Document:

Exhibit 10.18

 

Exhibit
10.16

 

SUPER
LEAGUE GAMING, INC. SECURITY AGREEMENT

 

THIS
SECURITY AGREEMENT (this "Agreement”),is
entered into as of    
by and between
Super League Gaming, Inc., a Delaware corporation (the
“Borrower”),
Charles Tien, an individual (the “Collateral
Agent”), and each of the secured parties whose name
appears on the signature pages to this Agreement (individually, a
“Secured
Party” and, collectively, the “Secured
Parties”). All capitalized terms not otherwise defined
herein shall the meanings ascribed to them in those certain Note
Purchase Agreements and the Notes (as defined below) by and between
Borrower and each Secured Party (the “Note
Purchase Agreements”).

 

RECITALS

 

WHEREAS, the
Secured Parties have loaned monies to Borrower as more particularly
described in the Note Purchase Agreements and as evidenced by the
9% Secured Convertible Promissory Notes issued by Borrower to the
Secured Parties (the “Notes”);

 

WHEREAS, Borrower,
Collateral Agent and the Secured Parties have entered into that
certain Intercreditor and Collateral Agent Agreement of even date
herewith (the “Intercreditor
Agreement”) whereby the security interests and liens
of the Secured Parties are to be of equal priority position,
notwithstanding the different dates of their Notes and perfection
their respective security interests;

 

WHEREAS, the term
“Secured Party” as used in this Agreement shall mean,
collectively, all holders of Notes, including those persons who
become holders of Notes subsequent to the date hereof;
and

 

WHEREAS, this
Agreement is being executed and delivered by Borrower to secure
the Notes.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby
acknowledged, each of the parties hereto hereby agrees as
follows:

 

1. Obligations Secured. This
Agreement secures, in part, the prompt payment and performance of
all obligations of Borrower under the Notes, and all renewals,
extensions, modifications, amendments, and/or supplements thereto
(collectively, the “Secured
Obligations”).

 

2. Grant of Security
Interest.

 

(a) Collateral. Borrower hereby
grants, pledges, and collaterally assigns to the Collateral Agent
for the benefit of itself and each other Secured Party, and there
is hereby created in favor of the Secured Parties, a security
interest in and to all of Borrower’s right, title, and
interest in, to, and under all of the collateral set forth on
Exhibit A hereto (collectively, “Collateral”).

(b) Effective Date. This grant of
security shall be effective as of the date hereof.

 

 

 

-1-

 

 

(c) Senior Interest. Except as set
forth herein, the Notes and the Secured Obligations shall be senior
to all other obligations of Borrower other than trade debt and
other debt incurred in the ordinary course of
business.

 

3. Filings to Perfect Security
Interest. The Collateral Agent may (and is hereby authorized
to) file with any filing office such financing statements,
amendments, addenda, continuations, terminations, assignments and
other records (whether or not executed by Borrower) as Collateral
Agent may deem necessary in its sole discretion to perfect and to
maintain perfected security interests in the Collateral, where (a)
immediately upon the execution of this Agreement, a UCC-1 Financing
Statement shall be filed with the California Secretary of State
with respect to the Collateral; Such documents may designate the
Collateral Agent as the secured party and Borrower as the debtor,
identify the security interest in the Collateral, and contain any
other items required by law or deemed necessary by Collateral
Agent. Such financing statements shall contain a description of
collateral consistent with the description set forth herein and
shall not describe the collateral as “all assets” or
“all personal property.” Upon Collateral Agent’s
request, Borrower shall execute any such documents (whether or not
required by law).

 

4. Transfers and Other Liens.
Except as set forth herein or in the Notes or in the Intercreditor
Agreement, Borrower shall not, without the prior written consent of
the Collateral Agent, in its sole and absolute
discretion:

 

(a) Sell, transfer,
assign, or dispose of (by operation of law or otherwise), any of
the Collateral outside of the ordinary course of
business;

 

(b) Create or suffer to
exist any lien, security interest, or other charge or encumbrance
upon or with respect to any of the Collateral, except the security
interests created hereby; or

 

(c) Permit any of the
Collateral to be levied upon under any legal process.

