Document:

p-schxvibxw6x22final

P-SCH-VIB-W(6/22)  1      PRUCO LIFE INSURANCE COMPANY, PHOENIX, ARIZONA    INDEX LINKED VARIABLE INCOME BENEFIT SCHEDULE SUPPLEMENT      Annuity Number: [001-0001]      Effective Date:  [Effective Date of Rider]    [Protected Life] [Joint Protected Lives] on the Effective Date:    [John Doe]   Date of Birth: [October 21, 1972]  [[Mary Doe]   Date of Birth: [October 15, 1972]]    Income Percentage:     Age on Effective Date Protected Life Income  Percentages  Joint Protected Lives  Income Percentages  [45-49 [2.50% [2.05%  50-54 2.90% 2.55%  55-59 3.20% 2.85%  60-64 3.55% 3.20%  65-69 4.00% 3.65%  70-74 4.60% 4.25%  75] 5.30%] 4.95%]    Income Deferral Rate:    Age on Effective Date Protected Life Income  Deferral Rate Percentage  Joint Protected Lives  Income Deferral Rate  Percentage  [45-49 [0.05% [0.05%  50-54 0.10% 0.10%  55-59 0.10% 0.10%  60-64 0.15% 0.15%  65-69 0.20% 0.20%  70-74 0.25% 0.25%  75] 0.35%] 0.35%]    Minimum Insured Income Stage Payment: [$100]    Charge for the Rider:  Assessed annually on the Index Anniversary at a rate of [1.60]%    Waiting Period: [3rd] anniversary of the Effective DateExhibit 10.2

 

SECOND AMENDED
AND RESTATED REVOLVING LOAN AND SECURITY AGREEMENT

 

SNAIL GAMES
USA INC.,

a California corporation

 

and

 

CATHAY BANK,

a California banking corporation

  

Dated as of January
26, 2022‎

 

     

     

    

 

THIS
SECOND AMENDED AND RESTATED REVOLVING LOAN AND ‎SECURITY AGREEMENT ("Agreement") is entered into as of January 26,
2022, by and ‎among SNAIL GAMES USA INC., a California corporation ("Borrower"), on the one hand, and ‎CATHAY
BANK, a California banking corporation ("Lender''), on the other hand. This ‎Agreement amends, restates, replaces and
supersedes in its entirety that certain Amended ‎and Restated Loan and Security Agreement dated June 17, 2021, as amended from
time to ‎time.‎

 

1.           
‎DEFINITIONS AND INTERPRETATIONS.‎

 

1.1        
‎Definitions. As used in this Agreement, the following terms have the meanings ‎set forth below. Capitalized
terms not defined herein shall have the meanings set forth in the ‎Code, as defined below.‎

 

‎"Account"
has the meaning set forth in Section 9102(a)(2) of the Code.‎

 

‎"Account
Debtor” means a Person obligated on an Account, chattel paper or General ‎Intangibles.‎

 

‎"Advance(s)"
shall mean, individually and collectively, the Revolving Advances and the ‎Term Loan Advances.‎

 

‎"Affiliate"
means, with respect to any Person, a relative, partner, shareholder, director, ‎officer, or employee of such Person, or any
Parent or subsidiary of such Person, or any ‎Person controlling, controlled by or under common control with such Person.‎

 

‎"Agreement"
means this Loan and Security Agreement as amended, modified or ‎supplemented from time to time. Each reference herein to "this
Agreement," "this Loan ‎Agreement" "herein," "hereunder," "hereof' or other like words
shall include this Agreement, ‎and any annex, exhibit or schedule attached hereto or referred to herein.‎

 

‎"Anti-Money
Laundering Laws" shall mean the USA Patriot Act of 2001, the Bank ‎Secrecy Act, as amended through the date hereof, Executive
Order 1 3324—Blocking ‎Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or ‎Support
Terrorism, as amended through the date hereof, and other federal laws and ‎regulations and executive orders administered by OFAC
which prohibit, among other things, ‎the engagement in transactions with, and the provision of services to, certain foreign countries,
 ‎territories, entities and individuals (such individuals include specially designated nationals, ‎specially designated narcotics
traffickers and other parties subject to OFAC sanction and ‎embargo programs), and such additional laws and programs administered
by OFAC which ‎prohibit dealing with individuals or entities in certain countries regardless of whether such ‎individuals
or entities appear on any of the OFAC lists.‎

 

     

     

    

 

‎"Assignment
of Deposit" shall mean that certain that certain Security Agreement ‎‎(Assignment of Deposit Account) dated June
17, 2021. ‎

 

‎"Borrower's
Operating Account" means Borrower's demand deposit account with ‎Lender, into which substantially all of Borrower receipts
from its operations are deposited and ‎from which substantially all of Borrower disbursements for its operations are made.‎

 

‎"Borrowing
Base" shall mean an amount equal to $5,000,000.00, plus eighty percent ‎‎(80%) of the balance due on Eligible Accounts
Receivable. After calculating the Borrowing ‎Base as provided above, Lender may deduct such reserves as Lender may establish from
 ‎time to time in its reasonable credit judgment, including, without limitation, reserves for rent at ‎leased locations subject
to statutory or contractual landlord's liens, inventory shrinkage, ‎dilution, customs charges, warehousemen's or bailees' charges,
and the amount of estimated ‎maximum exposure, as determined by Lender from time to time, under any interest rate ‎contracts
which Borrower enters into with Lender (including interest rate swaps, caps, floors, ‎options thereon, combinations thereof, or
similar contracts).‎

 

‎"Borrowing
Base Certificate" means a Borrowing Base Certificate substantially in the ‎form of Exhibit "A" attached hereto.‎

 

‎"Borrowing
Base Supporting Documentation" has the meaning set forth in Section ‎‎‎9.3(a) of this Agreement.‎

 

‎"Business
Day" means any day that is not a Saturday, Sunday, or other day on which ‎California banks are authorized or required to close.‎

 

‎"Change
of Control" shall be deemed to have occurred at such time as a "person" or ‎‎"group" (within
the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of ‎‎1934) (other than the current holders of the
ownership interests in Borrower) becomes the ‎‎"beneficial owner" (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934), ‎directly or indirectly, as a result of any single transaction, of fifty percent (50%) or more, of the ‎total
voting power of all classes of stock or other ownership interests then outstanding of any ‎Borrower normally entitled to vote in
the election of directors or analogous governing body.‎

 

‎"Closing
Date" means the date that all conditions precedent under Section ‎6.1 of this ‎Agreement are satisfied.‎

 

‎"Code"
means the Uniform Commercial Code as adopted and in effect in the State of ‎California, from time to time.‎

 

‎"Collateral"
has the meaning set forth in Section ‎5.2 hereof.‎

 

     2

     

    

 

‎"Current
Liabilities" shall mean at any date the current liabilities of Borrower determined ‎as of such date in accordance with
GAAP.‎

 

‎"Debt
Service Coverage Ratio" shall mean the ratio of (i) Borrower's EBITDA, divided ‎by (ii) the aggregate of all interests
and the scheduled payments of principal and interest ‎payable by Borrower to Lender under the Note, and all other scheduled payments
of principal ‎and interest payable by Borrower to Lender under any other notes. ‎

 

‎"Default"
means any event which, with notice or passage of time or both, would ‎constitute an Event of Default.‎

 

‎"Default
Rate" shall have the meaning set forth in Section ‎3.2 hereof.‎

 

‎"Deposit
Account" means any deposit account (as defined in the Code) now or ‎hereafter maintained by or for the benefit of Borrower,
and all amounts therein, whether or not ‎restricted or designated for a particular purpose, that has been pledged as collateral
for any ‎Obligation under this Agreement.‎

 

‎"Dollars
or $" means United States dollars.‎

 

‎"EBITDA"
means net income before tax, plus interest expense (net of capitalized ‎income expense), depreciation expense and amortization
expense.‎

 

‎"Eligible
Accounts Receivable" means Accounts arising in the ordinary course of ‎Borrower's business from the sale of goods or rendition
of services, which Lender, in its sole ‎judgment exercised in good faith, shall deem eligible for borrowing, based on such ‎considerations
as Lender may from time to time deem appropriate. Eligible Accounts ‎Receivable shall not include the following:‎

 

‎(a)‎        Accounts
with respect to which the Account Debtor is an employee, ‎Affiliate, or agent of Borrower including, without limitation, SOE, Inc.
and Suzhou Snail Digital ‎Technology Co.;‎

 

‎(b)‎        Accounts
with respect to which goods are placed on (i) consignment, (ii) ‎guaranteed sale, (iii) sale or return, (iv) sale on approval,
(v) bill and hold, (vi) demonstration or ‎promotion, (vii) credit memos or (viii) other terms by reason of which the payment by
the ‎Account Debtor may be conditional;‎

 

‎(c)‎         ‎[Reserved];‎

 

‎(d)‎        Accounts
with respect to which the Account Debtor is the United States ‎or any department, agency, or instrumentality of the United States;‎

 

‎(e)‎        Accounts
with respect to which the Account Debtor is a creditor of ‎Borrower, has or has asserted a right of setoff, has disputed its liability,
or has made any claim ‎with respect to the Accounts;‎

 

     3

     

    

 

‎(f)‎        Accounts
with respect to which the Account Debtor is subject to any ‎reorganization, bankruptcy, insolvency, arrangement, readjustment of
debt, dissolution or ‎liquidation proceeding, or becomes insolvent, or goes out of business, or has had a trustee or ‎receiver
appointed for any part of its property, has made an assignment for the benefit of ‎creditors, or has failed generally to pay its
debts (including its payroll) as such debts become ‎due;‎

 

‎(g)‎        Accounts
the collection of which Lender, in its sole discretion, believes to ‎be doubtful by reason of the Account Debtor's financial condition
or which Lender, in its sole discretion, deems the creditworthiness or financial condition of the Account ‎Debtor to be unsatisfactory;‎

 

‎(h)‎        Accounts
with respect to which the goods giving rise to such Account ‎have not been shipped and billed to the Account Debtor, the services
giving rise to such ‎Account have not been performed and accepted by the Account Debtor, or the Account ‎otherwise does not
represent a final sale;‎

 

‎(i)‎        Accounts
designated by Borrower with the term, "unapplied credits" (i.e. ‎payments received but not yet applied to a specific
Account);‎

 

(j)
         Accounts which arise from the sale of goods which remain in the Borrower's ‎possession
or under the Borrower's control;‎

 

‎(k)‎        Accounts
which are evidenced by a promissory note or chattel paper;‎

 

‎(l)‎         Accounts
that represent progress payments or other advance billings that ‎are due prior to the completion of performance by Borrower of
the subject contract for goods ‎or services;‎

 

‎(m)‎       Accounts
which have not been paid in full within one hundred twenty ‎‎(120) days from the invoice date, or within sixty (60) days
from the original due date thereof or ‎within sixty (60) days from the original due date there remains a balance of more than fifty
 ‎percent (50%) of the amount due.‎

 

‎(n)‎        Accounts
that do not arise from the sale of goods or performance of ‎services by Borrower in the ordinary course of its business;‎

 

‎(o)‎        Accounts
that (i) are not owned by Borrower or (ii) are subject to any lien ‎of any other person, other than Lender;‎

 

‎(p)‎       That
portion of the Accounts of any single Account Debtor which ‎exceeds twenty percent (20%) of all of Borrower's Accounts, provided
that such percentage ‎shall be increased to one hundred percent (100%) for Valve, Microsoft and Sony;‎

 

‎(q)‎        Accounts
that the amount thereof is not yet represented by an invoice or ‎bill issued in the name of the applicable Account Debtor;‎

 

     4

     

    

 

‎(r)‎         Accounts
not covered by credit insurance acceptable to Lender naming ‎Lender as loss payee;‎

 

‎(s)‎         Contra-Accounts
(that is, an Account payable to and receivable from the ‎same payee-payor); and

 

‎(t)‎         Cash-on-delivery
Accounts. ‎

 

‎"Environmental
Laws" shall mean all federal, state and local environmental’ land use, ‎zoning, health, chemical use, safety and
sanitation laws, statutes, ordinances and codes ‎relating to the protection of the environment and/or governing the use, storage,
treatment, ‎generation, transportation, processing, handling, production or disposal of Hazardous ‎Substances and, the rules,
regulations, policies, guidelines, interpretations, decisions, orders ‎and directives of federal, state and local governmental
agencies and authorities with respect ‎thereto.‎

 

‎"Equipment"
has the meaning set forth in Section 9102(a)(33) of the Code and ‎includes, without limitation, all of Borrower's furniture,
fixtures, trade fixtures, tenant ‎improvements owned by Borrower, all attachments, accessories, accessions, replacements, ‎substitutions,
additions or improvements to any of the foregoing, wherever located.‎

 

‎"ERISA"
means the Employee Retirement Income Security Act of 1974, as amended ‎from time to time, or any successor statute, and any
and all regulations thereunder.‎

 

‎"Event
of Default" means any of the events set forth in Section ‎10.1 of this Agreement.‎

 

‎"Fees
and Costs" has the meaning set forth in Section ‎11.12 of this Agreement.‎

 

‎"GAAP"
means generally accepted accounting principles as in effect from time to time ‎in the United States, applied on a consistent
basis, applied both to classification of items and ‎amounts.‎

 

‎"General
Intangibles" has the meaning set forth in Section 9102(a)(42) of the Code and ‎shall include, without limitation, payment
intangibles, all choses in action, causes of action, ‎corporate or other business records, inventions, designs, drawings, blueprints,
patents, patent ‎applications, trademarks and the goodwill of the business symbolized thereby, names, trade ‎names, trade
secrets, goodwill, copyrights, registrations, licenses, franchises, customer lists, ‎security and other deposits, rights in all
litigation presently or hereafter pending for any cause ‎or claim (whether in contract, tort or otherwise), and all judgments now
or hereafter arising ‎therefrom, all claims of Borrower against Lender, rights to purchase or sell real or personal ‎property,
rights as a licensor or licensee of any kind, royalties, telephone numbers, proprietary ‎information, purchase orders, and all
insurance policies and claims (including without limitation, ‎life insurance, key man insurance, credit insurance, liability insurance,
property insurance and ‎other insurance), tax refunds and claims, software, discs, tapes and tape files, claims under ‎guaranties,
security interests or other security held by or granted to Borrower, all rights to ‎indemnification and all other intangible property
of every kind and nature (other than ‎Receivables).‎

