Document:

Sale-Leaseback Agreement by and between eGames Inc.

 Exhibit 10.7 
 SALE-LEASEBACK AGREEMENT 
 THIS SALE-LEASEBACK AGREEMENT
(the “Agreement”) dated June 3, 2011, is made and executed by and between EGAMES, INC., with an address at 2000 Cabot Blvd. West, Suite 110, Langhorne, Pennsylvania 19047 (“Grantor”) and
FERTILEMIND CAPITAL FUND I, with an address at 405 Lexington Avenue, Suite 2600, New York, New York 10174 (“Lender”). 
 WHEREAS, the Grantor has executed and delivered to Lender a senior secured promissory note (the “Note” and together with the Agreement, the Warrant issued in connection
herewith and/or any ancillary document, the “Transaction Documents”) in the aggregate principal amount of Four Hundred Thousand dollars ($400,000) dated of even date herewith (such aggregate principal amount, together with
all interest and other payments thereon, collectively, the “Indebtedness”). 
 NOW
THEREFORE, in order to secure the payment of the principal, interest and any other payments required to be paid to the Lender under the Note, and for valuable consideration, the parties to this agreement agree as follows: 

1. Sale. Grantor sells and Lender purchases from Grantor the domain name www.egames.com (the
“Domain”) subject to the terms and conditions specified herein. 
 2. Purchase Price Paid for Domain
by Lender. Lender shall purchase the Domain from Grantor for one dollar ($1.00). 
 3. Leaseback of Domain to Grantor.
Lender shall lease back the Domain to Grantor for one dollar ($1.00) during the term of the Note. Unless and until there has been an Event of Default (as hereinafter defined), Grantor shall continue to be retained on the administrative user
account for the Domain as a technical user, which status will permit Grantor to maintain the necessary technical data and current connection to Grantor’s website to operate and use the Domain without disruption. Lender may sell the Domain upon
the occurrence of an Event of Default. 
 4. Grantor’s Purchase Option to Repurchase Domain.
Upon payment in full to Lender of: (i) the principal, (ii) all accrued but unpaid interest on, and (iii) all other direct or indirect payments due under and/or relating to the Note owed by the Grantor to the Lender, the Grantor
shall have the right and option to purchase the Domain from Lender for one dollar ($1.00) (the “Domain Purchase Option”), whether such Note is prepaid or paid upon maturity. Upon payment in full of all the obligations of the
Grantor to the Lender under the Note and the other Transaction Documents, all of Lender’s rights and title to the Domain under this Agreement shall terminate. Upon Grantor’s exercise of the Domain Purchase Option, Lender will, no later
than the third (3rd) business day following the date
of exercise of the Domain Purchase Option, create an administrative user account for Grantor in Network Solutions, which administrative user account will allow Grantor to have full control over the Domain, including changing the administrator login
and password. 
 5. Representations and Warranties. Grantor represents and warrants to Lender that: 

(a) Notices to Lender. Grantor will promptly notify Lender in writing at Lender’s address shown above (or
such other addresses as Lender may designate in writing from time to time) prior to any (1) change in Grantor’s name; (2) change in Grantor’s assumed business name(s); (3) change in Grantor’s principal office address;
(4) change in Grantor’s state of organization; and (5) conversion of Grantor to a new or different type of business entity. 
 (b) No Violation. The execution and delivery of this Agreement will not violate any law or agreement governing Grantor, the Domain and/or to which Grantor is a party, and its certificate or
articles of incorporation and bylaws do not prohibit any term or condition of this Agreement. 
 (c)
Title. Grantor represents and warrants to Lender that Grantor holds good and marketable title to the Domain, free and clear of all liens and encumbrances. No financing statement covering the Domain is on file in any public office other than
those to which Lender has specifically consented. Grantor shall defend Lender’s rights 

 
in and title to the Domain against the claims and demands of all other persons or, at Lender’s option, Lender will defend title to the Domain or other claims thereon, and Grantor will pay
all of Lender’s legal fees and other expenses incurred in connection therewith. 
 (d)
Authorization. This Agreement and the other Transaction Documents have been duly authorized, executed and delivered by Grantor and are valid and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. The Grantor has full corporate power and authority necessary to
enter into and deliver the Transaction Documents and to perform its obligations thereunder. 
 (e) No
subsidiaries. The Grantor has no subsidiaries. 
 (f) Patents and Trademarks. The Grantor has all
patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights as necessary or material for use in connection with its business and
which the failure to so have could have a material adverse effect (collectively, the “Intellectual Property Rights”). The Grantor has not received a notice (written or otherwise) and has no reason to believe that any of the
Intellectual Property Rights used by the Grantor violates or infringes upon the rights of any person. To the knowledge of the Grantor, all such Intellectual Property Rights are enforceable and there is no existing infringement by another person or
entity of any of the Intellectual Property Rights. The Grantor has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its intellectual properties. 

