Document:

PROMISSORY
NOTE

 

Dated:
August 31, 2016

 

FOR
VALUE RECEIVED, Frankly Inc. (the “Borrower”), promises to pay to or to the order of, Raycom Media Inc.
(the “Creditor”) in accordance with the Credit Agreement (as defined below) (or at any other place as the
Creditor may, from time to time, designate by notice in writing to the Borrower):

 

		(a)	the
                                         principal sum (the “Principal”) due from time to time under the credit
                                         agreement between the Borrower and the Lender dated August 31, 2016, as amended, restated
                                         or replaced from time to time (the “Credit Agreement”); and
	 	 	 
		(b)	the
                                         interest on the unpaid portion of the Principal until the Principal is repaid in full
                                         as required and at the rates (the “Interest Rate”) by the Credit Agreement.

 

	1.	Payment.
                                         The Principal, together with any accrued but unpaid interest, will become due and
                                         will be paid in accordance with the Credit Agreement.
	 	 
	2.	Interest
                                         on Overdue Interest. If default occurs in the payment of any interest due under this
                                         promissory note, interest on that amount at the Interest Rate, calculated daily and compounded
                                         monthly, will be payable on demand.
	 	 
	3.	Currency
                                         and Payment. Any money to be paid pursuant to this promissory note must be paid by
                                         bank draft, certified cheque or electronic funds transfer of immediately available funds
                                         payable to the Creditor in the currency advanced pursuant to the Credit Agreement.
	 	 
	4.	Non-Waiver.
                                         The extension of the time for making any payment which is due and payable under this
                                         promissory note, or the Creditor’s failure or delay in exercising or enforcing
                                         any rights or remedies under this promissory note, or under any instrument securing payment
                                         of the indebtedness evidenced by this promissory note, will not constitute a continuing
                                         waiver of the right of the Creditor to enforce those rights and remedies in the future.
	 	 
	5.	Notices
                                         and Demands. Any demand or notice to be made or given in connection with this promissory
                                         note will be in writing and will be personally delivered to an officer or responsible
                                         employee of the Borrower or the Creditor or sent by facsimile, e-mail, or functionally
                                         equivalent electronic means, charges (if any) prepaid, at or to any address, electronic
                                         address, or facsimile number, as the case may be, as the Borrower or the Creditor may
                                         designate to the other in accordance with this provision. Any demand or notice which
                                         is personally delivered will be deemed to have been validly and effectively given on
                                         the date of delivery if that date is a business day, and the delivery was made during
                                         normal business hours; otherwise, it will be deemed to have been validly and effectively
                                         given on the business day next following the date of delivery. Any demand or notice which
                                         is transmitted by facsimile, e-mail, or functionally equivalent electronic means will
                                         be deemed to have been validly and effectively given on the date of transmission if that
                                         date is a business day and the transmission was made during normal business hours of
                                         the recipient; otherwise, it will be deemed to have been validly and effectively given
                                         on the business day next following the date of transmission.
	 	 
	6.	Amendments.
                                         No amendment or waiver of any provision of this promissory note or consent to any
                                         departure by the Borrower from any provision of this promissory note is effective unless
                                         it is in writing and signed by the Creditor, and then the amendment, waiver or consent
                                         is effective only in the specific instance and for the specific purpose for which it
                                         is given.

 

    	 

    	 

    

  

	7.	Collection
                                         Expenses. The Borrower will pay all costs and expenses incurred by the Creditor in
                                         collecting any amount due, and enforcing its rights, under this promissory note, including,
                                         without limitation, reasonable legal fees and disbursements. Those costs and expenses
                                         will be added to the Principal and will bear interest at the Interest Rate.
	 	 
	8.	Governing
                                         Law. This promissory note will be governed by and construed in all respects in accordance
                                         with the laws of the Province of Ontario and the laws of Canada applicable in that Province.
	 	 
	9.	Time
                                         of the Essence. Time will in all respects be of the essence of this promissory note.
	 	 
	10.	Waiver
                                         of Benefits. Presentment for payment, protest and notice of protest, notice of non-payment
                                         and notice of dishonour are waived by the Borrower.

 

The
Borrower has executed this promissory note as of the 31st day of August, 2016.

 

		FRANKLY
    INC.
	 	Per:	/s/ Steve
    Chung
	 	Name:	Steve
    Chung 
	 	Title:	Chief Executive OfficerFrankly
Co.

(formerly
known as TicToc Planet, Inc.)