 

     5

     

    

 

‎"Goods"
has the meaning set forth in section 9102(a)(44) of the Code.‎

 

‎"Guarantor"
means, individually and collectively, (i) Hai Shi, an individual, and (ii) Ying ‎Zhou, an individual.‎

 

‎"Guaranty”
means that certain agreement duly executed by Guarantor, unconditionally ‎and irrevocably guaranteeing payment and performance
of Borrower's obligations to Lender in ‎connection with the Term Loan, as such agreement or agreements are originally executed
and ‎as such agreement or agreements may from time to time be reaffirmed, supplemented, ‎modified or amended.‎

 

‎"Hazardous
Substance" shall mean, without limitation, any flammable explosives, ‎radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated ‎biphenyls, petroleum and petroleum products, methane, hazardous materials, Hazardous ‎Wastes,
hazardous or Toxic Substances or related materials as defined in CERCLA, the ‎Hazardous Materials Transportation Act, as amended
(49 U.S.C. Sections 1801, et seq.), ‎RCRA, or any other applicable Environmental Law and in the regulations adopted pursuant ‎thereto.‎

 

‎"Hazardous
Wastes" shall mean all waste materials subject to regulation under ‎CERCLA, RCRA or applicable state law, and any other
applicable Federal and state laws now ‎in force or hereafter enacted relating to hazardous waste disposal.‎

 

‎"Indemnified
Person" has the meaning set forth in Section ‎10.4(c) of this Agreement.‎

 

‎"Inventory"
means all of Borrower's now owned and hereafter acquired goods, ‎including software embedded in such goods, merchandise or
other personal property, ‎wherever located, to be furnished under any contract of service or held for sale or lease ‎‎(including
without limitation all raw materials, work in process, finished goods and goods in ‎transit, and, including without limitation,
all farm products), and all materials and supplies of ‎every kind, nature and description which are or might be used or consumed
in Borrower's ‎business or used in connection with the manufacture, packing, shipping, advertising, selling or ‎finishing
of such goods, merchandise or other personal property, and all warehouse receipts, ‎documents of title and other documents representing
any of the foregoing.‎

 

     6

     

    

 

‎"Investment
Property" has the meaning set forth in Section 9102(a)(49) of the Code.‎

 

‎"Loan"
shall mean, individually and collectively, the Term Loan and Revolving Line of ‎Credit.‎

 

‎"Loan
Account" has the meaning set forth in Section ‎2.4.‎

 

‎"Loan
Documents" means this Agreement and the Other Documents.‎

 

‎"Material
Adverse Effect" means a material adverse effect on (i) the business, assets, ‎condition (financial or otherwise) or results
of operations of Borrower or any subsidiary of ‎Borrower or Guarantor, (ii) the ability of Borrower or Guarantor to duly and punctually
pay or ‎perform its obligations under this Agreement (including, without limitation, repayment of the ‎Obligations as they
come due), (iii) the value of the Collateral, or Lender's liens on the ‎Collateral or the privity of any such hen, or (iv) the
validity or enforceability of this Agreement or any other agreement or document entered into by any ‎party in connection herewith,
or the practical realization of the benefits of Lender's rights or ‎remedies.‎

 

‎"Material
Litigation" shall have the meaning set forth in Section ‎7.10 hereof.‎

 

‎"Maximum
Advance Amount" shall mean $9,000,000.00, subject to Section ‎2.1 hereof.‎

 

‎"Note"
shall mean, individually and collectively, the Revolving Note and Term Loan ‎Note.‎

 

‎"Obligations"
means all present and future Advances, loans, overdrafts, debts, liabilities, ‎obligations, including, without limitation,
all obligations of Borrower under any guaranties, ‎covenants, duties and indebtedness at any time owing by Borrower to Lender,
evidenced by ‎this Agreement or the Other Documents, whether arising from an extension of credit, opening ‎of a letter of
credit, banker's acceptance, trust receipt, loan, overdraft, guaranty, ‎indemnification or otherwise, whether direct or indirect
(including, without limitation, those ‎acquired by assignment and any participation by Lender in Borrower's debts owing to others),
 ‎absolute or contingent, due or to become due, including, without limitation, all interest, charges, ‎expenses, fees, attorneys'
fees (including attorneys' fees and expenses incurred in ‎bankruptcy), expert witness fees and expenses, fees and expenses of consultants,
audit fees, ‎letter of credit fees, closing fees, facility fees, termination fees, and any other sums ‎chargeable to Borrower
under this Agreement or the Other Documents.‎

 

‎"OFAC"
shall mean the United States Department of the Treasury, Office of Foreign ‎Assets Control.‎

 

     7

     

    

 

‎"OFAC
Prohibited Person" shall mean a country, territory, individual or person (i) listed ‎on, included within or associated
with any of the countries, territories, individuals or entities ‎referred to on The Office of Foreign Assets Control's List of
Specially Designated Nationals ‎and Blocked Persons or any other prohibited person lists maintained by governmental ‎authorities,
or otherwise included within or associated with any of the countries, territories, ‎individuals or entities referred to in or prohibited
by OFAC or any other Anti-Money Laundering ‎Laws, or (ii) which is obligated or has any interest to pay, donate, transfer or otherwise
assign ‎any property, money, goods, services, or other benefits from the property directly or indirectly, ‎to any countries,
territories, individuals or entities on or associated with anyone on such list or ‎in such laws.‎

 

‎"Official
Body" means any government or political subdivision or any agency, authority, ‎bureau, commission, court or tribunal whether
foreign or domestic.‎

 

‎"Other
Documents" shall mean the Note, the Guaranty, and all other agreements, ‎instruments and documents now or hereafter executed
by Borrower and delivered to Lender in ‎respect of the transactions contemplated by this Agreement.‎

 

‎"Overadvance"
has the meaning set forth in Section ‎4.1.‎

 

‎"Parent"
means any Person holding a majority of the equity interest in a corporation or ‎limited liability company.‎

 

‎"Permitted
Liens" means all of the following:‎

 

‎(a)‎        liens
in favor of Lender;‎

 

‎(b)‎        purchase
money security interests in specific items of Equipment;‎

 

‎(c)‎        leases
of specific items of Equipment;‎

 

‎(d)‎        liens
for taxes not yet payable;‎

 

‎(e)‎        security
interests being terminated substantially concurrently with this Agreement; and

 

‎(f)‎         liens
of materialmen, mechanics, warehousemen, carriers, or other ‎similar liens arising in the ordinary course of business and securing
obligations which are not ‎delinquent.‎

 

‎"Person"
means any individual, sole proprietorship, general partnership, limited ‎partnership, limited liability partnership, limited
liability company, joint venture, trust, ‎unincorporated organization, association, corporation, government, or any agency or political
 ‎division thereof, or any other entity.‎

 

     8

     

    

 

‎"Potential
Default" means any event, act or condition which, with notice or lapse of time ‎or both, would constitute an Event of
Default.‎

 

‎"RCRA"
shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 ‎et seq., as same may be amended from time
to time.‎

 

‎"Receivables"
means all of Borrower's now owned and hereafter acquired Accounts, ‎letter of credit rights, license fees, contract rights,
chattel paper (including tangible chattel ‎paper, electronic chattel paper, and intangible chattel paper), instruments (including
promissory ‎notes), drafts, securities, documents, securities accounts, security entitlements, commodity ‎contracts, commodity
accounts, Investment Property, supporting obligations and all other ‎forms of obligations at any time owing to Borrower, all guaranties
and other security therefor, ‎all merchandise returned to or repossessed by Borrower, and all rights of stoppage in transit ‎and
all other rights or remedies of an unpaid vendor, lienor or secured party.‎

 

‎"Revolving
Advance(s)" shall mean each advance, loan and financial accommodation ‎from Lender to Borrower under the Revolving Line
of Credit, whether now existing or hereafter ‎arising and however evidenced.‎

 

‎"Revolving
Line of Credit" shall mean the revolving credit facility described in Section ‎‎‎2.1 hereof. ‎

 

‎"Revolving
Note" shall mean that certain Amended and Restated Revolving ‎Promissory dated June 17, 2021 in the principal amount of
the Revolving Line of Credit ‎executed by Borrower in favor of Lender.‎

 

‎"Revolving
Maturity Date" shall mean December 31, 2023.‎

 

‎"Solvent"
means, with respect to any Person on a particular date, that on such date (a) ‎at fair valuations, all of the properties and
assets of such Person are greater than the sum of ‎the debts, including contingent liabilities, of such Person, (b) the present
fair salable value of ‎the properties and assets of such Person is not less than the amount that will be required to ‎pay
the probable liability of such Person on its debts as they become absolute and matured, ‎‎(c) such Person is able to realize
upon its properties and assets and pay its debts and other ‎liabilities, contingent obligations and other commitments as they mature
in the normal course ‎of business, (d) such Person does not intend to, and does not believe that it will, incur debts ‎beyond
such Person's ability to pay as such debts mature, and (e) such Person is not engaged ‎in business or a transaction, and is not
about to engage in business or a transaction, for which ‎such Person's properties and assets would constitute unreasonably small
capital after giving ‎due consideration to the prevailing practices in the industry in which such Person is engaged. ‎In
computing the amount of contingent liabilities at any time, it is intended that such liabilities ‎will be computed at the amount
that, in light of all the facts and circumstances existing at such ‎time, represents the amount that reasonably can be expected
to become an actual or matured ‎liability.‎

 

     9

     

    

 

‎"Subordinated
Liabilities" means liabilities subordinated to the Borrower's obligations to ‎Lender in a manner acceptable to Lender,
in its sole discretion.‎

 

‎"Subsidiary"
of a Person means a corporation, partnership, joint venture, limited liability ‎company or other business entity of which a
majority of the shares of securities or other ‎interests having ordinary voting power for the election of directors or other governing
(other ‎than securities or interest having such power only by reason of the happening of a ‎contingency) are at the time
beneficially owned, or the management of which is otherwise ‎controlled, directly, or indirectly through one or more intermediaries,
or both, by such Person.‎

 

‎"Supporting
Obligations" has the meaning set forth in Section 9102(77) of the Code.‎

 

‎"Term
Loan" shall mean the term loan described in Section ‎2.2 hereof.‎

 

‎"Term
Loan Advance(s)" shall each advance, loan and financial accommodation from ‎Lender to Borrower under the Term Loan, whether
now existing or hereafter arising and ‎however evidenced.‎

 

‎"Term
Loan Note" shall mean that certain Promissory Note dated as of even date ‎herewith in the principal amount of the Term
Loan executed by Borrower in favor of Lender. ‎

 

‎"Term
Loan Maturity Date" means January 26, 2023.‎

 

‎"Toxic
Substance" shall mean and include any material present on any facility of ‎Borrower which has been shown to have significant
adverse effect on human health or which ‎is subject to regulation under the Toxic Substances Control Act (TSCA), 15 U.S.C. §§
2601 et ‎seq., applicable state law, or any other applicable Federal or state laws now in force or ‎hereafter enacted relating
to toxic substances. "Toxic Substance" includes but is not limited to ‎asbestos, polychlorinated biphenyls (PCBs) and
lead-based paints.‎

 

1.2        
‎Accounting Terms and Determinations. Unless otherwise specified herein, all ‎accounting terms used in
this Agreement, unless otherwise indicated, shall have the meanings ‎given to such terms in accordance with GMP. In addition,
unless otherwise specified herein all ‎accounting terms used herein shall be interpreted, all accounting determinations
hereunder ‎shall be made, and all financial statements required to be delivered hereunder shall be ‎prepared
in accordance with GMP. All other terms contained in this Agreement, unless ‎otherwise indicated, shall have the meanings
provided by the Code, to the extent such terms ‎are defined therein.‎

 

     10

     

    

 

1.3        
 ‎Construction. Unless the context of this Agreement clearly requires otherwise, ‎references to the plural
include the singular and references to the singular include the plural; ‎references to any gender include any other gender;
the part includes the whole; the term ‎‎"including" is not limiting, and the term "or" has, except
where otherwise indicated, the inclusive ‎meaning represented by the phrase "and/or". The words, "hereof,"
 "herein," "hereby," ‎‎"hereunder," and similar terms in this Agreement refer to this
Agreement as a whole and not to ‎any particular provision of this Agreement. Article, section, subsection, clause, exhibit
and ‎schedule references are to this Agreement, unless otherwise specified. Any reference in this ‎Agreement
or any of the Other Documents to this Agreement or any of the Other Documents ‎includes any and all permitted alterations,
amendments, changes, extensions, modifications, ‎renewals, or supplements thereto or thereof, as applicable.‎

 

1.4        
‎Exhibits and Schedules. All of the exhibits and schedules attached hereto shall be deemed incorporated herein by reference.‎

 

1.5        
‎No Presumption Against Any Party. Neither this Agreement, any of the Other ‎Documents, any other documents,
agreement, or instrument entered into in connection ‎herewith, nor any uncertainty or ambiguity herein or therein shall
be construed or resolved ‎using any presumption against any party hereto, whether under any rule of construction or ‎otherwise.
On the contrary, this Agreement, the Other Documents, and all other documents, ‎instruments, and agreements entered into
in connection herewith have been reviewed by each ‎of the parties and by their respective counsel and shall be construed
and interpreted according ‎to the ordinary meanings of the words used so as to accomplish fairly the purposes and ‎intentions
of all parties hereto.‎

 

1.6        
‎Independence of Provisions. All agreements and covenants hereunder, under ‎the Other Documents and the
other documents, instruments, and agreements entered into in ‎connection herewith shall be given independent effect such
that if a ‎particular action or condition is prohibited by the terms of any such agreement or covenant, the ‎fact
that such action or condition would be permitted within the limitations of another ‎agreement or covenant shall not be construed
as allowing such action to be taken or condition ‎to exist.‎

 

2.           
‎CREDIT FACILITIES.‎

 

2.1        
‎Revolving Line of Credit.‎

 

(a)         
‎Subject to the terms and conditions contained herein, Lender will make ‎Advances to Borrower from the
Closing Date until the Revolving Maturity Date, which may be ‎borrowed, repaid and reborrowed, in aggregate amounts outstanding
at any one time equal to ‎the lesser of:‎

 