6. Covenants. Until the Note is paid and performed in full, the Grantor agrees that, unless at any time Lender shall otherwise
expressly consent in writing, it shall: 
 (a) Delivery of Transfer Documentation.
Grantor will, no later than the third (3rd) business
day following the date of this Agreement, create an administrative user account for Lender in Network Solutions, which administrative user account will allow Lender to have full control over the Domain, including changing the administrator login and
password. Grantor will be retained on the account as a technical user during the term of the Note, which status will permit Grantor to maintain the necessary technical data and current connection to Grantor’s website to operate and use the
Domain without disruption in accordance with Section 3 of this Agreement.
 If there is an Event of
Default, Grantor shall take any such other actions and execute such other agreements and instruments as are deemed necessary and/or advisable by Lender in its sole discretion or other transfer authorities to record Grantor’s assignment and
transfer of the Domain to Lender. Grantor will in all respects comply with all requisite rules, regulations and/or similar provisions designated by such authorities to give effect to the transfer of title of the Domain to the Lender. 

(b) Maintenance of Property. At all times maintain, preserve, protect and keep its property, including but not
limited to the Domain, used or useful in the conduct of its business in good state and condition, and from time to time make all needful and proper payments, filings, updates, renewals, replacements and improvements thereto as shall be reasonably
required in the conduct of its business. 
 (c) Compliance with Laws. Comply with the requirements of all
applicable laws, rules, regulations and orders of any governmental or other authority as now in effect and which may be imposed in the future in all jurisdictions in which the Grantor is doing business of may hereafter be doing business, except
where the failure to comply will not have a material adverse effect on the Company. 
 (d) Disposal of
Property. Not sell, lease, assign, transfer or otherwise dispose of its Domain or any property rights related thereto to any person. 
 (e) Other Agreements. The Grantor shall not enter into any agreement in which the terms of such agreement would restrict or impair in any material respect the right or ability to perform of the
Grantor under any Transaction Document. 

 (f) No subsidiaries. The Grantor will not form any subsidiaries.

 7. Event of Default. For purposes of this Agreement, an “Event of Default” shall have the meaning
ascribed thereto in the Note. 
 8. Rights and Remedies on Default. If an Event of Default has occurred under this
Agreement, and at any time thereafter, Lender may exercise any one or more of the following rights and remedies: 
 (a) Accelerate Indebtedness. Lender may declare the entire Indebtedness immediately due and payable, without notice of any kind to Grantor. 

(b) Assemble Domain. Grantor shall deliver to Lender any and all documents relating to the Domain. 

(c) Sell the Domain. Lender shall have full power to keep for itself, sell, lease, transfer, or otherwise deal
with the Domain or proceeds thereof in Lender’s own name or that of Grantor. Lender may sell the Domain at public auction or private sale. 
 (d) Other Rights and Remedies. Lender shall have and may exercise any or all other rights and remedies it may have available at law, in equity, or otherwise. 

(e) Election of Remedies. Except as may be prohibited by applicable law, all of Lender’s rights and remedies,
whether evidenced by this Agreement, or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Agreement, after Grantor’s failure to perform, shall not affect Lender’s right to declare a default and exercise its remedies. 

9. Limitation on Lender’s Rights to Domain. Grantor’s sale of the Domain to Lender is subject to the following
restrictions: Lender shall not be permitted to sell, transfer, assign or otherwise encumber the Domain prior to any Event of Default. Lender’s beneficial ownership of the Domain shall be subject to (i) the Lender’s leaseback to the
Grantor and the Grantor’s use of the Domain as set forth in Section 3 of this Agreement, and (ii) Grantor’s Domain Purchase Option as set forth in Section 4 of this Agreement. Upon payment in full of the
principal, any accrued but unpaid interest and all other payments due under and/or pursuant to the Note, Grantor shall have up to one (1) year to exercise the Domain Purchase Option set forth in Section 4 of this Agreement.

 10. Cross Default. The Grantor’s obligations under the terms of this Agreement, the Note, the other Transaction
Documents and all documents executed in connection herewith and/or therewith shall be cross-defaulted with all other financing and other obligations of the Grantor, as well as any future financing accommodations extended or to be extended by the
Lender to the Grantor, so that a default under any financing accommodations extended by any lender, including the Lender to the Grantor shall be an Event of Default (as defined in the Note) hereunder. 

11. Miscellaneous Provisions. 
 (a) Amendments. This Agreement, together with the other Transaction Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. 

