		3.4.1.1	firstly,
                                         by reducing the amount or rate of interest otherwise required to be paid under Article
                                         3 of this Agreement; and

 

		3.4.1.2	secondly,
                                         by reducing any fees, commissions, premiums and other amounts that would constitute interest
                                         for the purposes of Section 347 of the Criminal Code.

 

		3.4.2	If,
                                         despite the provisions of this Section 3.4 and after giving effect to all reductions
                                         under it, any Lender has received an amount or rate in excess of the maximum permitted
                                         by the Criminal Code, then that excess will be applied by such Lender to reduce the principal
                                         balance of the Borrower’s Obligations outstanding and not to the payment of interest,
                                         with any remaining portion being paid to subsequent secured creditors or to the applicable
                                         Obligors, as determined by Applicable Law.

 

		3.4.3	Any
                                         amount or rate of interest referred to in this Section 3.4 will be determined in accordance
                                         with generally accepted actuarial practices and principles at an effective annual rate
                                         of interest over the term of this Agreement on the assumption that any charges, fees,
                                         expenses or other amounts that fall within the meaning of “interest” (as
                                         defined in the Criminal Code) will, if they relate to a specific period of time, be prorated
                                         over that period of time and otherwise be prorated over the term of this Agreement and,
                                         in the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries
                                         appointed by the Required Lenders will be conclusive for the purposes of that determination.

 

Article
4

REDUCTION OF COMMITMENT AND REPAYMENT

 

	4.1	Optional
                                         Repayment of Loans under the Facility

 

		4.1.1	The
                                         Borrower will have the right at any time on any Business Day (an “Optional Repayment
                                         Date”) to repay all, or a portion of, Loans outstanding under the Facility
                                         without premium, penalty or bonus on the following terms and conditions:

 

		4.1.1.1	the
                                         Lenders will have received an irrevocable written notice by 12:00 (noon) (Toronto time)
                                         not fewer than three Business Days before the Optional Repayment Date specifying the
                                         Loans will be repaid in part or in full;

 

    	 	 	 

    	 	- 37 -	 

    

 

		4.1.1.2	on
                                         the applicable Optional Repayment Date, the Borrower will repay the outstanding Loans
                                         in accordance with the notice given under Section 4.1.1.1 together with all interest,
                                         fees and other amounts accrued and unpaid under this Agreement, and any amounts payable
                                         under Section 5.1; and

 

		4.1.1.3	no
                                         repayment of the Term B Loans may be made unless and until the Term A Loans have been
                                         fully repaid.

 

	4.2	Repayment
                                         of Facility

 

Subject
to the terms and conditions of this Agreement, all Loans outstanding under the Facility, together with all accrued interest, fees
and other amounts unpaid relating to those Loans, will be due and payable in full on the Maturity Date, and the Facility will
be automatically terminated at that time.

 

	4.3	Other
                                         Mandatory Repayments

 

		4.3.1	Subject
                                         to the other subsections of this Section 4.3, if at any time the sum of all Loans outstanding
                                         under the Term A Facility or the Term B Facility exceeds the respective Maximum Term
                                         A Loan Amount or the Maximum Term B Loan Amount, the Borrower will immediately repay
                                         to the applicable Lenders an amount of the applicable Loans outstanding at least equal
                                         to that excess, and such excess shall be paid to the applicable Lenders according to
                                         their Pro Rata Shares, with all necessary adjustments as appropriate.

 

		4.3.2	The
                                         Borrower shall make all of the following mandatory repayments:

 

		4.3.2.1	if
                                         any Obligor at any time completes a debt or equity financing in excess of US$10 million,
                                         a mandatory repayment of US$2,000,000 within five Business Days of completion of such
                                         financing; provided that if the debt or equity financing is for an amount equal to $10
                                         million or less, the Borrower will make a mandatory repayment equal to 20% of the amount
                                         raised within five Business Days of completion of such financing;

 

		4.3.2.2	commencing
                                         on December 31, 2019 and on the last day of the month of each three-month period thereafter,
                                         an amount of US$687,500 per three-month period;

 

		4.3.2.3	proceeds
                                         (less actual costs paid and income taxes) on any asset sales; and

 

		4.3.2.4	commencing
                                         on the financial year ending December 31, 2017, and each financial year ending after
                                         December 31, 2017, 100% of the Current Year Excess Cash Flow Amount in excess of $2,000,000
                                         shall be paid to the Lender as a mandatory repayment amount no later than May 1 of the
                                         following year until a Total Leverage Ratio of not more than 3.00:1.00 has been met for
                                         such Fiscal Year, at which point 50% of the Current Year Excess Cash Flow Amount in excess
                                         of $2,000,000 shall be paid to the Lender as mandatory repayment amounts. Such Excess
                                         Cash Flow payments shall be applied pro rata to reduce other mandatory payments due hereunder.

 

    	 	 	 

    	 	- 38 -	 

    

 

		4.3.3	Prepayments
                                         under this Section 4.3 of Loans outstanding will be applied as follows:

 

		4.3.3.1	firstly,
                                         to repay principal of Term A Loans outstanding under the Facility;

 

		4.3.3.2	secondly,
                                         to repay principal of Term B Loans outstanding under the Facility and

 

		4.3.3.3	thirdly,
                                         to repay any other Outstanding Obligations.

 

		4.3.4	The
                                         payments set out in this Section 4.3 are in addition to all other payments of principal,
                                         interest, fees, expenses or other amounts required under this Agreement.

 

	4.4	Payments—General

 

		4.4.1	Except
                                         as otherwise provided in this Agreement, all payments of principal, interest, fees, expenses
                                         and other amounts payable under the Borrower’s Obligations and owing at any time
                                         by the Borrower to the Lenders under this Agreement will be made in immediately available,
                                         freely transferable same day funds in the currency in which the Loans are outstanding,
                                         at each Lender’s address for notice provided herein or in an Assignment and Assumption
                                         Agreement. All payments received after 12:00 (noon) (Toronto time) will be deemed to
                                         be received on the next Business Day.

 

		4.4.2	The
                                         Borrower will make all payments required under this Agreement, whether of principal,
                                         interest, fees, expenses or other amounts payable under the Borrower’s Obligations
                                         or otherwise owing by the Borrower to the Lenders:

 

		4.4.2.1	in
                                         accordance with the terms of this Agreement and any Assignment and Assumption Agreements;
                                         and

 

		4.4.2.2	without
                                         regard to any defence, counterclaim, deduction or right of set off available to the Borrower.

 

		4.4.3	Except
                                         as otherwise provided in this Agreement, if any payment required under this Agreement
                                         becomes due and payable on a day that is not a Business Day, that payment will be made
                                         on the next following Business Day, and any extension of time in those circumstances
                                         will be included in computing interest and any other amounts payable under this Agreement
                                         relating to that payment.

 

	4.5	Subordination
                                         of Term B Facility to Term A Facility

 

		4.5.1	The
                                         principal amount of the Term B Loans and any interest (including capitalized interest)
                                         payable thereon and any fees payable in respect thereof (collectively, the “Subordinate
                                         Debt”) are and shall remain subordinate to the prior payment and satisfaction
                                         by the Obligors of the principal amount of the Term A Loans and any interest (including
                                         capitalized interest) payable thereon and any fees payable in respect thereof (collectively,
                                         the “Senior Debt”), to the extent and in the manner provided under
                                         this Section 4.5. Each holder of Senior Debt, whether now outstanding or hereafter arising,
                                         shall be deemed to have acquired the Senior Debt in reliance upon the provisions contained
                                         herein and each holder of Subordinate Debt shall be deemed to be bound hereby.

 

    	 	 	 

    	 	- 39 -	 

    

 

		4.5.2	No
                                         payment (whether made in cash, securities or other property or by set-off) of principal,
                                         interest or any other amount due with respect to the Subordinate Debt shall be made or
                                         received, and no holder of Subordinate Debt shall exercise any right of set-off or recoupment
                                         with respect to any Subordinate Debt, until all of the Senior Debt is Paid in Full; provided,
                                         however, except as provided in the immediately succeeding sentence or in subsection 4.5.3
                                         below and subject to the provisions of subsection 4.5.4, any Obligor may make and each
                                         holder of Subordinate Debt may accept Permitted Subordinate Debt Payments. Notwithstanding
                                         the foregoing, no Obligor may make, and no holder of Subordinate Debt, may receive:

 

		(a)	any
                                         payment of principal, interest or any other amount with respect to the Subordinate Debt
                                         if, at the time of such payment or immediately after giving effect thereto, a Senior
                                         Payment Default exists in respect of the Senior Debt and the holders of Subordinate Debt
                                         have received a Senior Default Notice specifying such existence; or

 

		(b)	subject
                                         to the penultimate sentence of this subsection 4.5.2 below, any payment of principal,
                                         interest or any other amount with respect to the Subordinate Debt if, at the time of
                                         such payment or immediately after giving effect thereto, the holders of Subordinate Debt
                                         have received a Senior Default Notice stating that a Senior Covenant Default exists or
                                         would be created by the making of such payment.

 

The
Obligors may resume Permitted Subordinate Debt Payments and may make any Permitted Subordinate Debt Payments missed due to the
application of clause (a) or clause (b) of this Section 4.5.2 (a “Deferred Permitted Subordinate Debt Payment”):

 

		(c)	in
                                         the case of a Senior Payment Default referred to in clause (a) of this Section 4.5.2
                                         above, upon the cure or waiver thereof in accordance with the terms of this Agreement;
                                         or

 

		(d)	in
                                         the case of a Senior Covenant Default referred to in clause (b) of this Section 4.5.2
                                         above, upon the earlier to occur of (x) the cure or waiver thereof in accordance with
                                         the terms of this Agreement, and (y) the expiration of 120 days from the date on which
                                         the applicable Senior Default Notice was received.

 

Notwithstanding
any provision of this Section 4.5.2 to the contrary:

 

		(1)	no
                                         Obligor shall be prohibited from making, and the holders of Subordinate Debt shall not
                                         be prohibited from receiving, payments as a result of clause (b) of this subsection 4.5.2
                                         for more than an aggregate of 120 days within any period of 365 consecutive days;

 

		(2)	no
                                         Senior Covenant Default existing on the date any notice is given pursuant to clause (b)
                                         of this subsection 4.5.2 shall, unless the same shall have ceased to exist for a period
                                         of at least ninety (90) consecutive days, be used as a basis for any subsequent such
                                         notice; and

 

		(3)	no
                                         more than two (2) Senior Default Notices may be sent pursuant to clause (b) of this Section
                                         4.5.2 during any consecutive 365-day period and no more than six (6) Senior Default Notices
                                         may be sent pursuant to clause (b) of this Section 4.5.2 during the term of this Agreement.

 

    	 	 	 

    	 	- 40 -	 

    

 

The
provisions of this Section 4.5.2 shall not apply to any payment with respect to which Section 4.5.3 would be applicable. For purposes
of clarification, the term “payment” does not include the accrual or capitalization of interest, fees or other amounts
in respect of the Subordinate Debt.

 

		4.5.3	In
                                         the event of a Proceeding with respect to any Obligor or any of its properties: (i) all
                                         Senior Debt first shall be Paid in Full before any payment (whether made in cash, securities
                                         or other property) of or with respect to the Subordinate Debt shall be made by, or from
                                         the assets or estate of, such Obligor; and (ii) any payment which, but for the terms
                                         hereof, otherwise would be payable or deliverable in respect of the Subordinate Debt
                                         shall be paid or delivered directly to holders of Senior Debt in accordance with their
                                         Pro Rata Share thereof until all Senior Debt is Paid in Full, and each holder of Subordinate
                                         Debt irrevocably authorizes, empowers and directs any and all receivers, trustees, liquidators,
                                         custodians, conservators and others having authority in the premises to effect all such
                                         payments and deliveries.

 

		4.5.4	Until
                                         the Senior Debt is Paid in Full, no holder of Subordinate Debt or the Required Term B
                                         Lenders shall, without the prior written consent of the Required Term A Lenders, take
                                         any action to collect, enforce payment or accelerate any of the Subordinate Debt, exercise
                                         any of the remedies with respect to the Subordinate Debt set forth in the Security Documents
                                         or that otherwise may be available to any such holder or Lenders, either at law or in
                                         equity, by judicial proceedings (including by filing a Proceeding) or otherwise (an “Enforcement
                                         Action”), except that: (1) upon the occurrence and during the continuance of
                                         a Default or Event of Default, the Required Term B Lenders may deliver to the Obligors
                                         a notice of acceleration provided such acceleration is not effective until the earliest
                                         of the dates specified in clause (i) through (v) below; (2) the Required Term B Lenders
                                         may take legal action seeking specific performance or injunctive relief against any Obligor
                                         to enforce covenants (other than covenants to pay any of the Subordinate Debt) contained
                                         in the Loan Documents; provided that such action does not require the making of any payments
                                         to the holders of Subordinate Debt; (3) upon expiration of a payment blockage period
                                         in accordance with the provisions of Section 4.5.2 and the failure of the Obligors to
                                         pay any Deferred Permitted Subordinate Debt Payment, the Required Term B Lenders may
                                         take legal action to enforce payment of such Deferred Permitted Subordinate Debt Payment
                                         but shall not be permitted to take any other Enforcement Action; and (4) as provided
                                         in the following sentence. Upon the earliest to occur of:

 

		(i)	the
                                         passage of 120 days from the earlier of (a) the date of receipt of a Subordinate Default
                                         Notice if the Subordinate Default described therein shall not have been cured or waived
                                         within such period in accordance with this Agreement, or (b) the date on which a Senior
                                         Default Notice is given pursuant to Section 4.5.2;

 

		(ii)	the
                                         acceleration of the Senior Debt;

 

		(iii)	the
                                         occurrence of a Proceeding with respect to any Obligor;

 

		(iv)	the
                                         institution or commencement of (A) any judicial action against any Obligor to enforce
                                         payment of the Senior Debt or (B) any action to sell, realize upon or foreclose upon
                                         any material portion of the Collateral securing Senior Debt; and

 

    	 	 	 

    	 	- 41 -	 

    

 

		(v)	the
                                         Maturity Date,

 

the
holders of Subordinate Debt may take Enforcement Action.

 

		4.5.5	If
                                         (a) any payment (whether made in cash, securities or other property) not permitted under
                                         this Agreement is received by any holder of Subordinate Debt on account thereof before
                                         all Senior Debt is Paid in Full, or (b) any payment (whether made in cash, securities
                                         or other property) is received by any holder of Subordinate Debt on account thereof when
                                         a Senior Payment Default exists and such holder of Subordinate Debt is notified of such
                                         Senior Payment Default within ten (10) days after the date on which such payment of Subordinate
                                         Debt was scheduled to be made, then each such payment (including any subsequent payment
                                         in respect of the Subordinate Debt made during the continuation of such Senior Payment
                                         Default) shall be paid over promptly to the holders of the Senior Debt in accordance
                                         with their Pro Rate Shares thereof, or to their designated representative, for application
                                         in accordance with this Agreement to the payment of the Senior Debt then remaining unpaid,
                                         until all of the Senior Debt is Paid in Full.

 

		4.5.6	No
                                         holder of Subordinate Debt shall sell, assign, dispose of or otherwise transfer all or
                                         any portion of the Subordinate Debt, unless prior to the consummation of any such action,
                                         the transferor and transferee thereof shall execute and deliver an agreement in favour
                                         of the Obligors and Lenders hereunder agreeing to be bound by the provisions of this
                                         Section 4.5. Notwithstanding the failure to execute or deliver any such agreement, the
                                         subordination effected by this Section 4.5 shall survive any sale, assignment, disposition
                                         or other transfer of all or any portion of the Subordinate Debt, and the terms of this
                                         Section 4.5 shall be binding upon the successors and assigns of each holder of Subordinate
                                         Debt.

 

Article
5

INDEMNITIES

 

	5.1	General
                                         Indemnity

 

The
Borrower will indemnify and save harmless the Lenders and their respective Affiliates, officers, directors, employees, agents
and attorneys (in this Article 5, each an “Indemnified Party”), immediately on demand by any Lender, from and
against all Losses that any Indemnified Party may sustain or incur as a result of or in connection with the Facility or the Loan
Documents, including as a result of or in connection with:

 

		5.1.1	any
                                         cost or expense incurred by reason of the liquidation or redeployment in whole or in
                                         part of deposits or other funds required to fund or maintain any Loan as a result of
                                         the Borrower’s failure to complete a Loan or to make any payment, prepayment or
                                         repayment on the date required under this Agreement or specified by the relevant Lender
                                         in any notice given under this Agreement;

 

		5.1.2	the
                                         Borrower’s failure to pay principal, interest, fees, expenses or other amounts
                                         due under this Agreement on the due date after the expiration of any applicable grace
                                         periods;

 

    	 	 	 

    	 	- 42 -	 

    

 

		5.1.3	the
                                         acceleration under Article 10 of this Agreement of any of the Facility or of the Loans
                                         or any other amounts owing under this Agreement or any other Loan Documents;

 

		5.1.4	the
                                         Borrower’s failure to give any notice required to be given by it to the Lenders
                                         under this Agreement;

 

		5.1.5	any
                                         inaccuracy in the representations and warranties in Article 8 of this Agreement or any
                                         other representation, warranty or statement of any Obligor in any other Loan Documents;

 

		5.1.6	any
                                         failure of any Obligor to observe or comply with the covenants, negative covenants or
                                         other agreements applicable to it under the Loan Documents; or

 

		5.1.7	the
                                         occurrence of any Default or Event of Default.

 

	5.2	Environmental
                                         Indemnity

 

Without
limiting the indemnity in Section 5.1 above, the Borrower will indemnify and save harmless each Indemnified Party, immediately
on demand by the Required Lenders on the terms set out in this Section 5.2, from and against all Environmental Liabilities that
any Indemnified Party may sustain or incur as a result of or in connection with the Facility or the Loan Documents, including
as a result of or in connection with:

 

		5.2.1	an
                                         Indemnified Party being a lender to the Borrower or a successor to or assignee of any
                                         right or interest of any Obligor;

 

		5.2.2	any
                                         order, investigation or action by any Governmental Authority relating to any Obligor
                                         or its Business or the Property;

 

		5.2.3	an
                                         Indemnified Party being or being deemed to be a mortgagee in possession of the Property
                                         of any Obligor or a successor or successor-in-interest to any Obligor as a result of
                                         taking possession of all or any of the Property of an Obligor, whether by foreclosure,
                                         foreclosure deed, deed in lieu of foreclosure or by any other means; or

 

		5.2.4	the
                                         past, present or future operations of any Obligor or any predecessor in interest to any
                                         Obligor, or the past, present or future condition of any part of any Property owned,
                                         operated, leased or occupied by any Obligor or any predecessor in interest to any Obligor.