‎(x)
the sum of: (i) the Maximum Advance Amount, less (ii) the outstanding Advances; ‎or

 

‎(y)
an amount equal to the sum of: (i) the Borrowing Base, minus (ii) the outstanding ‎Advances, minus such reserves as Lender may
reasonably deem proper and appropriate from ‎time to time (the "Revolving Line of Credit").‎

 

     11

     

    

 

(b)         
‎Borrowing Base Calculations. The Borrowing Base shall be calculated by ‎Lender upon receipt
from Borrower of the Borrowing Base Certificate and all supporting ‎documentation required under this Agreement pursuant
to Section ‎9.3 below. Lender will ‎provide a Borrowing Base calculation to Borrower setting forth its determination
of the ‎Borrowing Base, which calculation will be conclusive and binding in the absence of manifest ‎error.
The Borrowing Base as determined by Lender will become effective upon calculation by ‎Lender and will remain in effect until
a new Borrowing Base is calculated by Lender in ‎accordance with this Agreement.‎

 

(c)         
‎Advance Request Procedures. Borrower shall notify Lender prior to ‎‎10:00 a.m., Los Angeles
time, on a Business Day, of Borrower's request for a Revolving ‎Advance that day. Each such notice shall specify the date
such Advance is to be made, the ‎amount of such Revolving Advance, and shall comply with such other requirements as Lender
‎determines are reasonable or desirable in connection therewith. Any written request for a ‎Revolving Advance
received by Lender after 10:00 a.m. (Los Angeles time) shall not be ‎considered by Lender until the next Business Day. Should
any amount be required to be paid ‎as interest hereunder, or as fees or other charges under this Agreement or any Other
‎Agreement, or with respect to any Obligations, the same shall be deemed a request for an ‎Advance as of the
date such payment is due in the amount required to pay in full such interest, ‎fees, charges or Obligation under this Agreement
or any Other Agreement, and such request ‎shall be irrevocable.‎

 

(d)         
‎Note. Revolving Advances shall be evidenced by the Revolving Note ‎issued by Borrower to Lender. ‎

 

2.2        
‎Term Loan.‎

 

(a)         
‎Subject to the terms and conditions of this Agreement, Lender shall make a ‎term loan to Borrower in
the principal sum of Ten Million and No/100 Dollars ($10,000,000.00) ‎‎(the "Term Loan"). The Term
Loan shall be disbursed to Borrower in a single Term Loan ‎Advance.‎

 

(b)         
‎Term Note. The Term Loan Advance shall be evidenced by the Term Loan ‎Note issued by Borrower
to Lender.‎

 

(c)         
‎Interest and principal payments under the Term Loan shall be due and ‎payable to Lender pursuant to
the provisions of the Term Loan Note.‎

 

     12

     

    

 

2.3        
 ‎Use of Proceeds.‎

 

(a)         
‎All Advances made to or for the benefit of Borrower shall be used solely ‎for working capital and general
corporate purposes. Lender shall have no obligation to monitor ‎or verify the use or application of any Advance disbursed
by Lender.‎

 

(b)         
‎Borrower shall not, directly or indirectly, use all or any part of any ‎Advance for the purpose of
purchasing or carrying any margin stock within the meaning of ‎Regulation U of the Board of Governors of the Federal Reserve
System (the "Board of ‎Governors") or to extend credit to any Person for the purpose of purchasing or carrying
any ‎such margin stock or for any purpose which violates or is inconsistent with Regulation X of the ‎Board
of Governors, unless such use has been expressly approved in writing by Lender, in its ‎discretion.‎

 

2.4        
‎Loan Account/Deposit Account. Lender shall maintain on its books a record ‎of account ("Loan Account")
in which Lender shall make entries for each Advance and such ‎other debits and credits as shall be appropriate in connection
with the credit facility set forth in ‎this Agreement; provided, however, the failure by Lender to so record each Advance
shall not ‎adversely affect Lender. Each Advance made by Lender shall be deposited in Borrower's ‎Operating
Account, as applicable.‎

 

2.5        
‎Manner of Payment.‎

 

(a)         
‎Except as expressly provided herein, all payments (including ‎prepayments) to be made by Borrower on
account of principal, interest and fees shall be made ‎without set off or counterclaim and shall be made to Lender, in each
case on or prior to 12:00 ‎p.m., Los Angeles time, in Dollars and in immediately available funds.‎

 

(b)         
‎Notwithstanding anything to the contrary contained in herein, ‎commencing with the first Business Day
following the Closing Date, each borrowing of an ‎Advance shall be advanced by Lender and each payment by Borrower on account
of an ‎Advance shall be applied first to those Advances advanced by Lender.‎

 

3.           
INTEREST.

 

3.1        
‎Interest Rate. The Loan shall bear interest at the rate as set forth in the Note ‎‎(the "Note
Rate").‎

 

3.2        
‎Default Interest. Upon the occurrence and during the continuance of an Event ‎of Default, Borrower shall
pay interest on the unpaid principal amount of each Advance or ‎other Obligation owing to Lender and on the unpaid amount
of all interest, fees and other ‎amounts payable hereunder that is not paid when due, payable on demand by Lender, at a
rate ‎per annum (the "Default Rate") equal at all times to five percent (5%) per annum above the ‎Note
Rate.‎

 

     13

     

    

 

4.           
‎PAYMENT OF OBLIGATIONS.‎

 

4.1        
‎Overadvance on Revolving Line of Credit. If, at any time and for any reason, ‎the aggregate principal
amount of the outstanding Revolving Advances exceeds the lesser of ‎‎(i) the Maximum Advance Amount or (ii) the Borrowing
Base (an "Overadvance"), Borrower ‎shall immediately pay Lender, in cash, the amount of such Overadvance. Lender
may apply ‎such payments to the outstanding Advances or Obligations in such order and manner as ‎Lender, in
its sole and absolute discretion, may determine.‎

 

4.2        
‎Maturity Date. On the Revolving Maturity Date, Borrower shall pay and ‎perform in full all outstanding
Revolving Advances and all other Obligations arising thereunder, ‎whether for principal, interest, costs, fees or otherwise.
On the Term Loan Maturity Date, ‎Borrower shall pay and perform in full the outstanding principal amount of the Term Loan
and ‎all other Obligations arising thereunder, whether for principal, interest, costs, fees or otherwise.‎

 

4.3        
‎Manner of Payment. Principal and interest payments due under the Note and ‎all other Obligations shall
be withdrawn from Borrower's Operating Account with Lender, or ‎such other account with Lender as designated in writing
by Borrower. In the event that ‎Borrower's Operating Account with Lender contains insufficient funds to make any payments
‎under this Agreement, Borrower shall remit such payment from Borrower's own funds.‎

 

4.4        
‎Late Charge. If any payment due hereunder is not received or made within ten ‎‎(10) days of the
due date or there are insufficient funds in the Operating Account on the date ‎Lender enters any debit authorized by this
Agreement, without limitation, Lender's other ‎remedies in such an event, Lender shall apply a late charge in an amount
equal to five percent ‎‎(5%) of the unpaid portion of the scheduled payment or $35.00, whichever is less.‎

 

4.5        
‎Loan Fees. On the Closing Date, Borrower agrees to pay to Lender, from ‎Borrower's own funds, for the
benefit of Lender, a loan fee in the amount of $15,000.00 for the ‎making of the Term Loan. The loan fee shall be deemed
fully earned when paid, and ‎therefore, is nonrefundable. ‎

 

5.           
SECURITY INTEREST.

 

5.1        
‎Grant of Interest. To secure the payment and performance of all of the ‎Obligations as and when due, Borrower
hereby grants to Lender a first priority security interest ‎in all Collateral and those evidenced by the Assignment of Deposit
Account.‎

 

     14

     

    

 

5.2        
‎Collateral. The Collateral shall constitute all of Borrower's interest in all of the ‎following assets
whether now owned or hereafter acquired, and wherever located:‎

 

(a)         
‎All Accounts contract rights, chattel paper, instruments, deposit ‎accounts, letter of credit rights,
payment intangibles and General Intangibles, including, without ‎limitation, all of Borrower's cash, money, warehouse receipts,
bills of lading, purchase orders, ‎letters of credit, letter of credit rights, any client lists, any and all trade secrets,
receipts of any ‎kind or nature, documents, contracts and contract rights, invoices, licenses, insurance, and ‎other
tangible or intangible property of Borrower resulting from the sale or disposition of all of ‎the foregoing, and all other
personal property (including, without limitation, all of Borrower's ‎money, all personal property now or at any time in
the future in Lender's possession and credit ‎balances); and all returned or repossessed goods which, on sale or lease,
resulted in an ‎account or chattel paper.‎

 

(b)         
‎All Inventory, including all materials, work in process and finished goods.‎

 

(c)         
‎All Equipment, including all machinery, furniture, and fixtures of every ‎type now owned or hereafter
acquired by Borrower.‎

 

(d)         
‎All of Borrower's deposit accounts with Lender. The Collateral shall ‎include any renewals or rollovers
of the deposit accounts, any successor accounts, and any ‎general intangibles and choses in action arising therefrom or
related thereto.‎

 

(e)         
‎All instruments, notes, chattel paper, documents, certificates of deposit, ‎securities and investment
property of every type. The Collateral shall include all liens, security ‎agreements, leases and other contracts securing
or otherwise relating to the foregoing.‎

 

(f)          
‎‎(i) All patents, and all unpatented or unpatentable inventions; (ii) all‎ trademarks, service
marks, and trade names; (iii) all copyrights and literary rights; (iv) all ‎computer software programs; (v) all mask works
of semiconductor chip products; (vi) all trade ‎secrets, proprietary information, customer lists, manufacturing, engineering
and production ‎plans, drawings, specifications, processes and systems. The Collateral shall include all good ‎will
connected with or symbolized by any of such general intangibles; all contract rights, ‎documents, applications, licenses,
materials and other matters related to such general ‎intangibles; all tangible property embodying or incorporating any such
general intangibles; and ‎all chattel paper and instruments relating to such general intangibles.‎

 

     15

     

    

 

(g)         
 ‎All negotiable and nonnegotiable documents of title covering any ‎Collateral.‎

 

(h)         
‎All accessions, attachments and other additions to the Collateral , and all ‎tools, parts and equipment
used in connection with the Collateral.‎

 

(i)           
‎All Supporting Obligations related to any of the foregoing;‎

 

(j)           
‎All substitutes or replacements for any Collateral, all cash or non-cash ‎proceeds, product, rents
and profits of any Collateral, all income, benefits and property ‎receivable on account of the Collateral, all rights under
warranties and insurance contracts, ‎letters of credit, guaranties or other supporting obligations covering the Collateral,
and any ‎causes of action relating to the Collateral.‎

 

(k)         
‎All books and records related to any of the foregoing including but not ‎limited to any computer-readable
memory and any computer hardware or software necessary ‎to process such memory.‎

 

(l)           
‎‎(all of the foregoing, together with all other property in which Lender‎ may now or in the future
be granted a lien or security interest, is referred to herein, collectively, ‎as the "Collateral"). Collateral
shall not include any asset which on the Borrower's books and ‎records Borrower is holding in trust for third persons.‎

 

5.3        
‎Perfection.‎

 

(a)         
‎Lender may file or amend one or more financing statements disclosing ‎Lender's security interest in
the Collateral. Borrower agrees that a photographic, photostatic or ‎other reproduction of this Agreement or of a financing
statement is sufficient as a financing ‎statement. Borrower approves, authorizes and ratifies any filings or recordings
made by or on ‎behalf of Lender in connection with the perfection and continuation of Lender's security interest ‎with
respect to the Collateral.‎

 

(b)         
‎Lender may file UCC-1 financing statements against specific items of ‎Equipment, (or amend existing
UCC-1 financing statements) in Lender's sole discretion, and ‎Borrower agrees to furnish to Lender sufficient identifying
information, such as make, model ‎and serial numbers, as Lender may request. Lender may also file a fixture filing in the
real ‎property records of the applicable county in California, to perfect its security interest in such ‎items
of Equipment as are or become fixtures.‎

 

(c)         
‎Upon demand, Borrower will deliver to Lender such other items of ‎Collateral or will execute such documents
as are appropriate to grant Lender possession or ‎control of such Collateral as necessary to further perfect Lender's security
interest therein.‎

 

     16

     

    

 

6.           
 ‎CONDITIONS PRECEDENT.‎

 

6.1        
‎Conditions to Initial Advance. The Loan will close subject to each, every and all of the following conditions having
occurred to the satisfaction of Lender:‎

 

(a)         
‎Accuracy of Representations and Warranties; No .Default. The ‎representations and warranties
contained in Sections ‎7 and ‎8 below shall have been true and correct when made and shall be true and correct
on and as of the Closing Date; and on ‎the Closing Date, no Event of Default and no Potential Default shall have occurred
and be ‎continuing.‎

 

(b)         
‎Documents and Agreements. Borrower shall deliver to Lender the ‎following documents, in form
and substance satisfactory to Lender in its sole and absolute ‎discretion:‎

 

(i)           
‎An executed original of this Agreement;‎

 

(ii)         
‎The Note;‎

 

(iii)        
‎A Borrowing Base Certificate, showing borrowing availability ‎pursuant to the terms hereof;‎

 

(iv)        
‎A Guaranty from each Guarantor;‎

 

(v)         
‎Such other documents, instruments and information as Lender ‎shall require.‎

 

(c)         
‎Priority of Lender's Liens. Lender shall have received the results of "of ‎record"
searches satisfactory to Lender in its sole and absolute discretion, reflecting its ‎Uniform Commercial Code filing against
Borrower indicating that Lender has a perfected, first ‎priority lien in and upon all of the Collateral, subject only to
such Permitted Liens which are also ‎permitted to be senior to the lien of Lender.‎

 

(d)         
‎Insurance. Lender shall have received copies of the insurance binders or ‎certificates evidencing
Borrower's compliance with Section ‎9.2 of this Agreement, including ‎lender's loss payee endorsements.‎

 

(e)         
‎Organizational Documents. Lender shall have received copies of ‎Borrower's articles of incorporation
or articles of organization, as applicable, and all ‎amendments thereto, and a certificate of good standing (each certified
by the California ‎Secretary of State, and dated a recent date prior to the Closing Date), and Lender shall have ‎received
Certificates of Foreign Qualification for Borrower from the Secretary of State of each ‎state wherein the failure to be
so qualified could have a Material Adverse Effect.‎

