Document:

Monaker Group, Inc. 8-K

 

Exhibit 10.3

 

 

THIS NOTE (AS DEFINED BELOW) MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE ALIENATED OR ENCUMBERED WITHOUT THE PRIOR WRITTEN CONSENT OF
INVESTOR (AS DEFINED BELOW). THIS NOTE IS SUBJECT TO A RIGHT OF OFFSET IN FAVOR OF INVESTOR UPON THE OCCURRENCE OF CERTAIN EVENTS
AS SET FORTH IN MORE DETAIL IN SECTION 6 BELOW.

  

	
        $1,500,000.00
	
        State of Utah

        November 23, 2020

 

INVESTOR NOTE 

 

FOR VALUE RECEIVED,
STREETERVILLE CAPITAL, LLC, a Utah limited liability
company (“Investor”), hereby promises to pay to MONAKER GROUP,
INC., a Nevada corporation (“Company”, and together with Investor, the
“Parties”), the principal sum of $1,500,000.00 together with all accrued and unpaid interest thereon, fees
incurred or other amounts owing hereunder, all as set forth below in this Investor Note (this “Note”). This
Note is issued pursuant to that certain Securities Purchase Agreement of even date herewith, entered into by and between Investor
and Company (as the same may be amended from time to time, the “Purchase Agreement”), pursuant to which Company
issued to Investor that certain Secured Promissory Note in the principal amount of $5,520,000.00 (as the same may be amended from
time to time, the “Company Note”). All capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Purchase Agreement. 

 

1.           Principal
and Interest. Interest shall accrue on the unpaid principal balance and any unpaid late fees or other fees under this Note
at a rate of ten percent (10%) per annum until the full amount of the principal and fees has been paid. Interest shall be computed
on the basis of a 365-day year for the actual number of days elapsed. Notwithstanding any provision to the contrary herein, in
no event shall the applicable interest rate at any time exceed the maximum interest rate allowed under applicable law, as provided
in Section 12 below. The entire unpaid principal balance and all accrued and unpaid interest, if any, under this Note, shall be
due and payable on the date that is twelve (12) months from the date hereof (the “Investor Note Maturity Date”);
provided, however, that Investor may elect, in its sole discretion, to extend the Investor Note Maturity Date for up to
thirty (30) days by delivering written notice of such election to Company at any time prior to the Investor Note Maturity Date. 

 

2.           Payment.
Unless prepaid, all principal and accrued interest under this Note is payable in one lump sum on the Investor Note Maturity Date.
All payments of interest and principal shall be (i) in lawful money of the United States of America, and (ii) in the form of immediately
available funds. All payments shall be applied first to costs of collection, if any, then to accrued and unpaid interest, and
thereafter to principal. Payment of principal and interest hereunder shall be delivered to Company at the address furnished to
Investor for that purpose. 

 

3.           Prepayment
by Investor. Investor may, with Company’s consent, pay, without penalty, all or any portion of the outstanding balance
along with any accrued but unpaid interest on this Note at any time prior to the Investor Note Maturity Date. 

 

4.           Security;
Collateral. Investor may, in its sole discretion, designate collateral (the “Collateral”) as it deems fit,
as security for Investor’s obligations hereunder, which Collateral may be, but is not required to be, real property, a letter
of credit with a financial institution determined by Investor in its sole discretion, or pledged membership interests. Upon Investor’s
designation of Collateral, each of Investor and Company shall timely execute any and all documents necessary or advisable in order
to properly grant a security interest upon the Collateral in favor of Company.

 

     

     

    

 

5.           Release.
Company covenants and agrees that in the event that this Note is secured by Collateral, Company shall timely execute any and all
documents necessary or advisable in order to release such security interest and Collateral to Investor, or Investor’s designee
immediately following the date this Note is paid in full (the “Release Date”). For the avoidance of doubt,
as of the date hereof, there is no Collateral securing this Note, and after the Release Date, as applicable, there shall be no
Collateral securing this Note. 

