Document:

Exhibit

EXHIBIT 10.5
EXECUTION VERSION

SIXTH AMENDMENT TO CREDIT AND SECURITY AGREEMENTS AND CONSENT 

THIS SIXTH AMENDMENT TO CREDIT AND SECURITY AGREEMENTS AND CONSENT (the “Amendment”), dated as of September 9, 2016, is entered into by and among ZHONE TECHNOLOGIES, INC., a Delaware corporation (“Zhone Technologies”),  ZTI MERGER SUBSIDIARY III, INC., a Delaware corporation (“ZTI”; Zhone Technologies and ZTI are sometimes referred to herein individually as a “Borrower” and collectively as the “Borrowers”), PREMISYS COMMUNICATIONS, INC., a Delaware corporation (“Premisys”), ZHONE TECHNOLOGIES INTERNATIONAL, INC., a Delaware corporation, (“Zhone International”), PARADYNE NETWORKS, INC., a Delaware corporation (“Paradyne Networks”), PARADYNE CORPORATION, a Delaware corporation (“Paradyne Corporation”; Premisys, Zhone International, Paradyne Networks, and Paradyne Corporation are sometimes referred to herein individually as a “Guarantor” and collectively as the “Guarantors”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”).
RECITALS
A.    Borrowers, Guarantors, and Lender are parties to (i) a Credit and Security Agreement, dated March 13, 2012 (as amended by that certain First Amendment to Credit and Security Agreements, dated as of March 13, 2013 (the “First Amendment”), that certain Second Amendment to Credit and Security Agreements, dated September 30, 2013 (the “Second Amendment”), that certain Third Amendment to Credit and Security Agreements, dated March 5, 2014 (the “Third Amendment”), that certain Fourth Amendment to Credit and Security Agreements, dated March 6, 2015 (the “Fourth Amendment”), and that certain Fifth Amendment to Credit and Security Agreement, dated March 23, 2016 (the “Fifth Amendment”), and as further amended from time to time, the “Domestic Credit Agreement”), and (ii) a Credit and Security Agreement (Ex-Im Subfacility), dated March 13, 2012 (as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and the Fifth Amendment, and as further amended from time to time, the “Ex-Im Credit Agreement”; and together with the Domestic Credit Agreement, collectively, the “Credit Agreements”).  Capitalized terms used in this Amendment have the meanings given to them in the Credit Agreements unless otherwise specified in this Amendment.
B.    Zhone Technologies, Dragon Acquisition Corporation, a California corporation and wholly-owned subsidiary of Zhone Technologies formed to effectuate the Merger (as defined below) (“Merger Sub”), DASAN Networks, Inc., a company incorporated under the laws of Korea (“DASAN”), and Dasan Network Solutions, Inc., a California corporation (“DNS”), intend to effect a merger of Merger Sub with and into DNS, pursuant to which Merger Sub will cease to exist, and DNS will become a wholly-owned subsidiary of Zhone Technologies (the “Merger”), pursuant to that certain Agreement and Plan of Merger, dated as of April 11, 2016, by and among Zhone Technologies, Merger Sub, DASAN and DNS (the “Merger Agreement”), and all other documents related thereto and executed in connection therewith (collectively, the “Merger Documents”).  

C.    Lender and Borrowers now wish for Lender to (i) consent to (a) the Merger, (b) the Change of Control resulting from DASAN becoming the beneficial owner of 58% of the Stock of Zhone Technologies as a result of the Merger and the related changes to the Board of Directors of Zhone Technologies (collectively, the “DASAN Change of Control”), and (c) the proposed name change of Zhone Technologies to “DASAN Zhone Solutions, Inc.” (the “Zhone Name Change”), and (ii) amend the Credit Agreements on the terms and conditions set forth herein.  
D.    Borrowers are entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of the Lender’s rights and remedies as set forth in the Credit Agreements or any other Loan Document is being waived or modified by the terms of this Amendment.  
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:
1.Amendments to Credit Agreements.  The Credit Agreements are amended as follows:
1.1    General.  
(a)    Prior to DNS becoming a party to the Credit Agreement (as contemplated by Section 6.1 hereof), each reference to “Subsidiary” and “Subsidiaries” in Sections 2.4(f), 4.2(a), 6, and 7 (other than Section 7.12) of the Credit Agreements, and in Exhibit D to the Credit Agreements, including any such reference in a defined term that is used in any such Section or Exhibit, shall exclude DNS and its Subsidiaries, but shall include DNS and its Subsidiaries from and after such date to the extent set forth in the amendment contemplated by Section 6.1 hereof; 
(b)    Whenever the term “Borrowers”, “Borrower and its Subsidiaries” or “Borrowers and their Subsidiaries” is used in respect of a financial covenant or a related definition set forth in the Credit Agreements (including, without limitation, the definitions of Excess Availability, EBITDA, and Fixed Charge Coverage Ratio), prior to and after DNS becoming a party to the Credit Agreement (as contemplated by Section 6.1 hereof), it shall be understood to mean Borrowers and their respective Subsidiaries (other than DNS and its Subsidiaries) on a consolidated basis, unless the context clearly requires otherwise; and
(c)    Each reference to “Zhone Technologies, Inc.” in the Credit Agreements and any other Loan Document shall be replaced with a reference to “DASAN Zhone Solutions, Inc.” 
1.2    Section 6.15 of the Credit Agreements.  Section 6.15 of the Credit Agreements is hereby amended by replacing the phrase “first tier Subsidiary of a Borrower” with the phrase “first tier Subsidiary of a Loan Party”.
1.3    Section 7.12 of the Credit Agreements.  Section 7.12 of the Credit Agreements is hereby amended as follows:

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(a)    The following is hereby added immediately after the phrase “series of related transactions” in clause (b) thereof:
“; provided that, to the extent requested by Lender, the Loan Parties shall provide Lender with information relating to any such transactions regardless of the size of such transaction;
(b)    The “and” at the end of clause (d) thereof is hereby deleted, the “.” at the end of clause (e) thereof is hereby replaced with “; and”, and new clauses (f), (g) and (h) are hereby added at the end thereof to read in their entirety as follows:
“(f)    transactions pursuant to the DASAN Loan Agreement to the extent not otherwise prohibited by this Agreement, the DASAN Subordination Agreement, or the other Loan Documents and not constituting an Event of Default;
(g)    transactions between DASAN Zhone Solutions, Inc. and DASAN expressly contemplated by, and entered into pursuant to the terms of, the Merger Agreement; and 
(h)    transactions between or among DNS or any of its Subsidiaries, on the one hand, and DASAN or any of its Affiliates (prior to giving effect to the Merger), on the other hand, that were in existence prior to the consummation of the Merger.”
1.4    Section 9.9 of the Credit Agreements.  Section 9.9 of the Credit Agreements is hereby amended to read in its entirety as follows:
“9.9    If the obligation of any Guarantor or DNS under a Guaranty is limited or terminated by operation of law or by such Guarantor or DNS (other than in accordance with the terms of this Agreement or the Guaranty), or if any Guarantor or DNS fails to perform any obligation under a Guaranty, or repudiates or revokes or purports to repudiate or revoke any obligation under a Guaranty, or any individual Guarantor dies or becomes incapacitated, or any other Guarantor or DNS ceases to exist for any reason;”
1.5    Schedule 1.1 to the Credit Agreements.
(a)    Clause (a) of the definition of “Change of Control” that appears in Schedule 1.1 to the Credit Agreements is hereby amended to read in its entirety as follows:
“(a)    (i) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act) other than any Permitted Holder becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 20%, or more, of the Stock of DASAN Zhone Solutions, Inc. having the right to vote for the election of members of the Board of Directors, or (ii) a Permitted Holder becomes the beneficial owner, directly or indirectly, of 65%, or more, of the Stock of DASAN Zhone Solutions, Inc. having the right to vote for the election of members of the Board of Directors; or”

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(b)    The following definition of “DASAN” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““DASAN” means DASAN Networks, Inc., a company incorporated under the laws of Korea.”
(c)    The following definition of “DASAN Loan Agreement” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““DASAN Loan Agreement” means that certain Loan Agreement, dated as of September 9, 2016, between DASAN and DASAN Zhone Solutions, Inc., as the same may be amended, restated, replaced, modified or supplemented from time to time in accordance with the terms thereof and the terms of this Agreement and the DASAN Subordination Agreement.”
(d)    The following definition of “DASAN Subordination Agreement” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““DASAN Subordination Agreement” means that certain Subordination Agreement, dated as of September 9, 2016, made by DASAN for the benefit of Lender and acknowledged by DASAN Zhone Solutions, Inc., as the same may be amended, modified, or supplemented from time to time.”
(e)    The following definition of “DNS” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““DNS” means Dasan Network Solutions, Inc., a California corporation.”
(f)    The definition of “Guarantor” that appears in Schedule 1.1 to the Credit Agreements is hereby amended to read in its entirety as follows:
““Guaranty” means any guaranty that may be executed and delivered from time to time by a Guarantor or DNS in favor of Lender in form and substance reasonably satisfactory to Lender.”
(g)    The definition of “Loan Document” that appears in Schedule 1.1 to the Credit Agreements is hereby amended to read in its entirety as follows:
““Loan Documents” means this Agreement, any Borrowing Base Certificate, the Control Agreements, the Cash Management Documents, the Copyright Security Agreement, each Guaranty, the Intercompany Subordination Agreement, the DASAN Subordination Agreement, the Letters of Credit, the Mortgages, the Patent and Trademark Security Agreement, any note or notes executed by any Borrower in connection with this Agreement and payable to Lender, any Letter of Credit Applications and other Letter of Credit Agreements entered into by any Borrower in connection with this Agreement, and any other instrument or agreement entered into, now or in the future, by any Loan Party 