 

     17

     

    

 

(f)          
 ‎Certified Resolutions/Authorizations. Lender shall have received (i) ‎copies of Borrower's by-laws
or operating agreement, as applicable, and all amendments ‎thereto, and (ii) copies of the resolutions of the board of directors
of Borrower or authorization ‎of the managers of Borrower, as applicable, authorizing the execution and delivery of this
‎Agreement, and the other documents contemplated hereby, and authorizing the transactions ‎contemplated hereunder
and thereunder, and authorizing specific officers or managers of ‎Borrower to execute the same on behalf of Borrower certified
by the Secretary or other ‎acceptable officer, or the manager, as applicable, of Borrower as of the Closing Date.‎

 

(g)         
‎Landlord Waivers. If required by Lender, Lender shall have received duly ‎executed landlord
waivers and access agreements, in form and substance satisfactory to ‎Lender, in Lender's sole and absolute discretion,
and, when deemed appropriate by Lender, in ‎form for recording in the appropriate recording office, with respect to all
leased locations where ‎Borrower maintains any Collateral.‎

 

(h)         
‎Third Party Custody. In the event that any Collateral is in the possession ‎of a third party,
Borrower shall join with Lender in notifying such third party of Lender's security ‎interest and obtaining an acknowledgement
from such third party that it is holding such ‎Collateral for the benefit of Lender.‎

 

(i)           
‎Permits and Approvals. Verification and approval of all permits, ‎approvals and authorizations
required to pledge the Collateral to Lender.‎

 

(j)           
‎Fees. Borrower shall have paid all Fees and Costs payable by Borrower ‎hereunder, including
the Loan Fee due on the Closing Date, legal fees and costs incurred by ‎Lender in connection with the preparation, negotiation
and closing of this Agreement.‎

 

(k)         
‎Field Audit. If required by Lender, review and approval of field audit of ‎Borrower verifying
methodology and valuation of accounts receivable and inventory, ‎performed by an agent designated by Lender, all to the
satisfaction of Lender in its sole opinion ‎and judgment.‎

 

(l)           
‎Borrower's Financial Statements. Review and approval of Borrower's ‎latest year to date month-end
internally prepared consolidated financial statements and tax ‎returns (with all forms K-1 attached), together with the
similar dated aged accounts receivable ‎and inventory reports, and any other financial statements and reports as required
by Lender.‎

 

(m)       
‎Other Documents and Agreements. Lender shall have received such ‎other agreements, instruments
and documents as Lender may require in connection with the ‎transactions contemplated hereby, all in form and substance
satisfactory to Lender in Lender's ‎sole and absolute discretion, and in form for filing in the appropriate filing office,
including, but ‎not limited to, those documents listed in Section ‎6.1(c).‎

 

     18

     

    

 

6.2        
‎Conditions to all Advances. The obligation of Lender to make any Advance to ‎Borrower (including the initial
Advance) is further subject to and contingent upon the fulfillment ‎of each of the following conditions to the satisfaction
of Lender:‎

 

(a)         
‎The fact that, immediately before and after the making of any Advance, ‎no Event of Default or Default
shall have occurred or be continuing; and

 

(b)         
‎The fact that the representations and warranties of Borrower contained in ‎this Agreement shall be
true and correct on and as of the date of such borrowing. ‎

 

7.           
‎REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER. In
order to induce Lender to enter into this Agreement and to make the Advances, Borrower ‎represents
and warrants to Lender as follows, and Borrower covenants that the following ‎representations
will continue to be true, and that Borrower will at all times comply with all of the ‎following
covenants:‎

 

7.1        
‎State of Organization, Existence and Authority.‎

 

(a)         
‎Borrower is and will continue to be, duly organized, validly existing and in ‎good standing under the
laws of the State of California. Borrower has all requisite corporate ‎power and authority to own and operate its properties
and to carry on its business as now ‎conducted and as presently planned to be conducted. Borrower is and will continue to
be ‎qualified and licensed to do business in California and all jurisdictions in which any failure to do ‎so
would have a Material Adverse Effect.‎

 

(b)         
‎Borrower is not in violation of any term of any of its organizational ‎documents, agreement or instrument
to which Borrower is a party or by which it or any of its ‎properties (now or hereafter acquired) may be bound (except for
violations which in the ‎aggregate do not have a Material Adverse Effect).‎

 

(c)         
‎The execution, delivery and performance by Borrower of this ‎Agreement, and all other documents contemplated
hereby, and the creation of the lien granted ‎under this Agreement: (i) have been duly and validly authorized, (ii) create
legal, valid and ‎binding obligations of Borrower enforceable against Borrower in accordance with their terms ‎‎(except
as enforcement may be limited by equitable principles and by bankruptcy, insolvency, ‎reorganization, moratorium or similar
laws relating to creditors' rights generally), (iii) do not ‎violate Borrower's articles or certificate of incorporation,
or Borrower's by-laws, or any law ‎which is binding upon Borrower or its property, (iv) do not constitute a breach of, or
grounds for ‎acceleration of, any material indebtedness or obligation under any material agreement or ‎instrument
which is binding upon Borrower or its property and (v) do not require any consent, ‎approval, license exemption or other
action by any Official Body or any other person or entity ‎except such as have already been given or shall be obtained on
or before the Closing Date.‎

 

     19

     

    

 

7.2        
‎Name; Trade Names and Styles. The name of Borrower set forth in the ‎heading to this Agreement is its
correct name. All prior names of Borrower and all of ‎Borrower's present and prior trade names are listed on Exhibit "B"
attached hereto. Borrower ‎shall give Lender thirty (30) days' prior written notice before changing its name or doing ‎business
under any other trade name. Borrower has complied, and will in the future comply, ‎with all laws relating to the conduct
of business under a fictitious business name.‎

 

7.3        
‎Place of Business; Location of Collateral. Borrower's address set forth in ‎Section ‎11.4
hereof is the address and location of Borrower's chief executive office. In ‎addition, Borrower has places of business and
tangible Collateral located only at the locations ‎set forth on Exhibit "C" attached hereto. Borrower will give
Lender at least thirty (30) days' prior ‎written notice before opening any additional place of business, changing its chief
executive office, or moving any of the Collateral to a location other than Borrower's ‎address set forth in Section ‎11.4
or one of the locations set forth on Exhibit C" hereto.‎

 

7.4        
‎Title to Collateral; Permitted Liens. Borrower is now, and will at all times in ‎the future, be the sole
owner of all the Collateral. Borrower has rights in and the power to ‎transfer the Collateral. The Collateral is now, and
will remain, free and clear of any and all ‎liens, charges, security interests, encumbrances and adverse claims, except
for Permitted ‎Liens. Lender has now, and will continue to have, a first-priority perfected and enforceable ‎security
interest in all of the Collateral, subject only to the Permitted Liens which are also ‎permitted to be senior to the lien
of Lender, and Borrower will at all times defend Lender and ‎the Collateral against all claims of others. Borrower is not
and will not become a lessee under ‎any real property lease which does, or will, prohibit, restrain, impair Borrower's right
to remove ‎any Collateral from the leased premises. Borrower will keep in full force and effect, and will ‎comply
with all the terms of, any lease of real property where any of the Collateral now or in ‎the future may be located.‎

 

7.5        
‎Maintenance of Collateral. Borrower will maintain the Collateral consisting of ‎Equipment in good working
condition, and Borrower will not use the Collateral for any unlawful ‎purpose. Borrower will immediately advise Lender in
writing of any material loss or damage to ‎the Collateral.‎

 

     20

     

    

 

7.6        
 ‎Books and Records. Borrower has maintained and will maintain at Borrower's ‎Address complete and accurate
books and records, comprising an accounting system in ‎accordance with GAAP.‎

 

7.7        
‎Financial Condition, Statements and Reports. All financial statements now ‎or in the future delivered
to Lender have been, and will be, prepared in conformity with GAAP ‎‎(except, in the case of unaudited financial statements,
for the absence of footnotes and ‎subject to normal year-end adjustments) and now and in the future will fairly reflect
the ‎financial condition of Borrower, at the times and for the periods therein stated. Between the last ‎date
covered by any such statement provided to Lender and the date hereof, there has been ‎no Material Adverse Effect. Borrower
is now and will continue to be Solvent.‎

 

7.8        
‎Tax Returns and Payments; Pension Contributions. Borrower has timely ‎filed, and will timely file, all
tax returns and reports required by foreign, federal, state and local ‎law; and Borrower has timely paid, and will timely
pay, all foreign, federal, state and local ‎taxes, assessments, deposits and contributions now or in the future owed by
Borrower. As of ‎the date hereof, Borrower is unaware of any claims or adjustments proposed for any of ‎Borrower's
prior tax years which could result in additional taxes becoming due and payable by ‎Borrower. To the best of Borrower's
knowledge, Borrower has paid, and shall continue to pay ‎all amounts necessary to fund all present and future pension, profit
sharing and deferred ‎compensation plans in accordance with their terms; and Borrower has not and will not ‎withdraw
from participation in, permit partial or complete termination of, or permit the ‎occurrence of any other event with respect
to, any such plan which could result in any liability of Borrower, including any liability to the Pension Benefit ‎Guaranty
Corporation or its successors or any other governmental agency.‎

 

7.9        
‎Compliance with Law. Borrower has complied, and will comply, in all material ‎respects, with all provisions
of all material foreign, federal, state and local laws and regulations ‎relating to Borrower, including, but not limited
to, the Fair Labor Standards Act, and those ‎relating to Borrower's ownership of real or personal property, the conduct
and licensing of ‎Borrower's business, and environmental matters.‎

 

7.10     
‎Litigation. There is no claim, suit, litigation, proceeding or investigation, ‎pending, or to the best
of Borrower's knowledge, threatened by or against or affecting ‎Borrower in any court or before any governmental agency
(or any basis therefor known to ‎Borrower) which if adversely determined against Borrower would result, either separately
or in ‎the aggregate, in a Material Adverse Effect (collectively, the "Material Litigation"). Borrower will ‎promptly
inform Lender in writing of any Material Litigation.‎

 

     21

     

    

 

7.11     
 ‎No Default. No event has occurred and is continuing and no condition exists ‎which constitutes an Event
of Default or Potential Default.‎

 

7.12     
‎No Advice. Borrower is not relying on Lender, Lender's agents, or Lender's ‎consultants or attorneys as
to the legal sufficiency, legal effect or tax consequences of this ‎Agreement or the acquisition of assets relating hereto.‎

 

7.13     
‎Continuing Warranties. Borrower's representations and warranties set forth in ‎this Agreement shall be
true and correct at the time of execution of this Agreement and as of ‎the Closing Date and shall survive the Closing Date
and shall remain true and correct as of the ‎date given.‎

 

8.           
‎RECEIVABLES / ACCOUNTS.‎

 

8.1        
‎Representations Relating to Documents and Legal Compliance.‎ Borrower represents and warrants to Lender as follows:‎

 

(a)         
‎All statements made and all unpaid balances appearing in all invoices, ‎instruments and other documents
evidencing the Accounts are and shall be true and correct in ‎all material respects and all such invoices, instruments and
other documents and all of ‎Borrower's books and records are and shall be genuine and in all respects what they purport
to ‎be.‎

 

(b)         
‎All sales and other transactions underlying or giving rise to each Account ‎shall fully comply with
all applicable laws and governmental rules and regulations.‎

 

(c)         
‎All documents, instruments, and agreements relating to all Accounts are ‎and shall be legally enforceable
in accordance with their terms.‎

 

8.2        
‎Account Debtor Notifications. Borrower agrees and understands that this Loan shall be on a notification basis pursuant
to which Lender shall directly collect and receive all proceeds and payments from the Accounts in which Lender has a security interest.
‎In order to facilitate the foregoing, Borrower agrees to deliver to Lender, upon demand, any ‎and all of Borrower's
records, ledger sheets, payment cards, and other documentation, in the ‎form requested by Lender, with regard to the Accounts.
Borrower further agrees that Lender ‎shall have the right to notify each Account Debtor, pay such proceeds and payments
directly ‎to Lender, and to do any and all other things as Lender may deem to be necessary and ‎appropriate,
within its sole discretion, to carry out the terms and intent of this Agreement. ‎Lender shall have the further right, where
appropriate and within Lender's sole discretion, to file ‎suit, either in its own name or in the name of Borrower, to collect
any and all such Accounts. ‎Borrower further agrees that Lender may take such other actions, either in Borrower's name or
‎Lender's name, as Lender may deem appropriate and within its sole judgment, with regard to ‎collection and
payment of the Accounts, without affecting the liability of Borrower under this ‎Agreement or on the Indebtedness.‎

 

     22

     

    

 

8.3        
‎Verification. Lender may conduct monthly verifications of the outstanding ‎balances of the account debtors
to ensure accuracy of the aging and validity of the balances ‎or the Collateral. Lender shall conduct verification requests
from balances based on the most ‎recent reporting period account receivables aging report. Any discrepancy found in such
‎verification shall be treated as an ineligible item for the purpose of calculating the borrowing ‎base unless
Lender decides otherwise in its sole discretion.‎

 

8.4        
‎Lock Box. Borrower agrees that Lender may at any time require Borrower to ‎institute procedures whereby
the payments and other proceeds of the Accounts shall be paid ‎by the Account Debtors under a remittance account or lock
box arrangement with Lender, or ‎Lender's agent, or with one or more financial institutions designated by Lender. Borrower
‎further agrees that, if no Event of Default exists under this Agreement, any and all of such ‎funds received
under such a remittance account or lock box arrangement shall, at Lender's ‎sole election and discretion, either be (1)
paid or turned over to Borrower; (2) deposited into ‎one or more accounts for the benefit of Borrower (which deposit accounts
shall be subject to a ‎security assignment in favor of Lender); (3) deposited into one or more accounts for the joint ‎benefit
of Borrower and Lender (which deposit accounts shall likewise be subject to a security ‎assignment in favor of Lender; (4)
paid or turned over to Lender to be applied to the ‎Indebtedness in such order and priority as Lender may determine within
its sole discretion; or ‎‎(5) any combination of the foregoing as Lender shall determine from time to time. Borrower
‎further agrees that, should one or more Events of Default exist, any and all funds received ‎under such a
remittance account or lock box arrangement shall be paid or turned over to ‎Lender to be applied to the Indebtedness, again
in such order and priority as Lender may ‎determine within its sole discretion.‎