 

6.           Right
of Offset. Notwithstanding anything to the contrary herein or in any of the other Transaction Documents, in the event (i)
of the occurrence of any Event of Default (as defined in the Company Note) under the Company Note or any other note issued by
Company in connection with the Purchase Agreement, (ii) of a breach of any material term, condition, representation, warranty,
covenant or obligation of Company under any Transaction Document, or (iii) Company sells, transfers, assigns, pledges or hypothecates
this Note, or attempts to do any of the foregoing, whether voluntarily or involuntarily, Investor shall be entitled to deduct
and offset any amount owing by Company under the Company Note from any amount owed by Investor under this Note (the “Investor
Offset Right”), provided that if any of the foregoing events occur and Investor has not yet exercised the Investor Offset
Right, the Investor Offset Right shall be automatically exercised on the date that is thirty (30) days prior to the Investor Note
Maturity Date (an “Automatic Offset”). Other than with respect to an Automatic Offset, Investor may only elect
to exercise the Investor Offset Right by delivering to Company an offset notice in a form substantially similar to Exhibit
B to the Company Note or another form of Investor’s choosing. In the event that Investor’s exercise of the Investor
Offset Right under this Section 6 results in the full satisfaction of Investor’s obligations under this Note, then Company
shall return this Note to Investor for cancellation or, in the event this Note has been lost, stolen or destroyed, Company shall
provide Investor with a lost note affidavit in a form reasonably acceptable to Investor.

 

7.           Default.
If any of the events specified below shall occur (each, an “Investor Note Default”), Company may declare the
unpaid principal balance under this Note, together with all accrued and unpaid interest thereon, fees incurred or other amounts
owing hereunder immediately due and payable, by notice in writing to Investor. If any default, other than a Payment Default (as
defined below), is curable, then the default may be cured (and no Investor Note Default will have occurred) if Investor, after
receiving written notice from Company demanding cure of such default, either (i) cures the default within fifteen (15) days of
the receipt of such notice, or (ii) if the cure requires more than fifteen (15) days, immediately initiates steps that Company
deems in Company’s reasonable discretion to be sufficient to cure the default and thereafter diligently continues and completes
all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. Each of the following events
shall constitute an Investor Note Default:

 

7.1.           Failure
to Pay. Investor’s failure to make any payment when due and payable under this Note (a “Payment Default”); 

 

7.2.           Breaches
of Covenants. Investor’s failure to observe or perform any other covenant, obligation, condition or agreement contained
in this Note; 

 

7.3.           Representations
and Warranties. If any representation, warranty, certificate, or other statement (financial or otherwise) made or furnished
by or on behalf of Investor to Company in writing in connection with this Note or any of the other Transaction Documents, or as
an inducement to Company to enter into the Purchase Agreement, shall be false or misleading in any material respect when made
or furnished; and

 

7.4.           Involuntary
Bankruptcy. If any involuntary petition is filed under any bankruptcy or similar law or rule against Investor, and such petition
is not dismissed within sixty (60) days, or a receiver, trustee, liquidator, assignee, custodian, sequestrator or other similar
official is appointed to take possession of any of the assets or properties of Investor.

 

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8.           Binding
Effect; Assignment. This Note shall be binding on the Parties and their respective heirs, successors, and assigns; provided,
however, that neither Party shall assign any of its rights hereunder without the prior written consent of the other Party,
except that Investor may assign this Note to any of its Affiliates without the prior written consent of Company and, furthermore,
Company agrees that it shall not unreasonably withhold, condition or delay its consent to any other assignment of this Note by
Investor. 

 

9.           Governing
Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase Agreement
to determine the proper venue for any disputes are incorporated herein by this reference.

 

10.         Purchase
Agreement; Arbitration of Disputes. By acceptance of this Note, each Party agrees to be bound by the applicable terms, conditions
and general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the Arbitration
Provisions attached as an exhibit to the Purchase Agreement. 

 

11.         Customer
Identification–USA Patriot Act Notice. Company hereby notifies Investor that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and Company’s
policies and practices, Company is required to obtain, verify and record certain information and documentation that identifies
Investor, which information includes the name and address of Investor and such other information that will allow Company to identify
Investor in accordance with the Act. 

 

12.         Lawful
Interest. It being the intention of Company and Investor to comply with all applicable laws with regard to the interest charged
hereunder, it is agreed that, notwithstanding any provision to the contrary in this Note or any of the other Transaction Documents,
no such provision, including without limitation any provision of this Note providing for the payment of interest or other charges,
shall require the payment or permit the collection of any amount in excess of the maximum amount of interest permitted by law
to be charged for the use or detention, or the forbearance in the collection, of all or any portion of the indebtedness evidenced
by this Note or by any extension or renewal hereof (“Excess Interest”). If any Excess Interest is provided
for, or is adjudicated to be provided for, in this Note, then in such event:

 

12.1.        the provisions of this Section 12 shall govern and control;

  