 

5. Representations and Warranties.
Borrower hereby represents and warrants to Collateral Agent and the
Secured Parties as follows: (a) to Borrower’s knowledge,
Borrower is the owner of the Collateral (or, in the case of
after-acquired Collateral, at the time Borrower acquires rights in
the Collateral, will be the owner thereof) and that, except as
expressly provided herein, no other person has (or, in the case of
after-acquired Collateral, at the time Borrower acquires rights
therein, will have) any right, title, claim or interest (by way of
Lien or otherwise) in, against or to the Collateral; (b) to
Borrower’s knowledge, except as expressly provided herein,
upon the filing of a UCC-1 financing statement with the California
Secretary of State, the Collateral Agent will have for the benefit
of the Secured Parties (or in the case of after-acquired
Collateral, at the time Borrower acquires rights therein, will
have) a perfected security interest in the Collateral to the extent
that a security interest in the Collateral can be perfected by such
filing; (c) all Accounts
Receivable (as defined in Exhibit A) are genuine and enforceable
against the party obligated to pay the same; (d) Borrower has full
power and authority to enter into the transactions provided for in
this Agreement, the Notes and the Intercreditor Agreement; (e) this
Agreement, the Notes and the Intercreditor Agreement, when executed
and delivered by Borrower, will constitute the legal, valid and
binding obligations of Borrower enforceable in accordance with
their

 

 

 

-2-

 

 

terms;
(f) the execution and delivery by Borrower of this Agreement, the
Intercreditor Agreement and the Notes and the performance and
consummation of the transactions contemplated hereby and thereby do
not and will not violate Borrower’s Certificate of
Incorporation or Bylaws or any material judgment, order, writ,
decree, statute, rule or regulation applicable to Borrower (g)
there does not exist any default or violation by Borrower of or
under any of the terms, conditions or obligations of (i) any
indenture, mortgage, deed of trust, franchise, permit, contract,
agreement, or other instrument to which Borrower is a party or by
which Borrower is bound, or (ii) any law, ordinance, regulation,
ruling, order, injunction, decree, condition or other requirement
applicable to or imposed upon Borrower by any law, the action of
any court or any governmental authority or agency; and the
execution, delivery and performance of this Agreement will not
result in any such default or violation; (h) there is no action,
suit, proceeding, hearing, investigation, charge, complaint, claim,
or demand pending or, to the knowledge of Borrower, threatened
which adversely affects Borrower’s business or financial
condition and there is no basis known to Borrower for any action,
suit, proceeding, hearing, investigation, charge, complaint, claim,
or demand which could result in the same; and (i) this Agreement,
the Notes and the Intercreditor Agreement do not contain any untrue
statement of material fact or omit to state a material fact
necessary in order to make the statements contained in this
Agreement, the Notes and the Intercreditor Agreement not
misleading.

 

6. Events of Default. For purposes
of this Agreement, the term “Event of Default” shall
mean and refer to any of the following:

 

(a) Failure of Borrower
to perform or observe any covenant set forth in this Agreement, or
to perform or observe any other term, condition, covenant,
warranty, agreement or other provision contained in this Agreement,
where such failure continues for twenty (20) business days after
receipt of written notice from Lender specifying such
failure;

 

(b) Any representation
or warranty made or furnished by Borrower in writing in connection
with this Agreement, the Notes or the Intercreditor Agreement or
any statement or representation made in any certificate, report or
opinion delivered pursuant to this Agreement or in connection with
this Agreement is false, incorrect or incomplete in any material
respect at the time it is furnished; or

 

(c) Occurrence of any
other Event of Default as defined in the Note.

 

7. Remedies. Upon the occurrence
and during the continuance of an Event of Default (subject to the
notice and cure provisions provided for herein, if any), the
Collateral Agent for the benefit of itself and each Secured Party
shall have the rights of a secured creditor under the California
Uniform Commercial Code, all rights granted by the Notes, this
Security Agreement and by law, including the right to require
Borrower to assemble the Collateral and make it available to the
Collateral Agent at a place to be designated by Borrower. The
rights and remedies provided in this Agreement, the Notes and the
Intercreditor Agreement are cumulative and may be exercised
independently or concurrently and are not exclusive of any other
right or remedy provided at law or in equity. No failure to
exercise or delay by the Collateral Agent for the benefit of itself
and the Secured Parties in exercising any right or remedy under
this Agreement, the Notes or the Intercreditor Agreement shall
impair or prohibit the exercise of any such rights or remedies in
the

 

 

 

-3-

 

 

future
or be deemed to constitute a waiver or limitation of any such right
or remedy or acquiescence therein. Every right and remedy granted
to the Collateral Agent and the Secured Parties under this
Agreement, the Notes and the Intercreditor Agreement or by law or
in equity may be exercised by the Collateral Agent at any time and
from time to time, and as often as the Collateral Agent may deem it
expedient.