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or any of its Subsidiaries and Lender in connection with this Agreement, but specifically excluding all Hedge Agreements.”
(h)    The following definition of “Merger” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““Merger” means the merger of Dragon Acquisition Corporation, a California corporation, with and into DNS, with DNS surviving as a wholly-owned subsidiary of DASAN Zhone Solutions, Inc., as contemplated by the Merger Agreement.”
(i)    The following definition of “Merger Agreement” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““Merger Agreement” means that certain Agreement and Plan of Merger, dated as of April 11, 2016, by and among Zhone Technologies, Inc. (now known as DASAN Zhone Solutions, Inc.), Dragon Acquisition Corporation, a California corporation, DASAN and DNS.”
(j)    The definition of “Permitted Acquisition” that appears in Schedule 1.1 to the Credit Agreements is hereby amended by inserting “(i)” immediately prior to the phrase “any Acquisition” in the first line thereof, inserting the phrase “pursuant to this clause (i)” immediately after the phrase “the purchase price consideration payable in respect of all Permitted Acquisitions” in clause (j) thereof, replacing the “.” at the end of clause (j) thereof with “; and”, and inserting a new clause (ii) at the end thereof to read in its entirety as follows:
“(ii)    the Acquisition of DNS and its Subsidiaries pursuant to the Merger Agreement.”
(k)    The following definition of “Permitted Holder” is hereby added in alphabetical order to Schedule 1.1 to the Credit Agreements:
““Permitted Holder” means DASAN or any Person that is an beneficial owner of Stock of DASAN Zhone Solutions, Inc. solely through such Person’s ownership of Stock of DASAN; provided that in no event shall any Loan Party or any Subsidiary of a Loan Party constitute a Permitted Holder.”
(l)    The definition of “Permitted Indebtedness” that appears in Schedule 1.1 to the Credit Agreements is hereby amended by deleting the “and” and the end of clause (h) thereof, replacing the “.” at the end of clause (i) thereof with “; and”, and adding a new clause (j) at the end thereof to read in its entirety as follows:
“(j)    unsecured Indebtedness incurred pursuant to the DASAN Loan Agreement in an aggregate principal amount not to exceed $5,000,000 (together with accrued and unpaid interest thereon), so long as such Indebtedness remains subject to the DASAN Subordination Agreement.”

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(m)    The definition of “Permitted Investments” that appears in Schedule 1.1 to the Credit Agreements is hereby amended by deleting the “and” and the end of clause (f) thereof, replacing the “.” at the end of clause (g) thereof with “; and”, and adding a new clause (h) at the end thereof to read in its entirety as follows:
“(h)    Permitted Acquisitions.”
2.    No Other Changes.  Except as explicitly amended by this Amendment or the other Loan Documents delivered in connection with this Amendment, all of the terms and conditions of the Credit Agreements and the other Loan Documents shall remain in full force and effect and shall apply to any advance or letter of credit thereunder.  This Amendment shall be deemed to be a “Loan Document” (as defined in the Credit Agreements).
3.    Amendment Fee.  [Intentionally Omitted]. 
4.    Consents.  Upon satisfaction of the conditions precedent set forth in Sections 5.1, 5.6, 5.8 and 5.10 of this Amendment, and notwithstanding any restrictions in the Credit Agreements, Lender hereby consents to (i) the Merger, so long as that the Merger is consummated in accordance with the terms of the Merger Agreement, (ii) the DASAN Change of Control, and (iii) the Zhone Name Change, so long as each of the foregoing occurs, and all of the conditions precedent set forth in Section 5 have been satisfied, on or prior to September 12, 2016.
5.    Conditions Precedent.  Except as provided in Section 4, this Amendment shall be effective when Lender shall have received each of the following, each in substance and form acceptable to Lender in its reasonable discretion and duly executed by all relevant parties:
5.1    A duly executed original of this Amendment;
5.2    A Continuing Guaranty duly executed by DNS;
5.3    A Subordination Agreement duly executed by DASAN and acknowledged by Zhone Technologies;
5.4    An Agreement of Merger duly executed by DNS and Merger Sub and filed with the Secretary of State of the State of California;
5.5    Certificates of Authority from the corporate secretaries of the Borrowers and Guarantors and the corporate secretary of DNS;
5.6    A certificate of an Authorized Person of Zhone Technologies certifying as to true, correct and complete copy of the Merger Agreement;
5.7    A certificate of an Authorized Person of Zhone Technologies certifying as to true, correct and complete copy of that certain Loan Agreement, dated as of the date of consummation of the Merger, between DASAN and Zhone Technologies; 