 

9.           
‎ADDITIONAL COVENANTS OF THE BORROWER.‎

 

9.1        
‎Financial and Other Covenants. Borrower shall at all times comply with the ‎following covenants:‎

 

(a)         
‎Operating Account. Borrower agrees to maintain Borrower's Operating ‎Account with Lender or
any banking affiliate of Lender and keep such account at all times in ‎good standing If Borrower does not maintain a separate
operating account for its operations, ‎but rather its operations are primarily administered through an operating account
of Borrower's ‎parent or affiliate, then Borrower agrees to cause such parent or affiliate to maintain its primary ‎operating
account with Lender or any banking affiliate of Lender. Borrower shall also provide ‎specific authorization to Lender to
debit Borrower's Operating Account for payments and fees ‎due in connection with documentary credit financings, collections,
loans and advances, if ‎applicable, as they become due and payable.‎

 

(b)         
‎Minimum Debt Service Coverage Ratio. Borrower shall maintain a ‎minimum Debt Service Coverage
Ratio of at least 1.50 to 1.00, which shall be measured ‎quarterly, beginning with the calendar quarter ending March 31,
2022.‎

 

     23

     

    

 

 

9.2          ‎Insurance.
Borrower shall, at all times, insure all of the tangible personal property ‎Collateral and carry such other business
insurance, with insurers reasonably acceptable to ‎Lender, in such form and amounts as Lender may reasonably require (including,
without ‎limitation, credit insurance), and Borrower shall provide evidence of such insurance to Lender, ‎so
that Lender is satisfied that such insurance is, at all times, in full force and effect. All liability ‎insurance policies
of Borrower with respect to the Collateral shall name Lender as an additional ‎insured, and all property, casualty and related
insurance policies of Borrower with respect to ‎the Collateral shall name Lender as a loss payee thereon and Borrower shall
cause the ‎issuance of a lender's loss payee endorsement in form reasonably acceptable to Lender. Upon ‎receipt
of the proceeds of any such insurance, Lender, at its sole option, either (i) shall apply ‎such proceeds to the prepayment
of the Obligations in such order or manner as Lender may ‎elect, or (ii) shall disburse such proceeds to Borrower for application
to the cost of repairs, ‎replacements, or restorations. All repairs, replacements or restorations shall be effected with
‎reasonable promptness and shall be of a value at least equal to the value of the items or ‎property destroyed
prior to such damage or destruction. Lender may require reasonable ‎assurance that the insurance proceeds so released will
be so used. If Borrower fails to provide ‎or pay for any insurance, Lender may, but is not obligated to, obtain the same
at Borrower's ‎expense. Borrower shall give Lender no less than thirty (30) days written notice of any ‎cancellation
of any insurance required hereunder and shall promptly forward any Notice of ‎Cancellation it receives from any of its insurers.‎

 

9.3         
‎Reports. Borrower, at its expense, shall provide Lender (or cause Guarantor to ‎provide to Lender) with
the written reports set forth below, (all in form, substance and detail ‎satisfactory to Lender) by the dates specified:‎

 

(a)         
‎As soon as available but in no event later than forty-five (45) days ‎following the end of each calendar
quarter, commencing with the calendar month ending ‎January 31, 2022, Borrower shall deliver to Lender (i) an accounts receivable
aging report as ‎of the last day of the prior calendar month, and (ii) an accounts payable aging report as of the ‎last
day of the prior calendar month, accompanied by any and all supporting documentation requested by Lender in its sole and absolute discretion,
duly certified by ‎Borrower's authorized signatory.‎

 

    24 

     

    

 

(b)         
‎As soon as available but in no event later than sixty (60) days following ‎the end of each calendar
quarter, commencing with the calendar quarter ending December ‎‎31, 2021, Borrower shall deliver to Lender company
prepared consolidated and consolidating ‎quarterly financial statements of Borrower.‎

 

(c)         
‎As soon as available but in no event later than forty-five (45) days ‎following the end of each calendar
quarter, commencing with the calendar quarter ending ‎June 30, 2021, Borrower shall deliver to Lender its Borrowing Base
Certificate.‎

 

(d)         
‎As soon as available but in no event later than one hundred fifty (150) ‎days following the end of
Borrower's fiscal year, a detailed customer address listing report for ‎that fiscal year, including the customer's name,
address, telephone number and such other ‎information required by Lender.‎

 

(e)         
‎As soon as available, and in no event later than one hundred fifty (150) ‎days after the end of Borrower's
fiscal year, commencing with the fiscal year ending ‎December 31, 2021, Borrower shall deliver to Lender annual consolidated
financial statements ‎of Borrower audited by an independent certified public accountant acceptable to Lender.‎

 

(f)          
‎Commencing with the 2020 tax year, as soon as available, and in no ‎event later than 30 days after
filing, Borrower shall deliver to Lender true and correct copies of ‎Borrower's Federal income tax returns (including all
schedules and attachments) of Borrower ‎‎(and copies of any filing extensions) prepared by an independent certified
public accountant ‎acceptable to Lender.‎

 

(g)         
‎No later than forty-five (45) calendar days following the end of each ‎period, Borrower shall deliver
to Lender (i) quarterly royalty reports from each of Microsoft, ‎Sony and Valve, beginning with the calendar quarter ending
June 30, 2021, and (ii) If required ‎by Bank, within twenty (20) days of Bank's request, Borrower shall provide monthly
bank ‎statements describing any and all royalty payments from Microsoft and Sony for the prior time ‎period.
The royalty reports submitted to Lender shall contain supporting bank statements.‎

 

(h)         
‎Borrower shall, during normal business hours, from time to time upon two ‎‎(2) Business Days'
prior notice as frequently as Lender reasonably determines to be ‎appropriate, but in no event less than once each year:
(a) provide Lender and its officers, ‎employees and agents access to its properties, facilities, advisors, officers and
employees of ‎Borrower and to the Collateral of Borrower, and (b) permit Lender and any of its officers, ‎employees
and agents, to inspect, audit and make extracts from Borrower's books and ‎records. Borrower shall, during normal business
hours, from time to time upon two (2) ‎Business Days' prior notice permit Lender and its officers, employees and agents,
to inspect, ‎review, evaluate and make test verifications and counts for the Accounts, Inventory and other ‎Collateral
of Borrower. If an Event of Default has occurred and is ‎continuing, Borrower shall provide such access to Lender at all
times and without advance ‎notice. Furthermore, so long as any Event of Default has occurred and is continuing, Borrower
‎shall provide Lender with access to each of its suppliers and customers. Borrower shall make ‎available to
Lender and its counsel reasonably promptly originals or copies of all books and ‎records that Lender may reasonably request.
Borrower shall delivery any document or ‎instrument necessary for Lender as it may from time to time reasonably request,
to obtain ‎records from any service bureau or other Person that maintains records for Borrower, and ‎shall
maintain duplicate records or supporting documentation on media, including computer ‎tapes and discs owned by Borrower.
Lender will give Borrower at least two (2) days' prior ‎written notice of regularly scheduled audits.‎

 

    25 

     

    

 

(i)           
‎Promptly upon Lender's request, such other books, records, statements, ‎lists of property and accounts,
budgets, forecasts or reports as to Borrower as Lender may ‎reasonably request.‎

 

9.4        
‎Information.‎

 

(a)         
‎Borrower shall also furnish, or cause to be furnished, to Lender such ‎additional information as Lender
may from time to time reasonably request concerning ‎Borrower's business, and/or financial condition, or any item of Collateral.‎

 

(b)         
‎Promptly upon Borrower becoming aware of any Event of Default or ‎Potential Default, Borrower shall
give Lender notice thereof, together with a written statement ‎setting forth the nature thereof and the steps which Borrower
has taken or is taking to cure the ‎same.‎

 

(c)         
‎Promptly upon Borrower becoming aware thereof, Borrower shall give ‎Lender written notice of: (i) any
Material Adverse Effect and (ii) the commencement or ‎existence of any proceeding by or before any Official Body against
or affecting Borrower ‎which is reasonably likely to be adversely determined and, if adversely decided, would have a ‎Material
Adverse Effect.‎

 

9.5         
‎Access to Books and Records and Collateral.‎

 

(a)         
‎Borrower agrees to reimburse Lender immediately upon demand for all ‎fees and out-of-pocket expenses
for field exams and audits incurred as the result of the ‎occurrence of an Event of Default which is continuing.‎

 

(b)         
‎Borrower will not enter into any agreement with any accounting firm, ‎service bureau or third party
to store Borrower's books or records at any location other than ‎the location identified in Section ‎11.4 hereof
without first notifying Lender of the same and ‎obtaining the written agreement from such accounting firm, service bureau
or other third party ‎to give Lender the same rights with respect to access to books and records and related rights ‎as
Lender has under this Agreement.‎

 

    26 

     

    

 

9.6         
‎Negative Covenants. Borrower shall not, without Lender's prior written consent, ‎do any of the following:‎

 

(a)         
‎create, incur, assume or permit to exist any indebtedness or liabilities ‎resulting from borrowings,
guaranties, leasing, loans or advances, whether secured or ‎unsecured, matured or un-matured, liquidated or unliquidated,
direct or contingent, joint or ‎several, except the liabilities of Borrower to Lender, and any other liabilities of Borrower
‎existing as of, and disclosed to Lender prior to, the date of this Agreement;‎

 

(b)         
‎loan, invest in, or advance money or assets to any other person, ‎enterprise or entity other than any
loan, investment or advance to Borrower's affiliates and ‎subsidiaries;‎

 

(c)         
‎purchase, create or acquire any interest in any other enterprise or entity ‎other than any purchase,
creation or acquisition of interests in Borrower's affiliates and ‎subsidiaries;‎

 

(d)         
‎incur any obligation as surety or guarantor other than in the ordinary ‎course of business;‎

 

(e)         
‎use any of the proceeds extended pursuant to this Agreement except for the purposes stated in this Agreement and
related documents;‎

 

(f)          ‎declare
or pay any dividends or other distributions with respect to, ‎purchase, redeem, or otherwise acquire for value any of its
outstanding stock, partnership ‎interests or membership interests or return any capital of its shareholders, partners, members
‎or managers without Lender's prior written consent;‎

 

(g)         
‎merge or consolidate with another entity;‎

 

(h)         
‎make any substantial change in the nature of Borrower's business as ‎conducted as of the date hereof;‎

 

(i)           
‎acquire all or substantially all of the assets of any other entity;‎

 

(j)           ‎sell,
transfer, assign, lease, license, or dispose of, all or a substantial or material portion of Borrower's assets, except in the ordinary
course of its business;‎

 

(k)         
‎mortgage, pledge, grant or permit to exist a security interest in, or lien ‎upon, all or any portion
of Borrower's assets owned as of the date of this Agreement or ‎hereafter acquired, or accelerate payment on any existing
debt, except any of the foregoing in ‎favor of Lender or which is existing as of, and disclosed to Lender in writing prior
to, the date of ‎this Agreement;‎

 

    27 

     

    

 

(l)           
‎make any change in Borrower's capital structure which would have a ‎Material Adverse Effect;‎

 

(m)       
‎dissolve or elect to dissolve;‎

 

(n)         
‎change the state of its incorporation; ‎

 

(o)         
‎change its legal name; or

 

(p)         
‎use the loan proceeds for any purpose other than as set forth in this ‎Agreement.‎

 

(q)         
‎Transactions permitted by the foregoing provisions of this Section are ‎only permitted if no Potential
Default or Event of Default is continuing or would occur as a ‎result of such transaction.‎

 

9.7         
‎Litigation Cooperation. Borrower shall promptly inform Lender in writing of ‎any proceedings (whether
or not purportedly on behalf of Borrower) against Borrower involving ‎an amount in excess of $150,000.00. Should any third-party
suit or proceeding be instituted by ‎or against Lender with respect to any Collateral or relating to Borrower, Borrower
shall, without ‎expense to Lender, make available Borrower and its officers, employees and agents and ‎Borrower's
books and records, to the extent that Lender may deem them reasonably ‎necessary in order to prosecute or defend any such
suit or proceeding.‎

 

9.8         
‎Further Assurances. Borrower agrees, at its expense, on request by Lender, to ‎execute all documents and
take all actions, as Lender, may deem reasonably necessary or ‎useful in order to perfect and maintain Lender's perfected
security interest in the Collateral, ‎and in order to fully consummate the transactions contemplated by this Agreement.‎

 

9.9         
‎Operating Account. Until such time as all of Borrower's Advances have been ‎paid in full and this Agreement
has been terminated, Borrower agrees to maintain Borrower's ‎Operating Account at Lender. Borrower authorizes Lender to
automatically deduct all ‎payments required to be made by this Agreement from Borrower's Operating Account.‎

 

9.10      
‎Field Audits. Borrower shall permit Lender, on ten (10) Business Days' prior ‎notice, to conduct a field
audit of Borrower verifying Borrower's methodology and valuation of ‎the Accounts, Inventory and other Collateral of Borrower,
performed by an agent designated ‎by Lender, all to the satisfaction of Lender in its sole opinion and judgment. In addition,
‎Borrower shall, during normal business hours, from time to time upon ten (10) Business Days ‎prior notice:
(a) provide Lender and any of its officers, employees and agents access to its ‎properties, facilities, advisors, officers
and employees of Borrower and to the Collateral of ‎Borrower, and (b) permit Lender and any of its officers, employees and
agents to inspect, audit ‎and make extracts from Borrower's books and records. Borrower shall, during normal ‎business
hours, from time to time upon one (1) Business Days prior notice permit Lender, and ‎its officers, employees and agents,
to inspect, review, evaluate and make test verifications and ‎counts for the Accounts, Inventory and other Collateral of
Borrower. If an Event of Default has ‎occurred and is continuing, Borrower shall, at Borrower's expense, provide such access
to ‎Lender at all times and without advance notice. Furthermore, so long as any Event of Default ‎has occurred
and is continuing, Borrower shall provide Lender with access to each of its ‎suppliers and customers. Borrower shall reasonably
promptly make available to Lender and its counsel originals or copies of all books and records that Lender may reasonably ‎request.
Borrower shall deliver any document or instrument necessary for Lender as it may ‎from time to time reasonably request,
to obtain records from any service bureau or other ‎Person that maintains records for Borrower, and shall maintain duplicate
records or supporting ‎documentation on media, including computer tapes and discs owned by Borrower. Lender will ‎give
Borrower at least ten (10) Business Days' prior written notice of regularly scheduled field ‎audits. Borrower shall reimburse
Lender for any cost incurred for such field audits. Unless an ‎Event of Default has occurred, Borrower shall be responsible
for the cost of any such audit ‎one (1) time each year and, in no event, at a cost not to exceed $300.00. Borrower hereby
‎authorized Lender to debit (without offset) any such cost from Borrower's primary operating ‎account with
Lender. In the event that Lender deems the results of any such audit to be ‎unsatisfactory, in Lender's sole opinion and
judgment, then in such event, Lender may declare ‎an Event of Default and terminate the Revolving Line of Credit.‎