 

8. Further Assurances. Borrower
agrees that, from time to time, at its own expense,
it
will:

 

(a) Protect and defend
the Collateral against all claims and demands of all
persons
at any time claiming the same or any interest therein and preserve
and protect Secured Party’s security interest in the
Collateral.

 

(b) Promptly execute
and deliver to Collateral Agent all instruments and documents, and
take all further action necessary or desirable, as Collateral Agent
may reasonably request to (i) continue, perfect, or protect any
security interest granted or purported to be granted hereby, and
(ii) enable Collateral Agent to exercise and enforce any of Secured
Party’s rights and remedies hereunder with respect to any
Collateral.

 

(c) Permit Collateral
Agent’s representatives to inspect and make copies of all
books and records relating to the Collateral, wherever such books
and records are located, and to conduct an audit relating to the
Collateral at any reasonable time or times.

 

9. Attorney-in-Fact. In case
Borrower fails to do any act or execute any documents, for the
perfection or continuation of any security interest granted to
Secured Parties hereunder, Borrower hereby irrevocably appoints
Collateral Agent as its true and lawful attorney-in-fact, with full
power of substitution, to do such acts and execute any such
documents on its behalf; provided, however, that Collateral Agent
shall not exercise such power of attorney unless it shall have
previously requested Borrower to take such action and Borrower
shall have failed to do so within five (5) business
days.

 

10. Notices.All
notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) when sent by confirmed telex, e-mail
or facsimile if sent during normal business hours of the recipient,
if not, then on the next business day, (c) five (5) days after
having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) day after deposit with a
nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications
shall be sent as follows:

 

 

If to the Collateral
Agent:

  Charles
Tien, CFO

Super
League Gaming, Inc. 2906 Colorado Ave.

Santa
Monica, CA 90404

 

If to Borrower: 

To Holder’s
address listed in Exhibit A to the Note Purchase
Agreement

 

 

 

-4-

 

 

 

If to the
Company: 

  Super League
Gaming, Inc.

2906
Colorado Ave. Santa Monica, CA 90404

Attention: CEO
& President

 

or to
such other address or telecopy number as the party to whom notice
is to be given may have furnished to the other party in writing in
accordance herewith.

 

11. Amendments and Waivers. No
modification, amendment or waiver of any provision of, or consent
required by, this Agreement, nor any consent to any departure
herefrom, shall be effective unless it is in writing and signed by
each of the parties hereto. Such modification, amendment, waiver or
consent shall be effective only in the specific instance and for
the purpose for which given.

 

12. Exclusivity and Waiver of
Rights. No failure to exercise and no delay in exercising on
the part of any party, any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege preclude any other right,
power or privilege. The rights and remedies herein provided are
cumulative and are not exclusive of any other rights or remedies
provided by law.

 

13. Invalidity. Any term or
provision of this Agreement shall be ineffective to the extent it
is declared invalid or unenforceable, without rendering invalid or
enforceable the remaining terms and provisions of this
Agreement.

 

14. Headings. Headings used in this
Agreement are inserted for convenience only and shall not affect
the meaning of any term or provision of this
Agreement.

 

15. Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be
deemed an original instrument, but all of which collectively shall
constitute one and the same agreement.

 

16. Assignment. This Agreement and
the rights and obligations hereunder shall not be assignable or
transferable by the any of the parties without the prior written
consent of the other parties.

 

17. Survival. Unless otherwise
expressly provided herein, all representations warranties,
agreements and covenants contained in this Agreement shall survive
the execution hereof and shall remain in full force and effect
until the earliest to occur of (a) the payment in full of the
Notes, and (b) the conversion of the principal and accrued and
unpaid interest and all other amounts owing under the Notes into
equity securities of Borrower.

 

18. Miscellaneous. This Agreement
shall inure to the benefit of each of the parties hereto and all
their respective successors and permitted assigns. Nothing in this
Agreement is intended or shall be construed to give to any other
person, firm or corporation any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein
contained.