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5.8    Consent and approval of this Amendment by the Export Import Bank of the United States; 
5.9    Evidence reasonably satisfactory to Lender that the Zhone Name Change has occurred; and
5.10    The representations and warranties set forth in this Amendment must be true and correct.
6.    Post-Amendment Covenants.  The obligations of Lender to continue to make Advances (or otherwise extend credit under the Credit Agreements) is subject to the satisfaction of the following covenants, and the failure by Borrowers to so perform or cause to be performed the following as and when required, unless extended or otherwise waived in writing by Lender (in Lender’s sole discretion), shall constitute an Event of Default:
6.1    Within 30 days after the date of this Agreement, the Credit Agreements shall be amended, in form and substance reasonably satisfactory to Lender, to join DNS as a “Guarantor” and a “Loan Party” under, and as a party to, the Credit Agreements and the other Loan Documents, as applicable, and the Loan Parties and DNS shall take such action as may be required pursuant to Section 6.15 of the Credit Agreements with respect to DNS and its Subsidiaries; provided that such amendment shall not permit any Loan Party to make any Investments in DNS or its Subsidiaries following the consummation of the Merger without Lender’s consent; and
6.2    Within 30 days after the date of this Agreement, the Information Certificate shall be amended and restated, in form and substance satisfactory to Lender, by the Loan Parties and DNS to include information about DNS.  
7.    Representations and Warranties.  Borrowers and Guarantors hereby represent and warrant to Lender as follows:
7.1    Borrowers and Guarantors have all requisite power and authority to execute this Amendment and any other agreements or instruments required hereunder and to perform all of their obligations hereunder, and this Amendment and all such other agreements and instruments have been duly executed and delivered by Borrowers and Guarantors and constitute the legal, valid and binding obligation of Borrowers and Guarantors, enforceable against Borrowers and Guarantors in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally.
7.2    The execution, delivery and performance by Borrowers and Guarantors of this Amendment and any other agreements or instruments required hereunder have been duly authorized by all necessary corporate action on the part of Borrowers and Guarantors and do not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, other than authorizations, consents or approvals that have been obtained and are in full force and effect or as contemplated by 

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Section 4.2, (ii) violate any material provision of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to Borrowers or Guarantors, or the certificates of incorporation or by-laws of Borrowers or Guarantors, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other Material Contract to which Borrowers or Guarantors are a party or by which Borrowers and Guarantors or their respective properties may be bound or affected, except to the extent that any such breach or default could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change.
7.3    All of the representations and warranties contained in Section 5 and Exhibit D of the Credit Agreements are true and correct in all material respects on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date (in which case such representations and warranties continue to be true and correct in all material respects as of such earlier date).
8.    References.  All references in the Credit Agreements to “this Agreement” shall be deemed to refer to the Credit Agreements as amended hereby; and any and all references in the other Loan Documents to the Credit Agreements shall be deemed to refer to the Credit Agreements as amended hereby.
9.    No Waiver.  The execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Default under the Credit Agreements or a waiver of any breach, default or event of default under any Loan Document or other document held by Lender, whether or not known to Lender and whether or not existing on the date of this Amendment.
10.    Release.  Borrowers and Guarantors hereby absolutely and unconditionally release and forever discharge Lender, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, attorneys, and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which Borrowers or Guarantors have had, now have or have made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.  It is the intention of the Borrowers and Guarantors in executing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified and in furtherance of this intention each of the Borrowers and Guarantors waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM 

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OR HER MIGHT HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
The parties acknowledge that each may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.
11.    Costs and Expenses.  Borrowers agree to pay all reasonable out-of-pocket fees and disbursements of counsel to Lender for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.  Borrowers hereby agree that Lender may, at any time or from time to time in its sole discretion and without further authorization by Borrowers, make a loan to Borrowers under the Credit Agreements, or apply the proceeds of any loan, for the purpose of paying any such reasonable out-of-pocket fees, disbursements, costs and expenses.
12.    Miscellaneous.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same instrument.  Transmission by facsimile or “pdf” file of an executed counterpart of this Amendment shall be deemed to constitute due and sufficient delivery of such counterpart.  Any party hereto may request an original counterpart of any party delivering such electronic counterpart.  This Amendment and the rights and obligations of the parties hereto shall be construed in accordance with, and governed by, the laws of the State of California.  In the event of any conflict between this Amendment and the Credit Agreements, the terms of this Amendment shall govern.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. 