 

    28 

     

    

 

9.11       
‎Terrorism and Anti-Money Laundering. Borrower warrants and agrees as follows:‎

 

(a)         
‎As of the date hereof and throughout the term of the Loan: (i) Borrower; (ii) any Person controlling or controlled
by Borrower; (iii) if Borrower is a privately held entity, ‎any Person having a beneficial interest in Borrower; or (iv)
any Person for whom Borrower is ‎acting as agent or nominee in connection with this transaction, is not an OFAC Prohibited
‎Person.‎

 

(b)         
‎To comply with applicable U.S. Anti-Money Laundering Laws and ‎regulations, all payments by Borrower
to Lender or from Lender to Borrower will only be made ‎in Borrower's name and to and from a bank account of a bank based
or incorporated in or ‎formed under the laws of the United States or a bank that is not a "foreign shell bank"
within ‎the meaning of the U.S. Bank Secrecy Act (31 U.S.C. § 5311 et seq.), as amended, and the ‎regulations
promulgated thereunder by the U.S. Department of the Treasury, as such ‎regulations may be amended from time to time.‎

 

(c)         
‎To provide Lender at any time and from time to time during the term of ‎the Loan with such information
as Lender determines to be necessary or appropriate to comply ‎with the Anti-Money Laundering Laws and regulations of any
applicable jurisdiction, or to ‎respond to requests for information concerning the identity of Borrower, any Person controlling
‎or controlled by Borrower or any Person having a beneficial interest in Borrower, from any ‎governmental authority,
self-regulatory organization or financial institution in connection with its ‎anti-money laundering compliance procedures,
or to update such information.‎

 

(d)         
‎The representations and warranties set forth in this Section ‎9.11 shall be ‎deemed repeated
and reaffirmed by Borrower as of each date that Borrower makes a ‎payment to Lender under this Agreement and the Other Documents
or receives any payment ‎from Lender. Borrower agrees promptly to notify Lender in writing should Borrower become ‎aware
of any change in the information set forth in these representations. ‎

 

10.          
‎EVENTS OF DEFAULT AND REMEDIES.‎

 

10.1     
‎Events of Default. The occurrence of any of the following events shall constitute ‎an "Event of Default"
under this Agreement:‎

 

(a)         
‎Borrower shall fail to pay any amounts owed under this Agreement or ‎any interest thereon or any other
monetary Obligation; or

 

(b)         
‎Borrower shall fail to provide to Lender any notices or financial reports ‎specified in this Agreement;
or

 

(c)         
‎Borrower shall fail to perform any other non-monetary ‎Obligation; or

 

(d)         
‎Any warranty, representation, statement, report or certificate made or ‎delivered to Lender by Borrower
or any of Borrower's officers, employees or agents, now or in ‎the future, shall be untrue or misleading and results in
a Material Adverse Effect; or

 

(e)         
‎Borrower shall fail to give Lender access to its books and records or the ‎Collateral as provided herein,
or shall breach any negative covenant set forth in Section ‎9.6 ‎above; or

 

(f)          
‎Borrower shall fail to comply with the financial covenants (if any) set ‎forth in Section ‎9.1
or shall fail to perform any other non-monetary Obligation which by its ‎nature cannot be cured; or

 

    29 

     

    

 

(g)         
‎Any levy, assessment, attachment, seizure, lien or encumbrance (other ‎than a Permitted Lien) is made
on all or any part of the Collateral; or

 

(h)         ‎Any
default or event of default occurs under any obligation secured by a ‎Permitted Lien, which is not cured within any applicable
cure period or waived in writing by the ‎holder of the Permitted Lien; or

 

(i)           ‎Borrower
breaches any material contract, lease or other obligation, which ‎has or may reasonably be expected to have a Material Adverse
Effect; or

 

(j)           ‎Dissolution,
termination of existence, termination of business, insolvency ‎or business failure of Borrower or Guarantor; or the appointment
of a receiver, trustee or ‎custodian, for all or any part of the other property of Borrower or Guarantor; or the assignment
‎for the benefit of creditors by, or the commencement of any proceeding by Borrower or ‎Guarantor under any
reorganization, bankruptcy, insolvency, arrangement, readjustment of ‎debt, dissolution or liquidation law or statute of
any jurisdiction, now or in the future in effect; or

 

(k)         
Commencement of any proceeding against Borrower or Guarantor ‎under any reorganization, bankruptcy, insolvency, arrangement,
readjustment of debt, ‎dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, which
is ‎not dismissed within sixty (60) days after the date commenced; or ‎

 

(l)           ‎Borrower
shall conceal, remove or transfer any part of its property, with ‎intent to hinder, delay or defraud its creditors, or make
or suffer any transfer of any of its ‎property which would constitute a fraudulent, void or voidable transfer or transaction
under the ‎California Uniform Voidable Transactions Act; or

 

(m)        
‎Revocation or termination of, or limitation or denial of liability upon, any ‎pledge of any material
asset of any kind pledged by any third party to secure any or all of the ‎Obligations, or any attempt to do any of the foregoing,
or commencement of proceedings by ‎or against any such third party under any bankruptcy or insolvency law; or

 

(n)         
‎Borrower makes any payment on account of any indebtedness or ‎obligation which has been subordinated
to the Obligations, other than as permitted in the ‎applicable subordination agreement, or if any Person who has subordinated
such indebtedness ‎or obligations terminates or in any way limits his subordination agreement; or

 

(o)         
‎Borrower shall suffer or experience any Change of Control without ‎Lender's prior written consent,
which consent shall be in the discretion of Lender in the ‎exercise of its reasonable business judgment; or

 

    30 

     

    

 

(p)         
 ‎Lender shall not have a valid first priority security interest in any item of ‎Collateral, except as
to items of Collateral which are subject to Permitted Liens that are also ‎permitted to be prior; or

 

(q)         
‎There is any Material Adverse Effect; or

 

(r)          
‎The Guarantor revokes or attempts to revoke its ‎Guaranty;‎

 

(s)         
‎Borrower, Guarantor or any of their Affiliates fails to comply with or to ‎perform any other term,
obligation, covenant or condition contained in this Agreement or in any ‎of the Other Documents or to comply with or to
perform any term, obligation, covenant or ‎condition contained in any other agreement between Lender and Borrower, Guarantor
or ‎Affiliate of Borrower; or

 

(t)          
‎Borrower, Guarantor or any of their Affiliates commits a breach or ‎default in the payment or performance
of any other obligation of Borrower, Guarantor or such ‎Affiliate under any instrument, agreement, guaranty or document
evidencing, supporting or ‎securing any other loan or credit extended by any other creditor to Borrower, Guarantor, or ‎their
Affiliates, or

 

(u)         
‎Borrower or Guarantor commits a breach or default in the payment or ‎performance of any other obligation
of Borrower or Guarantor, or breaches any warranty or ‎representation of Borrower, under the provisions of any other instrument,
agreement, ‎guaranty, or document evidencing, supporting, or securing any other loan or credit extended ‎by
Lender, or by any affiliate of Lender, to Borrower or Guarantor (said financing is hereinafter ‎referred to as "other
financing"), including, but not limited to, any and all term loans, revolving ‎credits, or flooring lines of credit
extended from time to time to Borrower, or any Person signing this Agreement on behalf of Borrower or Guarantor, or any ‎other
Person with which Borrower or Guarantor is affiliated and is conducting business on the ‎Property; or Borrower causes the
other financing, or any portion thereof, to be refinanced or ‎repaid with funds lent, advanced, paid, or contributed, in
whole or in part, directly or indirectly, ‎by any other commercial lender to or for the benefit of Borrower or Guarantor.
For purposes of ‎this Agreement, the term "commercial lender", shall mean any bank, savings and loan ‎association,
savings association, savings bank, credit union, insurance company, commercial ‎finance lender, and any other person or
entity which engages in the business of lending money ‎for commercial, investment, or business purposes.‎

 

10.2       
‎Remedies. Upon the occurrence and during the continuance of any Event of ‎Default, Lender, at its option,
and without notice or demand of any kind (all of which are ‎hereby expressly waived by Borrower), may do any one or more
of the following:‎

 

(a)         
‎Cease making any Advances under this Agreement or otherwise ‎extending credit to Borrower under this
Agreement or any other document or agreement;‎

 

    31 

     

    

 

(b)         
‎Accelerate and declare all or any part of the Obligations to be ‎immediately due, payable and performable,
notwithstanding any deferred or installment ‎payments allowed by any instrument evidencing or relating to any Obligation;‎

 

(c)         
‎Exercise all rights and remedies available to a secured party under the ‎Code;‎

 

(d)         
‎Take possession of, or obtain the appointment of a receiver to take ‎control of, any or all of the
Collateral wherever it may be found. For that purpose Borrower ‎hereby authorizes Lender and Lender's representatives to
enter onto any of Borrower's ‎premises without interference to take possession of any of the Collateral, and remain on the
‎premises, without charge for so long as Lender deems it reasonably necessary in order to ‎complete the enforcement
of its rights under this Agreement.‎

 

(e)         
‎Require Borrower to assemble any or all of the Collateral and make it ‎available to Lender or Lender's
representatives at places designated by Lender which are ‎reasonably convenient to Lender or Lender's representatives and
Borrower;‎

 

(f)          
‎Complete the processing or repair of any Collateral prior to a disposition ‎thereof; and, for such
purpose and for the purpose of removal, Lender shall have the right to ‎use Borrower's premises, vehicles and other equipment
and all other property without charge. ‎Lender is hereby granted a license or other right to use, without charge, Borrower's
labels, ‎patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, ‎service marks,
as it pertains to the Collateral, in completing production of, advertising for sale, ‎and selling or otherwise disposing
of any Collateral as provided in the Code;‎

 

(g)         
‎Sell, lease, license or otherwise dispose of any of the Collateral as ‎provided in the Code, in its
condition at the time Lender obtains possession of it or after further ‎manufacturing, processing or repair, at one or more
public and/or private dispositions, in lots or in bulk, for cash, exchange or other property, or on credit, and to adjourn ‎any
such sale from time to time without notice other than oral announcement at the time ‎scheduled for sale. Lender shall have
the right to conduct such disposition on Borrower's ‎premises without charge, for such time or times as Lender deems reasonable,
or on Lender's ‎premises, or elsewhere and the Collateral need not be located at the place of disposition. ‎Lender
may directly or through any affiliated company purchase or lease any Collateral at any ‎such public disposition, and if
permissible under applicable law, at any private disposition. Any ‎sale, lease, license or other disposition of Collateral
shall not relieve Borrower of any liability ‎Borrower may have if any Collateral is defective as to title or physical condition
or otherwise at ‎the time of sale;‎

 

    32 

     

    

 

‎(h)         Demand
payment of, and collect any Receivables and General ‎Intangibles comprising Collateral and, in connection therewith, Borrower irrevocably
authorizes ‎Lender to endorse or sign Borrower's name on all collections, receipts, instruments and other ‎documents, and,
in Lender's sole discretion, to grant extensions of time to pay, compromise ‎claims and settle Receivables and the like for less
than face value; and

 

‎(i)          Demand
and receive possession of any of Borrower's federal and state ‎income tax returns and the books and records utilized in the preparation
thereof or referring ‎thereto.‎

 

Notwithstanding
the foregoing, Lender shall not dispose of any trademarks, trade ‎names, copyrights, registrations, licenses, franchises or customer
lists except in connection ‎with foreclosure upon substantially all of Borrower's assets as provided in the Code.‎

 

All
expenses, costs, liabilities and obligations incurred by Lender (including attorneys' ‎Fees and Costs with respect to the foregoing)
shall be due from Borrower to Lender on ‎demand. Lender may charge the same to Borrower's Loan Account, and the same shall ‎thereafter
bear interest at the same rate as is applicable in this Agreement.‎

 

10.3     
‎Standards for Determining Commercial Reasonableness.‎

 

(a)         
‎Borrower and Lender agree that any disposition, as defined in the Code ‎‎("disposition")
of any Collateral which complies with the following standards will conclusively be ‎deemed to be commercially reasonable:‎

 

(i)           
‎Notice of the disposition is given to Borrower at least ten (10) ‎days prior to the sale,
and, in the case of a public sale, notice of the sale is published at least ‎ten (10) days before the sale in a newspaper
of general circulation in the county where the sale ‎is to be conducted;‎

 

(ii)         
‎Notice of the disposition describes the Collateral in general, non-‎specific terms;‎

 

(iii)        
‎The disposition is conducted at a place designated by Lender, ‎with or without the Collateral
being present; ‎

 

(iv)        
‎The disposition commences at any time between 8:00 a.m. and ‎‎6:00 p.m., Los Angeles
time; and‎

 

(v)         
‎With respect to any disposition of any of the Collateral, Lender ‎may (but is not obligated
to) direct any prospective purchaser to ascertain directly from ‎Borrower any and all information concerning the
same.‎

 

(b)         
‎Lender shall be free to employ other methods of noticing and disposing ‎of the Collateral, in its discretion.‎

 

    33 

     

    

 

(c)         
 ‎Lender shall have no obligation to attempt to satisfy the Obligations by ‎collecting them from any
third Person which may be liable for them or any portion thereof, and ‎Lender may release, modify or waive any collateral
provided by any other third Person as ‎security for the Obligation or any portion thereof, all without affecting Lender's
rights against ‎Borrower. Borrower waives any right it may have to require Lender to pursue any third Person ‎for
any of the Obligations.‎

 