 

 

 

-5-

 

 

19. GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE (WITHOUT GIVING
EFFECT TO ANY CHOICE OR CONFLICT OF LAWS PROVISIONS).

 

20. CONSENT
TO JURISDICTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE NON- EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA. EACH OF THE
PARTIES HERETO AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY MUST BE LITIGATED EXCLUSIVELY IN ANY SUCH STATE OR FEDERAL
COURT, AND ACCORDINGLY, EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH LITIGATION IN ANY SUCH
COURT.

 

21. WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT. EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND EACH OF THE OTHER PARTIES
HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
21

 

22.  Attorneys’ Fees. In
the event that any suit or action is instituted to enforce any
provision in this Agreement, the prevailing party in such dispute
shall be entitled to recover from the losing party all fees, costs
and expenses of enforcing any right of such prevailing party under
or with respect to this Agreement, including without limitation,
such reasonable fees and expenses of attorneys and accountants,
which shall include, without limitation, all fees, costs and
expenses of appeals.

 

23. Entire Agreement. This
Agreement contains the entire agreement among the parties with
respect to the transactions contemplated by this Agreement and
supersedes all prior agreements or understandings among the
parties.

 

 

 

[Signature page follows]

 

-6-

 

 

IN
WITNESS WHEREOF, this Security Agreement has been executed as of
the date first set written above.

 

 

SECURED
PARTY

 

 

By:
_____________________________

 

Name:
__________________________

 

Title:
___________________________ 
                                                    

 

 

COLLATERAL
AGENT

 

 

By:
Charles Tien., an individual

 

 

BORROWER

 

SUPER
LEAGUE GAMING, INC.

 

By:  Ann
Hand

 

Chief
Executive Officer & President

 

 

 

 

-7-

 

 

EXHIBIT
A COLLATERAL

 

All
cash and cash equivalents, bank and Deposit accounts (including any
control account, disbursement account and any other bank accounts),
commercial tort claims, insurance claims, rights and policies,
letter of credit rights, investment property, Accounts, Goods,
Fixtures, Securities, Documents of Title, Inventory, General
Intangibles, Equipment and Records now owned or acquired at any
time hereafter by Debtor, wherever located or situated, and the
products and proceeds (including condemnation proceeds) of the
foregoing.

 

The
capitalized terms used hereinabove shall have the meanings set
forth below. All other terms used herein are used as defined in the
UCC.

 

"Accounts" means
any and all rights to payment for goods, including Inventory, sold
or leased or to be sold or leased or for services rendered or to be
rendered, whether or not evidenced by an instrument or chattel
paper, and no matter how evidenced, including such rights in the
form of accounts (as that term is defined in the UCC), accounts
receivable, exchange Receivables, contract rights, Instruments,
Documents, Chattel Paper, purchase orders, notes drafts,
acceptances and all other forms of obligations and receivables,
including all right, title and interest of the Debtor in the
Inventory which gave rise to any of the foregoing, including the
right of stoppage in transit and all returned, rejected, rerouted
or repossessed Inventory.

 

"Chattel paper"
means "chattel paper" as that term is defined in the
UCC.

 

"Deposit Account"
means a demand, time, savings, passbook or like account maintained
with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a certificate of
deposit.

 

"Documents" means
"documents" as that term is defined in the UCC, "Documents of
Title" means "documents of title" as defined in the
UCC.

 

"Equipment" means
"equipment" as defined in the UCC, and also all motor vehicles,
rolling stock, machinery, office
equipment, plant equipment, tools, dies, molds, store fixtures,
furniture, and other goods, property, and assets which are used
and/or were purchased for use in the operation of furtherance of
the Debtor's business, and any and all accessions, additions
thereto, and substitutions therefore.

 

"Fixtures" means
"fixtures" as that term is defined in the UCC.

 

"General
Intangibles" means "general intangibles" as defined in the UCC and
also all books and records; customer lists; goodwill; causes of
action; judgments; literary rights; rights to performance;
licenses, permits, certificates of convenience and necessity, and
similar rights granted by any governmental authority; copyrights,
trademarks, patents, patent applications, proprietary processes,
blueprints, drawings, designs, diagrams, plans, reports, charts,
catalogs, manuals, literature, technical data, proposals, cost
estimates, source codes, object codes, computer

 

 

-8-

 

 

programs, computer
program flow diagrams, and tangible property embodying or
incorporating any of the foregoing, and all other reproductions on
paper, or otherwise, of any and all the design, development,
manufacture, sale, marketing, lease or use of any or all goods
produced or sold or leased or credit extended, or service performed
by the Debtor, whether intended for an individual customer or the
general business of Debtor.