 

	5.3	Taxes

 

		5.3.1	Except
                                         as required by an Applicable Law, each payment by any Obligor under any Loan Document
                                         shall be made free and clear of all present or future Taxes.

 

		5.3.2	If
                                         any Taxes shall be required by any Applicable Law to be deducted from or in respect of
                                         any amount payable under any Loan Document to any Lender (i) if such Tax is an Indemnified
                                         Tax, such amount payable shall be increased as necessary to ensure that, after all required
                                         deductions for Indemnified Taxes are made (including deductions applicable to any increases
                                         to any amount under this Section 5.3), such Lender receives the amount it would have
                                         received had no such deductions been made, (ii) the relevant Obligor shall make such
                                         deductions, (iii) the relevant Obligor shall timely pay the full amount deducted to the
                                         relevant Governmental Authority in accordance with Applicable Law and (iv) within thirty
                                         (30) days after such payment is made, the relevant Obligor shall deliver to the Lenders
                                         an original or certified copy of a receipt evidencing such payment or other evidence
                                         of payment.

 

    	 	 	 

    	 	- 43 -	 

    

 

		5.3.3	In
                                         addition, the Borrower agrees to pay, and authorizes any Lender to pay in its name, any
                                         stamp, documentary, excise or property Tax, similar charges or similar levies imposed
                                         by any Applicable Law or Governmental Authority and all liabilities with respect thereto
                                         (including by reason of any delay in payment thereof), in each case arising from the
                                         execution, delivery or registration of, or otherwise with respect to, any Loan Document
                                         or any transaction contemplated therein (collectively, “Other Taxes”).
                                         Within thirty (30) days after the date of any payment of Other Taxes by any Obligor,
                                         the Borrower shall furnish to the Lenders, the original or a certified copy of a receipt
                                         evidencing payment thereof or other evidence of payment.

 

		5.3.4	The
                                         Borrower shall reimburse and indemnify, within thirty (30) days after receipt of demand
                                         therefor, each Lender for all Indemnified Taxes (including any Indemnified Taxes imposed
                                         by any jurisdiction on amounts payable under this Section 5.3) paid or payable by such
                                         Lender and any liabilities arising therefrom or with respect thereto, without duplication
                                         of amounts the Borrower pays pursuant to this Section 5.3, whether or not such Indemnified
                                         Taxes were correctly or legally asserted. A certificate of the relevant Lender claiming
                                         any compensation under this Section 5.3.4, setting forth the amounts to be paid thereunder
                                         and delivered to the Borrower, shall be conclusive, binding and final for all purposes,
                                         absent manifest error.

 

		5.3.5	If
                                         a payment made to a Non-U.S. Lender Party would be subject to United States federal withholding
                                         Tax imposed by FATCA if such Non-U.S. Lender Party fails to comply with the applicable
                                         reporting requirements of FATCA, such Non-U.S. Lender Party shall deliver to the Borrower
                                         any documentation under any Applicable Law or reasonably requested by the Borrower sufficient
                                         for the Borrower to comply with its obligations under FATCA and to determine that such
                                         Non-U.S. Lender Party has complied with its obligations under FATCA or to determine the
                                         amount to deduct and withhold from such payment under FATCA, if any. Solely for the purposes
                                         of this Section 5.3.5, “FATCA” shall include any amendments made to
                                         FATCA after the date of this Agreement.

 

		5.3.6	If
                                         a Lender determines that it has received and retained a refund of an Indemnified Tax
                                         or additional sums payable under Section 5.3 (including Other Taxes) for which a payment
                                         has been made by the Borrower pursuant to this Agreement, which refund in the good faith
                                         judgment of such Lender is attributable to such payment made by the Borrower, then such
                                         Lender shall apply the same to the Outstanding Obligations, and if the Outstanding Obligations
                                         have been fully repaid and discharged, such Lender shall reimburse the Borrower for such
                                         amount (net of all out-of-pocket expenses of such Lender and without interest other than
                                         any interest received thereon from the relevant Governmental Authority with respect to
                                         such refund); provided that the Borrower, upon the request of such Lender, agrees to
                                         repay the amount paid over to the Borrower (plus any penalties, interest or other charges
                                         imposed by the relevant Governmental Authority) to such Lender in the event such Lender
                                         is required to repay such refund to such Governmental Authority. Any Lender shall claim
                                         any refund that it determines is available to it, unless it concludes in its sole discretion
                                         that it would be adversely affected by making such a claim or the cost of making and
                                         pursuing such claim will outweigh the amount of the refund likely to be received.

 

    	 	 	 

    	 	- 44 -	 

    

 

		5.3.7	If
                                         the Borrower determines that a reasonable basis exists for contesting a Tax payable under
                                         Section 5.3, the Lenders shall use reasonable efforts to cooperate with the Borrower
                                         as the Borrower may reasonably request in challenging such Tax. The Borrower shall, forthwith
                                         on request, indemnify and hold the Lender harmless against any out-of-pocket expenses
                                         incurred by the Lender in connection with any request made by the Borrower pursuant to
                                         this Section 5.3.7, and if so requested, shall advance reasonable sums to the Lender
                                         to fund any action to be taken by the Lender hereunder. Nothing in this provision shall
                                         obligate the Lender to take any action that, in its sole judgment, it determines may
                                         result in any reasonable detriment or in an excessive administrative inconvenience to
                                         the Lender.

 

Article
6

CONDITIONS PRECEDENT

 

	6.1	Conditions
                                         Precedent to the Initial Drawdown

 

The
obligation of the Initial Lender and any other Lenders to amend and restate the Original Credit Agreement and to make Loans available
under the Term A Facility and to continue the Term B Loans, is subject to the Borrower satisfying each of the conditions precedent
set out in this Section 6.1 on or before the Closing Date, to the satisfaction of the Lenders and their counsel.

 

		6.1.1	Documents.
                                         The Lenders will have received, in form and substance satisfactory to it, duly executed
                                         and delivered originals of the following:

 

		6.1.1.1	this
                                         Agreement;

 

		6.1.1.2	any
                                         amendments, acknowledgments and/or confirmations to or of any of the Security Documents
                                         delivered in connection with the Original Credit Agreement as may be required by the
                                         Lenders;

 

		6.1.1.3	a
                                         certificate dated as of the Closing Date from a Responsible Officer of each Obligor:

 

		6.1.1.3.1	attaching
                                         true copies of its Constating Documents;

 

		6.1.1.3.2	attaching
                                         true copies of resolutions dated as of the Closing Date of its directors or other managing
                                         body authorizing the entering into, execution, delivery and performance of the Loan Documents
                                         required to be delivered hereunder on the Closing Date (collectively with this Agreement,
                                         the “Closing Date Documents”) to which it is a party and setting out
                                         the manner in which those Closing Date Documents are to be executed and delivered;

 

		6.1.1.3.3	setting
                                         out specimen signatures of one or more Responsible Officers or other authorized signatories
                                         who will sign on its behalf the Closing Date Documents to which it is a party;

 

    	 	 	 

    	 	- 45 -	 

    

 

		6.1.1.3.4	certifying
                                         any other matters as required by the Lenders, acting reasonably, including the matters
                                         referred to in Sections 6.2.1, 6.2.2, and 6.2.3;

 

		6.1.1.4	a
                                         Compliance Certificate as at the Closing Date;

 

		6.1.1.5	certificates
                                         of status or satisfactory equivalent relating to each Obligor that is a corporation,
                                         and partnership searches relating to each Obligor that is a partnership;

 

		6.1.1.6	an
                                         opinion of counsel for the Obligors in each jurisdiction specified by the Lenders, acting
                                         reasonably, addressed to the Initial Lender (and any other Lenders as of the Closing
                                         Date) and its counsel dated the Closing Date, with respect to the existence, powers and
                                         capacity of each Obligor, the authorization, execution and delivery of the Closing Date
                                         Documents, the legality, validity and enforceability of the Closing Date Documents, the
                                         continuing validity of the Security Interests created by the Security Documents, the
                                         continuing registration of the Security Documents and continuing perfection of the Security
                                         Interests created by them, the absence of conflict and any other matters as the Lenders
                                         requires, in form and substance satisfactory to the Lenders, acting reasonably;

 

		6.1.1.7	all
                                         other documents and instruments that are customary for transactions of this type or as
                                         may be reasonably requested by the Lenders;

 

		6.1.1.8	evidence
                                         satisfactory to the Lenders (i) detailing the indebtedness owed by the Obligors to the
                                         holders of Permitted Liens, and (ii) all trade creditors have been paid up to date and
                                         to the extent not paid, payment thereto is not in arrears beyond the payment terms extended
                                         to the Obligors by such trade creditors;

 

		6.1.1.9	the
                                         Borrower’s financial projections which, for certainty, shall include a balance
                                         sheet, income statement and statement of cash flows, along with all pertinent underlying
                                         assumptions, prepared on a monthly pro-forma basis, for the fiscal years ended 2018 and
                                         2019, with demonstrated liquidity to fund ongoing business requirements of the Obligors
                                         satisfactory to the Lenders;

 

		6.1.1.10	the
                                         Obligors’ operational plan;

 

		6.1.1.11	a
                                         general form of release in favour of the Initial Lender in form and substance satisfactory
                                         to the Initial Lender in its sole discretion;

 

		6.1.1.12	the
                                         Obligors shall have entered into an amendment of the current contractual arrangements
                                         with the parties listed below, (A) permitting these parties to terminate such contractual
                                         arrangements with Obligors (absent an earlier breach or default by the Obligors thereunder),
                                         effective on December 31, 2018 upon the prior provision of notice to such effect by them
                                         to the Obligors (or the appropriate one thereof under such contractual arrangements)
                                         on or before September 30, 2018, and (B) requiring such parties to purchase on the Closing
                                         Date, a portion of the Initial Lender’s obligations under the Term A Facility as
                                         follows:

 

    	 	 	 

    	 	- 46 -	 

    

 

		6.1.1.12.1	from
                                         Cordillera Communications, (A) a commitment to maintain its current contractual arrangements
                                         with the Obligors (without amendment and absent an earlier breach or default by the Obligors
                                         thereunder) until December 31, 2018, and (B) to purchase on the Closing Date, US$300,000
                                         of the Initial Lender`s obligations under the Term A Facility pursuant to an Assignment
                                         and Assumption Agreement with the Initial Lender (whereunder Cordillera Communications
                                         will pay the Initial Lender US$40,000 for a four percent (4%) share of the 2018 Advance
                                         already funded);

 

provided
that nothing in any such commitment shall prohibit Cordillera Communications from providing notice of termination of its current
contractual relations to the Obligors on or before September 30, 2018 (providing that such termination will be effective no earlier
than December 31, 2018, absent an earlier breach or default thereunder) or from amending its current contractual arrangements
to permit it to do the same;

 

		6.1.1.13	the
                                         execution and delivery of appropriate and duly authorized legal documentation as required
                                         by the Lenders, including, compliance certificates, original share certificates and powers
                                         of attorney, landlord, source code escrow agreements, PPSA and UCC estoppel letters,
                                         inter-creditor agreements with third party debt holders and subordination agreements,
                                         all if and as applicable as determined by the Lenders, which must be satisfactory in
                                         form and substance to the Borrower and Lenders and their respective counsel;

 

		6.1.1.14	the
                                         Lenders’ satisfaction that the assets of the Obligors are free and clear of all
                                         liens and security interests (other than the Permitted Liens and as may be permitted
                                         by the Lenders) and that the security interests granted to the Lenders have been perfected
                                         and all security filings in favour of the Lender have been properly registered and completed;

 

		6.1.1.15	the
                                         corporate structure, ownership structure, financial condition and capital structure of
                                         the Obligors and their respective subsidiaries;

 

		6.1.1.16	all
                                         material agreements of the Borrower and the Guarantors (as determined by the Lenders);

 

		6.1.1.17	Lenders’
                                         satisfaction that there has occurred no Material Adverse Change; and

 

		6.1.1.18	the
                                         Obligors shall not have incurred or assumed any Debt on or prior to the Closing Date
                                         (other than to the Lenders, as contemplated by this Agreement and as otherwise agreed
                                         in writing by the Lenders).

 

		6.1.2	Further
                                         Conditions. The Borrower will have satisfied as at the Closing Date the conditions
                                         precedent set out in Sections 6.2.1 to 6.2.5 inclusive.

 

		6.1.3	Registration
                                         of Security. The Security Documents or notices of them will have been duly registered,
                                         recorded or filed in all places and jurisdictions that the Lenders and their counsel
                                         deem appropriate, all steps will have been taken to validly create, perfect, protect
                                         and preserve the Security Interests created by the Security Documents and to provide
                                         the Facility, the Outstanding Obligations and those Security Interests with the priority
                                         contemplated by this Agreement, and the Lenders will have received evidence satisfactory
                                         to the Lenders and their counsel of the completion of those registrations, recordings
                                         and filings and the full payment of all necessary registration, recording and filing
                                         fees for them.

 

    	 	 	 

    	 	- 47 -	 

    

 

		6.1.4	Fees.
                                         The Borrower will have paid to the Lenders all fees and expenses that are due and
                                         payable by the Borrower on or before the Closing Date under the Loan Documents.

 

		6.1.5	Insurance.
                                         The Lenders will have received a certificate from each insurance broker of the Obligors
                                         with respect to the Insurance, in scope and substance satisfactory to the Lenders, dated
                                         not more than 30 days before the Closing Date, confirming that the Obligors have the
                                         Insurance required by Section 9.1.16.

 

		6.1.6	Due
                                         Diligence. The Lenders will have been satisfied with the results of its financial,
                                         business and legal due diligence with respect to the Obligors, and will have received
                                         and be satisfied with the results of all Property, litigation, judgment, bankruptcy,
                                         execution and other searches conducted or caused to be conducted by the Lenders and their
                                         counsel with respect to the Obligors in all jurisdictions that the Lender and its counsel
                                         deem appropriate.

 

		6.1.7	Regulatory
                                         Approval, Consents and Waivers. The Lenders will be satisfied, acting reasonably,
                                         that all material Authorizations required in connection with the Loan Documents have
                                         been obtained and are in full force and effect, and that all consents and waivers from
                                         other Persons required to authorize, execute, deliver and perform the Loan Documents
                                         have been obtained, to the extent that completion of the transactions contemplated by
                                         the Loan Documents would otherwise be restricted or prohibited under the terms of any
                                         Material Contract to which any Obligor is a party, or by which it is bound, including
                                         any consents to the Security Interests created by the Security Documents from landlords
                                         under any Real Property Leases of any Obligor, and any other consents and waivers as
                                         may be required by the Lenders.

 

	6.2	Conditions
                                         Precedent to all Loans

 

The
obligation of the Lenders to make available or permit any Loans is subject to the Borrower satisfying each of the conditions precedent
set out in this Section 6.2 as at each date of advance of such Loan to the satisfaction of the Lenders and their counsel:

 

		6.2.1	the
                                         representations and warranties contained in Section 8.1 will be true and correct on each
                                         date of such Loan with the same effect as if made as of that date;

 

		6.2.2	no
                                         Material Adverse Change will have occurred and be continuing, and no Material Adverse
                                         Change will result from any Loan;

 

		6.2.3	no
                                         Default or Event of Default will have occurred and be continuing, and no Default or Event
                                         of Default will result from the making or permitting of a Loan;

 

		6.2.4	the
                                         Lenders will not have received a notice from any Person of any Priority Claims or of
                                         any other claims the effect of which under Applicable Law would be to make the Lender
                                         liable to that Person for the amount to be advanced, if that amount was advanced, including
                                         third party demands made by Canada Revenue Agency or the Internal Revenue Service and
                                         any notice of seizure of bank accounts or the credit balance in them from any Governmental
                                         Authority; and

 

    	 	 	 

    	 	- 48 -	 

    

 

		6.2.5	if
                                         any Obligor or Subsidiary of an Obligor is required to provide Security Documents to
                                         the Lenders under Sections 7.1 or 9.1.17, those Security Documents will have been executed
                                         and delivered to the Lenders, and those Security Documents or notices of them will have
                                         been duly registered, recorded or filed in all places and jurisdictions that the Lenders
                                         or their counsel deem appropriate, all steps will have been taken to validly create,
                                         perfect, protect and preserve the Security Interests created by those Security Documents
                                         and to provide the Facility, the Outstanding Obligations and those Security Interests
                                         with the priority contemplated by this Agreement, and the Lenders will have received
                                         evidence satisfactory to the Lenders or their counsel of the completion of those registrations,
                                         recordings and filings and the full payment of all necessary registration, recording
                                         and filing fees for them.

 

	6.3	Waiver
                                         of a Condition Precedent

 

The
conditions precedent set out in Sections 6.1 and 6.2 are for the sole benefit of the Lenders and may be waived by the Required
Lenders, in whole or in part and with or without terms or conditions, relating to all or any portion of any Loan, without affecting
the rights of the Lenders to require that those terms and conditions be satisfied in whole or in part relating to any other Loan.

 

Article
7

SECURITY DOCUMENTS

 

	7.1	Security
                                         Documents

 

		7.1.1	As
                                         general and continuing collateral security for the Outstanding Obligations for which
                                         they are liable, the Obligors will execute and deliver to and in favour of the Lenders
                                         the following guarantees, security and other documents and agreements to which they are
                                         a party, together with any relevant powers of attorney, registrations, filings and other
                                         supporting documents deemed necessary by the Lenders and their counsel to perfect them
                                         or otherwise in respect of them (which, as confirmed, amended, extended, supplemented,
                                         restated or replaced at any time, and together with any other security documents and
                                         agreements given to secure the repayment of the Outstanding Obligations from time to
                                         time, whether provided under Sections 7.1 or 9.1.17 or otherwise, are collectively, the
                                         “Security Documents”), all in form and substance satisfactory to the
                                         Lenders, acting reasonably:

 

		7.1.1.1	a
                                         general security agreement granted by each Obligor creating a first-ranking Security
                                         Interest over all of its present and after-acquired personal Property;

 

		7.1.1.2	an
                                         investment property pledge agreement granted by each Obligor creating a first-ranking
                                         Security Interest in all present and after-acquired Equity Securities owned by that Obligor
                                         in its Subsidiaries;

 

    	 	 	 

    	 	- 49 -	 

    

 

		7.1.1.3	an
                                         Intellectual Property security agreement granted by each Obligor creating a first-ranking
                                         Security Interest in all of its present and after-acquired Intellectual Property Rights;

 

		7.1.1.4	a
                                         code escrow agreement between the Initial Lender and Borrower in the form attached as
                                         Exhibit 7.1.1.4 (the “Software Escrow Agreement”);

 

		7.1.1.5	a
                                         three-party escrow service agreement between the Initial Lender, Frankly Media LLC and
                                         Iron Mountain Intellectual Property Management, Inc. in the form attached as Exhibit
                                         7.1.1.5 (the “Three Party Escrow Agreement”).