 

March
23, 2015

 

Steve
(Woo Sung) Chung

743
Sweeny Street

San
Francisco, CA 94134

 

Re:
Amended and Restated Employment Agreement

 

Dear
Mr. Chung:

 

This
Amended and Restated Employment Agreement amends and restates that certain Employment Agreement (the “Employment Agreement”)
dated January 9, 2013 between you (“you” or “Employee”) and Frankly Co. (formerly known
as TicToc Planet, Inc.) (the “Company”). Your continued full time employment will be on the terms and conditions
set forth below. Please indicate your agreement by signing below and returning a copy of this agreement (“Agreement”)
to the Company.

 

1.
Position/Duties. 

 

(a)
Employee shall continue to be the Chief Executive Officer (“CEO”) of the Company, with such duties and
responsibilities consistent with his position as shall be assigned to him from time to time by the Board of Directors of the
Company (the “Board”). Employee shall devote his full business time exclusively to the business affairs of
the Company and shall perform his duties faithfully and efficiently. Employee shall also serve on the Board, subject to the
vote by the shareholders or the Board, as applicable.

 

(b)
Employee may not engage, directly or indirectly, in any other business, investment, or activity that interferes with his
performance of his duties hereunder, is contrary to the interests of the Company or its affiliates, or requires any portion
of his business time, without the written consent of the Board; provided that he may continue his board/advisory roles listed
in Exhibit A attached hereto as long as these roles will not breach this Section or this Agreement.

 

2.
Reporting. Employee shall report to the Board which shall set guidelines and shall direct Employee’s working
relationship with the Company’s affiliates and their officers.

 

3.
Representations by Employee. Employee represents and warrants to Company that he: (i) is not subject to any agreement
with any other party which would prevent or limit him from or in performing his services as contemplated herein; (ii) will
devote his full business time, energy, and skill to his duties as an employee of Company; and (iii) has accurately
represented his education, experience and qualifications to Company.

 

4.
Place of Employment. Employee’s initial place of employment will be 333 Bryant Street, Suite 310, San Francisco,
CA 94107 as changed from time to time.

 

5.
Term. Your employment under this Agreement shall commence on the February 1, 2015 (the “Start Date”) and
continue for a period of 2 years (the “Term”), unless earlier terminated in accordance with the
provisions of Section 12 below.

 

6.
Base Salary. In consideration of your services, the Company will pay you a base monthly salary in the amount of
$30,000 (annualized at $360,000), less tax deductions and other required withholdings, which salary will be paid bimonthly in
accordance with the Company’s regular payroll process (the “Base Salary”). The Base Salary may be
adjusted (but not downward without your consent) on each annual anniversary of the Start Date as determined by the Board or
such other times as deemed appropriate by the Company during the term of the Agreement. You will be classified as an
“Exempt” employee, and therefore you will not be eligible to receive overtime pay.

 

    	 	 	 

    	 

    

 

7.
Annual Bonus. 

 

(a)
You will be eligible to participate in the Company’s Annual Performance Based Bonus Plan (“APBBP”) and
your annual bonus (the “Annual Bonus”) shall total no more than 25% of your annual salary, i.e., no more than
$90,000.00. Your Annual Bonus will be calculated as follows: (1) 75% of the Annual Bonus amount shall be based on the same
Company metrics applied in determining all Company employees’ bonuses and (ii) 25% of the Annual Bonus amount shall be
based on your individual performance.

 

(b)
Payment of the Annual Bonus for a given fiscal year shall be made in a single lump sum no later than 60 days after the close
of the applicable fiscal year; provided, however, that Employee shall have no discretion with regard to when (within the
60-day period) the Annual Bonus is paid, and if the applicable 60-day period spans two taxable years of the Employee, payment
always will be made in the second taxable year.

 

8.
Equity Incentive Awards.

 

(a)Options.
Subject to the approval by the Board of Company and the Board of Directors of Frankly Inc. (the “Parent”), you
will receive a stock option award (the “Option”) to purchase 619,190 voting common shares of the Parent (2.5% of the
shares outstanding on a fully diluted basis on the date hereof) at a per share exercise price of not less than the Fair Market
Value (as defined in the Parent’s Equity Incentive Plan (the “Plan”)) of the shares on the date of grant. The
Option will vest per the Plan over a four year period commencing on the Start Date contingent upon your continuous employment
with the Company and subject to the terms and conditions set forth in the Plan, which includes immediate vesting upon termination
of your employment in the event of the Company’s or the Parent’s change of control.