 

"Goods"
means "goods" as that term is defined in the UCC. "Instruments"
means "instruments" as that term is defined in the
UCC.

 

"Inventory" means
any and all raw materials, supplies, work in process, finished
goods, goods returned by customers, and inventory (as that term is
defined in the UCC), including goods in transit, wherever located,
which are-held for sale (but excluding goods subject to leases and
goods not manufactured by the Debtor or an affiliate and which were
purchased for resale directly or indirectly by the Debtor from a
non-affiliate pursuant to a then existing agreement or arrangement
with a non-affiliate customer), including the right of stoppage in
transit, or goods which are or might be used in connection with the
manufacturing or packing of such goods, and all such goods, the
sale or disposition of which has given rise to an Account, which
are returned to and/or repossessed and/or stopped in transit by the
Debtor or by the Secured Party, or at any time hereafter in the
possession or under the control of the Debtor or the Secured Party
or any agent or bailee of the Debtor or the Secured Party, and any
documents of title representing any of the above.

 

"Records" means all
books, records, customer lists, ledger cards, computer programs,
computer tapes, disks, printouts and records and other property and
general intangibles at any time evidencing or relating to any of
the types (or items) of property covered by this financing
statement, whether now in existence or hereafter
created.

"Securities" means
"securities" as that term is defined in the UCC.

 

 

"UCC"
means the Uniform Commercial Code as in effect in the State of
California.

 

 

 

 

-9-Exhibit 10-19

 

Exhibit
10.17

 

SUPER
LEAGUE GAMING, INC. INTERCREDITOR AND COLLATERAL AGENT
AGREEMENT

 

THIS INTERCREDITOR
AND COLLATERAL AGENT AGREEMENT (this“Agreement”),
is entered into as of by and among each of the parties whose
names appear on the signature pages to this Agreement
(individually, a “Secured
Party”, and collectively, the “Secured
Parties”), Charles Tien (the “Collateral
Agent”), and Super League Gaming, Inc., a Delaware
corporation ( the “Borrower”).

 

RECITALS

 

WHEREAS, each of
the Secured Parties has loaned monies to Borrower, as evidenced by
9% Secured Convertible Promissory Notes (collectively, the
“Notes”)
more particularly described in the Note Purchase Agreement entered
into by and between Borrower and each Secured Party;
and

 

WHEREAS, it is the
intention of each of the Secured Parties that his, her or its
security interests and liens against the collateral referred to in
Exhibit 1 of the Notes be of equal priority position with regard to
the respective security interests, notwithstanding the different
dates of investment.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are mutually acknowledged, each of the Secured
Parties hereby agree as follows:

 

1. Definitions. All capitalized
terms not otherwise defined herein shall the meanings ascribed to
them in the Note Purchase Agreement.

 

2. Pari Passu Ranking.
Notwithstanding the dates and times of perfection of the security
interest issued in favor of each Secured Party pursuant to the
Security Agreement, each Secured Party’s security interest in
and lien against the collateral referred to in Exhibit 1 of the
Notes (the “Collateral”) shall rank pari passu, and, accordingly, have the
same and equal priority position.

 

3. Collateral Agent. Subject to
the terms of this Agreement, the Secured Parties hereby agrees to
the appointment of Charles Tien to serve as the collateral agent
with respect to enforcement of the collective rights and remedies
available to the Secured Parties in the event of a default by
Borrower (the “Collateral Agent”).