BORROWERS: 

ZHONE TECHNOLOGIES, INC.
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

ZTI MERGER SUBSIDIARY III, INC.
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

[SIGNATURES CONTINUED ON NEXT PAGE]

WFB/Zhone
Sixth Amendment to Credit and Security Agreements  
and Consent
S-1

GUARANTORS:
 

PREMISYS COMMUNICATIONS, INC.
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

ZHONE TECHNOLOGIES INTERNATIONAL, INC.
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

PARADYNE NETWORKS, INC.
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

PARADYNE CORPORATION
By: /s/ KIRK MISAKA 
Name:  Kirk Misaka 
Title:  Chief Financial Officer

WFB/Zhone
Sixth Amendment to Credit and Security Agreements  
and Consent
S-2

LENDER: 

WELLS FARGO BANK, NATIONAL ASSOCIATION 
 
By: /s/ HARRY L. JOE 
Name:  Harry L. Joe 
Title:  Authorized Signatory

WFB/Zhone
Sixth Amendment to Credit and Security Agreements  
and Consent
S-3Exhibit 10.21

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

SECURED PROMISSORY NOTE

MEEMEE MEDIA INC.

	
US $250,000.00

	
May 6, 2016

FOR VALUE RECEIVED, MeeMee Media Inc., a Nevada corporation (the "Company"), promises to pay to KF Business Ventures, LP, a California limited partnership (the "Holder"), or its registered assigns, the principal amount of Two Hundred Fifty Thousand United States Dollars (US $250,000.00).  This Note relates to the $250,000.00 advanced by the Holder to the Company on May 6, 2016.  The following is a statement of the rights of the Holder of this Secured Promissory Note (the "Note") and the conditions to which this Note is subject, and to which the Holder, by the acceptance of this Note, agrees:

1.            Security Agreement.  The obligations of the Company under this Note shall be secured pursuant to the terms of the Security Agreement (the "Security Agreement") dated February 3, 2014 between Holder and the Company, as amended by First Amendment of April 6, 2016.

2.            Interest.  The amount of outstanding principal shall bear interest at a rate of ten percent (10%) per annum from May 6, 2016; provided, however, upon the occurrence of an uncured Event of Default, the outstanding principal at the time of such uncured Event of Default shall accrue at the rate of seventeen percent (17%) per annum during the period of time which the Event of Default is continuing and not cured, and the amount of any and all such default interest shall be payable on demand by the Holder.  Interest shall accrue on the princi-pal balance from May 6, 2016 and shall be calculated on the basis of a 365-day year.

3.            Repayment.  All unpaid principal, together with the then accrued interest and any other amounts payable hereunder, shall be due and payable on December 31, 2017 (the "Maturity Date").  This Note may be prepaid in whole or in part at any time by the Company without the prior written consent of the Holder.

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4.            Issuance of Additional Shares.     As consideration for entering into this Secured Note, Holder shall be issued 1,000,000 shares of Company common stock.  The Company is issuing the shares of Company common stock in reliance on the representations made by the Holder in Section 7 of this Secured Note which the Holder hereby confirms are true and correct as of the date hereof.

5.            Conversion of Note By Holder.

a)            Conversion of Note.  Holder may convert all or a portion of the outstanding principal and interest due and owing under this Note at any time or times into shares of Company common stock at the Conversion Price by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of a notice of conversion.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Note to the Company until the Holder has converted all of the outstanding principal and interest due and payable under this Note, or such amounts have been repaid by the Company, in which case, the Holder shall surrender this Note to the Company for cancellation within three (3) trading days of the date the final notice of conversion is delivered to the Company or of the date the Note is repaid in full.  Partial conversions of this Note shall have the effect of lowering the outstanding balance of principal and interest due under this Note.  The Holder and the Company shall maintain records showing the amount converted under this Note and the remaining balance due and owing.  The Company shall deliver any objection to any notice of conversion within two (2) trading days of receipt of such notice.  In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error.