 

(b)Performance-Based Restricted Stock Unit (“RSU”). Subject to the approval by the Board of Company, the
Board of Directors of the Parent, the TSX Venture Exchange and shareholders of the Parent, you may be awarded 247,676 RSUs (1%
of the shares outstanding on a fully diluted basis on the date hereof) for the Parent’s voting common shares (the “RSU
Shares”). The RSU Shares will be granted under and subject to the terms of the Plan; and shall have the following vesting
conditions (all as set forth in more detail in the applicable RSU agreement), provided that Employee is still employed on the
applicable vesting date: (1) All unvested RSU Shares will vest and be immediately issued to Employee on a date that is seven (7)
years from the Start Date; and (2) Until December 31, 2017, the RSU also may vest and the RSU Shares be immediately issued to
Employee as follows: (a) 82,558 RSU Shares on the date the average per share closing price of the Parent’s voting common
shares equals or exceeds CAD $6.10 over two consecutive calendar quarters; (b) 82,558 RSU Shares on the date the average market
capitalization of the Parent equals or exceeds CAD $200 million dollars over two consecutive calendar quarters; and (c) 82,558
RSU Shares upon the target diversification of the Parent’s shareholder base. The target diversification will be satisfied
when on average for 2 consecutive calendar quarters the 4 largest shareholders and their affiliates do not hold more than 33%
of the total outstanding equity of the Parent, on a non-fully diluted basis.

 

The
three (3) vesting conditions under Section 8(b)(2) above are independent of each other and can be cumulative. By way of example,
if two of the vesting conditions are met over applicable two consecutive fiscal quarters, Employee will be issued the RSU Shares
for both vesting conditions.

 

    	 	2	 

    	 

    

 

9.
Expenses. Employee shall be entitled to reimbursement for reasonable expenses incurred in the furtherance of the
business of the Company in accordance with express written authorizations approved from time to time by the Board. Employee
shall keep complete and accurate records of all expenditures in accordance with the Company’s practices and procedures.
The amount of expenses eligible for reimbursement during one calendar year shall not affect the expenses eligible for
reimbursement during any subsequent calendar year. Reimbursement of expenses for a given year will be paid in accordance with
the Company’s normal payroll policies, but in no event paid later than March 15th of the following year. The
right to reimbursement hereunder is not subject to liquidation or exchange for another benefit.

 

10.
Benefits. Employee will become eligible to (a) participate in all employee benefit plans that the Company generally
makes available to its executive employees and officers, which may include Medical, Dental, and Vision health benefits, as
well as disability and life insurance benefits, provided Employee timely enrolls and meets all of the other eligibility
requirements, and (b) participate in the Company’s 401(k) plan when established, subject to the terms of the plan, all
in accordance with Company standard policies, as those may be amended from time to time. The Company reserves the right to
modify, suspend or discontinue any and all of the above benefit plans, policies, and practices at any time without notice to
or recourse by Employee, so long as such action is taken generally with respect to other similarly situated persons and does
not apply solely to Employee without reasonable cause. In addition, Employee shall be entitled to a Company-paid golf
membership, company vehicle and school tuition for minor children, all of which shall be subject to applicable tax reporting
and withholding, and the reimbursement of which shall be subject to the same documentation and other requirements and the
timing of reimbursement as set forth in Section 9 above.

 

11.
Paid Time Off. Company shall allow you to take time away from work without loss of compensation. The Company does not
accrue such time off, and the Company expects you to manage your workload responsibly and use your time off in a reasonable
manner.

 

12.
Termination Of Employment; At-will Employment

 

(a) Definitions.

 

“Accrued
Amounts” shall mean: (i) any Base Salary actually earned but not paid for any period prior to the date of termination
of employment; and (ii) any approved but unreimbursed expenses.

 

“Separation
from Service” shall mean Employee’s death, retirement or termination of employment with the Company and all affiliates.

 

(b)
Termination of Employment. If Employee’s employment is terminated by either the Company or Employee for any reason, the
following provisions shall be applicable:

 

(i)
Upon Separation of Service, the Company shall pay or provide to Employee the Accrued Amounts.

 

(ii)
Subject to Employee signing, no later than the forty fifth (45th) calendar day after the Separation from Service, and not
revoking a separation agreement and full release of employment-related claims (the “Release Agreement”) in a form
approved by the Company, Employee shall be eligible to receive the APBBP for the year of termination prorated through the
date of Separation from Service (the “Release Benefit”). The Release Benefit will be paid according to Section
12(b)(iii) below. The Release Benefit will not be paid unless the Release Agreement becomes effective and is not revoked
before the expiration of the applicable 45-day period set forth in this Section 12(b)(ii).