12.2.        Investor shall not be obligated to pay any Excess Interest;

  

12.3.        any
Excess Interest that Company may have received hereunder shall, at the option of Company, be (i) applied as a credit against the
principal balance due under this Note or the accrued and unpaid interest thereon not to exceed the maximum amount permitted by
law, or both, (ii) refunded to Investor, or (iii) any combination of the foregoing;

 

12.4.        the
applicable interest rate or rates shall be automatically subject to reduction to the maximum lawful rate allowed to be contracted
for in writing under the applicable governing usury laws, and this Note and the Transaction Documents shall be deemed to have been,
and shall be, reformed and modified to reflect such reduction in such interest rate or rates; and

 

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12.5.         Investor
shall not have any action or remedy against Company for any damages whatsoever or any defense to enforcement of this Note or arising
out of the payment or collection of any Excess Interest.

 

13.           Pronouns.
Regardless of their form, all words used in this Note shall be deemed singular or plural and shall have the gender as required
by the text. 

 

14.           Headings.
The various headings used in this Note as headings for sections or otherwise are for convenience and reference only and shall
not be used in interpreting the text of the section in which they appear and shall not limit or otherwise affect the meanings
thereof.

 

15.           Time is of the Essence. Time is of the essence with this Note.

  

16.           Severability.
If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of the
Parties to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.

 

17.          
Attorneys’ Fees. If any arbitration or action at law or in equity is necessary to enforce this Note or to collect
payment under this Note, Company shall be entitled to recover reasonable attorneys’ fees directly related to such enforcement
or collection actions. 

 

18.           Amendments
and Waivers; Remedies. No failure or delay on the part of either Party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to either Party hereto at law, in equity or otherwise. Any amendment,
supplement or modification of or to any provision of this Note, any waiver of any provision of this Note, and any consent to any
departure by either Party from the terms of any provision of this Note, shall be effective (i) only if it is made or given in
writing and signed by Investor and Company and (ii) only in the specific instance and for the specific purpose for which made
or given.

 

19.           Notices.
Unless otherwise provided for herein, all notices, requests, demands, claims and other communications hereunder shall be given
in accordance with the subsection of the Purchase Agreement titled “Notices.” Either Party may change the address
to which notices, requests, demands, claims and other communications hereunder are to be delivered by providing notice thereof
in the manner set forth in the Purchase Agreement.

 

20.           Final
Note. This Note, together with the other Transaction Documents, contains the complete understanding and agreement of Investor
and Company and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations of
Investor and Company with respect to the subject matter of the Transaction Documents. THIS NOTE, TOGETHER WITH THE OTHER TRANSACTION
DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

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21.           Waiver
of Jury Trial. EACH OF INVESTOR AND COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED
BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE,
LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S
RIGHT TO DEMAND TRIAL BY JURY.

 

[Remainder of page intentionally left
blank; signature page follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Note as of
the date set forth above.

 

	 	INVESTOR:
	 	 	 
	 	Streeterville Capital,
LLC
	 	 	 
	 	By:	
	 	 	John M. Fife, President

 

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

COMPANY:

 

Monaker
Group, Inc.

 

	By:	 	 
	Name:	Bill kerby	 
	Title:	CEO	 

 

[Signature Page to Investor Note]Monaker Group, Inc. 8-K

 

Exhibit 10.4

 

 

SECURITY
AGREEMENT

 

This
Security Agreement (this
“Agreement”), dated as of November 23, 2020, is executed by Monaker Group, Inc., a Nevada corporation (“Debtor”),
in favor of Streeterville Capital, LLC, a Utah limited liability company (“Secured Party”).

 

A.         
Debtor has issued to Secured Party a certain Secured Promissory Note of even date herewith, as may be amended from time
to time, in the original face amount of $5,520,000.00 (the “Note”).

 

B.          
In order to induce Secured Party to extend the credit evidenced by the Note, Debtor has agreed to enter into this Agreement
and to grant Secured Party a security interest in the Collateral (as defined below).

 

NOW, THEREFORE,
in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor hereby agrees with Secured Party as follows:

 

1.           
Definitions and Interpretation. When used in this Agreement, the following terms have the following respective meanings:

 

“Collateral” has the meaning given
to that term in Section 2 hereof.

 

“Intellectual
Property” means all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses (software or
otherwise), information, know-how, inventions, discoveries, published and unpublished works of authorship, processes, any and all
other proprietary rights, and all rights corresponding to all of the foregoing throughout the world, now owned and existing or
hereafter arising, created or acquired.