b)            Conversion Price.  The conversion price per share of the Common Stock under this Note shall be Six Cents ($0.06), subject to adjustment hereunder (the "Conversion Price").

c)            Mechanics of Conversion.

i.            Delivery of Certificates Upon Conversion.  Certificates for shares purchased hereunder shall be transmitted by the Company's transfer agent to the Holder by crediting the account of the Holder's broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission ("DWAC") system if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the resale of the shares of Common Stock by the Holder or (B) the shares are eligible for resale without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery to the address specified by the Holder in the notice of conversion within 10 trading days from the delivery to the Company of the notice of conversion form, and surrender of this Note (if required) (the "Note Share Delivery Date").  This Note shall be deemed to have been converted on the date the notice of conversion is received by the Company.  The shares of Company common stock issuable upon conversion shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the applicable notice of conversion has been received by the Company.

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ii.           Rescission Rights.  If the Company fails to cause the Company's transfer agent to transmit to the Holder a certificate or the certificates representing the shares of Company common stock issuable upon conversion pursuant to Section 1.5(c)(i) by the Note Share Delivery Date, then the Holder will have the right to rescind such conversion.

iii.          No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note.  As to any fraction of a share which Holder would otherwise be entitled to purchase upon such conversion, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

iv.         Charges, Taxes and Expenses.  Issuance of certificates for shares of Company common stock shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for shares are to be issued in a name other than the name of the Holder, this Note when surrendered for conversion shall be accompanied by an assignment form provided by the Company and duly executed by the Holder, and such other documentation as the Company may require regarding the investor status of the assignee, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

v.          Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely conversion of this Note, pursuant to the terms hereof.

d)            Adjustments for Split Subdivision or Combination of Shares.  If the Company at any time while this Note remains outstanding and unconverted, shall split or subdivide the shares of Company common stock into a larger number of shares, the number of shares of common stock issuable upon conversion of this Note immediately prior to such split or subdivision shall be proportionately increased and the Conversion Price shall be proportionately decreased. If the Company at any time while this Note, or any portion hereof, remains outstanding and unconverted shall combine (including by way of a reverse stock split) the shares of Company common stock into a smaller number of shares, the number of shares of common stock issuable upon conversion of this Note immediately prior to such combination shall be proportionately decreased and the Conversion Price for such class of securities shall be proportionately increased.  Any adjustment made pursuant to this Section 1.6 shall become effective immediately after the effective date of the split, subdivision or combination.

e)            Favored Nations Provision.  Other than in connection with the Excepted Issuances, from the date of this Note and until the date which all amounts of principal and interest due and owing under the Note have been paid in full or are converted into Common Stock, if the Company shall issue (the "Lower Price Issuance") any Common Stock or securities convertible into or exercisable directly or indirectly for shares of Common Stock to any person or entity at a price per share or conversion or exercise price per share which shall be less than the Conversion Price in effect at such time, without the written consent of Holder, then the Conversion Price shall automatically be reduced to such other lower price of the Common Stock or securities convertible

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into or exercisable directly or indirectly for shares of Common Stock which are issued in the Lower Price Issuance.  Common Stock or securities convertible into or exercisable directly or indirectly for shares of Common Stock issued by the Company for no consideration or for consideration that cannot be determined at the time of issue will be deemed to have been issued for a price per share as determined in good faith by the Company Board of Directors.  "Excepted Issuances" shall be issuances by the Company of its Common Stock or securities convertible into or exercisable directly or indirectly for shares of Common Stock (i) in full or partial consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities or assets of corporation or other entity so long as such issuances are not for the purpose of raising capital; (ii) in connection with strategic license agreements and other partnering arrangements so long as such issuances are not for the purpose of raising capital; (iii) to any consultant, advisor, employee or member of the Board of Directors of the Company or any of its subsidiaries for services provided or to be provided; (iv) as a result of the conversion of this Note, the Secured Note dated February 3, 2014 issued by the Company to Holder, as amended, or any and all warrants issued by the Company to the Holder, as amended;  and (v) as a result of the conversion or exercise of any securities convertible into or exercisable directly or indirectly for shares of Common Stock which are issued and outstanding as of the date of this Note.  The provisions of this Section 5 e) shall not apply to the Conversion Price for any conversions which have been made under this Note prior to the date of the Lower Price Issuance.