 

    	 	3	 

    	 

    

 

(iii)
For purposes of this Agreement, the payment of any Release Benefit shall be treated as separate and distinct payment for
purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If Employee has timely
executed and not revoked the Release Agreement, as set forth in Section 12(b)(ii), the Release Benefit shall be paid on the
date when it would be otherwise payable to the Employee, but no later than March 15 of the year after the year in which the
Separation of Service occurred.

 

(c) Notice
of Termination. Except to the extent other language herein requires more notice, Employee agrees to give not less than
four (4) weeks written notice of any voluntary termination of his employment. Upon receipt of such notice, the notice
period can be accelerated by the Board so as to result in an earlier voluntary termination.

 

 (d) Death or Disability of Employee.

 

(i)
If Employee’s employment is terminated as a result of death or Disability (as defined in Section 12(d)(ii) below),
Employee (or in the case of Employee’s death, his surviving spouse or, if none, his estate) shall be entitled to
receive (A) all Accrued Amounts, (B) an amount equal to the Annual Bonus for the year during which the termination occurred
prorated through the date of Separation from Service, and (C) COBRA premiums until the expiration of two (2) months from the
date of the applicable Separation from Service. The amounts described in (A) and (C) above will be paid as soon as possible
after the determination of death or Disability, according to the Company’s customary payment schedule for the
applicable payment type. The amount described in subsection (B) above shall be paid on the date when it would be otherwise
payable to Employee, but no later than March 15 of the year after the year in which the Separation of Service
occurred.

 

(ii)
“Disability” and “Disabled” shall mean a total and permanent physical or mental
impairment that substantially limits a major life activity of Employee and that renders Employee unable to perform the
essential functions of Employee’s position, even with reasonable accommodation that does not impose an undue hardship
on the Company. Employee’s Disability and the date of commencement thereof shall be determined by the Company in good
faith based upon information supplied by Employee and/or Employee’s medical personnel or other qualified experts
selected by the Company or its insurers.

 

 (e) At-will Employment.

 

(i)Nothing
in this Agreement, including the provision of the two(2)-year term, shall entitle you to any payment for the remainder of the
Term if your employment is terminated for any reason (by the Company or by you) and you agree that any payment payable to you
upon termination or resignation shall be exclusively as set forth in Section 12(b).

 

(f)
Your employment with the Company shall be “at will,” which means that either you or the Company may terminate
your employment at any time for any reason, with or without cause. Any contrary representations, which may have been made to
you, shall be superseded by this Agreement. The “at will” nature of your employment may only be changed in an
express written agreement signed by you and approved by the Board.

 

13.
Taxes and Section 409A Compliance. 

 

(a) Any payments made to the Employee by the Company under this Agreement or otherwise shall be subject to applicable tax withholding
(including Federal, state, and local taxes, as applicable), and other deductions as required by law or authorized by Employee.
To the extent Employee has taxable income, but not associated cash compensation, the Company may withhold taxes and other deductions
from other cash compensation of Employee as it deems appropriate. Except for the Company’s responsibility to withhold applicable
income and employment taxes from compensation paid or provided to Employee, Company shall not be responsible for the payment of
any applicable taxes incurred by Employee on compensation paid or provided to Employee pursuant to this Agreement.

 

    	 	4	 

    	 

    

 

(b)
Notwithstanding anything set forth in the Agreement to the contrary, no amount payable to Employee pursuant to this
Agreement on account of Employee’s termination of employment with Company which constitutes a “deferral of
compensation” within the meaning of Section 409A of the Code and the regulations thereunder shall be paid unless and
until Employee has incurred a Separation from Service. In the event Employee is a “specified employee” as defined
in Code Section 409A as of his Separation from Service, any payment due to Employee that is payable upon Separation from
Service will be delayed for six (6) months as required by Section 409A, and any delayed payments instead will be paid in a
lump sum on the date that is seven (7) months following his Separation from Service. The Company intends that income provided
to Employee pursuant to this Agreement will be exempt from or comply with the requirements of Section 409A of the Code, such
that amounts will not be subject to taxation under Section 409A, and the provisions of this Agreement (including, but not
limited to, any definitions) shall be interpreted and construed accordingly. However, Company does not guarantee, and
Employee hereby acknowledges and agrees that Company does not guarantee, any particular tax effect (including, but not
limited to, any tax effect under Section 409A of the Code) for income provided to Employee pursuant to this
Agreement.