 

“Lien”
shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in,
of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional
sale agreement, capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing
of any financing statement or similar instrument under the UCC or comparable law of any jurisdiction.

 

“Obligations”
means (a) all loans, advances, future advances, debts, liabilities and obligations, howsoever arising, owed by Debtor or any
of its affiliates and/or subsidiaries to Secured Party or any affiliate of Secured Party of every kind and description, now
existing or hereafter arising, whether created by the Note, this Agreement, that certain Note Purchase Agreement of even date
herewith, entered into by and between Debtor and Secured Party (the “Purchase Agreement”), any other
Transaction Documents (as defined in the Purchase Agreement), any other agreement between Debtor or any affiliate or
subsidiary of Secured Party) and Secured Party (or any affiliate of Secured Party) or any other promissory note issued by
Debtor (or any affiliate or subsidiary of Debtor) in favor of Secured Party (or any affiliate of Secured Party), any
modification or amendment to any of the foregoing, guaranty of payment or other contract or by a quasi-contract, tort,
statute or other operation of law, whether incurred or owed directly to Secured Party or as an affiliate of Secured Party or
acquired by Secured Party or an affiliate of Secured Party by purchase, pledge or otherwise, (b) all costs and expenses,
including attorneys’ fees, incurred by Secured Party or any affiliate of Secured Party in connection with the Note or
in connection with the collection or enforcement of any portion of the indebtedness, liabilities or obligations described in
the foregoing clause (a), (c) the payment of all other sums, with interest thereon, advanced in accordance herewith to
protect the security of this Agreement, and (d) the performance of the covenants and agreements of Debtor (or any of its
affiliates or subsidiaries) contained in this Agreement and all other Transaction Documents.

 

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“Permitted
Liens” means (a) Liens for taxes not yet delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves have been established, (b) Liens in favor of Secured Party under this Agreement or arising
under the other Transaction Documents or prior agreements between Debtor and Secured Party (or its affiliates).

 

“UCC”
means the Uniform Commercial Code as in effect in the jurisdiction whose laws would govern the security interest in, including
without limitation the perfection thereof, and foreclosure of the applicable Collateral, or any equivalent laws in any other jurisdiction
that govern the grant of a security interest in the types of assets encumbered by this Agreement.

 

Unless otherwise defined herein, all terms defined
in the UCC have the respective meanings given to those terms in the UCC.

 

2.           
Grant of Security Interest. As security for the Obligations, Debtor hereby pledges to Secured Party and grants to
Secured Party a security interest in all right, title, interest, claims and demands of Debtor in and to the property described
in Schedule A hereto, and all replacements, proceeds, products, and accessions thereof (collectively, the “Collateral”),
which Security Interest shallbe subordinate only to the Permitted Liens.

 

3.           
Authorization to File Financing Statements. Debtor hereby irrevocably authorizes Secured Party at any time and from
time to time to file in any filing office in any Uniform Commercial Code jurisdiction or other jurisdiction of Debtor or its subsidiaries
any financing statements or documents having a similar effect and amendments thereto that provide any other information required
by the Uniform Commercial Code (or similar law of any non-United States jurisdiction, if applicable) of such state or jurisdiction
for the sufficiency or filing office acceptance of any financing statement or amendment, including whether Debtor is an organization,
the type of organization and any organization identification number issued to Debtor. Debtor agrees to furnish any such information
to Secured Party promptly upon Secured Party’s request.

 

4.           
General Representations and Warranties. Debtor represents and warrants to Secured Party that (a) Debtor is the owner
of the Collateral and that no other person has any right, title, claim or interest (by way of Lien or otherwise) in, against or
to the Collateral, other than Permitted Liens, (b) upon the filing of UCC-1 financing statements with the appropriate state office
(or an equivalent in the appropriate foreign office), Secured Party shall have a perfected first-position security interest in
the Collateral to the extent that a security interest in the Collateral can be perfected by such filing, except for Permitted Liens,
(c) Debtor has received at least a reasonably equivalent value in exchange for entering into this Agreement, (d) Debtor is not
insolvent, as defined in any applicable state or federal statute, nor will Debtor be rendered insolvent by the execution and delivery
of this Agreement to Secured Party; and (e) as such, this Agreement is a valid and binding obligation of Debtor.