 

(a) Actions. The Secured Parties
hereby authorize and appoints the Collateral Agent to act on behalf
of each such Secured Party as collateral agent for and
representative of such Secured Party under this Agreement and each
of the Notes, to enforce the rights provided under this Agreement
and each of the Notes and the obligations of the Company hereunder
and thereunder and, to exercise such powers hereunder and
thereunder as are specifically delegated to or required of the
Collateral Agent by the terms hereof and thereof, together with
such powers as may be reasonably incidental thereto. The Secured
Parties agree (which agreement shall survive any termination of
this Agreement) to indemnify the Collateral Agent, from and against
any and

 

 

 

-1-

 

 

all
liabilities, obligations, losses, damages, claims, penalties,
actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may at any time be imposed on,
incurred by, or asserted against the Collateral Agent in any way
relating to or arising out of this Agreement, the Notes and any
other agreement relating thereto, including the reimbursement of
the Collateral Agent for all reasonable out-of-pocket expenses
(including attorneys' fees and expenses) incurred by the Collateral
Agent hereunder or in connection herewith or in enforcing the
obligations of the Company under this Agreement and the Notes, in
all cases as to which the Collateral Agent is not reimbursed by the
Company; provided, that
none of the Secured Parties, expressly excluding the Collateral
Agent, shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements determined by a
court of competent jurisdiction in a final proceeding to have
resulted solely from the Collateral Agent's gross negligence or
willful misconduct. The Collateral Agent shall not be required to
take or omit to take any action hereunder or under the Notes, or to
prosecute or defend any suit in respect of this Agreement or any of
the Notes, or any other agreement relating thereto, unless
indemnified to its satisfaction by the Secured Parties against
loss, costs, liability, and expense. The Collateral Agent may
delegate its duties hereunder to affiliates, agents,
attorneys-in-fact and receivers (which term includes receivers as
managers) selected in good faith by the Collateral
Agent.

 

(b) Exculpation

 

(i) The Collateral
Agent shall have no duties or responsibilities except those
expressly set forth in this Agreement, and the Collateral Agent
shall not by reason of this Agreement or any of the Notes (or
otherwise) be a trustee for any Secured Party or have any fiduciary
obligation to any Secured Party or any of their affiliates. Neither
the Collateral Agent nor any of its directors, partners, members,
managers, officers, employees or agents (collectively, the
“Related
Parties”) shall be liable to any Secured Party for any
action taken or omitted to be taken by it under this Agreement and
the Notes, or in any agreements delivered in connection therewith,
or in connection herewith or therewith, except for its own willful
misconduct or gross negligence, nor shall the Collateral Agent or
any Related Parties be responsible for any recitals or
representations or warranties herein or therein or in any other
agreement delivered in connection therewith, or for the
effectiveness, enforceability, validity or due execution of any of
this Agreement, the Notes or in any other agreement delivered in
connection therewith, nor for the creation, perfection or priority
of any security interests purported to be created under any of the
Notes or the validity, genuineness, enforceability, existence,
value or sufficiency of any Collateral, nor shall the Collateral
Agent or any Related Parties be obligated to make any inquiry
respecting the performance by the Company of its obligations
hereunder or thereunder or in any other agreement delivered in
connection therewith. Any such inquiry by the Collateral Agent
shall not obligate it to make any further inquiry or to take any
action. The Collateral Agent shall be entitled to rely upon advice
of counsel concerning legal matters and upon any notice, consent,
certificate, statement, or writing which they believe to be genuine
and to have been presented by a proper Person. The Collateral Agent
shall not be responsible for the negligence or misconduct of any
such agents or attorneys-in-fact selected by it with reasonable
care.

 

 

 

-2-

 

 

(ii) The
Collateral Agent shall be entitled to rely upon any certification,
notice or other communication (including any thereof by email,
telex, telecopy, telegram or cable) reasonably believed by it to be
genuine and correct and to have been signed or sent by or on behalf
of the proper person or persons, and upon advice and statements of
legal counsel (including counsel to the Company), independent
accountants and other experts selected by the Collateral Agent with
reasonable care. As to any matters not expressly provided for by
this Agreement, the Collateral Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder in
accordance with instructions signed by all Secured Parties, in its
capacity as agent of the Secured Parties, and any action taken or
failure to act pursuant thereto, shall be binding on all of the
Secured Parties.

 

(iii) The
Collateral Agent shall not be required to take any action that is
in its opinion contrary to law or to the terms of this Agreement
and the Notes, or which would in its opinion subject it or any of
its Related Parties to liability. The Collateral Agent shall, in
all cases, be fully justified in failing or refusing to act
hereunder and under the Notes unless it shall be fully indemnified
to its satisfaction against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any
such action.