 

		7.1.1.6	an
                                         unlimited Guarantee by each Guarantor guaranteeing the payment and performance of the
                                         Borrower’s Obligations and including any additional representations, warranties
                                         and covenants required by the Lenders;

 

		7.1.1.7	an
                                         insurance transfer and consent, assigning the Insurance to the Lenders as mortgagee,
                                         first loss payee and additional named insured as required by this Agreement;

 

		7.1.1.8	undertaking
                                         to provide landlord waivers in form and substance satisfactory to the Lenders from each
                                         Obligor’s landlords, on a best efforts basis;

 

		7.1.1.9	if
                                         at any time after the Closing Date an Obligor creates or acquires a Subsidiary, or an
                                         Obligor becomes the holder of any Equity Securities of a Subsidiary, the applicable Obligor
                                         will:

 

		7.1.1.9.1	immediately
                                         provide the Lenders with written notice of those circumstances, including all relevant
                                         details;

 

		7.1.1.9.2	promptly
                                         execute and deliver to the Lenders, as general and continuing collateral security for
                                         the Outstanding Obligations for which it is liable, a Security Document substantially
                                         in the form described in Section 7.1.1.2 that creates a Security Interest in all of the
                                         Equity Securities in the Subsidiary owned by that Obligor; and

 

		7.1.1.9.3	cause
                                         that Subsidiary to promptly execute and deliver to the Lenders, as general and continuing
                                         collateral security for the Outstanding Obligations for which it is liable, the Security
                                         Documents substantially in the form contemplated in Sections 7.1.1.1, 7.1.1.3, 7.1.1.6
                                         and 7.1.1.7,

 

and
the Security Documents contemplated by Sections 7.1.1.9.2 and 7.1.1.9.3 will be accompanied by any relevant powers of attorney,
registrations, filings and other supporting documents deemed necessary by the Lenders and their counsel to perfect them or otherwise
in respect of them, and by any resolutions, certificates, legal opinions and other related documents that are reasonably requested
by the Lenders and consistent with the relevant forms and types of them delivered on the Closing Date. Subject to the Obligors’
compliance with Section 6.1.1, including without limitation, Section 6.1.1.2, the Lenders acknowledge receipt of the Security
Documents and other documents listed in Sections 7.1.1.1 to 7.1.1.8.

 

    	 	 	 

    	 	- 50 -	 

    

 

	7.2	Registration
                                         of Security Documents

 

Each
Obligor will cooperate, and cause each other Obligor to cooperate, fully with the Lenders and their counsel to register, record
or file the Security Documents or notice of them in all places where, in the opinion of counsel for the Lenders, acting reasonably,
registration, recording or filing is necessary or desirable in order to perfect, protect or preserve the Security Interests created
by the Security Documents, and each Obligor will also cooperate, and cause each other Obligor to cooperate, with any amendments
to or renewals of those registrations, recordings and filings, and will do, or cause to be done, all other things as, in the opinion
of counsel for the Lender, acting reasonably, are necessary or desirable to maintain for the Lenders the rights, benefits and
priority of the Security Documents and related Security Interests.

 

	7.3	Dealing
                                         with Security Documents

 

The
Required Lenders may grant extensions, take and give up any Security Documents or other security, accept compositions of, and
grant releases and discharges of, any Security Documents or other security in whole or in part, and otherwise deal with any Obligor
or any Loan Documents as the Required Lenders may see fit, all without prejudice to the Outstanding Obligations or the rights,
remedies, powers and recourses of the Lender under the Loan Documents. The taking of any Security Documents under this Agreement
will not operate by way of merger of any of the Outstanding Obligations or any previously taken Security Documents.

 

	7.4	Permitted
                                         Liens

 

The
fact that:

 

		7.4.1	an
                                         Obligor is permitted to create, or allow to exist, any Permitted Lien;

 

		7.4.2	any
                                         representation, warranty or covenant in this Agreement may make an exception for the
                                         existence of Permitted Liens; or

 

		7.4.3	the
                                         Security Interests created by the Security Documents are stated to be subject to, or
                                         are not required to rank in priority to, Permitted Liens,

 

will
not in any manner, nor in any cause or proceeding, directly or indirectly, be taken to constitute a subordination of any Security
Interests created by the Security Documents to any Permitted Lien or to any other Lien or other obligation of any kind, it being
the intention of the Obligors and the Lenders that all Security Interests created by the Security Documents will at all times,
to the maximum extent permitted by Applicable Law (except as otherwise expressed herein), rank as first priority Security Interests
in priority to Permitted Liens and all other Liens or obligations.

 

    	 	 	 

    	 	- 51 -	 

    

 

Article
8

REPRESENTATIONS AND WARRANTIES

 

	8.1	Representations
                                         and Warranties

 

Each
Obligor, for itself and for each other Obligor, makes the representations and warranties set out in this Section 8.1 to the Lenders.

 

		8.1.1	Status
                                         and Powers, Authorization, Execution and Delivery, Enforceability and No Conflict.

 

		8.1.1.1	Each
                                         Obligor is duly organized or formed, validly existing and in good standing under the
                                         laws of the jurisdiction of its organization.

 

		8.1.1.2	Each
                                         Obligor has the necessary power, authority and legal right to make, execute, deliver
                                         and perform its obligations under each Loan Document to which it is a party, and to borrow
                                         or guarantee, as applicable, under this Agreement, and each Obligor has the necessary
                                         power and authority to own and lease its Property and carry on its Business as now conducted,
                                         and is qualified to do business and is in good standing in every jurisdiction in which
                                         its ownership, lease or operation of Property or the conduct of its Business requires
                                         it to be qualified.

 

		8.1.1.3	The
                                         execution, delivery and performance by each Obligor of each Loan Document to which it
                                         is a party has been duly authorized by all necessary corporate or other organizational
                                         and, if required, shareholder, action, and each Loan Document to which any Obligor is
                                         a party will, when delivered, have been duly executed and unconditionally delivered by
                                         it.

 

		8.1.1.4	Each
                                         Loan Document to which any Obligor is a party, when executed and delivered by it, constitutes
                                         and will constitute a legal, valid and binding obligation of such Obligor, enforceable
                                         against it by the Lenders in accordance with its terms, except as may be limited by general
                                         principles of equity or by Insolvency Law.

 

		8.1.1.5	The
                                         execution, delivery and performance of each Loan Document to which any Obligor is a party
                                         does not and will not:

 

		8.1.1.5.1	violate
                                         any Applicable Law or any of its Constating Documents;

 

		8.1.1.5.2	be
                                         in conflict with, result in a breach of or constitute, alone or with notice or lapse
                                         of time or both, a default under, or give rise to any right to require prepayment, repurchase
                                         or redemption under, any material contract or any other indenture, agreement or instrument
                                         binding upon any Obligor or its Property; or

 

		8.1.1.5.3	result
                                         in the creation or imposition of any Lien on the Property of any Obligor, other than
                                         the Security Interests created by the Security Documents.

 

    	 	 	 

    	 	- 52 -	 

    

 

		8.1.2	Approvals.

 

		8.1.2.1	No
                                         Authorization by, and no registration, filing or recording with, any Governmental Authority
                                         is or will be required in connection with the Loans under this Agreement or the making,
                                         execution, delivery or performance of the Loan Documents, except for:

 

		8.1.2.1.1	registrations,
                                         filings or recordings necessary to perfect the Security Interests in the Property granted
                                         by the Obligors in favour of the Lenders; and

 

		8.1.2.1.2	those
                                         that have been made or obtained and are in full force and effect.

 

		8.1.2.2	Each
                                         Obligor has obtained or made all material consents, approvals, authorizations, declarations,
                                         registrations, filings, recordings, notices and other actions with Persons other than
                                         Governmental Authorities required in connection with the creation, execution, delivery
                                         and performance by it of the Loan Documents to which it is a party.

 

		8.1.3	Security
                                         Documents. Subject to any expressed exceptions in this Agreement, each Security Document
                                         granted by an Obligor will create in favour of the Lenders valid, enforceable and perfected
                                         Security Interests in the Property of such Obligor ranking first in priority, subject
                                         only to any Permitted Liens having priority under Applicable Law and which have not been
                                         subordinated, provided that those Permitted Liens will not in any manner, or in any cause
                                         or proceeding, be taken to directly or indirectly constitute a subordination of any Security
                                         Interests created by the Security Documents to any Permitted Lien, it being the intention
                                         of the Parties that all Security Interests created by the Security Documents will at
                                         all times, to the maximum extent permitted by Applicable Law, rank as first priority
                                         Security Interests in priority to Permitted Liens and all other Liens or obligations.

 

		8.1.4	Financial
                                         Statements.

 

		8.1.4.1	All
                                         audited Financial Statements of the Borrower, prepared on a Consolidated Basis, and previously
                                         provided to the Lenders, are and were, at the time they were delivered to the Lenders
                                         and the dates in respect of which they were prepared, complete and correct and fairly
                                         presented the consolidated financial position and results of the Borrower and the financial
                                         position and results of each Obligor, in all material respects, as of such times and
                                         for the relevant Fiscal Year covered thereby.

 

		8.1.4.2	The
                                         Financial Statements referred to in Section 8.1.4.1 are and were prepared in accordance
                                         with IFRS applied consistently throughout the periods involved, except as disclosed in
                                         them.

 

		8.1.5	No
                                         Material Adverse Changes. Since December 31, 2017, no Material Adverse Change has
                                         occurred.

 

		8.1.6	Litigation.
                                         Except as set out in Schedule 8.1.6, there are no actions, suits or proceedings,
                                         including any Tax-related matter, by or before any arbitrator or Governmental Authority
                                         pending against or threatened against or affecting any Obligor that, if adversely determined,
                                         could reasonably be expected to result in, either individually or in the aggregate, damages
                                         or other monetary claims that are uninsured and exceed.

 

    	 	 	 

    	 	- 53 -	 

    

 

		8.1.7	Compliance
                                         with Applicable Laws. Each Obligor has complied in all material respects with all
                                         Applicable Laws binding on it or its Business or Property. No Obligor has violated or
                                         failed to obtain any Authorization necessary for the ownership of any of its Property
                                         or the conduct of its Business.

 

		8.1.8	Organizational
                                         Structure. Schedule 8.1.8 correctly sets out:

 

		8.1.8.1	the
                                         corporate organizational structure of the Borrower, including its shareholders and Subsidiaries;
                                         and

 

		8.1.8.2	with
                                         respect to each Obligor: (i) its legal names (including any French and English name combinations);
                                         (ii) its form of legal entity; (iii) the Equity Securities it has authorized or issued
                                         and which are outstanding, including the names of (and number of shares or other Equity
                                         Securities held by) the registered and beneficial owners of those Equity Securities,
                                         and including any Debt convertible into any Equity Securities; (iv) the Equity Securities
                                         owned by it; (v) the jurisdictions of its organization and head office, and the location
                                         of its corporate records or minute books and of its share or unit registers; (vi) its
                                         Obligor Location; and (vii) the jurisdictions in which it carries on business or has
                                         assets (including receivables) having an aggregate value in excess of $30,000,000 (not
                                         including goodwill).

 

The
Obligors do not have any Subsidiaries and any Subsidiaries created or acquired by any Obligor after the Closing Date will be identified
to the Lenders under Section 7.1.1.9.1.

 

		8.1.9	Equity
                                         Securities. Except as set out in Schedule 8.1.9:

 

		8.1.9.1	no
                                         Obligor owns any Equity Securities or any Debt which is convertible into, or exchangeable
                                         for, Equity Securities of any Person;

 

		8.1.9.2	all
                                         of the outstanding Equity Securities of each Obligor and any other Subsidiary owned by
                                         an Obligor are owned of record and beneficially by an Obligor, and all Equity Securities
                                         so owned are duly authorized, validly issued, fully paid and non-assessable, and are
                                         free and clear of all Liens; and

 

		8.1.9.3	there
                                         are no contractual restrictions on the ability of any Obligor or the Lender to sell,
                                         transfer or assign any of the Equity Securities owned by any Obligor.

 

		8.1.10	Taxes.
                                         Each Obligor has filed or caused to be filed when due all required Tax returns, and
                                         has paid or caused to be paid all Taxes required to have been paid under those Tax returns
                                         or under any assessments made against each Obligor or any of its Property, including
                                         all instalments with respect to the current period, and has made adequate provision for
                                         Taxes payable in the current period, except:

 

    	 	 	 

    	 	- 54 -	 

    

 

		8.1.10.1	for
                                         Taxes that are payable or have been assessed:

 

		8.1.10.1.1	that
                                         are being contested in good faith by appropriate proceedings;

 

		8.1.10.1.2	for
                                         which an Obligor has set aside on its books adequate reserves in compliance with IFRS;

 

		8.1.10.1.3	relating
                                         to which no Tax Lien has been filed; and

 

		8.1.10.1.4	relating
                                         to which no Tax claim individually or collectively with all other similar claims in excess
                                         of $200,000 (and which could reasonably be expected to result in a Tax Lien arising or
                                         being filed) is being asserted against an Obligor; or

 

		8.1.10.2	as
                                         set out in Schedule 8.1.10.2.

 

		8.1.11	Title
                                         to and Location of Property.

 

		8.1.11.1	Each
                                         Obligor has good and marketable title in fee simple to, or valid leasehold title under
                                         valid and enforceable Real Property Leases to, all of its Real Property, which title
                                         is free and clear of all Liens except for Permitted Liens, and each Obligor owns or leases
                                         all Real Property used in connection with its Business. Schedule 8.1.11.1, together with
                                         any Replacement Schedule, sets out a complete and accurate list of all leased, subleased
                                         or owned Real Property of the Obligors, including correct legal descriptions and a list
                                         of all Real Property Leases to which any Obligor is a party.

 

		8.1.11.2	Each
                                         Obligor owns, or leases under valid and enforceable Operating Leases or Capital Leases,
                                         its personal Property free and clear of all Liens except for Permitted Liens, and owns
                                         or leases all personal Property used or acquired in connection with its Business. Schedule
                                         8.1.11.2, together with any Replacement Schedule, sets out a complete and accurate list
                                         of all Operating Leases and Capital Leases with respect to each Obligor’s personal
                                         Property and sets out the locations of each Obligor’s personal Property.

 

		8.1.11.3	All
                                         of the tangible personal Property of the Obligors having an individual book value in
                                         excess of $200,000 is located in Weehawken, New Jersey.

 

		8.1.12	Leases.
                                         All rental and other payments required to be paid by any Obligor under any Real Property
                                         Leases, Operating Leases and Capital Leases have been paid when due, and all of those
                                         Real Property Leases, Operating Leases and Capital Leases are in full force and effect.
                                         No Obligor is in default under or breach of any Real Property Lease, Operating Lease
                                         or Capital Lease, or is aware of any default under or breach of any other party to them.

 

		8.1.13	Debt
                                         Defaults. No Obligor is in default of, and no event or circumstance has occurred
                                         which, but for the passage of time or the giving of notice, or both, would constitute
                                         a default under, any loan or loan agreement, indenture, mortgage, deed of trust, security
                                         agreement or other instrument or agreement evidencing or pertaining to any Debt of any
                                         Obligor, except for any defaults that individually or in the aggregate do not exceed
                                         $250,000 at any time.

 

    	 	 	 

    	 	- 55 -	 

    

 

		8.1.14	Insurance.
                                         All policies relating to Insurance:

 

		8.1.14.1	comply
                                         with all requirements of the Loan Documents, Applicable Law and all material contracts
                                         to which any Obligor is a party;

 

		8.1.14.2	are
                                         valid, in full force and effect, and enforceable; and

 

		8.1.14.3	provide
                                         adequate insurance coverage for the Property, Business and operations of the Obligors
                                         in at least those amounts and against at least those risks required under Section 9.1.16.
                                         All premiums with respect to all material policies of Insurance have been paid in accordance
                                         with their respective terms, and no notice of cancellation or termination has been received
                                         with respect to any of those policies.

 

		8.1.15	Environmental
                                         Matters. Except as set out in Schedule 8.1.15 or any Replacement Schedule:

 

		8.1.15.1	the
                                         Obligors are in compliance in all material respects with all applicable Environmental
                                         Laws;

 

		8.1.15.2	any
                                         Authorizations or notices required to be obtained or filed by each Obligor under Environmental
                                         Laws in connection with its Business, Property or operations have been obtained or filed;

 

		8.1.15.3	all
                                         Hazardous Materials generated at the Property of any Obligor have been treated, transported,
                                         stored and disposed of in accordance with all material requirements of Environmental
                                         Laws and Authorizations applicable to them;

 

		8.1.15.4	the
                                         Obligors have taken all reasonable steps necessary to determine, and have determined,
                                         that there has been no Release of Hazardous Materials and there has been no threatened
                                         Release of Hazardous Materials on or to any Property of any Obligor, other than in compliance
                                         in all material respects with Environmental Laws;

 

		8.1.15.5	there
                                         are no claims, notices of violation, notices of potential liability, requests for information,
                                         complaints, proceedings, investigations or actions by any Governmental Authority or any
                                         other Person pending or threatened against any Obligor under any Environmental Laws;

 

		8.1.15.6	no
                                         Obligor has agreed to assume, or accept responsibility by contract for, any liability
                                         of any Person under any Environmental Laws; and

 

		8.1.15.7	there
                                         are no facts, circumstances or conditions, including the Release of any Hazardous Materials,
                                         relating to the past or present Business, Property or operations of the Obligors or any
                                         of their predecessors in interest, that could reasonably be expected to result in any
                                         Obligor having or incurring any material claim or liability under any Environmental Laws.

 

    	 	 	 

    	 	- 56 -	 

    

 

		8.1.16	Employee
                                         Matters.

 

		8.1.16.1	No
                                         Obligor, and no employee of any Obligor, is subject to any collective bargaining agreement.
                                         There are no strikes, slowdowns, work stoppages or other labour disputes pending or threatened
                                         in writing against any Obligor that could reasonably be expected to result in, either
                                         individually or in the aggregate, a Material Adverse Effect.

 

		8.1.16.2	Each
                                         Pension Plan, and each employee benefit, fringe benefit, supplemental unemployment benefit,
                                         bonus, incentive, profit sharing, termination, change of control, compensation, retirement,
                                         salary continuation, stock option, stock purchase, stock appreciation, health, welfare,
                                         medical, dental, accident, disability, life insurance or other plan, arrangement, agreement,
                                         program, policy, practice or undertaking that is sponsored or maintained by any Obligor
                                         for the benefit of its employees and former employees who are or were employed in Canada,
                                         and their respective beneficiaries, is in compliance with Applicable Law, including the
                                         Income Tax Act and any federal or provincial pension benefits standards legislation,
                                         and is being administered in compliance with its terms.