 

		5.	Additional Covenants. Debtor hereby agrees:

 

5.1.          to perform all acts that may be necessary to maintain, preserve, protect and perfect in the Collateral, the Lien granted
to Secured Party therein, and the perfection and priority of such Lien;

 

5.2.          to procure, execute (including endorse, as applicable), and deliver from time to time any endorsements, assignments, financing
statements, certificates of title, and all other instruments, documents and/or writings reasonably deemed necessary
or appropriate by Secured Party to perfect, maintain and protect Secured Party’s Lien hereunder and the priority thereof;

 

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5.3.          to provide at least fifteen (15) days prior written notice to Secured Party of any of the following events: (a) any changes
or alterations of Debtor’s name, (b) any changes with respect to Debtor’s address or principal place of business, (c)
the formation of any subsidiaries of Debtor, or (d) any changes in location of the Collateral;

 

5.4.          upon the occurrence of an Event of Default (as defined in the Note) under the Note and, thereafter, at Secured Party’s
request, to endorse (up to the outstanding amount under such promissory notes at the time of Secured Party’s request), assign
and deliver any promissory notes and all other instruments, documents, or writings included in the Collateral to Secured Party,
accompanied by such instruments of transfer or assignment duly executed in blank as Secured Party may from time to time specify;

 

5.5.          to the extent the Collateral is not delivered to Secured Party pursuant to this Agreement, to keep the Collateral at the
principal office of Debtor (unless otherwise agreed to by Secured Party in writing), and not to relocate the Collateral to any
other locations without the prior written consent of Secured Party;

 

5.6.          not to sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral or any interest therein (other
than inventory in the ordinary course of business);

 

5.7.          not to, directly or indirectly, allow, grant or suffer to exist any Lien upon any of the Collateral, other than Permitted
Liens;

 

5.8.          not to grant any license or sublicense under any of its Intellectual Property, or enter into any other agreement with respect
to any of its Intellectual Property, except in the ordinary course of Debtor’s business;

 

5.9.          to the extent commercially reasonable and in Debtor’s good faith business judgment: (a) to file and prosecute diligently
any patent, trademark or service mark applications pending as of the date hereof or hereafter until all Obligations shall have
been paid in full, (b) to make application on unpatented but patentable inventions and on trademarks and service marks, (c) to
preserve and maintain all rights in all of its Intellectual Property, and (d) to ensure that all of its Intellectual Property is
and remains enforceable. Any and all costs and expenses incurred in connection with each of Debtor’s obligations under this
Section 5.9 shall be borne by Debtor. Debtor shall not knowingly and unreasonably abandon any right to file a patent, trademark
or service mark application, or abandon any pending patent application, or any other of its Intellectual Property, without the
prior written consent of Secured Party except for Intellectual Property that Debtor determines, in the exercise of its good faith
business judgment, is not or is no longer material to its business;

 

5.10.        upon the request of Secured Party at any time or from time to time, and at the sole cost and expense (including, without
limitation, reasonable attorneys’ fees) of Debtor, Debtor shall take all actions and execute and deliver any and all instruments,
agreements, assignments, certificates and/or documents reasonably required by Secured Party to collaterally assign any and all
of Debtor’s patent, copyright and trademark registrations and applications now owned or hereafter acquired to and in favor
of Secured Party; and 

 

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5.11.        at any time amounts paid by Secured Party under the Transaction Documents are used to purchase Collateral, Debtor shall
perform all acts that may be necessary, and otherwise fully cooperate with Secured Party,
to cause (a) any such amounts paid by Secured Party to be disbursed directly to the sellers of any such Collateral, (b) all certificates
of title pertaining to such Collateral (as applicable) to be properly filed and reissued to reflect Secured Party’s Lien
on such Collateral, and (c) all such reissued certificates of title to be delivered to and held by Secured Party.

 