 

14.
Proprietary Information and Arbitration Agreement. The Proprietary Information, Invention Assignment which you already
signed will continue to be in full force and effective.

 

15.
Arbitration.

 

(a)
It is hereby mutually agreed between Employee and Company that any and all disputes between them arising out of
Employee’s employment or the termination thereof, will be subject to resolution only through final and binding
arbitration in accordance with the then applicable employment arbitration rules and procedures of Judicial Arbitration and
Mediation Services, Inc. (“JAMS”), as modified by applicable law and the terms of this Agreement.
JAMS’ current employment arbitration rules and procedures are attached hereto as Attachment “A” and are
available at http://www.jamsadr.com/rules-employment-arbitration/.

 

(b)
The parties hereby expressly waive their right to a jury trial or bench trial. A neutral arbitrator will conduct the
arbitration and will be selected in accordance with JAMS’ employment arbitration rules and procedures. The arbitration
will take place in the County of Santa Clara, California. The arbitrator must render a written arbitration decision that
reveals the essential findings and conclusions on which the decision is based. THE EMPLOYEE AND THE COMPANY HEREBY KNOWINGLY
AND VOLUNTARILY WAIVE THEIR LEGAL RIGHTS TO HAVE DISPUTES BETWEEN THEM DECIDED BY A COURT OR PRESENTED TO A JURY.

 

16.
Amendment. No part of this agreement may be amended or modified, unless such amendment is set forth in writing, duly
signed by you and a duly authorized director or officer of the Company.

 

17.
Construction. This Agreement and the Proprietary Agreement shall be governed under and construed in accordance with the
laws of the State of California. The paragraph headings and captions contained herein are for reference purposes and
convenience only and shall not in any way affect the meaning or interpretation of this Agreement. It is intended by the
parties that this Agreement be interpreted in accordance with its fair and simple meaning, not for or against either party,
and neither party shall be deemed to be the drafter of this Agreement.

 

    	 	5	 

    	 

    

 

18.
Severability. If any portion or provision of this Agreement is determined by arbitration or by a court of competent
jurisdiction to be invalid, illegal or unenforceable, the remaining portions or provisions hereof shall not be affected. The
covenants in this Agreement are severable and separate, and the unenforceability of any specific covenant shall not affect
the enforceability of any other covenant. Moreover, in the event any court of competent jurisdiction shall determine that the
scope, time or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such
restrictions be enforced to the fullest extent which the court deems reasonable, and this Agreement shall thereby be
reformed.

 

19.
Binding Effect. The rights and obligations of the parties under this Agreement shall be binding upon and inure to the
benefit of the permitted successors, assigns, heirs, administrators, executors and personal representatives of the
parties.

 

20.
Conditions. In compliance with federal immigration law, you will be required to provide documentary evidence of your
identity and eligibility for employment in the United States. Such documentation must be provided within three (3) business
days of the date of this Agreement.

 

21.
Entire Agreement. This Agreement, when countersigned by you, together with the Proprietary Information Agreement,
contains the entire agreement between the parties and supersedes all prior oral and written agreements, understandings and
commitments. You acknowledge that you have not been induced to enter into this Agreement by, nor are you relying on, any
representation or promise outside those expressly set forth herein.

 

    	 	6	 

    	 

    

 

In
closing, please acknowledge your agreement with and acceptance of the terms of this Agreement by signing below on the appropriate
line and returning the original executed document to my attention at the Company’s office as well as by email.

 

	 	Sincerely,
	 	 
	 	/s/
    Mike L. Lunsford, 
	 	 
	 	Mike
    L. Lunsford,
	 	 
	 	Director
    of the Board of Directors 
	 	 
	 	Frankly
    Co.

 

By
signing this Amended and Restated Employment Agreement, Employee states that he: has read it; understand the terms and conditions
of set forth herein; understand that this amends and restates the Employment Agreement dated January 9, 2013; is aware of his
right to consult an attorney before signing it; and has signed it knowingly and voluntarily.

 

	/s/
    Steve Chung 	 	Dated:
    March 23, 2015
	Steve
    (Woo Sung) Chung	 	

 

 

    	 	7	 

    	 

    

 

EXHIBIT
A

 

Authorized
Board/Advisory Roles

 

(1)
Senior Advisor to SyQic, JJR Private Capital and ZenEdge

 

(2)
Partner / Director, Red Hawk Media Group and/or its successors and affiliate entities

 

(3)
Partner / Director, KCP Capital and/or its successors and affiliate entities

 

    	 	8

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