6.            Events of Default.  The occurrence of any of the following shall constitute an "Event of Default" under this Note:

6.1                Failure to Pay; Other Default.  The Company shall (i) fail to pay all outstanding principal and interest due and owing under this Note on the Maturity Date; or (ii) fail to perform any material obligation under this Note or the Security Agreement which is not cured by the Company within ten (10) days of the Company's receipt of the Holder's written notice to the Company of such failure; or

6.2                Voluntary Bankruptcy or Insolvency Proceedings.  The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (iii) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (iv) take any action for the purpose of effecting any of the foregoing; or

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6.3                Involuntary Bankruptcy or Insolvency Proceedings.  Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the Company's property, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or the Company's debts under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement.

Upon the occurrence or existence of any Event of Default described in Section 6.1 and at any time thereafter during the continuance of such Event of Default, the Holder may, by written notice to Company, declare this Note immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived the Company, anything contained in this Note to the contrary notwithstanding.  Upon the occurrence or existence of any Event of Default described in Sections 6.2 and 6.3, immediately and without notice, this Note shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained in this Note to the contrary notwithstanding.  In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, the Holder may exercise any other right, power or remedy permitted to it by law.

7.            Representations and Warranties of Holder.  The Company is issuing the Note and any the shares upon conversion of the Note (collectively, the "Securities') to Holder in reliance upon the following representations made by Holder:

7.1        Purchase Entirely for Own Account.  Holder acknowledges that the Securities will be acquired for investment for Holder's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.  By executing this Agreement, Holder further represents that Holder does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to the Securities.  Holder acknowledges and agrees that the Securities are being offered and issued in reliance upon federal and state exemptions for transactions not involving any public offering.  Holder is able to bear the economic risk and lack of liquidity inherent in holding the Securities.

7.2        Disclosure of Information.  Holder acknowledges that it has received all the information it considers necessary or appropriate for deciding whether to acquire the Securities.  Holder has had the opportunity to review the Company's public reports filed with the Securities and Exchange Commission which contain the most recent public information regarding the Company (the "SEC Filings").  Holder has not been furnished any literature other than this Agreement and the SEC Filings and is not relying on any information, representation or warranty by the Company or any of its affiliates or agents, other than information contained in this Agreement and the SEC Filings, in determining whether to purchase the Securities. Holder further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities.

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 7.3        Investment Experience.  Holder is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.  If other than an individual, Holder also represents it has not been organized solely for the purpose of acquiring the Securities.  Holder either has a pre-existing personal or business relationship with the Company or its officers, directors or controlling persons, or by reason of Holder's business or financial experience, or the business or financial experience of their professional advisors who are unaffiliated with and who are not compensated by the Company, directly or indirectly, have the capacity to protect their own interests in connection with the issuance of the Securities.

 7.4        Accredited Investor.  Holder is an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities and Exchange Commission (the "SEC"), as presently in effect.

 7.5        Restricted Securities.  Holder understands that the Securities are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act of 1933, as amended (the "Act") only in certain limited circumstances, and may only be resold in accordance with all applicable securities laws of any state or any other applicable jurisdiction.  Holder represents that it is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Act and by all applicable state securities laws.  Holder acknowledges and agrees that (i) the registrar or transfer agent for the shares of common stock will not be required to accept for registration of transfer any shares except upon presentation of evidence satisfactory to the Company that the restrictions on transfer under the Securities Act have been complied with, and (ii) the shares of Company common stock in the form of definitive physical certificates will bear a restrictive legend.

 7.6        Further Limitations on Disposition.  Without in any way limiting the representations and warranties set forth above, Holder further agrees not to make any disposition of all or any portion of the Securities unless and until: (a) there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or (b) (i)  Holder has notified the Company of the proposed disposition and has furnished the Company with a brief statement of the circumstances surrounding the proposed disposition and (ii) if reasonably requested by the Company, Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such shares under the Act.  It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144 except in extraordinary circumstances.

 7.7        Principal Place of Business.  Holder's principal place of business is in the state identified on the signature page below.

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8.            Miscellaneous.

8.1                Payment.  All payments under this Note shall be made in lawful tender of the United States.

8.2                Usury.  In order to induce the Holder to make the loan to the Company evidenced by this Note, the Company and the Holder each hereby respectively represents, warrants and acknowledges to, and agrees, with the other (a) that, by reason of its own business and financial experience, such party could reasonably be assumed to have the capacity to protect its own interests in connection with the transactions contemplated by this Note, and (b) as a consequence, that the indebtedness evidenced by this Note, including all interest thereon and other consideration therefor, including, without limitation, the shares the Company common stock issued pursuant to this Note, is exempt from the usury restrictions under California law pursuant to the exemption set for in California Corporation Code Section 25118(b). Without limiting the effectiveness of said representations, warranties and exemptions, however, it is nevertheless the intent of the Company and the Holder that the holder of this Note shall never be entitled to receive, collect or apply, as interest or other consideration of any kind under this Note, any amount in excess of the maximum rate of interest permitted to be charged by applicable law; and in the event the holder of this Note ever receives, collects or applies as interest or other consideration of any kind any such excess, such amount which would be excess interest or other consideration shall be deemed applied when received as a partial prepayment of the principal amount of this Note; and if the principal amount of this Note is paid in full, any remaining excess interest or other consideration shall be paid to the Company forthwith upon demand.