 

(iv) The
Collateral Agent may deem and treat the payee of any promissory
note or other evidence of indebtedness relating to the Notes as the
owner thereof for all purposes hereof unless and until a written
notice of the assignment or transfer thereof, signed by such payee
and in form reasonably satisfactory to the Collateral Agent, shall
have been filed with the Collateral Agent. Any request, authority
or consent of any Person who at the time of making such request or
giving such authority or consent is the holder of any such note or
other evidence of indebtedness shall be conclusive and binding on
any subsequent holder, transferee or assignee of such note or other
evidence of indebtedness and of any note or notes or other
evidences of indebtedness issued in exchange therefor.

 

(c) Successor. The Collateral Agent
may resign at any time upon at least 30 days' notice to the Secured
Parties. If the Collateral Agent at any time shall resign, the
Secured Parties, by majority consent, may appoint another mutually
agreed Secured Party as a successor to Collateral Agent. If the
Secured Parties do not make such appointment within ten (10)
business days prior to the scheduled resignation date of the
Collateral Agent, the retiring Collateral Agent shall appoint a new
Collateral Agent from the Secured Parties or, if no Secured Party
accepts such appointment, from among commercial banking
institutions or trust institutions generally. In furtherance of the
foregoing, upon the announcement that the Collateral Agent will
resign in its capacity as the Collateral Agent, each of the Secured
Parties agrees to use its best efforts to promptly appoint another
Collateral Agent. Upon the acceptance of any appointment as the
Collateral Agent hereunder, such successor Collateral Agent shall
be entitled to receive from the retiring Collateral Agent such
documents of transfer and assignment as such successor Collateral
Agent may reasonably request, and shall thereupon succeed to and
become vested with all rights, powers, privileges and duties of the
retiring Collateral Agent, and the retiring Collateral Agent shall
be discharged from its duties and obligations under this Agreement
and the Notes. After the retiring Collateral Agent's resignation
hereunder as the Collateral Agent, the provisions of this Section 3
shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was the Collateral Agent under this Agreement
and the Notes, and any other agreement relating
thereto.

 

 

 

-3-

 

 

4.

Application of Proceeds 

 

(a) Any and all amounts
actually received by the Collateral Agent in connection with the
enforcement of the Notes, shall, promptly upon receipt by the
Collateral Agent, be applied:

 

(i) first, to the payment in full of all
amounts owing to the Collateral Agent in respect of any fees and
expenses (including attorneys' fees and expenses and fees and
expenses of its agents) incurred by or on behalf of the Collateral
Agent as a result of administering this Agreement or the Collateral
or exercising any rights (including foreclosure of the Collateral)
in its capacity as Collateral Agent;

 

(ii) second,
following payment of all obligations under clause (i), between and
among each of the Secured Parties on a pro rata basis, computed
using the then outstanding indebtedness, of both principal and
accrued interest, of Borrower to each of the Secured Parties, as of
the date of such distribution. Until the proceeds are so
distributed, the Collateral Agent shall hold the proceeds in trust
for the benefit of each of the Secured Parties; and

 

(iii) third,
to the Company unless otherwise directed by a court of competent
jurisdiction.

 

(b) The priorities of
allocation set forth in Section 3(a) shall apply in all
circumstances, including with respect to any distribution made in
any case or proceeding under any bankruptcy law or insolvency law
involving creditors' rights generally.

 

(c) If any Secured
Party (an “Excess
Party”) shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of setoff, or
otherwise) as a result of the realization, sale or other remedial
disposition of, or foreclosure on, any Collateral in excess of the
amount it is then entitled to receive under the terms of this
Agreement, such Excess Party shall hold such amount in trust for
the ratable benefit of the other Secured Parties in accordance with
the terms of this Agreement and shall pay an amount equal to such
excess to the Collateral Agent for distribution to the Secured
Parties in accordance with the terms of this
Agreement.

 

5. Further Assurances. Each party
agrees to execute such other documents, instruments, agreements and
consents, and take such other actions as may be reasonably
requested by the other parties hereto to effectuate the purposes of
this Agreement.

 

6. Notices. All notices required
or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed telex, e-mail or facsimile if
sent during normal business hours of the recipient, if not, then on
the next business day, (c) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent
as follows:

 

 

 

-4-

 

 

If to the
Holder:                           
To Secured Party’s address listed in Exhibit A to the Note
Purchase Agreement

 

If to Collateral
Agent:                  
Charles Tien, CFO

                                                     
Super
League Gaming, Inc.