(d)         
‎Lender may comply with any applicable state or federal law ‎requirements in connection with a disposition
of the Collateral, and Lender's compliance ‎therewith will not be considered to adversely affect the commercial reasonableness
of any ‎sale of the Collateral.‎

 

(e)         
‎Lender may dispose of the Collateral without giving any warranties as to ‎the Collateral. Lender may
specifically disclaim any warranties of title or the like. This ‎procedure will not be considered to adversely affect the
commercial reasonableness of any ‎sale of the Collateral.‎

 

(f)          
‎If Lender disposes of any of the Collateral upon credit, Borrower will be ‎credited only with payments
actually made by the purchaser, received by Lender and applied ‎to the indebtedness of the purchaser. In the event that
the purchaser fails to pay for the ‎Collateral, Lender may resell the Collateral and Borrower will be credited with the
proceeds of ‎such disposition.‎

 

10.4       
‎Power of Attorney.‎

 

(a)         
‎Borrower grants to Lender an irrevocable power of attorney coupled with ‎an interest, authorizing and
permitting Lender (acting through any of its employees, attorneys ‎or agents) at any time, at its option, but without obligation,
with or without notice to Borrower, ‎and at Borrower's expense, to do any or all of the following, in Borrower's name or
otherwise, ‎but Lender agrees to exercise the following powers in a commercially reasonable manner:‎

 

(i)           
‎Execute on behalf of Borrower any documents that Lender may, ‎in its sole discretion,
deem advisable in order to perfect and maintain Lender's security interest ‎in the Collateral, or in order to exercise
a right of Borrower or Lender, or in order to fully ‎consummate all the transactions contemplated under this Agreement,
and all other present and ‎future agreements;‎

 

(ii)         
‎Execute on behalf of Borrower any document exercising, ‎transferring or assigning any
option to purchase, sell or otherwise dispose of or to lease (as ‎lessor or lessee) any real or personal property
which is part of Lender's Collateral or in which ‎Lender has an interest;‎

 

(iii)        
‎Execute on behalf of Borrower, any invoices relating to any ‎Receivable, any draft against
any Account Debtor and any notice to any Account Debtor, any ‎proof of claim in bankruptcy, any notice of lien, claim
of mechanic's, materialman's or other ‎lien, or assignment or satisfaction of mechanic's, materialman's or other
lien;‎

 

    34 

     

    

 

(iv)        
‎Take control in any manner of any cash or non-cash items of ‎payment or proceeds of Collateral;
endorse the name of Borrower upon any instruments, or ‎documents, evidence of payment or Collateral that may come
into Lender's possession;‎

 

(v)         
‎Endorse all checks and other forms of remittances received by ‎Lender;‎

 

(vi)        
‎Pay, contest or settle any lien, charge, encumbrance, security ‎interest and adverse
claim in or to any of the Collateral, or any judgment based thereon, or ‎otherwise take any action to terminate or
discharge the same;‎

 

(vii)       
‎Grant extensions of time to pay, compromise claims and settle ‎Receivables and General
Intangibles for less than face value and execute all releases and ‎other documents in connection therewith;‎

 

(viii)      
‎Pay any sums required on account of Borrower's taxes or to ‎secure the release of any
liens therefor, or both;‎

 

(ix)        
‎Settle and adjust, and give releases of, any insurance claim that ‎relates to any of
the Collateral and obtain payment therefor;‎

 

(x)         
‎Instruct any third party having custody or control of any books or ‎records belonging
to, or relating to, Borrower to give Lender the same rights of access and ‎other rights with respect thereto as Lender
has under this Agreement; and

 

(xi)        
‎Take any action or pay any sum required of Borrower pursuant to ‎this Agreement and any
other present or future agreements.‎

 

(b)         
‎Any and all sums paid and any and all costs, expenses, liabilities, ‎obligations and attorneys' fees
incurred by Lender (including attorneys' fees and expenses ‎incurred pursuant to bankruptcy) with respect to the foregoing
shall be added to and become ‎part of the Obligations, and shall be payable on demand. Lender may charge the foregoing to
‎Borrower's Loan Account and the foregoing shall thereafter bear interest at the same rate ‎specified in this
Agreement. In no event shall Lender's rights under the foregoing power of ‎attorney, or any of Lender's other rights under
this Agreement, be deemed to indicate that ‎Lender is in control of the business, management or properties of Borrower. ‎

 

(c)         
‎Borrower shall pay, indemnify, defend, and hold Lender, Lender's ‎affiliates and each of their respective
officers, directors, employees, counsel, agents, and ‎attorneys-in-fact (each, an "Indemnified Person") harmless
(to the fullest extent permitted by ‎law) from and against any and all claims, demands, suits, actions, investigations,
proceedings, ‎and damages, and all attorneys' fees and disbursements and other costs and expenses ‎actually
incurred in connection therewith (as and when they are incurred and irrespective of ‎whether suit is brought), at any time
asserted against, imposed upon, or incurred by any of ‎them in connection with, or as a result of, or related to: (i) the
execution, delivery, ‎enforcement, performance, and administration of this Agreement and any Other Documents ‎or
the transactions contemplated herein, or (ii) any investigation, litigation, or proceeding ‎related to this Agreement, any
Other Document, or (iii) the use of the proceeds of the ‎Advances provided hereunder (irrespective of whether any Indemnified
Person is a party ‎thereto), or (iv) any act, omission, event or circumstance in any manner related thereto (all the ‎foregoing,
collectively, the "Indemnified Liabilities").‎

 

    35 

     

    

 

(d)         
‎Borrower shall have no obligation to any Indemnified Person hereunder ‎with respect to any Indemnified
Liability that a court of competent jurisdiction finally determines ‎to have resulted from the gross negligence or willful
misconduct of such Indemnified Person. ‎This Section ‎10.4 shall survive the termination of this Agreement
and the repayment of the ‎Obligations.‎

 

10.5     
‎Application of Proceeds After Event of Default Notwithstanding any other ‎provisions of this Agreement
to the contrary, after the occurrence and during the continuance ‎of an Event of Default, all amounts collected or received
by Lender on account of the ‎Obligations or any other amounts outstanding under any of the Other Documents or in respect
‎of the Collateral may, at Lender's discretion, be paid over or delivered as follows:‎

 

FIRST,
to the payment of all reasonable out-of-pocket costs and expenses (including ‎reasonable attorneys' fees) of Lender in connection
with enforcing its rights and the rights of ‎Lender under this Agreement and the Other Documents and any protective advances made
 ‎by Lender with respect to the Collateral under or pursuant to the terms of this Agreement;‎

 

SECOND,
to payment of any fees owed to Lender;‎

 

THIRD,
to the payment of all reasonable out-of-pocket costs and expenses (including ‎reasonable attorneys' fees) of Lender to the extent
owing to Lender pursuant to the terms of ‎this Agreement;‎

 

FOURTH,
to the payment of interest and fees due with respect to the Obligations;‎

 

FIFTH,
to the payment of the outstanding principal amount of the Obligations;‎

 

    36 

     

    

 

SIXTH,
to all other Obligations and other obligations which shall have become due and ‎payable under the Other Documents or otherwise
and not repaid pursuant to clauses "FIRST' ‎through "FIFTH" above; and ‎

 

SEVENTH,
to the payment of the surplus, if any, to the Borrower and/or whoever may ‎be lawfully entitled to receive such surplus.‎

 

In
carrying out the foregoing, amounts received shall be applied in the numerical order ‎provided until exhausted prior to application
to the next succeeding category; and (ii) Lender ‎shall receive amounts available to be applied pursuant to clauses "FOURTH"
and "FIFTH" ‎above.‎

 

10.6     
‎Remedies Cumulative. In addition to the rights and remedies set forth in this ‎Agreement, Lender shall
have all the other rights and remedies accorded a secured party in ‎equity and under all other applicable laws, and under
any other instrument or agreement now ‎or in the future entered into between Lender and Borrower, and all of such rights
and remedies ‎are cumulative and none is exclusive. Exercise or partial exercise by Lender of one or more of ‎its
rights or remedies shall not be deemed an election, nor bar Lender from subsequent ‎exercise or partial exercise of any
other rights or remedies. The failure or delay of Lender to ‎exercise any rights or remedies shall not operate as a waiver
thereof, but all rights and ‎remedies shall continue in full force and effect until all of the Obligations have been ‎indefeasibly
paid and performed.‎

 

11.        
‎GENERAL PROVISIONS.‎

 

11.1       
‎Application of Payments. Subject to Section ‎10.5 of this Agreement, all ‎payments with respect
to the Obligations may be applied, and in Lender's sole discretion ‎reversed and re-applied, to the Obligations, in such
order and manner as Lender shall ‎determine in its sole discretion.‎

 

11.2       
‎Charges to Accounts. Lender may, in its discretion, require that Borrower pay ‎monetary Obligations in
cash to Lender, or charge them to Borrower's Loan Account, in which ‎event they will bear interest from the date due to
the date paid at the same rate applicable to ‎the Advances.‎

 

11.3       
‎‎[Reserved]‎

 

11.4       
‎Notices. Any notice, demand or request required hereunder shall be given in ‎writing (at the addresses
set forth below) by any of the following means: (a) personal service; (b) electronic communication, whether by telex, telegram or telecopying;
(c) overnight courier; ‎or (d) registered or certified, first class U.S. mail, return receipt requested.‎

 

    37 

     

    

 

	To
    Borrower:‎

     

    SNAIL GAMES USA
    INC.

    12049 Jefferson Boulevard

    Culver City, California 90230

    Attn: Heidy Chow, CFO

    
	To Lender:‎

     

    CATHAY BANK

    9650 Flair Drive, 7th Floor

    El Monte, CA 91731

    Attn: Jane Ho, SVP

    

  

or at such other
address as such party may designate by ten (10) days' advance written notice ‎to the other party hereto pursuant to this section.
Any notice, demand or request sent pursuant to subsection ‎(c), above, shall be deemed received on the business day ‎immediately
following deposit with the overnight courier, and, if sent pursuant to subsection ‎‎‎(d), above, shall be deemed received
forty-eight (48) hours following deposit into the U.S. ‎mail.‎

 

11.5       
‎Severability. Should any provision of this Agreement be held by any court of ‎competent jurisdiction to
be void or unenforceable, such defect shall not affect the remainder ‎of this Agreement, which shall continue in full force
and effect.‎

 

11.6       
‎Integration. This Agreement and the Other Documents and such other written ‎agreements, documents and
instruments as may be executed in connection herewith are the ‎final, entire and complete agreement between Borrower and
Lender and supersede all prior ‎and contemporaneous negotiations and oral representations and agreements, all of which are
‎merged and integrated in this Agreement. There are no oral understandings, representations or ‎agreements
between the parties which are not set forth in this Agreement or in other written ‎agreements signed by the parties in connection
herewith. Lender and Borrower agree that this ‎Agreement and the Other Documents reflect the intentions of the parties
thereto and that parol ‎evidence is not required to interpret them.‎

 

11.7      
‎Amendment and Waivers. The terms and provisions of this Agreement may ‎not be waived or amended, except
in a writing executed by Borrower and a duly authorized ‎officer of Lender and clearly specifying the extent of the amendment
or the waiver. Any ‎waiver of an Event of Default or Potential Default shall not be deemed as continuing and shall ‎not
extend to any subsequent or other Event of Default or Potential Default. The failure of ‎Lender at any time or times to
require Borrower to strictly comply with any of the provisions of ‎this Agreement or any other present or future agreement
between Borrower and Lender shall ‎not waive or diminish any right of Lender later to demand and receive strict compliance
‎therewith.‎

 

11.8       
‎Borrower Waivers. Unless otherwise expressly required by this Agreement, ‎Borrower hereby waives: (i)
demand, protest, notice of protest and notice of dishonor, notice ‎of payment and nonpayment, release, compromise, settlement,
extension or renewal of any ‎commercial paper, instrument, account, General Intangible, document or guaranty at any time
‎held by Lender on which Borrower is or may in any way be liable, (ii) notice of default and (iii) ‎notice
of any action taken by Lender, unless expressly required by this Agreement.‎

 

    38 

     

    

 

11.9       
‎No Liability for Ordinary Negligence. Neither Lender, nor any of its directors, ‎officers, employees,
agents, attorneys or any other Person affiliated with or representing ‎Lender shall be liable for any claims, demands, losses
or damages, of any kind whatsoever, ‎made, claimed, incurred or suffered by Borrower or any other party through the ordinary
‎negligence of Lender, or any of its directors, officers, employees, agents, attorneys or any ‎other Person
affiliated with or representing Lender, but nothing herein shall relieve Lender from ‎liability for its own gross negligence
or willful misconduct.‎

 

11.10    
‎Actions. Whether or not an Event of Default has occurred, Lender shall have ‎the right, but not the obligation,
to commence, appear in, or defend any action or proceeding ‎which affects or which Lender determines may affect (a) the
Collateral; (b) Borrower's or ‎Lender's respective rights or obligations under this Agreement; (c) the Advances; or (d)
the ‎disbursement of any proceeds of any Advance. Whether or not an Event of Default or ‎Potential Default
has occurred, Lender shall at all times have the right to take any or all actions ‎which Lender determines to be necessary
or appropriate to protect Lender's interest in ‎connection with the Advances.‎

 

11.11     
‎Time of Essence. Time is of the essence in the performance by Borrower of ‎each and every obligation under
this Agreement.‎

 

11.12     
‎Attorneys' Fees, Costs and Charges.‎

 