 

		8.1.16.3	Each
                                         Obligor has withheld from all payments to each of its officers, directors and employees
                                         the amount of all Taxes, Pension Plan contributions, employment insurance premiums and
                                         other payments and deductions that it is required to withhold under Applicable Law, and
                                         has paid or remitted those amounts to the appropriate Governmental Authority in accordance
                                         with Applicable Law. No Obligor is subject to any Priority Claim arising from those withholdings
                                         that does not constitute a Permitted Lien.

 

		8.1.17	Intellectual
                                         Property Rights. All Intellectual Property owned or licensed by any Obligor, and
                                         all rights of any Obligor to the use of any Intellectual Property owned by and licensed
                                         from others, in each case that is material to the present and planned future conduct
                                         of the Business of that Obligor, are set out in Schedule 8.1.17 (collectively, the “Intellectual
                                         Property Rights”). Except as set out in Schedule 8.1.17 or any Replacement
                                         Schedule, no material claim has been asserted and is pending by any Person with respect
                                         to the use by any Obligor of any Intellectual Property Rights or challenging the validity,
                                         enforceability or effectiveness of any Intellectual Property Rights necessary for the
                                         conduct of the Business of the Obligors taken as a whole. Except as set out in Schedule
                                         8.1.17:

 

		8.1.17.1	each
                                         Obligor owns, licenses or possesses the right to use all Intellectual Property that is
                                         necessary for the operation of its Business as currently conducted and as proposed to
                                         be conducted, free and clear of all Liens, except for Permitted Liens, and restrictions;

 

		8.1.17.2	all
                                         necessary applications and registrations for Intellectual Property Rights of each Obligor
                                         are current; and

 

		8.1.17.3	the
                                         conduct of each Obligor’s Business does not infringe the Intellectual Property
                                         of any other Person.

 

Except
for the filing with a register maintained under the legislative or regulatory authority of a Governmental Authority, or with a
register maintained by an authority established by a treaty (such as the European Patent Convention) where the purpose of the
register is to maintain records of documents received by the legislative or regulatory authority and relating to Intellectual
Property registrations or applications for Intellectual Property registration, and except as has been already made or obtained,
in relation to the Intellectual Property Rights no authorization, approval or other action by, and no notice to or filing with,
any register is required for the grant by any Obligor of the Liens under the Security Documents, the execution, delivery or performance
of the Security Documents to which each Obligor is a party, or the perfection or the exercise by the Lenders of their rights and
remedies under the Security Documents.

 

    	 	 	 

    	 	- 57 -	 

    

 

		8.1.18	Software.
                                         Each Obligor is the sole legal and beneficial owner of, and has good and marketable
                                         title to, or is a licensee of, all of the computer software, other than operating systems
                                         software, running on its computer systems. Each Obligor has the right to use all software
                                         used by it and has not granted any licence or other rights to any other Person in respect
                                         of that software which could interfere with its rights. Except as set out in Schedule
                                         8.1.18, each Obligor possesses the object code and user manuals for all software used
                                         by it, and the source code and all documentation required for effective use of it.

 

		8.1.19	Other
                                         Representations. Each representation and warranty made by an Obligor in any Loan
                                         Document to which it is a party is true and correct in all material respects.

 

		8.1.20	No
                                         Event of Default. No Default or Event of Default has occurred and is continuing.

 

		8.1.21	Silicon
                                         Valley Bank. The Obligors’ indebtedness to Silicon Valley Bank has been fully
                                         repaid and no further borrowings are permitted to be made by any Obligor under the Obligors’
                                         documentation with Silicon Valley Bank, and there are no other amounts owing to Silicon
                                         Valley Bank in connection therewith.

 

	8.2	Repetition
                                         of Representations and Warranties

 

Without
limiting Section 8.3, the representations and warranties set out in Section 8.1 will be deemed to be made by each Obligor, for
itself and for each other Obligor, on each date of advance of such Loan based on the facts and circumstances then existing, and
in the case of representations and warranties relating to a Subsidiary that becomes an Obligor after the date of this Agreement,
on the date it becomes an Obligor, except that any representation or warranty expressly relating to a specific date shall only
be true and correct as of such date.

 

	8.3	Survival
                                         of Representations and Warranties

 

The
representations and warranties set out in Section 8.1 will survive the execution and delivery of this Agreement until all Outstanding
Obligations have been fulfilled and the Lenders have no further obligations under any Loan Documents, and the Lenders will be
entitled to rely, and will be deemed to have relied, upon the representations and warranties set out in Section 8.1 in making
any advance available under this Agreement, regardless of any investigation or examination made by the Lenders or their counsel.

 

    	 	 	 

    	 	- 58 -	 

    

 

Article
9

COVENANTS

 

	9.1	Positive
                                         Covenants

 

So
long as this Agreement is in force, any Outstanding Obligations remain outstanding or the Lenders have any obligations under any
Loan Documents, each Obligor covenants and agrees with the Lenders that, unless the Required Lenders otherwise expressly agree
in writing, it will, and it will cause each other Obligor to, comply with the covenants and agreements set out in this Section
9.1.

 

		9.1.1	Financial
                                         Reporting. The Obligors will prepare and deliver (provided that public filings shall
                                         be deemed “delivered”) to the Lenders, in a form satisfactory to the Required
                                         Lenders, acting reasonably:

 

		9.1.1.1	as
                                         soon as available and in any event within 120 days after the end of each Fiscal Year
                                         of the relevant Obligor:

 

		9.1.1.1.1	annual
                                         audited Financial Statements of the Borrower on a Consolidated Basis, together with a
                                         management discussion and analysis relating to the Financial Statements and an auditor’s
                                         report prepared by an internationally recognized independent firm of chartered accountants
                                         selected by the board of directors of the Borrower, containing the auditor’s confirmation
                                         that its examinations of those Financial Statements were made in accordance with generally
                                         accepted auditing standards and the auditor’s opinion that those Financial Statements
                                         present fairly in all material respects, as applicable, the consolidated and unconsolidated
                                         financial position of the Borrower as of the close of each Fiscal Year, and the results
                                         of its operations and changes in financial position for the Fiscal Year then ended, in
                                         accordance with IFRS;

 

each
certified to be true and in accordance with IFRS by a Responsible Officer of the relevant Obligor;

 

		9.1.1.2	as
                                         soon as available and in any event within 60 days after the end of each of the first
                                         three Fiscal Quarters of each Fiscal Year of the Obligors, quarterly unaudited Financial
                                         Statements of the Borrower on a Consolidated Basis as at the end of each of those Fiscal
                                         Quarters, each prepared in accordance with IFRS and certified to be true and in accordance
                                         with IFRS by a Responsible Officer of the relevant Obligor;

 

		9.1.1.3	as
                                         soon as available and in any event within 30 days of the end of each month other than
                                         a month which is the last month in a Fiscal Quarter, monthly unaudited balance sheet,
                                         statement of income, statement of retained earnings and statement of cash flow of the
                                         Borrower on a Consolidated Basis prepared in accordance with IFRS and certified to be
                                         true and in accordance with IFRS by a Responsible Officer of the relevant Obligor;

 

    	 	 	 

    	 	- 59 -	 

    

 

		9.1.1.4	concurrently
                                         with the Financial Statements and other information referred to in Sections 9.1.1.1 and
                                         9.1.1.2, a duly executed and completed Compliance Certificate relating to the Fiscal
                                         Year or Fiscal Quarter, as applicable, of each Obligor being reported upon, certified
                                         by a Responsible Officer of the Borrower;

 

		9.1.1.5	within
                                         30 days of the start of each Fiscal Year, an annual budget in reasonable detail including
                                         monthly income and expenses; and

 

		9.1.1.6	promptly
                                         upon any reasonable request by the Required Lenders, any other information regarding
                                         the Property, operations, Business, legal or corporate affairs and financial position
                                         of any Obligor, or compliance with the terms of this Agreement or any other Loan Document.

 

		9.1.2	Prompt
                                         Payment. The Borrower will pay to the Lenders when due all principal, interest, fees,
                                         expenses and other amounts owing by the Borrower to the Lenders under this Agreement,
                                         on the dates and in the manner provided by this Agreement and the other Loan Documents,
                                         without set off or deduction of any kind.

 

		9.1.3	Existence
                                         and Good Standing. Each Obligor will do or cause to be done all things reasonably
                                         necessary to preserve, renew and keep in full force and effect and in good standing its
                                         legal existence in its jurisdiction of formation or organization, and do or cause to
                                         be done all things reasonably necessary to preserve, renew and keep in full force and
                                         effect and in good standing its registration in every other jurisdiction in which the
                                         nature of its Business or activities, or the character of any of its material Property,
                                         make that registration necessary.

 

		9.1.4	Conduct
                                         of Business. Each Obligor will manage and operate its Business:

 

		9.1.4.1	in
                                         all material respects in accordance with prudent industry practice and in compliance
                                         with the terms and provisions of all Material Permits; and

 

		9.1.4.2	in
                                         compliance with all Applicable Laws of the jurisdictions in which its Business is carried
                                         on.

 

		9.1.5	Applicable
                                         Laws. Each Obligor will comply in a timely manner with all Applicable Laws and will
                                         obtain, preserve and keep in force all Material Permits required by it to properly conduct
                                         its Business and to own, operate, lease or license its Property.

 

		9.1.6	Anti-Money
                                         Laundering Legislation. Each Obligor will promptly upon request:

 

		9.1.6.1	provide
                                         to the Lenders all information, including supporting documentation and other evidence,
                                         as reasonably requested by it or any prospective assignee of it, that may be required
                                         by the Lenders or prospective assignee to obtain, verify and record information regarding
                                         an Obligor, an Obligor’s directors, authorized signing officers, direct or indirect
                                         shareholders or unitholders or other Persons in control of the Obligor, and the transactions
                                         contemplated by this Agreement, or to otherwise comply with any applicable Anti-Money
                                         Laundering Legislation; and

 

		9.1.6.2	notify
                                         the recipient of that information of any changes to it.

 

    	 	 	 

    	 	- 60 -	 

    

 

		9.1.7	Use
                                         of Loans. The proceeds of the Loans provided under the Facility will be used solely
                                         for the purposes set out in Section 2.2.

 

		9.1.8	Payment
                                         Obligations. Each Obligor will pay its obligations before they are delinquent or
                                         in default, except if:

 

		9.1.8.1	the
                                         validity or amount of those obligations is being contested in good faith by appropriate
                                         proceedings; and

 

		9.1.8.2	it
                                         has, if required, set aside on its books adequate reserves with respect to those obligations
                                         in accordance with IFRS.

 

		9.1.9	Maintenance
                                         of Property and Intellectual Property Rights. Each Obligor will:

 

		9.1.9.1	operate,
                                         maintain and preserve in good working order and condition, ordinary wear and tear excepted,
                                         all Property necessary for the proper conduct of its Business, and make or cause to be
                                         made all repairs, additions and improvements to, and renewals and replacements of, that
                                         Property necessary or desirable for the conduct of its Business;

 

		9.1.9.2	do
                                         or cause to be done all things necessary to obtain, preserve, renew, extend and keep
                                         in full force and effect and in good standing all Authorizations and all rights, licences,
                                         privileges, franchises and Intellectual Property Rights material to the conduct of its
                                         Business; and

 

		9.1.9.3	protect,
                                         defend and maintain the validity and enforceability of its Intellectual Property Rights,
                                         and not allow any Intellectual Property owned, licensed or used in its Business to be
                                         abandoned, forfeited or dedicated to the public.

 

		9.1.10	Notice
                                         Provisions. Each Obligor will promptly and, unless otherwise provided, in any event
                                         within five days after any Obligor becomes aware of any event set out in this Section
                                         9.1.10, provide the Lenders with notice of:

 

		9.1.10.1	the
                                         occurrence of a Default or Event of Default, together with a statement of a Responsible
                                         Officer of the relevant Obligor setting out the details of that Default or Event of Default
                                         and the action that the Obligors propose to take or have taken with respect to it;

 

		9.1.10.2	the
                                         receipt by any Obligor of any official notice of violation or non-compliance from, or
                                         claim made by, any Governmental Authority relating to any Obligor or any of its Property;

 

		9.1.10.3	any
                                         breach or default by any Obligor under, termination of, or material amendment to, any
                                         Material Contract;

 

		9.1.10.4	the
                                         receipt of any notice of material breach or default by any Obligor from, or the taking
                                         of any other material action by:

 

		9.1.10.4.1	any
                                         Person to whom any Obligor owes Debt in an amount in excess of $250,000; or

 

		9.1.10.4.2	any
                                         landlord under a Real Property Lease, in each case together with a statement of a Responsible
                                         Officer of the relevant Obligor setting out the details of that breach or default and
                                         the action that the Obligors propose to take or have taken with respect to it;

 

    	 	 	 

    	 	- 61 -	 

    

 

		9.1.10.5	the
                                         institution of, or any material adverse development in, any action, suit, proceeding,
                                         investigation or arbitration before any arbitrator or Governmental Authority by any Person
                                         against any Obligor or any of its Property claiming in excess of $500,000;

 

		9.1.10.6	any
                                         Material Adverse Change.

 

		9.1.11	Change
                                         in Jurisdiction or Name. Each Obligor will, not less than 30 days before the change
                                         occurs, provide the Lenders with written notice of any change by any Obligor of its Obligor
                                         Location, or of the location of its “registered office”, “chief place
                                         of business”, “principal place of business”, or any change by any Obligor
                                         of its corporate, partnership or trust name, as applicable.

 

		9.1.12	Environmental
                                         Reporting. Each Obligor will promptly, and in any event within 15 days of each occurrence,
                                         notify the Lenders of any civil, criminal or regulatory proceeding before, or investigation
                                         or order of, any Governmental Authority or other Person requiring any Obligor to comply
                                         with or take action under any Environmental Laws, and of any state of affairs that contravene
                                         Environmental Laws on any Real Property owned or leased by, or relating to any Business
                                         of, any Obligor, and of any Release from any Real Property owned or leased by any Obligor
                                         into the Natural Environment, and any similar environmental occurrence.

 

		9.1.13	Environmental
                                         Compliance. Each Obligor will:

 

		9.1.13.1	immediately
                                         rectify as and to the extent required by Environmental Laws any breach or failure of
                                         it to comply with any Environmental Laws or any Material Permits issued under Environmental
                                         Laws, or any Release of any Hazardous Materials from its Property or caused by any Obligor,
                                         and will immediately comply with all applicable orders and Material Permits issued by
                                         any Governmental Authority with respect to the Natural Environment; and

 

		9.1.13.2	comply
                                         with all Environmental Laws.

 

		9.1.14	Taxes
                                         and Priority Claims. Each Obligor will:

 

		9.1.14.1	in
                                         a timely manner and in compliance with Applicable Laws, file all Tax returns required
                                         to be filed by it with applicable Governmental Authorities, on or before their respective
                                         due dates, and withhold, collect and remit all Taxes that it is required to collect,
                                         withhold or remit; and

 

		9.1.14.2	pay
                                         and discharge promptly when due all Taxes and Priority Claims imposed upon it or upon
                                         its Property or any part of it, as well as all claims of any kind (including claims for
                                         labour, materials and supplies) that, if unpaid, would by law become a Lien, other than
                                         a Permitted Lien, upon any of its Property.

 

    	 	 	 

    	 	- 62 -	 

    

 

		9.1.15	Books
                                         and Records and Inspection. Each Obligor will:

 

		9.1.15.1	keep
                                         proper books of record and account containing full and accurate entries of all dealings
                                         and transactions relating to its Property, Business and operations in a manner sufficient
                                         to enable the preparation of Financial Statements as required by this Agreement; and

 

		9.1.15.2	permit
                                         representatives designated by the Lenders, upon reasonable prior notice and during normal
                                         business hours, to visit and inspect its Property, examine and make extracts from its
                                         books and records, and discuss its affairs, finances and condition with its officers
                                         and independent accountants.

 

		9.1.16	Insurance.
                                         Each Obligor will:

 

		9.1.16.1	maintain
                                         or cause to be maintained insurance with respect to its Property, Business and operations
                                         against all liabilities, casualties, risks and contingencies, of the types, including
                                         business interruption, “all risks” property damage, boiler and machinery,
                                         third party liability, professional liability and flood insurance, and in the amounts
                                         customary for Persons engaged in the same or similar businesses and similarly situated,
                                         without co-insurance and in accordance with any requirements of any Governmental Authority
                                         (collectively, the “Insurance”). All policies of Insurance will be
                                         in form and substance acceptable to the Required Lenders, acting reasonably, and will
                                         be underwritten by financially sound and reputable insurance companies that are acceptable
                                         to the Required Lenders;

 

		9.1.16.2	in
                                         the case of any fire, accident or other casualty causing material damage or loss to any
                                         of its Property, or if otherwise required by Applicable Law, apply all proceeds of Insurance
                                         to repairing or replacing the damaged or destroyed Property, provided that if an Event
                                         of Default has occurred and is continuing or the uninsured or insured loss is greater
                                         than $500,000, all proceeds of that Insurance will only be used as directed by the Required
                                         Lenders in their sole discretion;

 

		9.1.16.3	maintain
                                         Insurance with respect to its Property in an amount no less than the replacement value
                                         of the Property insured, endorsed in favour of the Lenders as a first loss payee and
                                         first mortgagee. The Lenders will be named as first mortgagee in accordance with the
                                         Insurance Bureau of Canada’s standard mortgage clause (or an alternative form of
                                         mortgage clause satisfactory to the Required Lenders, acting reasonably) with respect
                                         to all Real Property owned by the Obligors, as first loss payee with respect to all other
                                         Property of the Obligors, and as an additional insured with respect to all liability
                                         policies maintained by the Obligors. The Insurance will provide that the insurer make
                                         commercially reasonable efforts to provide at least 30 days’ notice to the Lenders
                                         of any changes to the Insurance and that the Insurance will not be cancelled or terminated
                                         without at least 30 days’ notice being given by the insurer to the Lenders. Evidence
                                         of the giving of that notice will be the responsibility of the insurer in each case;

 

		9.1.16.4	as
                                         soon as practicable following the happening of any damage or loss to its Property subject
                                         to any Insurance, at its expense, furnish or cause to be furnished all proof of damage
                                         or loss and do all acts required to enable the Person entitled to receipt of the proceeds
                                         of that Insurance under this Section 9.1.16 to obtain payment of those proceeds;

 

    	 	 	 

    	 	- 63 -	 

    

 

		9.1.16.5	ensure
                                         that all policies of Insurance, where applicable, contain a release of any subrogation
                                         rights that its insurers may have against the Lenders or those for whom it is in law
                                         responsible;

 

		9.1.16.6	deliver
                                         in writing to the Lenders, at any time, upon reasonable request by the Required Lenders,
                                         evidence of all Insurance required to be maintained by the Obligors under this Section
                                         9.1.16 together with a summary of the coverage provided by that Insurance, and all other
                                         information relating to the Insurance and all monies payable to each Obligor under it.
                                         The Lenders will be entitled, at any time, to inspect and to make copies of any books,
                                         papers, documents or records evidencing or relating to the Insurance; and

 

		9.1.16.7	immediately
                                         provide the Lenders with a certified copy of each policy of Insurance within 90 days
                                         of the Closing Date, together with a certified copy of each renewal policy of Insurance
                                         and of each policy of Insurance issued in replacement of or in substitution for any policy
                                         of Insurance within 30 days of the renewal, replacement or substitution.