                                                     
2906 Colorado Ave.

                                                     
Santa
Monica, CA 90404

 

If to
Borrower:                            
Super League Gaming, Inc.

                                                    
2906
Colorado Ave.

                                                    
Santa Monica, CA 90404

                                                    
Attention: Ann Hand

 

 

or to
such other address or telecopy number as the party to whom notice
is to be given may have furnished to the other party in writing in
accordance herewith.

 

7. Amendments and Waivers. No
modification, amendment or waiver of any provision of, or consent
required by, this Agreement, nor any consent to any departure
herefrom, shall be effective unless it is in writing and signed by
each of the parties hereto. Such modification, amendment, waiver or
consent shall be effective only in the specific instance and for
the purpose for which given.

 

8. Exclusivity and Waiver of
Rights. No failure to exercise and no delay in exercising on
the part of any party, any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege preclude any other right,
power or privilege. The rights and remedies herein provided are
cumulative and are not exclusive of any other rights or remedies
provided by law.

 

9. Invalidity. Any term or
provision of this Agreement shall be ineffective to the extent it
is declared invalid or unenforceable, without rendering invalid or
enforceable the remaining terms and provisions of this
Agreement.

 

10. Headings. Headings used in this
Agreement are inserted for convenience only and shall not affect
the meaning of any term or provision of this
Agreement.

 

11. Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be
deemed an original instrument, but all of which collectively shall
constitute one and the same agreement.

 

12. Assignment. This Agreement and
the rights and obligations hereunder shall not be assignable or
transferable by the any of the parties without the prior written
consent of the other parties.

 

13. Survival. Unless otherwise
expressly provided herein, all representations warranties,
agreements and covenants contained in this Agreement shall survive
the execution hereof and shall remain in full force and effect
until the earliest to occur of (i) the payment in full

 

 

 

-5-

 

 

of the
Notes, and (ii) the conversion of the principal and accrued and
unpaid interest and all other amounts owing under the Notes into
equity securities of the Company.

 

14. Miscellaneous. This Agreement
shall inure to the benefit of each of the parties hereto and all
their respective successors and permitted assigns. Nothing in this
Agreement is intended or shall be construed to give to any other
person, firm or corporation any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein
contained.

 

15. GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF DELAWARE (WITHOUT GIVING EFFECT TO ANY CHOICE OR
CONFLICT OF LAWS PROVISIONS).

 

16. CONSENT TO JURISDICTION. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF CALIFORNIA. EACH OF THE PARTIES HERETO AGREES THAT ALL
ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY MUST BE LITIGATED
EXCLUSIVELY IN ANY SUCH STATE OR FEDERAL COURT, AND ACCORDINGLY,
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
LITIGATION IN ANY SUCH COURT.

 

17. WAIVER OF JURY TRIAL. EACH OF
THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH OF THE PARTIES
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND EACH OF THE
OTHER PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 17.

 

18.  Attorneys’ Fees. In
the event that any suit or action is instituted to enforce any
provision in this Agreement, the prevailing party in such dispute
shall be entitled to recover from the losing party all fees, costs
and expenses of enforcing any right of such prevailing party under
or with respect to this Agreement, including without limitation,
such reasonable fees and expenses of attorneys and accountants,
which shall include, without limitation, all fees, costs and
expenses of appeals.

 

19. Entire Agreement. This
Agreement contains the entire agreement among the parties with
respect to the transactions contemplated by this Agreement and
supersedes all prior agreements or understandings among the
parties.

 

 

 

-6-

	

 

 

 

 

IN WITNESS WHEREOF, this Agreement has
been executed as of the date first set written above.

 

 

SECURED
PARTY

 

________________________________

 

By:
  ____________________________

 

Name:
___________________________

 

Title:
____________________________ 

 

 

 

 

-7-

	

 

 

 

 

IN WITNESS WHEREOF, this Agreement has
been executed as of the date first set written above.

  

COLLATERAL
AGENT

 

 

 

By: 

Charles Tien, an
individual

 

 

 

-8-

	

 

 

 

 

IN WITNESS WHEREOF, this Agreement has
been executed as of the date first set written above.

  

SUPER
LEAGUE GAMING, INC.

 

 

 

By: 

Ann
Hand

 

Chief
Executive Officer & President

 

 

 

-9-

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