6.           
Authorized Action by Secured Party. Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact (which
appointment is coupled with an interest) and agrees that Secured Party may perform (but Secured Party shall not be obligated to
and shall incur no liability to Debtor or any third party for failure so to do) any act which Debtor is obligated by this Agreement
to perform, and to exercise such rights and powers as Debtor might exercise with respect to the Collateral, including the right
to (a) collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds
and other sums and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in
exchange for the Collateral; (c) make any compromise or settlement, and take any action Secured Party deems advisable, with respect
to the Collateral, including without limitation bringing a suit in Secured Party’s own name to enforce any Intellectual Property;
(d) endorse Debtor’s name on all applications, documents, papers and instruments necessary or desirable for Secured Party
in the use of any Intellectual Property; (e) grant or issue any exclusive or non-exclusive license under any Intellectual Property
to any person or entity; (f) assign, pledge, sell, convey or otherwise transfer title in or dispose of any Intellectual Property
to any person or entity; (g) cause the Commissioner of Patents and Trademarks, United States Patent and Trademark Office (or as
appropriate, such equivalent agency in foreign countries) to issue any and all patents and related rights and applications to Secured
Party as the assignee of Debtor’s entire interest therein; (h) file a copy of this Agreement with any governmental agency,
body or authority, including without limitation the United States Patent and Trademark Office and, if applicable, the United States
Copyright Office or Library of Congress, at the sole cost and expense of Debtor; (i) insure, process and preserve the Collateral;
(j) pay any indebtedness of Debtor relating to the Collateral; (k) execute and file UCC financing statements and other documents,
certificates, instruments and agreements with respect to the Collateral or as otherwise required or permitted hereunder; and (l)
take any and all appropriate action and execute any and all documents and instruments that may be necessary or useful to accomplish
the purposes of this Agreement; provided, however, that Secured Party shall not exercise any such powers granted pursuant
to clauses (a) through (g) above prior to the occurrence of an Event of Default and shall only exercise such powers during the
continuance of an Event of Default. The powers conferred on Secured Party under this Section 6 are solely to protect its interests
in the Collateral and shall not impose any duty upon it to exercise any such powers. Secured Party shall be accountable only for
the amounts that it actually receives as a result of the exercise of such powers, and neither Secured Party nor any of its stockholders,
directors, officers, managers, employees or agents shall be responsible to Debtor for any act or failure to act, except with respect
to Secured Party’s own gross negligence or willful misconduct. Nothing in this Section 6 shall be deemed an authorization
for Debtor to take any action that it is otherwise expressly prohibited from undertaking by way of other provision of this Agreement.

 

		7.	Default and Remedies.

 

7.1.          Default. Debtor shall be deemed in default under this Agreement upon the occurrence of an Event of Default.

 

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7.2.          Remedies. Upon the occurrence of any such Event of Default, Secured Party shall have the rights of a secured creditor
under the UCC, all rights granted by this Agreement and by law, including, without limiting the foregoing, (a) the right to require
Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party, and (b)
the right to take peaceably possession of the Collateral, and for that purpose Secured Party
may peaceably enter upon premises on which the Collateral
may be situated and remove the Collateral therefrom. Debtor hereby agrees that fifteen (15) days’ notice of a public sale
of any Collateral or notice of the date after which a private sale of any Collateral may take place is reasonable. In addition,
Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of Secured Party’s
rights and remedies hereunder, including, without limitation, Secured Party’s right following an Event of Default to take
immediate possession of Collateral and to exercise Secured Party’s rights and remedies with respect thereto. Secured Party
may also have a receiver appointed to take charge of all or any portion of the Collateral and to exercise all rights of Secured
Party under this Agreement. Secured Party may exercise any of its rights under this Section 7.2 without demand or notice of any
kind. The remedies in this Agreement, including without limitation this Section 7.2, are in addition to, not in limitation of,
any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which Secured Party may be entitled. No
failure or delay on the part of Secured Party in exercising any right, power, or remedy will operate as a waiver thereof, nor will
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right hereunder.
All of Secured Party’s rights and remedies, whether evidenced by this Agreement or by any other agreement, instrument or
document shall be cumulative and may be exercised singularly or concurrently.

 

7.3.          Standards
for Exercising Rights and Remedies. To the extent that applicable law imposes duties on Secured Party to exercise
remedies in a commercially reasonable manner, Debtor acknowledges and agrees that it is not commercially unreasonable for
Secured Party (a) to fail to incur expenses reasonably deemed significant by Secured Party to prepare Collateral for
disposition, (b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not
required by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral
to be collected or disposed of, (c) to fail to exercise collection remedies against account debtors or other persons
obligated on Collateral or to fail to remove liens or encumbrances on or any adverse claims against Collateral, (d) to
exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of
collection agencies and other collection specialists, (e) to advertise dispositions of Collateral through publications or
media of general circulation, whether or not the Collateral is of a specialized nature, (f) to contact other persons, whether
or not in the same business as Debtor, for expressions of interest in acquiring all or any portion of the Collateral, (g) to
hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a
specialized nature, (h)   to
dispose of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in
the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets, (i) to dispose
of assets in wholesale rather than retail markets, (j) to disclaim disposition warranties, (k) to purchase insurance or
credit enhancements to insure Secured Party against risks of loss, collection or disposition of Collateral or to provide to
Secured Party a guaranteed return from the collection or disposition of Collateral, or (l) to the extent deemed appropriate
by Secured Party, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist
Secured Party in the collection or disposition of any of the Collateral. Debtor acknowledges that the purpose of this Section
is to provide non-exhaustive indications of what actions or omissions by Secured Party would fulfill Secured Party’s
duties under the UCC in Secured Party’s exercise of remedies against the Collateral and that other actions or omissions
by Secured Party shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this Section.
Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights to Debtor or
to impose any duties on Secured Party that would not have been granted or imposed by this Agreement or by applicable law in
the absence of this Section. 