 

		9.1.17	Silicon
                                         Valley Bank. The Obligors shall promptly have Silicon Valley Bank discharge all of
                                         its UCC and PPSA registrations against the Obligors and provide evidence of same to the
                                         Initial Lender.

 

		9.1.18	Observer
                                         Status. The Borrower shall provide notice to the Initial Lender of all director meetings
                                         to be held and shall permit representatives of the Initial Lender to attend such meetings
                                         as a non-participating observer, if the Initial Lender wishes to do so, subject to such
                                         reasonable confidentiality restrictions as may be requested by the Borrower’s board.

 

		9.1.19	Further
                                         Assurances. At its own expense and promptly at the reasonable request of the Required
                                         Lenders, each Obligor will:

 

		9.1.19.1	cure
                                         or cause to be cured all defects in the content, execution, delivery, validity or enforceability
                                         of any Loan Document to which it is a party or any other document contemplated by or
                                         created under any Loan Document;

 

		9.1.19.2	execute
                                         and deliver or cause to be executed and delivered to the Lender all other documents,
                                         agreements and instruments, and do or cause to be done all other acts as may be necessary
                                         or desirable in the reasonable opinion of the Lender to better carry out the provisions
                                         and purposes of the Loan Documents, including filing financing statements or other documents
                                         and effecting registrations under any Applicable Law with respect to the Security Interests
                                         created by the Security Documents; and

 

		9.1.19.3	obtain
                                         any consents or acknowledgements reasonably required by the Required Lenders.

 

    	 	 	 

    	 	- 64 -	 

    

 

	9.2	Financial
                                         Covenants

 

So
long as this Agreement is in force, any Outstanding Obligations remain outstanding or the Lender has any obligations under any
Loan Documents, each Obligor covenants and agrees with the Lender that, unless the Lender otherwise expressly agrees in writing,
it will, and it will cause each other Obligor to, comply with the financial covenants set out in this Section 9.2.

 

		9.2.1	Total
                                         Leverage Ratio. Beginning with the Fiscal Quarter ending June 30, 2019, the Borrower
                                         will not permit the Total Leverage Ratio as of the last day of the Fiscal Quarter to
                                         be greater than the following:

 

	Fiscal
    Quarter ending	Total
    Leverage Ratio
	6/30/2019	5.50:1.00
	9/30/2019	5.50:1.00
	12/31/2019	5.50:1.00
	Thereafter	5.50:1.00

 

		9.2.2	Interest
                                         Coverage Ratio. Beginning with the Fiscal Quarter ending June 30, 2019, the Borrower
                                         will not permit the Interest Coverage Ratio as of the last day of the Fiscal Quarter
                                         to be less than the following:

 

	Fiscal
    Quarter ending	Interest
    Coverage Ratio
	6/30/2019	2.00:1.00
	9/30/2019	2.00:1.00
	12/31/2019	2.00:1.00
	Thereafter	2.00:1.00

 

	9.3	Negative
                                         Covenants

 

So
long as this Agreement is in force, any Outstanding Obligations remain outstanding or the Lenders have any obligations under any
Loan Documents, each Obligor covenants and agrees with the Lenders that, unless the Required Lenders otherwise expressly agree
in writing, it will, and it will cause each other Obligor to, comply with the negative covenants and agreements set out in this
Section 9.3.

 

		9.3.1	Nature
                                         of Business. No Obligor will enter into any business either directly or through any
                                         Subsidiary except for the business in which it is engaged on the date of this Agreement,
                                         provided that the foregoing will not prohibit an Obligor from entering or otherwise engaging
                                         in any business or activities that relate to the creation, sale, licensing or other distribution
                                         of content, content management systems, computer programs, mobile and OTT applications,
                                         advertising, advertising sales, data collection, data analysis and any services related
                                         to the foregoing.

 

    	 	 	 

    	 	- 65 -	 

    

 

		9.3.2	Limitation
                                         on Liens. No Obligor will create, incur, assume or allow any Lien on or relating
                                         to all or any part of its Property, whether now owned or later acquired, except for Permitted
                                         Liens.

 

		9.3.3	Fundamental
                                         Changes. No Obligor will enter into any amalgamation, merger or consolidation with
                                         any other Person, liquidate, wind-up or dissolve itself or any other Obligor, allow the
                                         liquidation or dissolution of itself or any other Obligor, convey, sell, lease, transfer,
                                         assign or otherwise dispose of all or substantially all of its Property or Business,
                                         sell, transfer, assign or otherwise dispose of any Equity Securities in any of its Subsidiaries,
                                         permit the issuance of any Equity Securities in any of its Subsidiaries to any Person,
                                         enter into any partnership with any Person that is not an Obligor, or make any material
                                         change in its present method of conducting business, except for any Permitted Fundamental
                                         Change.

 

		9.3.4	Restrictions
                                         on Dispositions. No Obligor will convey, sell, lease, transfer, assign or otherwise
                                         dispose of all or any part of its Property or Business, whether now owned or later acquired,
                                         or issue or sell any Equity Securities of any of its Subsidiaries not subject to the
                                         Security Interests created by the Security Documents, except for any Permitted Disposition.

 

		9.3.5	Debt.
                                         No Obligor will create, incur, assume or permit to exist any Debt other than Permitted
                                         Debt.

 

		9.3.6	Limitation
                                         on Optional Payments and Modifications of Debt Instruments. No Obligor will make
                                         any optional payment or prepayment on, or redemption, defeasance or purchase of, any
                                         Debt (other than any Outstanding Obligations), or amend, or consent to any amendment
                                         of, any of the terms relating to the payment or prepayment of principal, interest or
                                         fees relating to, any of that Debt.

 

		9.3.7	Distributions.
                                         No Obligor will declare, pay or make, or agree to pay or make, any Distributions
                                         except for Permitted Distributions.

 

		9.3.8	Transactions
                                         with Related Parties. No Obligor will enter into any transaction, purchase, sale,
                                         lease, or exchange of Property with, or render any service to, any Related Party, other
                                         than in connection with a Permitted Fundamental Change, a Permitted Investment, a Permitted
                                         Acquisition or any transaction, purchase, sale, lease, exchange or service that is in
                                         the ordinary course of the Obligor’s Business and upon fair and reasonable terms
                                         no less favourable to it than it would apply to a comparable Arm’s Length transaction
                                         with a Person that is not a Related Party.

 

		9.3.9	Corporate
                                         Structure. No Obligor will change, or participate in a change in, the ownership and
                                         organizational structure of the Obligors from that set out in Schedule 8.1.8, except
                                         for a Permitted Fundamental Change.

 

		9.3.10	Equity
                                         Securities. No Obligor will issue any Equity Securities other than to another Obligor
                                         or in connection with such Obligor’s Equity Incentive Plan, or create any other
                                         Subsidiary, unless it has provided not less than 30 days’ prior written notice
                                         to the Lenders.

 

		9.3.11	Business
                                         Outside Certain Jurisdictions. No Obligor will have any place of business or keep
                                         or store any tangible personal Property having a value in excess of $250,000 in the aggregate
                                         in, or change its Obligor Location to, any jurisdiction in which the Lenders do not have
                                         a perfected Security Interest, unless it has:

 

    	 	 	 

    	 	- 66 -	 

    

 

		9.3.11.1	given
                                         30 days’ prior written notice of the new jurisdiction to the Lenders; and

 

		9.3.11.2	done
                                         or caused to be done all acts and things and executed and delivered or caused to be executed
                                         and delivered all agreements, deeds, transfers, assignments and instruments as the Required
                                         Lenders may reasonably require for perfecting, protecting and registering the Security
                                         Interests in favour of the Lenders in the new jurisdiction.

 

		9.3.12	Acquisitions.
                                         No Obligor will make any Acquisition other than a Permitted Acquisition or a Permitted
                                         Investment.

 

		9.3.13	Limitation
                                         on Investments. No Obligor will make or permit to exist any Investment, except for
                                         a Permitted Investment.

 

		9.3.14	Fiscal
                                         Year. No Obligor will permit the Fiscal Year end of any Obligor to end on any day
                                         other than December 31.

 

		9.3.15	Amendments.
                                         No Obligor will allow any amendments to its Constating Documents that are adverse
                                         to the Lenders’ interests or the Security Interests under the Security Documents,
                                         or allow any amendments to, or grant any waivers relating to, material contracts or any
                                         Guarantee or security in respect of them that could reasonably be expected to be adverse
                                         to the Lenders’ interests.

 

		9.3.16	Limitation
                                         on Risk Management Transactions. No Obligor will enter into any Risk Management Transaction
                                         without the prior written consent of the Required Lenders.

 

		9.3.17	Limitation
                                         on Sale and Leaseback Transactions. No Obligor will enter into any arrangement, directly
                                         or indirectly, with any Person under which it will sell, assign or otherwise transfer
                                         any Property having an aggregate fair market value in excess of $250,000 in any Fiscal
                                         Year of the Borrower, whether now owned or later acquired, and under which it will, at
                                         or after that time, lease or rent as lessee that Property or any part of it or other
                                         Property that it intends to use for substantially the same purpose as the Property sold,
                                         assigned or otherwise transferred.

 

Article
10

EVENTS OF DEFAULT

 

	10.1	Events
                                         of Default

 

Unless
the Required Lenders expressly agree otherwise in writing with the Obligors, the occurrence of any one or more of the following
events or conditions will be an event of default under this Agreement (“Event of Default”):

 

		10.1.1	the
                                         Borrower defaults in the due and punctual payment of the principal amount, or any part
                                         of the principal amount, of any Loan under the Loan Documents when that amount becomes
                                         due and payable, whether on the Maturity Date or otherwise;

 

    	 	 	 

    	 	- 67 -	 

    

 

		10.1.2	the
                                         Borrower defaults in the due and punctual payment of any interest owing under the Loan
                                         Documents as and when they become due and payable and that default continues for a period
                                         of 5 Business Days;

 

		10.1.3	an
                                         Obligor defaults in payment when due of any of the Outstanding Obligations that require
                                         the payment of money by it to the Lenders and such default continues for a period of
                                         5 Business Days, other than amounts referred to in Sections 10.1.1 and 10.1.2;

 

		10.1.4	an
                                         Obligor fails to observe or perform any agreement, covenant, condition or obligation
                                         applicable to it under this Agreement or any other Loan Document (including, for certainty
                                         the Software Escrow Agreement and the Three Party Escrow Agreement), other than an agreement
                                         or a covenant, condition or obligation the breach or default in performance of which
                                         is specifically dealt with elsewhere in this Article 10, and the Obligor fails to remedy
                                         that Default within 30 days from the earlier of the date that:

 

		10.1.4.1	it
                                         becomes aware of the Default; and

 

		10.1.4.2	the
                                         Required Lenders deliver written notice of the Default to that Obligor, specifying the
                                         Default and requiring that it be remedied;

 

		10.1.5	except
                                         as permitted by this Agreement, there is any change in the ownership of the Equity Securities
                                         of an Obligor (excluding the publicly held shares of Borrower, or an Obligor amalgamates,
                                         merges or consolidates with any other Person, or an Obligor sells or otherwise disposes
                                         of all or substantially all of its assets out of the ordinary course of business;

 

		10.1.6	any
                                         representation or warranty made by an Obligor in any Loan Document, or in any officer’s
                                         certificate or other document delivered to the Lenders under any Loan Document, or any
                                         statement certified in any certificate provided by or on behalf of an Obligor, is found
                                         to be false or incorrect in any way which makes it materially misleading when made or
                                         deemed to have been made;

 

		10.1.7	an
                                         Obligor defaults in the observance or performance of any covenant, condition or obligation
                                         contained in any agreement between the Obligor and any Person, if that default gives
                                         rise to a right to enforce security against the Obligor;

 

		10.1.8	an
                                         Obligor fails to:

 

		10.1.8.1	make
                                         any payment when it is due and payable to any Person in relation to any Debt that in
                                         the aggregate principal amount then outstanding is in excess of $250,000; or

 

		10.1.8.2	observe
                                         or perform any other agreement or condition relating to any Debt that in the aggregate
                                         principal amount then outstanding is in excess of $250,000, or contained in any instrument
                                         or agreement evidencing, securing or relating to that Debt, or any other event occurs
                                         or condition exists that causes or permits the holder of that Debt to cause it to become
                                         due before its stated maturity date;

 

    	 	 	 

    	 	- 68 -	 

    

 

		10.1.9	an
                                         Obligor admits its inability to pay its Debts generally as they become due or otherwise
                                         acknowledges its insolvency;

 

		10.1.10	an
                                         Obligor ceases or threatens to cease to carry on its Business;

 

		10.1.11	an
                                         Obligor institutes any proceeding or takes any action or executes any agreement to authorize
                                         its participation in or the commencement of any proceeding:

 

		10.1.11.1	seeking
                                         to adjudicate it a bankrupt or insolvent; or

 

		10.1.11.2	seeking
                                         liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief
                                         or composition of it or any of its Property or Debt or making a proposal for it under
                                         any Applicable Law, including any Insolvency Law, and also including any application
                                         for reorganization, arrangement or compromise of Debt under the laws of its jurisdiction
                                         of incorporation, organization, formation or otherwise;

 

		10.1.12	any
                                         proceeding is commenced against or otherwise affects an Obligor:

 

		10.1.12.1	seeking
                                         to adjudicate it a bankrupt or insolvent;

 

		10.1.12.2	seeking
                                         liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief
                                         or composition of it or any of its Property or Debt or making a proposal for it under
                                         any Applicable Law, including any Insolvency Law, and also including any application
                                         for reorganization, arrangement or compromise of Debt under the laws of its jurisdiction
                                         of incorporation, organization, formation or otherwise; or

 

		10.1.12.3	seeking
                                         the appointment of a receiver, trustee, agent, custodian or other similar official for
                                         it or for any of its Property;

 

		10.1.13	any
                                         judgment or order for the payment of money in excess of $250,000 is rendered against
                                         an Obligor and either enforcement proceedings have been commenced by any Person upon
                                         that judgment or order, or there is any period during which a stay of enforcement of
                                         that judgment or order, by reason of a pending appeal or otherwise, will not be in effect;

 

		10.1.14	any
                                         execution, distress or other enforcement process, whether by court order or otherwise,
                                         becomes enforceable against any Property of an Obligor;

 

		10.1.15	any
                                         proceeding is commenced or action is taken with respect to an Obligor or any part of
                                         its Property in any jurisdiction outside Canada that has an effect equivalent or similar
                                         to any of the events or proceedings described in Sections 10.1.11 to 10.1.14 inclusive;

 

		10.1.16	any
                                         adverse change occurs in the financial condition or prospects of an Obligor that, in
                                         the sole opinion of the Required Lenders, is likely to impair to a material extent the
                                         ability of the Borrower or any other Obligor to pay the Outstanding Obligations payable
                                         by it or, in the sole opinion of the Required Lenders, is likely to put any of the Security
                                         Documents in jeopardy or otherwise have a Material Adverse Effect;

 

		10.1.17	after
                                         execution and delivery of it, any Loan Document ceases to be in full force and effect
                                         (unless within 5 Business Days of notice of those circumstances being delivered by the
                                         Required Lenders to the relevant Obligor that Loan Document is again in full force and
                                         effect as if it had always had full force and effect), or any Loan Document is declared
                                         by a court or tribunal of competent jurisdiction to be invalid, or the validity or enforceability
                                         of it is contested by an Obligor, or an Obligor denies in writing that it has any further
                                         liability or obligations under a Loan Document;

 

    	 	 	 

    	 	- 69 -	 

    

 

		10.1.18	any
                                         action, event or situation, other than as set out in Section 10.1.16, occurs that has
                                         a Material Adverse Effect;

 

		10.1.19	any
                                         material Insurance coverage of any Obligor lapses and that coverage is not reinstated
                                         within 48 hours of that lapse;

 

		10.1.20	the
                                         occurrence of any of the following events with respect to a Pension Plan:

 

		10.1.20.1	any
                                         steps are taken by an Obligor or any Governmental Authority to terminate a Pension Plan,
                                         in whole or in part, if as a result of that termination an Obligor may be required to
                                         make an additional contribution to that Pension Plan, or to incur an additional liability
                                         or obligation to that Pension Plan, equal to or in excess of $250,000 of the equivalent
                                         of that amount in another currency; or

 

		10.1.20.2	a
                                         contribution failure with respect to a Pension Plan sufficient to give rise to a Lien
                                         under any Applicable Law; or

 

		10.1.21	change
                                         in the ownership of any Obligor (other than the Borrower) or a change in the ownership
                                         of the common shares of the Borrower resulting in any person or group of persons acting
                                         together holding, directly or indirectly, individually or collectively, a majority of
                                         the votes attached to the outstanding voting shares of the Borrower, except for any circumstance
                                         where such person is a Lender or such person acts in concert with a Lender, and the Borrower
                                         remains a reporting issuer.

 

	10.2	Acceleration
                                         and Remedies

 

		10.2.1	Upon
                                         the occurrence and during the continuance of any Event of Default, the Required Lenders
                                         may do any one or more of the following, all of which are authorized by each Obligor:

 

		10.2.1.1	by
                                         written notice to the Borrower, declare the Facility to be terminated, at which time
                                         they will terminate immediately and the Lenders will have no further obligation to make
                                         any Loan available to the Borrower under the Facility;

 

		10.2.1.2	by
                                         written notice to the Borrower, declare all of the Borrower’s Obligations (whether
                                         matured or not matured), to be immediately due and payable without further demand, presentation,
                                         protest or other notice of any kind, all of which are expressly waived by the Borrower,
                                         and the Borrower will immediately deliver any cash collateral security required by the
                                         Required Lenders under this Agreement;

 

		10.2.1.3	by
                                         written notice to the Guarantors, declare all Guaranteed Obligations and all costs and
                                         expenses of the Lenders under this Agreement for which the Guarantors are liable, along
                                         with any other sums payable by the Guarantors to the Lenders under the Loan Documents,
                                         to be immediately due and payable without further demand or other notice of any kind,
                                         all of which are expressly waived by the Guarantors, and demand payment of all amounts
                                         owing by them under the Loan Documents to which they are a party;

 

    	 	 	 

    	 	- 70 -	 

    

 

		10.2.1.4	without
                                         notice, set off and consolidate, and apply, any or all deposits and any other Debt at
                                         any time held by or owing to any Obligor by any Lender against and on account of the
                                         Outstanding Obligations, whether or not due and payable and whether or not any Lender
                                         has made demand for them;

 

		10.2.1.5	as
                                         and by way of collateral security, deposit and retain in an account maintained by any
                                         Lender on behalf of all Lenders, bearing such interest as may be available to such Lender,
                                         amounts received by such Lender from any Obligor, or as proceeds of realization of any
                                         Security Documents or Security Interest, to the extent those amounts may be required
                                         to satisfy any Outstanding Obligations;

 

		10.2.1.6	realize
                                         upon the Security Documents and any other security that secures any Outstanding Obligations;
                                         and

 

		10.2.1.7	exercise
                                         any other action, suit, remedy or proceeding authorized or permitted by the Loan Documents
                                         or by Applicable Law, including specifically performing any covenant or agreement contained
                                         in the Loan Documents, enjoining any violation of any of the terms of the Loan Documents,
                                         exercising any power granted by the Loan Documents or by Applicable Law, or obtaining
                                         judgment for and recovering all amounts due and owing relating to the Outstanding Obligations.