8.3                Waiver and Amendment.  Any provision of this Note may be amended, waived or modified solely upon the written consent of the Company and the Holder.  No amendment, modification, termination or waiver of any provision hereof shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

8.4                Notices.  All notices and other communications required or permitted under this Note shall be in writing and shall be delivered personally by hand or by courier, mailed by United States first-class mail, postage prepaid, sent by facsimile or sent by electronic mail directed (a) if to a Holder, at such Holder's address, facsimile number or electronic mail address set forth on the signature page hereto, or at such other address, facsimile number or electronic mail address as such Holder may designate by ten (10) days' advance written notice to the Company or (b) if to the Company, to its address, facsimile number or electronic mail address and directed to the attention of the Chief Executive Officer.  All such notices and other communications shall be deemed given upon personal delivery, on the date of mailing, upon confirmation of facsimile transfer or upon confirmation of electronic mail delivery.

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8.5                Expenses; Attorneys' Fees; Representation.  If action is instituted to collect this Note and the Holder prevails on claims in such action, the Company promises to pay all reasonable costs and expenses of the Holder, including, without limitation, reasonable attorneys' fees and costs of the Holder, incurred in connection with such action.  Each party to this Note hereby represents and warrants to the other party that it has had an opportunity to seek the advice of its own independent legal counsel with respect to the provisions of this Note and that its decision to execute this Note is not based on any reliance upon the advice of any other party or its legal counsel.

8.6                Successors and Assigns.  This Note may be assigned or transferred by the Holder only with the prior written approval of the Company.  Subject to the preceding sentence, the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.  This Note shall be assigned by the Company to any successor corporation with which the Company merges, sells substantially all of its assets, or to which all of the Company's stock may be sold, effective upon the closing of such transaction.

8.7                Governing Law.  This Note shall be governed by, and construed in accordance with, the laws of the State of California as applied to agreements between residents of the State of California, entered into and to be performed entirely within the State of California.  Any judicial proceeding brought by any party hereto to enforce, or otherwise in connection with, this Note may be brought in any court of competent jurisdiction in the City of Los Angeles, California, and, by execution and delivery of this Note, the parties hereto (i) accept, generally and unconditionally, the exclusive jurisdiction of such courts and any related appellate court and irrevocably agree to be bound by any judgment rendered thereby in connection with this Note and (ii) irrevocably waive any objection they may now or hereafter have as to the venue of any such proceeding brought in such a court or that such a court is an inconvenient forum.

8.8                Substitute Notes.  Upon (i) receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation hereof, or (ii) the request of the Holder of this Note upon surrender hereof, the Company shall execute and deliver in lieu hereof, a new Note or Notes, payable to the order of the Holder or such persons as the Holder may request and in a principal amount equal to the unpaid principal amount hereof, which shall be dated and bear interest from the date to which interest has theretofore been paid hereon.  Each such Note shall in all other respects be in the same form and be treated the same as this Note and all references herein to this Note shall apply to each such Note.

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8.9                Validity.  Any provision of this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Note or affecting the validity or enforceability of such provision in any other jurisdiction.

IN WITNESS WHEREOF, the parties have executed this Note as of the date first above written.

	
 

	
MEEMEE MEDIA INC.

	
 

	
 

	
 

	
 

	
 

	
/s/ MARTIN DOANE

	
 

	
Martin J. Doane,

	
 

	
Executive Chairman

	 	 
	 	
HOLDER:

	 	 
	 	
KF Business Ventures, LP

	 	
a California limited partnership

	 	 
	 	
By:

	
Kopple Financial, Inc.

a California corporation,

Its General Partner

	 	 	 
	 	 	
By:

	
/s/ ROBERT KOPPLE

	 	 	 	
Robert C. Kopple, Its President

	 	 	 	 
	 	 	
Address:

	
10866 Wilshire Boulevard, Suite 1500

Los Angeles, California 90024

	 	 	 

[Signature Page to MeeMee Media Inc. Secured Promissory Note]

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