(a)         
‎On demand, Borrower shall reimburse Lender for all costs and ‎expenses, including, without limitation,
reasonable attorneys' fees costs and disbursements ‎‎(and fees and disbursements of Lender's in-house counsel) (collectively
the "Fees and Costs") ‎expended or incurred by Lender in any way in connection with: (i) the enforcement of this
‎Agreement or any Other Documents and the rights and remedies thereunder, including, ‎without limitation, Fees
and Costs incurred in connection with any workout, attempted ‎workout, and/or in connection with the rendering of legal
advice as to Lender's rights, remedies ‎and obligations under this Agreement in connection with such enforcement or workout;
(ii) collecting any sum which is or becomes due to Lender; (iii) any proceeding, or any appeal; or (iv) the exercise of the power of
attorney granted to Lender in this Agreement. Fees and Costs ‎shall include, without limitation, all out-of-pocket fees
and costs incurred by Lender in ‎connection with the appraisal, inspection, assessment, evaluation and insuring of the ‎Collateral,
and all fees and costs incurred by Lender in connection with the negotiation and ‎preparation of the this Agreement and
the Other Documents, including reasonable attorneys' ‎fees. If litigation or other legal action is filed or commenced in
connection with this Agreement ‎or any of the Other Documents the prevailing party shall be entitled to its Fees and Costs.
‎Fees and Costs shall include, without limitation, attorneys' fees and costs incurred in ‎connection with the
following: (1) contempt proceedings; (2) discovery; (3) any motion, ‎adversary proceeding, contested matter, submission
or confirmation or opposition to plan of ‎reorganization or any other activity of any kind in connection with a bankruptcy
case or ‎relating to any petition or the filing thereof under Title 11 of the United States Code; (4) ‎garnishment,
levy, and debtor and third party examinations; and (5) post judgment motions ‎and proceedings of any kind taken to clarify,
collect or enforce any judgment or award.‎

 

    39 

     

    

 

(b)         
‎All Fees and Costs to which Lender may be entitled pursuant to this ‎Agreement may be charged by Lender
to Borrower's Loan Account and shall thereafter bear ‎interest at the Note Rate specified in the Note.‎

 

11.13    
‎Benefit of Agreement and Assignment.‎

 

(a)         
‎The provisions of this Agreement shall be binding upon and inure to the ‎benefit of the respective
successors, assigns, heirs, beneficiaries and representatives of Borrower and Lender; provided, however, that Borrower may not assign
or transfer any of ‎its rights under this Agreement without the prior written consent of Lender, and any prohibited ‎assignment
shall be void.‎

 

(b)         
‎No consent by Lender to any assignment shall release Borrower from its ‎liability for the Obligations.
Lender may assign its rights and delegate their duties hereunder ‎without the consent of Borrower.‎

 

(c)         
‎Lender reserves the right to syndicate all or a portion of the transaction ‎created herein or sell,
assign, transfer, negotiate, or grant participations in all or any part of, or ‎any interest in Lender's rights and benefits
hereunder. In connection with any such ‎syndication, assignment or participation, Lender may disclose all documents and
information ‎which Lender now or hereafter may have relating to Borrower or Borrower's business. Any ‎such
syndication by Lender shall not require the consent of the Borrower or any other Lender. ‎To the extent that Lender assigns
its rights and obligations hereunder to a third Person, Lender ‎thereafter shall be released from such assigned obligations
to Borrower.‎

 

11.14     
‎Entire Understanding.‎

 

(a)         
‎This Agreement and the documents executed concurrently herewith contain ‎the entire understanding between
Borrower and Lender and supersedes all prior agreements ‎and understandings, if any, relating to the subject matter hereof.
Any promises, ‎representations, warranties or guarantees not herein contained and hereinafter made shall ‎have
no force and effect unless in writing, signed by Borrower's and Lender's respective ‎officers. Neither this Agreement nor
any portion or provisions hereof may be changed, ‎modified, amended, waived, supplemented, discharged, cancelled or terminated
orally or by ‎any course of dealing, or in any manner other than by an agreement in writing, signed by the ‎party
to be charged. Borrower acknowledges that it has been advised by counsel in ‎connection with the execution of this Agreement
and Other Documents and is not relying upon ‎oral representations or statements inconsistent with the terms and provisions
of this ‎Agreement.‎

 

    40 

     

    

 

11.15     
‎Successors and Assigns; Participations; New Lenders.‎

 

(a)         
‎This Agreement shall be binding upon and inure to the benefit of ‎Borrower, Lender, all future holders
of the Obligations and their respective successors and ‎permitted assigns, except that Borrower may not assign or transfer
any of its rights or ‎obligations under this Agreement without the prior written consent of Lender.‎

 

(b)         
‎Participations.‎

 

(i)           
‎Lender may at any time, without the consent of, or notice to ‎Borrower, sell participations
(each a "Participation") in all or a portion of Lender's rights and ‎obligations under this Agreement;
provided that (x) Lender's obligations under this Agreement ‎shall remain unchanged; (y) Lender shall remain solely
responsible to the other parties hereto ‎for the performance of such obligation; and (z) Borrower, Lender shall continue
to deal solely ‎and directly with Lender in connection with Lender's rights and obligations under this Agreement.
Any agreement pursuant to which Lender sells such a ‎participation shall provide that Lender shall retain the right
to enforce this Agreement and ‎approve any amendment, modification, or waiver of any provision of this Agreement.‎

 

(ii)         
‎Borrower acknowledges that in the regular course of commercial ‎banking business one
or more lenders may at any time and from time to time sell participating ‎interests in the Advances to other financial
institutions (each such transferee or purchaser of a ‎participating interest, a "Participant"). Each Participant
may exercise all rights of payment ‎‎(including rights of set-off) with respect to the portion of such Advances
held by it or other ‎Obligations payable hereunder as fully as if such Participant were the direct holder thereof
‎provided that Borrower shall not be required to pay to any Participant more than the amount ‎which
it would have been required to pay to Lender which granted an interest in its Advances ‎or other Obligations payable
hereunder to such Participant had Lender retained such interest in ‎the Advances hereunder or other Obligations payable
hereunder and in no event shall ‎Borrower be required to pay any such amount arising from the same circumstances
and with ‎respect to the same Advances or other Obligations payable hereunder to both Lender and ‎such
Participant. Borrower hereby grants to any Participant a continuing security interest in ‎any deposits, moneys or
other property actually or constructively held by such Participant as ‎security for the Participant's interest in
the Advances.‎

 

(iii)        
 ‎Borrower authorizes Lender to disclose to any Participant, or any ‎prospective Participant,
any and all financial information in Lender's possession concerning ‎Borrower which has been delivered to such Lender
by or on behalf of Borrower pursuant to ‎this Agreement or in connection with such Lender's credit evaluation of
Borrower.‎

 

    41 

     

    

 

11.16    
‎Application of Payments. Lender shall have the continuing and exclusive right ‎to apply or reverse and
re-apply any payment and any and all proceeds of Collateral to any ‎portion of the Obligations. To the extent that Borrower
makes a payment or Lender receives ‎any payment or proceeds of the Collateral for Borrower's benefit, which are subsequently
‎invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a ‎trustee,
debtor in possession, receiver, custodian or any other party under any bankruptcy law, ‎common law or equitable cause, then,
to such extent, the Obligations or part thereof intended ‎to be satisfied shall be revived and continue as if such payment
or proceeds had not been ‎received by Lender.‎

 

11.17     
‎Indemnity. Borrower shall indemnify Lender and each of Lender's respective ‎officers, directors, Affiliates,
attorneys, employees and agents from and against any and all ‎liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses ‎and disbursements of any kind or nature whatsoever (including fees and disbursements
of ‎counsel) which may be imposed on, incurred by, or asserted against Lender in any claim, ‎litigation, proceeding
or investigation instituted or conducted by any Governmental Body or ‎instrumentality or any other Person with respect to
any aspect of, or any transaction ‎contemplated by, or referred to in, or any matter related to, this Agreement or the Other
‎Documents, whether or not Lender is a party thereto, except to the extent that any of the ‎foregoing arises
out of the willful misconduct of the party being indemnified (as determined by a court of competent jurisdiction in a final and non-
‎appealable judgment). Without limiting the generality of the foregoing, this indemnity shall ‎extend to any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, ‎costs, expenses and disbursements of any
kind or nature whatsoever (including reasonable ‎fees and disbursements of counsel) asserted against or incurred by any
of the indemnitees ‎described above in this Section ‎11.17 by any Person under any Environmental Laws or similar
‎laws by reason of Borrower's or any other Person's failure to comply with laws applicable to ‎solid or hazardous
waste materials, including Hazardous Substances and Hazardous Waste, or ‎other Toxic Substances. Additionally, if any taxes
(excluding taxes imposed upon or measured ‎solely by the net income of Lender, but including any intangibles taxes, stamp
tax, recording ‎tax or franchise tax) shall be payable by Lender or Borrower on account of the execution or ‎delivery
of this Agreement, or the execution, delivery, issuance or recording of any of the ‎Other Documents, or the creation or
repayment of any of the Obligations hereunder, by ‎reason of any applicable law now or hereafter in effect, Borrower will
pay (or will promptly ‎reimburse Lender for payment of) all such taxes, including interest and penalties thereon, and ‎will
indemnify and hold the indemnitees described above in this Section ‎11.17 harmless from ‎and against all liability
in connection therewith.‎

 

    42 

     

    

 

11.18    
‎Captions. Headings have been set forth herein for convenience only and shall ‎not affect the interpretation
or meanings of any provisions of this Agreement. Unless the ‎contrary is compelled by the context, everything contained
in each article and section applies ‎equally to this entire Agreement.‎

 

11.19    
‎Independent Counsel. Borrower and Lender each acknowledge that: (i) they ‎have had the opportunity to
be represented by independent counsel in connection with this ‎Agreement; (ii) they have executed this Agreement with the
advice of such counsel, as ‎applicable; (iii) this Agreement is the result of negotiations between the parties hereto and
the ‎advice and assistance of their representative counsel, as applicable; and (iv) the fact that this ‎Agreement
was prepared by Lender's counsel as a matter of convenience shall have no ‎import or significance.‎

 

11.20    
‎Publicity. Lender is hereby authorized, at its expense and in its sole discretion, ‎to issue appropriate
press releases and to cause a tombstone to be published announcing the ‎consummation of this transaction and the aggregate
amount thereof.‎

 

11.21    
‎Governing Law; Jurisdiction; Venue.‎

 

(a)         
‎This Agreement and all acts and transactions hereunder and all rights ‎and obligations of Lender and
Borrower shall be governed by the internal laws of the State of ‎California, without regard to its conflicts of law principles.‎

 

(b)         
‎As a material part of the consideration to Lender to enter into this ‎Agreement, Borrower (a) agrees
that all actions and proceedings relating directly or indirectly ‎to this Agreement shall, at Lender's option, be litigated
in courts located within California , and ‎that the exclusive venue therefor shall be Los Angeles County; (b) consents to
the jurisdiction ‎and venue of any such court and consents to service of ‎process in any such action or proceeding
by personal delivery or any other method permitted ‎by law; and (c) waives any and all rights Borrower may have to object
to the jurisdiction of any ‎such court, or to transfer or change the venue of any such action or proceeding.‎

 

11.22    
‎Relationship of Parties. Lender shall not be deemed to be, nor does Lender or ‎Borrower intend that Lender
shall ever become, a partner, joint venturer, fiduciary, manager, ‎controlling person or participant of any kind in the
business or affairs of Borrower, whether as ‎a result of this Agreement or any of the transactions contemplated by this
Agreement. In ‎exercising its rights and remedies under this Agreement, Lender shall at all times be acting ‎only
as a lender to Borrower within the normal and usual scope of activities of a lender.‎

 

    43 

     

    

 

11.23    
‎Counterparts. This Agreement may be executed in counterparts, each of which ‎shall constitute an original,
and all of which together shall constitute one and the same ‎document.‎

 

11.24      JUDICIAL
REFERENCE. THE PARTIES HEREBY AGREE THAT ANY CLAIMS, ‎CONTROVERSIES, DISPUTES, OR QUESTIONS OF INTERPRETATION, WHETHER
‎LEGAL OR EQUITABLE, ARISING OUT OF, CONCERNING OR RELATED TO THIS ‎AGREEMENT AND ALL LOAN DOCUMENTS EXECUTED
BY BORROWER SHALL BE ‎HEARD BY A SINGLE REFEREE BY CONSENSUAL GENERAL JUDICIAL REFERENCE ‎PURSUANT TO THE PROVISIONS
OF CALIFORNIA CODE OF CIVIL PROCEDURE ‎SECTS 638 ET SEQ., WHO SHALL DETERMINE ALL ISSUES OF FACT OR LAW AND ‎TO
REPORT A STATEMENT OF DECISION. THE REFEREE SHALL ALSO HAVE THE ‎POWER TO HEAR AND DETERMINE PROCEEDINGS FOR ANCILLARY RELIEF,
‎INCLUDING, BUT NOT LIMITED TO, APPLICATIONS FOR ATTACHMENT, ISSUANCE ‎OF INJUNCTIVE RELIEF, APPOINTMENT OF
A RECEIVER, AND/OR CLAIM AND ‎DELIVERY. THE COSTS OF THE PROCEEDING SHALL BE BORNE EQUALLY BY THE ‎PARTIES
TO THE DISPUTE, SUBJECT TO THE DISCRETION OF THE REFEREE TO ‎ALLOCATE SUCH COSTS BASED ON A DETERMINATION AS TO THE PREVAILING
‎PARTY(IES) IN THE PROCEEDING. BY INITIALING BELOW THE PARTIES ‎ACKNOWLEDGE THAT THEY HAVE READ
AND UNDERSTAND THE FOREGOING ‎JUDICIAL REFERENCE PROVISIONS AND UNDERSTAND THAT THEY ARE WAIVING ‎THEIR RIGHT
TO A JURY TRIAL.‎

 

	/s/	 		 
	Borrower’s Initials	 	Lender's Initials	 

  

‎[Signatures
appear on following pages]

 

    44 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the ‎date set forth in the heading to this Agreement.

 

	BORROWER: 

SNAIL GAMES USA INC.,
 a California corporation  	 
	 	 
	By:	/s/
Jim Tsai	 
	Name:	Jim Tsai	 
	Its:	Chief Executive Officer	 

 

	Address:	12049 Jefferson Boulevard

Culver City, CA 90230	 

‎  

‎[Signatures
Continued on Next Page]‎

 

    45 

     

    

  

	LENDER:

 ‎ CATHAY BANK,
 a California banking corporation  	 
	 	 
	By:	 	 
	Name:	 	 
	Its:	 	 

 

	Address:	9650 Flair Drive

El Monte, CA 91731	 

 

	Telephone:	(626) 279-3676‎
	Facsimile:	(626) 279-3705‎

 

    46 

     

    

  

EXHIBIT
B

 

TRADE NAMES

  

N/A

 

    EXHIBIT B-1

     

    

 

EXHIBIT
C

 

LOCATIONS OF
COLLATERAL

 

	‎1.	12049 Jefferson Boulevard, Culver City, CA 90230‎

 

    EXHIBIT C-1

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