 

	10.3	Application
                                         of Proceeds of Realization

 

Despite
any other provision of this Agreement, the proceeds realized from the exercise by any Lender of its powers, rights and remedies
under the Loan Documents will be distributed in the following order:

 

		10.3.1	first,
                                         in payment of all costs and expenses, including legal, accounting, receivers’ and
                                         other similar fees and disbursements, incurred by the Lenders in connection with that
                                         realization;

 

		10.3.2	second,
                                         in payment of all Liens or claims ranking in priority to the Security Interests created
                                         by the Security Documents;

 

		10.3.3	third,
                                         against payment of the Outstanding Obligations constituting Senior Debt;

 

		10.3.4	fourth,
                                         against payment of the Outstanding Obligations constituting Subordinate Debt; and

 

		10.3.5	fifth,
                                         if all Outstanding Obligations have been paid in full, any surplus proceeds will be paid
                                         in accordance with Applicable Law.

 

	10.4	Waivers

 

No
delay on the part of the Lenders in exercising any power, right or remedy under any Loan Document will operate as a waiver of
that power, right or remedy, no waiver of any Default or Event of Default will operate as a waiver of that Default or Event of
Default unless made in writing and signed by an authorized officer or officers of the Required Lenders, and any single or partial
exercise by the Required Lenders of any power, right or remedy for a Default or Event of Default will not be deemed to be a waiver
of or to alter, affect or prejudice any other power, right or remedy to which the Lenders may be lawfully entitled relating to
that Default or Event of Default. No written waiver will preclude the exercise by any Lender of any power, right or remedy under
any Loan Document other than relating to the specific action or inaction covered by that waiver and strictly in accordance with
the terms of that waiver, or extend to or apply to any other Default or Event of Default. The Lenders will not be deemed to have
waived, by reason of making available any Loan under this Agreement, any Default or Event of Default, including any Default or
Event of Default arising from any representation or warranty made or deemed to have been made in any Loan Document proving to
be false or incorrect.

 

	10.5	Non-Merger

 

Any
judgment obtained, or any action or proceeding taken, by the Lenders under any Loan Document will not operate as a merger of any
Outstanding Obligations of any Obligor to the Lender, or in any way suspend payment or affect or prejudice the powers, rights
and remedies, legal or equitable, that the Lenders may have in connection with the Outstanding Obligations. The surrender or cancellation
of, or any other dealings with, any Security Documents will not release or affect the Outstanding Obligations of the Obligors
under any of the Loan Documents.

 

	10.6	Lender
                                         May Perform Covenants

 

If
an Obligor fails to perform any covenant or agreement on its part in this Agreement, any Lender (with the concurrence of the Required
Lenders) may, but is not required to, on 10 days’ notice to that Obligor, perform that covenant or agreement if it is capable
of being performed by such Lender, and if that covenant or agreement requires the payment of money, such Lender may, but is not
required to, make that payment with its own funds. All amounts paid by any Lender under this Section 10.6 will be repaid by the
Borrower on demand for payment, and will bear interest at 12% per annum commencing on the day of payment of those amounts by such
Lender, calculated daily and payable on demand.

 

	10.7	Grant
                                         of Licence

 

To
enable the Lenders to exercise their powers, rights and remedies under this Article 10 when any Lenders or the Required Lenders
are entitled to do so, and for no other purpose, each Obligor grants to the Lenders an irrevocable licence, exercisable without
payment of royalty or other compensation to it, to use, assign or sublicense any or all of its Intellectual Property Rights, and
that licence will include reasonable access to all media in which any of the licensed items may be recorded or stored and to all
computer programs used for the compilation or printout of them.

 

    	 	 	 

    	 	- 71 -	 

    

 

Article
11

Between
the Lenders

 

		11.1	Decision-Making

 

If
and to the extent any Loan or interest therein or other right or entitlement of the Lenders hereunder is assigned by the Initial
Lender or any other Lender to any Person, and as a result, there are at any time then persisting, more than one Person which is
a Lender, this Article shall govern how such Persons in their capacity as Lenders, may act with respect to the matters set forth
in this Article.

 

		11.2	Amendments

 

		11.2.1	Any
                                         amendment to, or waiver of any provision of, or consent to any departure by any Obligor
                                         from any provision of, this Agreement or any other Loan Document, relating to the following
                                         matters shall be effective and binding on all of the Lenders only if agreed upon by all
                                         of the Lenders, acting unanimously:

 

		(i)	a
                                         change in the principal amount of, or interest payable on, or in the applicable margins
                                         and fees earned in respect of, the Loans, other than an increase the Maximum Term B Loan
                                         Amount approved by the Required Term B Lenders, so long as such increase is subject by
                                         the subordination provisions of Section 4.5;

 

		(ii)	a
                                         change in the maximum amount of the Commitments or of the principal amount of either
                                         the Term A Facility or the Term B Facility, other than an increase in Maximum Term B
                                         Loan Amount approved by the Required Term B Lenders, so long as such increase is subject
                                         by the subordination provisions of Section 4.5;

 

		(iii)	the
                                         release of all or any portion of the Collateral which is subject to the Security Documents,
                                         other than in connection with a Permitted Disposition;

 

		(iv)	subjecting
                                         any Lender to any additional obligation, except where such Lender has specifically agreed
                                         thereto in writing;

 

		(v)	a
                                         change in this Section 11.2; and

 

		(vi)	a
                                         change in the definition of “Required Lenders”, “Required Term A Lenders”
                                         or “Required Term B Lenders” or a change in the number or percentage of Lenders
                                         required for the Lenders, or any of them, to take any action.

 

Any
amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.

 

		11.2.2	No
                                         amendment to, or waiver of any provision of, or consent to any departure by any Obligor
                                         from the provisions of Section 4.5 (i.e., dealing with the subordination and postponement
                                         of the Term B Facility and the Term B Loans to the Term A Facility and the Term A Loans)
                                         or in any other provisions of this Agreement or any Loan Document relating to, or which
                                         would affect, the priority of the Term A Loans or the rights granted to holders of Senior
                                         Debt under this Agreement shall be effective without the agreement of the Required Term
                                         A Lenders.

 

		11.2.3	If
                                         either the Term A Lenders or the Term B Lenders, each as a Class, would be materially
                                         and adversely affected by any proposed amendment to, or waiver of any provision of, or
                                         consent to any departure by any Obligor from any provision of, this Agreement or to any
                                         other Loan Document or by any other proposed action, then in order to be effective, such
                                         amendment, waiver, consent to departure or other proposed action shall also require the
                                         agreement of the Required Term A Lenders (in any case where only the Term A Lenders would
                                         be materially and adversely affected) or of the Required Term B Lenders (in any case
                                         where only the Term B Lenders would be materially and adversely affected), or both (in
                                         any case where the Term A Lenders and Term B Lenders would both be materially and adversely
                                         affected, but in a manner different from one another).

 

    	 	 	 

    	 	- 72 -	 

    

 

		11.2.4	Subject
                                         to compliance by the Term B Lenders with the provisions of Section 4.5, (i) the issuance
                                         of written notice to the Borrower of the occurrence of a Default or breach of any term,
                                         covenant or condition contained in any Loan Document, including the issuance of a Subordinate
                                         Default Notice, and (ii) the issuance of a Demand for payment of the Outstanding Obligations,
                                         may be made by either the Required Term A Lenders or the Required Term B Lenders. Subject
                                         to compliance by the Term B Lenders with the provisions of Section 4.5, the provision
                                         of any waiver in respect of a breach of any covenant or the issuance of any consent which
                                         may be required under any covenant herein shall be effective if approved by each of the
                                         Required Term A Lenders and the Required Term B Lenders.

 

		11.2.5	Except
                                         for (i) matters which require the unanimous consent of the Lenders as set out in Section
                                         11.2.1 above, (ii) matters which require the consent of the Required Term A Lenders under
                                         Section 11.2.2 above, (iii) matters which require the separate Class consent of either
                                         the Required Term A Lenders or the Required Term B Lenders, or both, under Section 11.2.3
                                         above, and (iv) matters covered by Sections 11.2.4 and 11.3, (x) any amendment to this
                                         Agreement or to any other Loan Document, (y) the appointment of an administrative agent,
                                         collateral agent, and adviser or other Person to represent or advise or otherwise assist
                                         the Lenders, as a group, or (z) any other action in relation to this Agreement and the
                                         other Loan Documents, shall each be effective if agreed upon by the Required Lenders.

 

		11.2.6	For
                                         greater certainty, any amendment to, or waiver of any provision of, or consent to any
                                         departure by any Obligor from the provisions of any Loan Documents or other proposed
                                         action which is agreed upon by the required subset(s) or Class(es) of Lenders under and
                                         in accordance with this Article 11 shall be final and binding upon all Lenders. Any action
                                         to be taken or decision to be made by the Lenders or any subset(s) or Class(es) thereof
                                         pursuant to this Agreement shall be taken or made at a meeting of the Lenders or subset(s)
                                         or Class(es) thereof called by any holder of at least ten (10%) percent of the outstanding
                                         principal amount (on not less than ten (10) Business Days’ notice to the holders
                                         of debt in such subset(s) or Class(es)) or by a written instrument executed by all of
                                         the Lenders or the required subset(s) or Class(es) thereof determined under and in accordance
                                         with this Article 11.

 

		11.3	Enforcement

 

		11.3.1	Any
                                         Enforcement Action may be commenced by the Required Term A Lenders, or subject to compliance
                                         by the Term B Lenders with the provisions of Section 4.5, the Required Term B Lenders.
                                         Such authority to commence an Enforcement Action and/or to otherwise enforce the Lenders’
                                         rights and remedies hereunder and under the other Loan Documents against the Obligors
                                         or any of them shall be vested exclusively in the Required Term A Lenders and Term B
                                         Lenders, as stated aforesaid and as otherwise provided in this Agreement, and all actions
                                         and proceedings at law in connection with such enforcement shall be instituted and maintained
                                         exclusively by, in accordance with the Loan Documents for the benefit of all the Lenders;
                                         provided that the foregoing shall not prohibit (i) any Lender from exercising any setoff
                                         rights it may have against any Obligor subject to the application of any proceeds thereof
                                         in accordance with the provisions of this Agreement, or (ii) any Lender from filing proofs
                                         of claim or appearing and filing pleadings on its own behalf during the pendency of any
                                         Proceeding relative to any Obligor under any Insolvency Law; provided further that any
                                         Lender may, with the consent of the Required Lenders, enforce any rights and remedies
                                         available to it and as authorized by the Required Lenders. Each Lender, by accepting
                                         the benefits of the Loan Documents, agrees that (i) any action taken by the Required
                                         Lenders, Required Term A Lenders or Required Term B Lenders, as applicable, in accordance
                                         with the provisions of the Loan Documents, (ii) any action taken by any Person in reliance
                                         upon the instructions of Required Lenders, Required Term A Lenders or Required Term B
                                         Lenders, as applicable, in accordance with the provisions of the Loan Documents, and
                                         (iii) the exercise by such Person or the Required Lenders, Required Term A Lenders or
                                         Required Term B Lenders, as applicable, in accordance with the provisions of the Loan
                                         Documents, of the powers set forth herein or therein, together with such other powers
                                         as are reasonably incidental thereto, shall be authorized and binding upon all of the
                                         Lenders. The Required Lenders, Required Term A Lenders or Required Term B Lenders, as
                                         applicable, in accordance with the provisions of the Loan Documents, may, upon any term
                                         or condition they may specify, delegate or exercise any of their rights, powers and remedies
                                         under, and delegate or perform any of its duties or any other action with respect to,
                                         any Loan Document by or through any agent, trustee, employee, attorney-in-fact and any
                                         other Person (including any Lender).

 

    	 	 	 

    	 	- 73 -	 

    

 

		11.4	Independent
                                         Reliance

 

		11.4.1	Each
                                         Lender acknowledges that it shall, independently and without reliance upon any other
                                         Lender conduct its own independent investigation of the financial condition and affairs
                                         of each Obligor and make and continue to make its own credit decisions in connection
                                         with entering into, and taking or not taking any action under, any Loan Document or with
                                         respect to any transaction contemplated in any Loan Document, in each case based on such
                                         documents and information as it shall deem appropriate.

 

		11.5	Sharing

 

		11.5.1	If
                                         any Lender obtains any payment of any Outstanding Obligation of any Obligor (whether
                                         voluntary, involuntary or through the exercise of any right of setoff or the receipt
                                         of any Collateral or “proceeds” (as defined under the applicable UCC or PPSA)
                                         of Collateral) other than pursuant to an Enforcement Action conducted in accordance with
                                         this Agreement and such payment exceeds the amount such Lender would have been entitled
                                         to receive if all payments had been made or distributed in accordance with the provisions
                                         of the Loan Documents, then such Lender shall purchase for cash from other Lenders such
                                         participations in the Outstanding Obligations held by them as necessary for such Lender
                                         to share such excess payment with such Lenders to ensure such payment is applied as though
                                         it had been received and applied in accordance with this Agreement; provided, however,
                                         that (i) if such payment is rescinded or otherwise recovered from such Lender in whole
                                         or in part, such purchase shall be rescinded and the purchase price therefor shall be
                                         returned to such Lender without interest and (ii) such Lender shall, to the fullest extent
                                         permitted by Applicable Law, be able to exercise all its rights of payment (including
                                         the right of setoff) with respect to such participation as fully as if such Lender were
                                         the direct creditor of the applicable Obligor in the amount of such participation.

 

    	 	 	 

    	 	- 74 -	 

    

 

Article
12

General

 

		12.1	Time
                                         of Essence

 

Time
is of the essence in all respects of this Agreement.

 

		12.2	Notices

 

Except
as otherwise expressly provided for in this Agreement, any Communication must be in writing and either:

 

		12.2.1	delivered
                                         personally or by courier;

 

		12.2.2	sent
                                         by prepaid registered mail; or

 

		12.2.3	transmitted
                                         by facsimile, e-mail or functionally equivalent electronic means of transmission, charges
                                         (if any) prepaid.

 

Any
Communication must be sent to the intended recipient at its address as follows:

 

to
Raycom Media, Inc. at:

 

Pat
LaPlatney

President and CEO

201
Monroe Street

20th Floor

Montgomery,
AL 36104

(334)
206-1400

 

With
a copy to:

 

Legal
Department

201
Monroe Street

20th Floor

Montgomery,
AL 36104

(334)
206-1400

 

to
Frankly Inc., Frankly Co. or Frankly Media LLC at:

 

CEO

27-01 Queens Plaza North, Suite 502

Long Island City, NY 11101

 

or
at any other address as any Party may at any time advise the others by Communication given or made in accordance with this Section
12.2. Any Communication delivered to the Party to whom it is addressed will be deemed to have been given or made and received
on the day it is delivered at that Party’s address, provided that if that day is not a Business Day then the Communication
will be deemed to have been given or made and received on the next Business Day. Any Communication sent by prepaid registered
mail will be deemed to have been given or made and received on the fifth Business Day after which it is mailed. If a strike or
lockout of postal employees is then in effect, or generally known to be impending, every Communication must be delivered personally
or by courier or transmitted by facsimile, e-mail or functionally equivalent electronic means of transmission. Any Communication
transmitted by facsimile, e-mail or other functionally equivalent electronic means of transmission will be deemed to have been
given or made and received on the day on which it is transmitted; but if the Communication is transmitted on a day which is not
a Business Day or after 3:00 p.m. (local time of the recipient), the Communication will be deemed to have been given or made and
received on the next Business Day.

 

    	 	 	 

    	 	- 75 -	 

    

 

		12.3	Severability

 

Each
Section of this Agreement is distinct and severable. If any Section of this Agreement, in whole or in part, is or becomes illegal,
invalid, void, voidable or unenforceable in any jurisdiction by any court of competent jurisdiction, the illegality, invalidity
or unenforceability of that Section, in whole or in part, will not affect:

 

		12.3.1	the
                                         legality, validity or enforceability of the remaining Sections of this Agreement, in
                                         whole or in part; or

 

		12.3.2	the
                                         legality, validity or enforceability of that Section, in whole or in part, in any other
                                         jurisdiction.

 

		12.4	Submission
                                         to Jurisdiction

 

Each
of the Parties irrevocably and unconditionally submits and attorns to the non-exclusive jurisdiction of the courts sitting in
Toronto, Ontario to determine all issues, whether at law or in equity, arising from this Agreement. To the extent permitted by
Applicable Law, each of the Parties:

 

		12.4.1	irrevocably
                                         waives any objection, including any claim of inconvenient forum, that it may now or in
                                         the future have to the venue of any legal proceeding arising out of or relating to this
                                         Agreement in the courts sitting in Toronto, Ontario, or that the subject matter of this
                                         Agreement may not be enforced in those courts;

 

		12.4.2	irrevocably
                                         agrees not to seek, and waives any right to, judicial review by any court which may be
                                         called upon to enforce the judgment of the courts referred to in this Section 12.4, of
                                         the substantive merits of any suit, action or proceeding; and

 

		12.4.3	to
                                         the extent a Party has or may acquire any immunity from the jurisdiction of any court
                                         or from any legal process, whether through service or notice, attachment before judgment,
                                         attachment in aid of execution, execution or otherwise, with respect to itself or its
                                         Property, that Party irrevocably waives that immunity in respect of its obligations under
                                         this Agreement.

 

		12.5	Amendment
                                         and Waiver

 

Except
as otherwise provided in this Agreement, no amendment, discharge, modification, restatement, supplement, termination or waiver
of this Agreement or any Section of this Agreement is binding unless it is in writing and executed by the Party to be bound. No
waiver of, failure to exercise, or delay in exercising, any Section of this Agreement constitutes a waiver of any other Section,
whether or not similar, nor does any waiver constitute a continuing waiver unless otherwise expressly provided.