 

    5

     

    

 

7.4.            
Marshalling. Secured Party shall not be required to marshal any present or future Collateral for, or other assurances
of payment of, the Obligations or to resort to such Collateral or other assurances of payment in any particular order, and all
of its rights and remedies hereunder and in respect of such Collateral and other assurances of payment shall be cumulative and
in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, Debtor hereby agrees
that it will not invoke any law relating
to the marshalling of Collateral which might cause delay in or impede the enforcement of Secured Party’s rights and remedies
under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations
is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, Debtor hereby irrevocably waives the benefits of all such laws.

 

7.5.          
Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds
and the avails of any remedy hereunder (as well as any other amounts of any kind held by Secured Party at the time of, or received
by Secured Party after, the occurrence of an Event of Default) shall be paid to and applied as follows:

 

(a)            First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral,
of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses,
liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Secured Party;

 

(b)            Second, to the payment to Secured Party of the amount then owing or unpaid on the Note (to be applied first to accrued interest
and fees and second to outstanding principal) and all amounts owed under any of the other Transaction Documents or other documents
included within the Obligations; and

 

(c)            Third, to the payment of the surplus, if any, to Debtor, its successors and assigns, or to whosoever may be lawfully entitled
to receive the same.

 

In the absence of final payment
and satisfaction in full of all of the Obligations, Debtor shall remain liable for any deficiency.

 

		8.	Miscellaneous.

 

8.1.          Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled
“Notices” in the Purchase Agreement, the terms of which are incorporated herein by this reference.

 

8.2.          Non-waiver. No failure or delay on Secured Party’s part in exercising any right hereunder shall operate as
a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise
thereof or of any other right.

 

8.3.          Amendments and Waivers. This Agreement may not be amended or modified, nor may any of its terms be waived, except
by written instruments signed by Debtor and Secured Party. Each waiver or consent under any provision hereof shall be effective
only in the specific instances for the purpose for which given.

 

8.4.          Assignment. This Agreement shall be binding upon and inure to the benefit of Secured Party and Debtor and their respective
successors and assigns; provided, however, that Debtor may not sell, assign or delegate rights and obligations hereunder
without the prior written consent of Secured Party.

 

8.5.          Cumulative Rights, etc. The rights, powers and remedies of Secured Party under this Agreement shall be in addition
to all rights, powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental
authority, or the Note, all of which rights, powers, and remedies shall be cumulative and may be exercised successively or concurrently
without impairing Secured Party’s rights hereunder.
Debtor waives any right to require Secured Party to proceed against any person or entity or to exhaust any Collateral or to pursue
any remedy in Secured Party’s power.

 

    6

     

    

 

8.6.          Partial Invalidity. If any part of this Agreement is construed to be in violation of any law, such part shall be
modified to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain
in full force and effect.

 

8.7.          Expenses. Debtor shall pay on demand all reasonable fees and expenses, including reasonable attorneys’ fees
and expenses, incurred by Secured Party in connection with the custody, preservation or sale of, or other realization on, any of
the Collateral or the enforcement or attempt to enforce any of the Obligations which are not performed as and when required by
this Agreement.

 

8.8.          Entire Agreement. This Agreement and the other Transaction Documents, taken together, constitute and contain the
entire agreement of Debtor and Secured Party with respect to this particular matter and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject
matter hereof.

 

8.9.          Governing Law; Venue. Except as otherwise specifically set forth herein, the parties expressly agree that this Agreement
shall be governed solely by the laws of the State of Utah, without giving effect to the principles thereof regarding the conflict
of laws; provided, however, that enforcement of Secured Party’s rights and remedies against the Collateral as provided
herein will be subject to the UCC. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes
are incorporated herein by this reference.