 

    	 	 	 

    	 	- 76 -	 

    

 

		12.6	Further
                                         Assurances

 

Except
as otherwise provided in any Loan Document, each Obligor will, upon request of the Required Lenders and at the Obligor’s
own cost and expense, execute and deliver any further agreements and documents and provide any further assurances, undertakings
and information as may be reasonably required by the Required Lenders to give effect to the Loan Documents, and without limiting
the generality of this Section 12.6 will do or cause to be done all acts and things, execute and deliver or cause to be executed
and delivered all agreements and documents and provide any assurances, undertakings and information as may be required at any
time by all Governmental Authorities having jurisdiction over the affairs of an Obligor or as may be required at any time under
Applicable Law.

 

		12.7	Assignment

 

		12.7.1	Any
                                         Lender may, without notice to or consent of the Obligors, at any time assign, transfer,
                                         syndicate, grant a participation interest in, or grant a Security Interest in, all or
                                         any part of its rights, remedies and obligations under this Agreement, the other Loan
                                         Documents and the Security Interests created by the Security Documents. Each assignment
                                         shall be made substantially in the form of the Assignment and Assumption Agreement. Each
                                         Obligor expressly agrees that the assignee, transferee, syndicated or participating lender
                                         or secured party, as the case may be, will have all of the assigning Lender’s rights,
                                         remedies and obligations under this Agreement and the other Loan Documents, and the Obligors
                                         will not assert any defence, cross-claim, counterclaim, right of set off or any other
                                         claim that any Obligor now has or in the future acquires against the assigning Lender
                                         in any action commenced by any assignee, transferee, syndicated or participating lender
                                         or secured party, as applicable, and will pay the Outstanding Obligations payable by
                                         it to the assignee, transferee, syndicated or participating lender or secured party,
                                         as the case may be, as they become due.

 

		12.7.2	None
                                         of this Agreement, the other Loan Documents or any rights, remedies or obligations under
                                         them may be assigned by any Obligor without the prior written consent of the Required
                                         Lenders.

 

		12.8	Enurement

 

This
Agreement enures to the benefit of and is binding upon the Parties and their respective successors and permitted assigns.

 

		12.9	Counterparts
                                         and Electronic Delivery

 

This
Agreement may be executed and delivered by the Parties in one or more counterparts, each of which will be an original, and each
of which may be delivered by facsimile, e-mail or other functionally equivalent electronic means of transmission, and those counterparts
will together constitute one and the same instrument.

 

		12.10	Conduct
                                         of Parties

 

Whenever
a Section of this Agreement or a Schedule or an Exhibit requires a consent or approval by a Party and notification of the consent
or approval is not delivered within the applicable time limit, then, unless otherwise specified, the Party whose consent or approval
is required will be conclusively deemed to have withheld its consent or approval.

 

    	 	 	 

    	 	- 77 -	 

    

 

		12.11	Remedies
                                         Cumulative

 

The
rights, powers and remedies under the Loan Documents are cumulative and are in addition to and not in substitution for any other
rights, powers and remedies available at law or in equity or otherwise. No single or partial exercise by a Party of any right,
power or remedy precludes or otherwise affects the exercise of any other right, power or remedy to which that Party may be entitled.

 

		12.12	Survival

 

All
indemnities set out in this Agreement will survive the repayment of all Loans and other Outstanding Obligations and the termination
of this Agreement.

 

		12.13	Telephone
                                         Instructions

 

Any
telephone instructions given by the Borrower in relation to this Agreement will be at the risk of the Borrower, and no Lender
will be liable for any errors or omissions in those telephone instructions or the interpretation or execution of them by it, provided
that the Lender acted without gross negligence in the circumstances. The Lenders will notify the Borrower of any conflict or inconsistency
between any telephone instructions and any written confirmation of them received from the Borrower as soon as practicable after
the conflict or inconsistency becomes apparent to the Lenders.

 

		12.14	Judgment
                                         Currency

 

		12.14.1	If,
                                         for the purpose of obtaining or enforcing judgment against a Party in any court in any
                                         jurisdiction, it becomes necessary to convert into any other currency (the other currency
                                         is referred to as the “Judgment Currency”) an amount due under this
                                         Agreement in any currency other than the Judgment Currency (the “Obligation
                                         Currency”), the conversion will be made at the exchange rate prevailing on
                                         the Business Day immediately preceding:

 

		12.14.1.1	the
                                         date of actual payment of the amount due, in the case of any proceeding in the courts
                                         of any jurisdiction that will give effect to the conversion being made on that date;
                                         or

 

		12.14.1.2	the
                                         date on which the judgment is given, in the case of any proceeding in the courts of any
                                         other jurisdiction,

 

(the
applicable date on which the conversion is made is referred to as the “Judgment Conversion Date”).

 

		12.14.2	If,
                                         in the case of any proceeding in the court of any jurisdiction referred to in Section
                                         12.14.1, there is a change in the exchange rate prevailing between the Judgment Conversion
                                         Date and the date of actual receipt of the amount due in immediately available funds,
                                         the applicable Party will pay the additional or lesser amounts as may be necessary to
                                         ensure that the amount actually received in the Judgment Currency, when converted at
                                         the Exchange Rate prevailing on the date of payment, produces the amount of the Obligation
                                         Currency which could have been purchased with the amount of the Judgment Currency stipulated
                                         in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion
                                         Date.

 

		12.14.3	Any
                                         amount due from the applicable Party under this Section 12.14 is to be due as a separate
                                         Debt, independent of its obligations under this Agreement, and will not be affected by
                                         judgment being obtained for any other amounts due under or relating to this Agreement.

 

		12.15	No
                                         Contra Proferentem

 

This
Agreement has been reviewed by each Party’s professional advisors and has been revised during the course of negotiations
between the Parties. Each Party acknowledges that this Agreement is the product of their joint efforts, that it expresses their
agreement and, that if there is any ambiguity in any of its provisions, that provision should not be interpreted in favour of
either one of them.

 

		12.16	Consent
                                         to Disclosure of Information

 

Each
Obligor consents to the Lenders obtaining from any credit bureau, credit reporting agency, creditor of the Obligor or other Person
any information, including personal information, relating directly or indirectly to its credit, finances or Business that may
be required by the Lenders at any time for the purposes of this Agreement or any other Loan Documents, including to establish,
maintain and manage the relationship of each Obligor with the Lenders, and authorizes and directs any credit bureau, credit reporting
agency, creditor or other Person to provide that information to the Lenders.

 

-
Remainder of page intentionally left blank -

 

    	 	 	 

    	 	- 78 -	 

    

 

Each
of the Parties has executed and delivered this Agreement, as of the date noted at the beginning of the Agreement.

 

	 	RAYCOM
    MEDIA, INC.
	 	 	 
	 	Per:	/s/
    Joe Fiveash
	 	Name:	Joe
    Fiveash
	 	Title:	EVP
    Digital + Strategy
	 	 	 
	 	FRANKLY
    INC.
	 	 	 
	 	Per:	/s/
    Lou Schwartz
	 	Name:	Lou
    Schwartz
	 	Title:	CEO
	 	 	 
	 	FRANKLY
    CO.
	 	 	 
	 	Per:	/s/
    Lou Schwartz
	 	Name:	Lou
    Schwartz
	 	Title:	CEO
	 	 	 
	 	FRANKLY
    MEDIA LLC, by its sole member, 
	 	 	 
	 	Frankly
    Inc.
	 	 	 
	 	Per:	/s/
    Lou Schwartz
	 	Name:	Lou
    Schwartz
	 	Title	CEO 

 

    	 	 	 

    	 	- 79 -	 

    

 

Schedule
1.1.108.2

Permitted Debt

 

1.1.35.1

 

		N/A	

 

1.1.35.2

 

N/A

 

1.1.35.3

 

N/A

 

1.1.35.4

 

N/A

 

1.1.35.5

 

		N/A	

 

1.1.35.6

 

N/A

 

1.1.35.7

 

N/A

 

1.1.35.8

 

N/A

 

1.1.35.9

 

N/A

 

1.1.35.10

 

N/A

 

    	 	 	 

    	 	- 80 -	 

    

 

Schedule
1.1.112.4

Investments on Closing Date

 

		1.	Frankly
                                         Inc. – Sole member of Frankly Media LLC. See below for capitalization table of
                                         Frankly Media LLC as of the Closing Date.

 

	Member
Name	 	Common	 	 	Preferred	 	 	Preferred	 	 	Percentage	 
	and Address	 	Units	 	 	Class
    A Units	 	 	Class
    B Units	 	 	Units	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
    Inc.	 	 	99,352,941	 	 	 	11,188,316	 	 	 	12,984,743	 	 	 	100	%
	c/o
    Frankly Media LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27-01
    Queens Plaza North, Suite 502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Long
    Island City, NY 11101	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

		2.	Frankly
                                         Inc. – 100% shareholder of Frankly Co. See below for capitalization table of Frankly
                                         Co. as of the Closing Date.

 

	Name
    of  
 Shaeholder	 	 	Cert.
                                         #	 	 	Date
    Issued	 	 	Shares
                                          
 Issued	 	 	 	Shares

                                          Cancelled	 	 	 	Shares

                                          Outstanding	 	 	 	Percentage
                                         
 of
                                         Common Owned	 	 	 	Amount
                                         Paid for 
 or
                                         Value of 
 Shares	 	 	Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
    Inc.	 	 	 C-1
                                         	 	 	24/12/2014	 	 	100	 	 	 	0	 	 	 	100	 	 	 	100.00	%	 	 	0.01	 	 	Original
    Issuance

 

    	 	 	 

    	 	- 81 -	 

    

 

Schedule
1.1.113.15

CURRENT LIENS

 

Note:
This listing does not include registrations made in favour of Silicon Valley Bank which are to be discharged and does not
include registrations made in favour of the Initial Lender against any Obligor (all of which have been assigned by the Initial
Lender to The Teachers’ Retirement System of Alabama, as Agent).

 

	

        DEBTOR
	 	UCC-11

        

        (THROUGH)
	 	FILING

        

        JURIS’N
	 	FILING
                                         NO.

        AND
        DATE
	 	

        SECURED
        PARTY
	 	

        COLLATERAL
	 	COMMENTS/

        

        ACTION

	GANNAWAY
                                         WEB HOLDINGS, LLC

         

         
	 	03/04/2018	 	Delaware
    Secretary of State	 	20074076724
    filed     10/26/07	 	Dell
                                         Financial Services, LP

        12234
        N. IH-35 Bldg B

        Austin,
        TX 78753

         

        Added
        1/11/13:

        Dell
        Financial Services, LLC

        Mail
        Stop-PS2DF-23 One Dell Way

        Round
        Rock, TX 78682

         

         
	 	All
                                         computer equipment and peripherals (collectively “Equipment”) wherever located,
                                         financed under and described in the Master Lease Agreement (“MLA”) entered
                                         into between Lessee and Lessor and all o Lessee’s rights, title and interest in
                                         and to use any software and services (collectively “Software”) financed under
                                         and described in the MLA, along with any modifications or supplements to the MLA which
                                         are incorporated or evidenced in writing and all substitutions, additions, assessions
                                         and replacements to the Equipment or Software now or hereafter installed in, affixed
                                         to, or used in conjunction with the Equipment or Software and the proceeds thereof together
                                         with all payments, insurance proceeds, credits or refunds obtained by Lessee from a manufacturer,
                                         licensor or service provider, or other proceeds and payments due and to become due and
                                         arising from or relating to such Equipment, Software or the MLA.

         

        
	 	Continuation
                                         filed 9/14/12

         

        Dell
        Financial Services, LP removed and Dell Financial Services L.L.C. added 1/11/13

         

        Continuation
        filed 9/26/17

         

         

	GANNAWAY
    WEB HOLDINGS, LLC & WORLDNOW	 	03/04/2018	 	Delaware
    Secretary of State	 	20144763884

        Filed
        on 11/25/14
	 	Bank
                                         of the West

        475
        Sansome Street

        19th
        Floor

        San
        Francisco, CA 94111
	 	Isilon

        3
        X200-SATA-S23

        6
        851-0154

        8
        800-0012

        3
        851-0099

        2
        851-0167

        1
        201-0300

        1
        PS-BAS-IBMSP

        1
        PS-BAS-INIS2U

        1
        CE-VPISILONAM

        1
        M-PREHWI-001

        1
        M-PRESWI-001

        3
        611-0005

        3
        612-0019

        5
        800-0012

        3
        613-0002

        3
        800-0012

        1
        TRK-ENTERP DESC

        3
        201-0300

        1
        PS-BAS-MIBISI

         

        XtremIO

        1
        X02-D25-800F

        2
        X02-UPS-220FP

         

        1
        CE-SUBCUS01

        1
        PS-BAS-XTINBS

        1
        PS-BAS-XTIMBS

        1
        PREHWX-001

        Including
        but not limited to all replacements, parts, repairs and attachments incorporated therein or affixed thereto, now owned
        or hereafter acquired and all proceeds thereof.

        
	 	Amended
                                         to add Collateral

         

        Expires
        on 11/25/2019

 

    	 	 	 

    	 	- 82 -	 

    

 

SCHEDULE
8.1.6

LITIGATION

 

On
March 15, 2018, Gannaway Entertainment, Inc. (“GEI”), Albert C. Gannaway III, and Samantha Gannaway commenced an action
in California Superior Court, San Francisco County, against Frankly Inc. Steve Chung, SKP America, LLC and Lou Schwartz alleging
fraud and breach of fiduciary duties, arising out of Frankly’s acquisition of Gannaway Web Holdings, LLC (“Worldnow”)
from GEI and other parties in 2015.

 

    	 	 	 

    	 	- 83 -	 

    

 

SCHEDULE
8.1.8

ORGANIZATIONAL STRUCTURE

 

8.1.8.1

 

 

8.1.8.2
– Frankly Inc.

 

(i)           Legal
Name: Frankly Inc.

 

		(ii)	Form
                                         of Legal Entity: British Columbia corporation since July 2016 (prior to July 2016,
                                         Frankly Inc. was an Ontario corporation)

 

(iii)        Equity
Securities: Refer to capitalization table as of the Closing Date below.

 

 

		(iv)	Equity
                                         Securities owned by it: Owns 100% of Frankly Media LLC and Frankly Co. outstanding
                                         securities. See information below for capitalization tables of both Frankly Media LLC
                                         and Frankly Co.

 

		(v)	Jurisdictions
                                         of its organization: British Columbia corporation since July 2016 (prior to July
                                         2016, Frankly Inc. was an Ontario corporation)

 

Head
office: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

Location
of its corporate records or minute books and of its share or unit registers:

 

27-01
Queens Plaza North, Suite 502 Long Island City, NY

 

2900
- 550 Burrard Street, Vancouver BC V6C 0A3

 

(vi)           Obligor
Location: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

		(vii)	Jurisdictions
                                         in which it carries on business or has assets (including receivables) having an aggregate
                                         value in excess of $250,000:

 

27-01
Queens Plaza North, Suite 502, Long Island City, NY 11101

 

2900
- 550 Burrard Street, Vancouver BC V6C 0A3

 

    	 	 	 

    	 	- 84 -	 

    

 

8.1.8.2
– Frankly Media LLC

 

(i)             Legal
Name: Frankly Media LLC

 

(ii)           Form
of Legal Entity: Delaware limited liability company

 

		(iii)	Equity
                                         Securities: Refer to capitalization table as of the Closing Date below. All securities
                                         are 100% owned by Frankly Inc.

 

	 	 	Common	 	 	Preferred	 	 	Preferred	 	 	Percentage	 
	Member
    Name and Address	 	Units	 	 	Class
    A Units	 	 	Class
    B Units	 	 	Units	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
    Inc.	 	 	99,352,941	 	 	 	11,188,316	 	 	 	12,984,743	 	 	 	100	%
	c/o
    Frankly Media LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27-01
    Queens Plaza North, Suite 502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Long
    Island City, NY 11101	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 	 	 

    	 	- 85 -	 

    

 

(iv)       Equity
Securities owned by it: N/A

 

(v)       Jurisdictions
of its organization: Delaware limited liability company

 

Head
office: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

Location
of its corporate records or minute books and of its share or unit registers:

 

27-01
Queens Plaza North, Suite 502, Long Island City, NY 11101

 

(vi)       Obligor
Location: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

		(vii)	Jurisdictions
                                         in which it carries on business or has assets (including receivables) having an aggregate
                                         value in excess of $250,000:

 

27-01
Queens Plaza North, Suite 502, Long Island City, NY 11101 (main office)

 

CenturyLink
(Savvis) - 300 Boulevard East, Weehawken, NJ 07086 (server farm)

 

    	 	 	 

    	 	- 86 -	 

    

 

8.1.8.2
– Frankly Co.

 

(i)       Legal
Name: Frankly Co.

 

(ii)       Form
of Legal Entity: Delaware corporation

 

		(iii)	Equity
                                         Securities: Refer to capitalization table as of the Closing Date below. All securities
                                         are 100% owned by Frankly Inc.

 

 

(iv)       Equity
Securities owned by it: N/A

 

(v)       Jurisdictions
of its organization: Delaware corporation

 

Head
office: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

Location
of its corporate records or minute books and of its share or unit registers:

 

27-01
Queens Plaza North, Suite 502, Long Island City, NY 11101

 

(vi)       Obligor
Location: 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101

 

		(vii)	Jurisdictions
                                         in which it carries on business or has assets (including receivables) having an aggregate
                                         value in excess of $250,000:

 

27-01
Queens Plaza North, Suite 502, Long Island City, NY 11101

 

 

    	 	 	 

    	 	- 87 -	 

    

 

SCHEDULE
8.1.9

Equity Securities

 

8.1.9.1

 

Frankly
Inc. – Sole member of Frankly Media LLC. See below for capitalization table of Frankly Media LLC as of the Closing Date.

 

		 	Common	 	 	Preferred	 	 	Preferred	 	 	Percentage	 
	Member
    Name and Address	 	Units	 	 	Class
    A Units	 	 	Class
    B Units	 	 	Units	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
    Inc.	 	 	99,352,941	 	 	 	11,188,316	 	 	 	12,984,743	 	 	 	100	%
	c/o
    Frankly Media LLC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27-01
    Queens Plaza North, Suite 502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Long
    Island City, NY 11101	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Frankly
Inc. – 100% shareholder of Frankly Co. See below for capitalization table of Frankly Co. as of the Closing Date.

 

8.1.9.2

 

N/A

 

8.1.9.3

 

N/A

  

    	 	 	 

    	 	- 88 -	 

    

 

SCHEDULE
8.1.10.2

TAXES

 

N/A

 

    	 	 	 

    	 	- 89 -	 

    

 

SCHEDULE
8.1.11.1

OWNED AND LEASED REAL PROPERTY

 

Leased
Property:

 

Frankly
Co.