 

8.10.        Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES
HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT
TO DEMAND TRIAL BY JURY.

 

8.11.        Purchase Agreement; Arbitration of Disputes. By executing this Agreement, each party agrees to be bound by the terms,
conditions and general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the
Arbitration Provisions (as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

8.12.        Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and
all of which together shall constitute one instrument. Any electronic copy of a party’s executed counterpart will be deemed
to be an executed original.

 

8.13.        Further Assurances. Debtor shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as Secured Party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

8.14.        Time
of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement. 

 

[Remainder of page intentionally
left blank; signature page follows]

 

    7

     

    

 

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

 

	 	SECURED PARTY:
	 	 
	 	Streeterville Capital,
               LLC
	 	 	 
		By:	
	 	 	John M. Fife, President
	 	 	 
	 	DEBTOR:
	 	 	 
	 	Monaker Group,
               Inc.
	 	 	 
	 	By:	
	 	Name: 	Bill kerby
	 	Title:	CEO

 

[Signature Page to Security
Agreement]

 

     

     

    

 

SCHEDULE A

TO SECURITY AGREEMENT

 

All right,
title, interest, claims and demands of Debtor in and to all of Debtor’s assets owned as of the date hereof and/or acquired
by Debtor at any time while the Obligations are still outstanding, including without limitation, the following property:

 

1.           
All equity interests in all wholly- or partially-owned subsidiaries of Debtor, including but not limited to, Axion Ventures,
Inc., HotPlay Enterprises Limited and Longroot Ltd.

 

2.           
All customer accounts, insurance contracts, and clients underlying such insurance contracts.

 

3.           
All goods and equipment now owned or hereafter acquired, including, without limitation, all laboratory equipment, growing
equipment, computer equipment, office equipment, machinery, containers, fixtures, vehicles, and any interest in any of the foregoing,
and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing,
wherever located;

 

4.           
All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies,
packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Debtor’s
custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Debtor’s
books relating to any of the foregoing;

 

5.           
All accounts receivable, revenues or royalties, contract rights, general intangibles, healthcare insurance receivables,
payment intangibles and commercial tort claims, now owned or hereafter acquired, including, without limitation, all patents, patent
rights and patent applications (including without limitation, the inventions and improvements described and claimed therein, and

(a)   
all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, (b) all income, royalties,
damages, proceeds and payments now and hereafter due or payable under or with respect thereto, including, without limitation, damages
and payments for past or future infringements thereof, (c) the right to sue for past, present and future infringements thereof,
and (d) all rights corresponding thereto throughout the world), trademarks and service marks (and applications and registrations
therefor), inventions, discoveries, copyrights and mask works (and applications and registrations therefor), trade names, trade
styles, software and computer programs including source code, trade secrets, methods, published and unpublished works of authorship,
processes, know how, drawings, specifications, descriptions, and all memoranda, notes, and records with respect to any research
and development, goodwill, license agreements, information, any and all other proprietary rights, franchise agreements, blueprints,
drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer disks, computer tapes,
literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind and whether
in tangible or intangible form or contained on magnetic media readable by machine together with all such magnetic media, and all
rights corresponding to all of the foregoing throughout the world, now owned and existing or hereafter arising, created or acquired;

 

6.           
All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations
owing to Debtor arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Debtor (subject,
in each case, to the contractual rights of third parties to require
funds received by Debtor to be expended in a particular manner), whether or not earned by performance, and any and all credit insurance,
guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Debtor and Debtor’s books
relating to any of the foregoing;

 

     

     

    

 

7.           
All documents, cash, deposit accounts, letters of credit, letter of credit rights, supporting obligations, certificates
of deposit, instruments, chattel paper, electronic chattel paper, tangible chattel paper and investment property, including, without
limitation, all securities, whether certificated or uncertificated, security entitlements, securities accounts, commodity contracts
and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter
acquired and Debtor’s books relating to the foregoing;

 

8.           
Those certain Promissory Notes now owned by the Company, but originally issued by Axion Ventures, Inc. to the order of each
of Cern One, Red Anchor Trading Corp. Limited, Nithinan Boonyawattanapisut, and John Todd Bonner, in the aggregate amount of $7,675,024.00.

 

9.           
All other assets, goods and personal property of Debtor, wherever located, whether tangible or intangible, and whether now
owned or hereafter acquired; and

 

10.          Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and
proceeds and products thereof, including, without limitation, insurance, condemnation, requisition or similar payments and the
proceeds thereof.

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