 

1.       333
Bryant Street, Suite 240, San Francisco, CA 94107

 

2.       333
Bryant Street, Suite 310, San Francisco, CA 94107

 

Frankly
Media LLC

 

		1.	27-01
                                         Queens Plaza North, Suite 502, Long Island City, NY 11101

 

		2.	2110
                                         Powers Ferry Road, Suite 470, Atlanta, GA 30339

 

    	 	 	 

    	 	- 90 -	 

    

 

Schedule
8.1.11.2

Operating Leases and Capital Leases

 

Frankly
Media LLC

 

		1.	Frankly
                                         Media LLC – Capital lease agreement between Frankly Media LLC (Lessee) and Dell
                                         Financial Services LLC (Lessor). As of the Closing Date, $23,464.52 is due under this
                                         lease agreement.

 

Location
of personal property under lease agreement – 27-01 Queens Plaza North, Suite 502, Long Island City, NY 11101.

 

		2.	Frankly
                                         Media LLC – Capital lease agreement between Frankly Media LLC (Lessee) and EMC
                                         Corporation (Lessor). As of the Closing Date, $248,920.80 is due under this lease agreement.

 

Location
of personal property under lease agreement – CenturyLink (Savvis) - 300 Boulevard East, Weehawken, NJ 07086 (server farm).

 

    	 	 	 

    	 	- 91 -	 

    

 

SCHEDULE
8.1.15

ENVIRONMENTAL DISCLOSURE

 

N/A

 

    	 	 	 

    	 	- 92 -	 

    

 

SCHEDULE
8.1.17

INTELLECTUAL PROPERTY RIGHTS

 

Frankly
Media LLC

 

Patents:

 

REAL-TIME
VIDEO EDITING – U.S. Patent Reg. No. 8,515,241 B2, issued October 20, 2013

 

Copyrights:

 

Producer
4.5, U.S. Copyright Reg. No. TX0005914743

 

 

    	 	 	 

    	 	- 93 -	 

    

 

Schedule
8.1.18

Software

 

Software
used by Frankly for which Frankly does not possess the object code and user manuals or source code and all documentation required
for effective use of such software

 

		●	Pursuant
                                         to licenses with MPEG LA, LLC dated May 31, 2011, the Company has licensed MPEG-LA’s
                                         AVC Patent Portfolio, MPEG-2 Patent Portfolio and MPEG-4 Visual Patent Portfolio.

 

Technology
Services Agreements

 

		●	Akamai

		●	Atlassian

		●	Amazon
                                         Web Services

		●	Amazon
                                         Web Services Elemental

		●	Backupify

		●	Basecamp

		●	Bitly

		●	Blue
                                         Channel Digital

		●	BrowserStack

		●	CenturyLink

 

		●	Cxytera

		●	Citrix

		●	Desk

		●	Docker

		●	Dropbox

 

		●	Fastly

		●	Five9

		●	GitHub

 

		●	GoDaddy

		●	Google
                                         Analytics

		●	Google
                                         DFP

		●	Heroku

		●	Hockey
                                         App

		●	iFramely

		●	Internap

		●	Iron
                                         Mountain

		●	IronIO

		●	Loggly

 

Mandrill

 

		●	Meldium

		●	Microsoft

		●	MongoDB

		●	MPEGLA

		●	Nablet

		●	Newrelic

		●	Nunit

		●	Office
                                         365

		●	OnePassword

		●	Openvpn

		●	OpsGenie

		●	Optimizely

		●	PagerDuty

		●	PLI
                                         PractiTest

		●	Redgate

		●	Roadmunk

		●	Sailthru

		●	Salesforce

		●	Segment

		●	Sketch

		●	Slack
                                         Technologies

		●	Statuscast

		●	Symantec

		●	TeamViewer

		●	Travis-CI.com

		●	Trello

		●	Urban
                                         Airship

		●	WSI

		●	Zeplin

		●	Zoom

 

    	 	 	 

    	 	- 94 -	 

    

 

Software
Development Tools

 

	Name:	 	Version:
	Android
    Studio	 	 
	Adobe
    Creative cloud	 	v
    2015  
	ASP.net	 	 
	ASP.net
    MVC	 	 
	Auto
    Mapper	 	3.3.1
     
	Appium	 	 
	Apple
    Developer Program	 	 
	Apple
    Xcode	 	 
	Bower	 	 
	Castle
    Windsor	 	3.3.3
     
	Charles	 	 
	Confluence	 	1.3.2
     
	D3JS	 	 
	Executable-hooks	 	1.3.2
     
	Fiddler	 	 
	Fluent
    Asssertions	 	v
    3.0  
	GIT
    along with Bitbucket as the repository	 	Latest
    version  
	GITHub	 	v
    2.2  
	Gradle	 	 
	 	 	Latest
    version  
	 	 	0.7.0
     
	HTPfox	 	 
	i18n	 	0.7.0
     
	io-console	 	0.4.3
     
	JIRA	 	Latest
    version  
	Jmeter	 	 
	Json	 	1.8.1
     
	Kubernetes	 	 
	Log4net	 	 
	Microsoft
    Visio	 	2007
     
	.NET
    Framework	 	4.5.2
	mini_portile	 	0.6.2
     
	minitest	 	5.6.0
     
	Mock	 	 
	Module
    Loader	 	 
	MongoDB	 	 
	Navicat
    Premium	 	 
	NewtonSoft	 	 
	NodeJS	 	1.6.0
     
	NUGET	 	0.6.3
     
	Nunit	 	10.4.2
     
	OpenRasta	 	 
	Parallels	 	 
	PhantomJS	 	4.2.0
     
	PSExec	 	1.4.4
     
	psych	 	2.0.8
     
	React	 	 
	Revolution	 	 
	Selenium	 	v
    2.0  
	Sitescope	 	 
	Snagit	 	 
	Solarwinds
    Orion	 	 
	SolrNet	 	 
	StructureMap	 	 
	TFS
    (Microsoft Team Foundation Server)	 	 
	tzinfo	 	1.2.2
     
	UXpin	 	 
	VAST
    validator/inspector	 	 
	VirtualBox	 	 
	Visual
    Studio	 	 
	Websockets	 	 
	XAMPP	 	 
	Xcode	 	 
	XML
    Spy	 	 

 

    	 	 	 

    	 	- 95 -	 

    

 

Third
Party Software Incorporated Into Company Products

 

	Name:	 	Version:
	Akamai
    AMP Player	 	2.34
	Akamai
    Netstorage Software	 	V3
	Automattic
    Calypso	 	0.17.0
	CKEditor	 	4.5.5
	Google
    Ads SDK	 	Latest
    versions
	Google
    Analytics SDK	 	Latest
    versions
	Google
    IDFA SDK	 	Latest
    versions
	Memcached	 	1.4.4
	MainConcept	 	10.3
	Microsoft
    SQL 2008 R2	 	2008
    R2 Standard
	Microsoft
    SQL 2012 R2	 	2012
    R2 Enterprise
	Microsoft
    Windows Server 2003 R2	 	2003
    R2 Enterprise and Standard
	Microsoft
    Windows Server 2008 R2	 	2008
    R2 Enterprise and Standard
	Apache
    Solr	 	5.2.1
	Apache
    Tomcat	 	7.0
	OpenRasta	 	2.0
	Optimizely
    SDK	 	Latest
    versions
	RabbitMQ	 	3.5.3
	Redis	 	Latest
    version
	Telerik	 	Latest
    version
	Linux	 	Debian8.1
	Datadog	 	3.0
	Parse	 	2.2.15
	Nfluentspell	 	1.3.1
	NHunspell	 	Latest
    version
	Urban
    Airship SDK	 	Latest
    versions
	Verve
    Ads SDK	 	Latest
    versions
	WSI
    Max Mobile SDK	 	Latest
    versions

 

    	 	 	 

    	 	- 96 -	 

    

 

Additional
Third Party Software Incorporated into Company Products:

 

	Video
    Media Vision Appliance	 
	AJA
    Capture Source filter	 
	GDCL
    Mux	 
	Graphedit	 
	Lame
    Encoder	 
	Mainconcept
    AAC Encoder/decoder	 
	Mainconcept
    Frame Rate Converter	 
	Mainconcept
    H264 encoder/decoder	 
	Mainconcept
    Imagescaler	 
	Mainconcept
    MP4 mux/demux	 
	Mainconcept
    MPEG-2 encoder	 
	Mainconcept
    MPEG-2 Mux	 
	Microsoft
    Silverlight	 
	Microsoft
    WMV9 splitter/mux (plus codecs)	 
	MP4Box
    (part of GPAC)	 
	Nablet
    Transcoder	 
	Open
    JPG	 
	Open
    PNG	 
	PSCP	 
	SeaMax
    SDK	 
	SQLLite	 
	TinyXML	 
	Zlib	 

 

    	 	 	 

    	 	- 97 -	 

    

 

	Native
    Mobile and OTT Apps	 
	Android
    Architecture Components	 
	DZNWebViewController	 
	ExoPlayer
    (port for Amazon devices)	 
	Glide	 
	JASidePanels	 
	Krux
    SDK	 
	NSAttributedString-DDHTML	 
	Mobdub	 
	OneSignal-Android-SDK	 
	OneSignal-iOS-SDK	 
	Outbrain
    SDK	 
	Picasso
    library	 
	PINRemoteImage+PINCache	 
	RaptureXML	 
	Reachability	 
	Retrofit	 
	Reveal
    SDK	 
	Texture
    (AsyncDisplayKit)	 
	WDT
    SDK	 
	WSI
    SDK	 
	 	 
	Web
    JavaScript Libraries	 
	Akamai
    Adaptive Media Player	 
	alt
    ^0.18	 
	alt-devtools	 
	babeljs
    ^6.8	 
	connect-alt	 
	iso
    ^5.0.0	 
	isomorphic-flux-boilerplate	 
	koa
    ^2.0.0-alpha.3	 
	postcss
    ^0.9	 
	precss	 
	purifyCSS	 
	react
    ^15	 
	react-intl
    ^2.1.2	 
	react-router
    ^2.0.0	 
	Redux	 
	VideoJS	 
	webpack	 
	webpack-dev-middleware	 
	webpack-hot-middleware	 

 

    	 	 	 

    	 	- 98 -	 

    

 

 

    	 	 	 

    	 	- 99 -	 

    

 

 

    	 	 	 

    	 	- 100 -	 

    

 

 

 

    	 	 	 

    	 	- 101 -	 

    

 

 

    	 	 	 

    	 	- 102 -	 

    

 

 

    	 	 	 

    	 	- 103 -	 

    

 

 

    	 	 	 

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Exhibit
7.1.1.5

THREE-PARTY ESCROW SERVICE AGREEMENT

 

 

    	 	 	 

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Exhibit
9.1.1.4

COMPLIANCE CERTIFICATE

 

TO:                 Raycom
Media Inc., as Lender

 

FROM:           Frankly
Inc.

 

		RE:	Amended
                                         and Restated Credit Agreement dated as of May 7, 2018 between Raycom Media Inc., as Lender,
                                         Frankly Inc., as Borrower, and Frankly Co and Frankly Media LLC, as Guarantors (as confirmed,
                                         amended, supplemented or restated at any time, the “Credit Agreement”)

 

Capitalized
terms not otherwise defined in this Compliance Certificate have the meanings given to them in the Credit Agreement.

 

I,
___________________, the _____________________ of the Borrower, certify on behalf of the Borrower and without personal liability
as follows:

 

		1.	This
                                         Compliance Certificate is furnished under Section 9.1.1.4 of the Credit Agreement.

 

		2.	I
                                         have read and I am familiar with the Credit Agreement, including, in particular, the
                                         definitions of various terms used in the Credit Agreement. A review of the Financial
                                         Statements accompanying this Compliance Certificate and the activities of the Obligors
                                         during the period covered by this Compliance Certificate has been made under my supervision
                                         to determine whether the Obligors have fulfilled all of their obligations under the Credit
                                         Agreement and the other Loan Documents.

 

		3.	All
                                         of the representations and warranties of the Obligors in Article 8 of the Credit Agreement,
                                         as of the date of this Compliance Certificate and except as expressed as of a specified
                                         date, are true and correct in all material respects, except _____________________________.

 

		4.	As
                                         of the date of this Compliance Certificate, no Default or Event of Default has occurred
                                         or is continuing, except ____________________________.

 

		5.	Attached
                                         hereto is a schedule that sets forth computations in reasonable detail demonstrating
                                         compliance with the financial covenants set forth in Section 9.2 on and as of the date
                                         of this Compliance Certificate.

 

DATED
__________________, 20____.

 

	 	FRANKLY
    INC.
	 	 	 
	 	Per:	         
	 	Name:	 
	 	Title:	 

 

    	 	 	 

    	 	- 122 -	 

    

 

EXHIBIT
A

 

Form
of Assignment and Assumption Agreement

 

This
ASSIGNMENT AND ASSUMPTION (the “Assignment and Assumption”) is dated as of the Effective Date set forth below
and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert
name of Assignee] (the “Assignee”), Frankly Inc., as Borrower, Frankly Co. and Frankly Media LLC, as
Guarantors, Raycom Media Inc., as Initial Lender, and the other Persons party to the below-mentioned Credit Agreement, as Lenders
from time to time. Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement
identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by
the Assignee.

 

The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and
made a part of this Assignment and Assumption Agreement as if set forth herein in full.

 

For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably
purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,
as of the Effective Date inserted by the Assignor as contemplated below: (i) all of the Assignor’s rights and obligations
in its capacity as a Lender under the Credit Agreement, the other Loan Documents and any other documents or instruments delivered
pursuant thereto, but only to the extent related to the amount and percentage interest and the Facility identified below, and
(ii) to the extent permitted to be assigned under Applicable Law and only to the extent related to the amount and percentage interest
and the Facility identified below, all claims, suits, causes of action and any other right of the Assignor (in its capacity as
a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, the other Loan
Documents and any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and,
except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

1.
Assignor: _________________________________________________________

 

2.
Assignee: _________________________________________________________

 

3.
Assignee Address for purposes under Section 12.2 (Notices) of the Credit Agreement: _______________________________________________

 

_______________________________________________

 

_______________________________________________

 

4.
Borrower(s): FRANKLY INC.

 

5.
Administrative Agent: None appointed under the Credit Agreement

 

    	 	 	 

    	 	- 123 -	 

    

 

6.
Credit Agreement: Amended and Restated Credit Agreement dated as of as of May 7, 2018 between Raycom Media Inc., as Lender,
Frankly Inc., as Borrower, and Frankly Co and Frankly Media LLC, as Guarantors (as confirmed, amended, supplemented or restated
at any time, the “Credit Agreement”)

 

7.
Assigned Interest:

 

Describe
the Facility Assigned (Term A Facility or Term B Facility): _________________________________________________________________________

 

Describe
the Aggregate Amount of Commitment/Loans for all Lenders under Subject Facility: _______________________________________________________________________

 

Describe
the Amount of Commitment/Loans Assigned: _______________________________________________________________________

 

Describe
the Percentage Assigned of Commitment/Loans: _______________________________________________________________________

 

8.
Trade Date:

 

The
Assignee acknowledges and confirms that it has acquired and has agreed to assume all the obligations relating to the Assigned
Interest as set out in the Credit Agreement, according to the Facility and amount and percentage interest thereof acquired, including,
without limitation, all the rights and obligations of the Assignor in respect thereof, to the extent of the Facility and amount
and percentage interest thereof acquired (collectively, the “Assigned Commitment”), effective as of the Effective
Date.

 

The
Assignee hereby undertakes and agrees to and with the Borrower, the Guarantors, and each of the Lenders party to the Credit Agreement
from time to time, as of the Effective Date, to be bound by the terms and conditions of the Credit Agreement in the place and
stead of the Assignor to the extent of the rights and obligations of the Assignor assumed by the Assignee in respect of the Assigned
Commitment.

 

The
obligations of the Assignee under this Assignment and Assumption Agreement shall enure to the benefit of the Lenders and the other
Parties to the Credit Agreement and their respective successors and assigns to whom any of their rights and obligations under
or in respect of the Credit Agreement are transferred, assigned, or otherwise conveyed in accordance with the provisions of the
Credit Agreement.

 

The
Assignor, in respect of the Assigned Interest and the Assigned Commitment, hereby confirms the amounts and other matters referred
to in this Assignment and Assumption Agreement.

 

This
Assignment and Assumption Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when

 

taken
together shall constitute a single agreement. Delivery of an executed counterpart of a signature page of this Assignment and Assumption
Agreement by facsimile or electronic transmission (including a PDF copy by email) shall be effective as delivery of a manually
executed counterpart

 

of
this Assignment and Assumption Agreement.

 

[Remainder
of page left intentionally blank]

 

    	 	 	 

    	 	- 124 -	 

    

 

Effective
Date: _________________________, 20____.

 

The
terms set forth in this Assignment and Assumption Agreement are hereby agreed to:

 

	[NAME
    OF ASSIGNOR], as Assignor	 
	 	 	 
	Per:	               	 
	Name:	 	 
	Title:	 	 
	 	 	 
	[NAME
    OF ASSIGNEE], as Assignee	 
	 	 	 
	Per:
    	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	Acknowledged:
    	 
	 	 	 
	FRANKLY
    INC.	 
	 	 	 
	Per:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	FRANKLY
    CO.	 
	 	 	 
	Per:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	FRANKLY
    MEDIA LLC, by its sole member, 	 
	Frankly
    Inc.	 
	 	 	 
	Per:	 	 
	Name:		 
	Title:	 	 

 

    	 	 	 

    	 	- 125 -	 

    

 

ANNEX
1 TO ASSIGNMENT AND ASSUMPTION

 

STANDARD
TERMS AND CONDITIONS FOR

 

ASSIGNMENT
AND ASSUMPTION

 

1.
Representations and Warranties.

 

1.1
Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of

 

the
Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, and (iii) it
has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties
or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document,
or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their
respective obligations under any Loan Document.

 

1.2
Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it meets all requirements of an Assignee under the Credit Agreement (subject to receipt of such
consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions
of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest
on the basis of which it has made such analysis and decision independently and without reliance on any other Person or Lender,
and (v) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of
the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by
it as a Lender.

 

2.
Payments. From and after the Effective Date, the Borrower shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignee whether such amounts have accrued prior to, on or after
the Effective Date. The Assignor and the Assignee shall make all appropriate adjustments in payments for periods prior to the
Effective Date or with respect to the making of this assignment directly between themselves.

 

3.
General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto
and their respective successors and permitted assigns. This Assignment and Assumption may be executed in any number of counterparts,
which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart
of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the
law governing the Credit Agreement.

 

    	 	 	 

    	 	- 126 -

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