(b) Attorneys’ Fees Expenses. Upon an Event of Default, Grantor agrees to pay upon demand all of
Lender’s costs and expenses, including Lender’s reasonable attorneys’ fees and Lender’s legal expenses, incurred in connection with the enforcement of this Agreement and/or the other Transaction Documents. Lender may hire or pay
someone else to help enforce this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s reasonable attorneys’ fees and legal expenses whether or not there is a lawsuit,

 
including attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment
collection services. Grantor also shall pay all court costs and such additional fees as may be directed by the court. 
 (c) Caption Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement. 

(d) Governing Law. 

(i) This Agreement shall be governed by and construed solely and exclusively in accordance with the
internal laws of the State of New York without regard to the conflicts of laws principles thereof. The parties hereto hereby expressly and irrevocably agree that any suit or proceeding arising directly and/or indirectly pursuant to or under this
Agreement shall be brought solely in a federal or state court located in the City, County and State of New York. By its execution hereof, each of the parties hereto hereby covenant and irrevocably submit to the in personam jurisdiction of the
federal and state courts located in the City, County and State of New York and agree that any process in any such action may be served upon any of them personally, or by certified mail or registered mail upon them or their agent, return receipt
requested, with the same full force and effect as if personally served upon them in New York City. The parties hereto expressly and irrevocably waive any claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and
any defense or lack of in personam jurisdiction with respect thereto. In the event of any such action or proceeding, the party prevailing therein shall be entitled to payment from the other party hereto of all of its reasonable counsel fees and
disbursements. 
 (ii) The parties hereto acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement or any other Transaction Documents were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties hereto shall be
entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and any other Transaction Document and to enforce specifically the terms and provisions hereof and thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity. 
 (e) Waiver of Jury Trial. Each of the
parties hereto hereby waives a trial by jury in any action, proceeding or counterclaim brought by the other party hereto against the other in respect of any matter arising out or in connection with the Transaction Documents. 

(f) No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such
waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice
or constitute a waiver of Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a
waiver of any of Lender’s rights or of any of Grantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. 

(g) Notices. Unless otherwise provided by applicable law, any notice required to be given under this Agreement
shall be given in writing, and shall be effective when actually delivered, when actually received by facsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the
United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice
to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise provided by
applicable law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. 

 (h) Severability. If a court of competent jurisdiction finds any
provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision
shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement. 
 (i) Successor Interests. The terms of this Agreement shall be binding upon Grantor, and upon Grantor’s heirs, personal representatives, successors, and assigns, and shall be enforceable by
Lender and its successors and assigns. 
 (j) Survival of Representations and Warranties. All
representations, warranties, covenants and agreements made by Grantor in this Agreement shall survive the execution and delivery of this Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as
Grantor’s Indebtedness shall be paid in full. 
 (k) Assignment. The Lender shall have the right to
assign this Agreement or any interest herein in any transaction meeting the requirements of applicable securities laws. The Company shall not have the right to assign any of its obligations hereunder without the Lender’s express prior written
consent. 
 (l) Time is of the Essence. Time is of the essence in the performance of this Agreement.

 [signatures on next following page] 

 IN WITNESS WHEREOF, the Grantor and Lender have caused this Agreement to be executed as of the date
first written above. 
  

			
	GRANTOR: 
	eGames, Inc.
		
	By:	 	/s/    Gerald W. Klein
		 	Gerald W. Klein 
		 	President and CEO

  

					
	LENDER:
	Fertilemind Capital Fund I
			
		 	By:	 	Fertilemind Management, LLC 
			
		 	By:	 	/s/    Aram Fuchs
		 	Name:	 	Aram Fuchs 
		 	Title:	 	Managing MemberRegistration Rights Agreement dated August 10, 2011

 Exhibit 10.8 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS
AGREEMENT (“Agreement”) is made as of August 10, 2011 by and between eGames, Inc., a Pennsylvania corporation (the “Company”), and William D. Blake, an individual with an address at XXX XXXXX XXXXXX, XXXX XXXXXXX, XXXXXXXXX
(the “Investor”), and each person or entity that subsequently becomes a party to this Agreement pursuant to, and in accordance with, the provisions of Section 4 hereof (collectively, the “Permitted Transferees” and each
individually a “Permitted Transferee”). 
 WHEREAS, pursuant to a securities purchase agreement (the
“Purchase Agreement”), dated as of the date hereof, the Company has agreed to issue and sell to the Investor, and the Investor has agreed to purchase from the Company, 200,000 shares (the “Shares”) of the Company’s common
stock, without par value (the “Common Stock”), and the Company has agreed to issue to the Investor, and the Investor has agreed to accept from the Company, Warrant No. 1, dated August 10, 2011 (in whole or in part, the
“Warrant”), to purchase 200,000 shares (the “Warrant Shares”) of the Common Stock. 
 NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto hereby agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 

“Board” shall mean the board of directors of the Company. 

“Purchase” shall mean the Closing Date under the Purchase Agreement. 

“Holder” shall mean, collectively, the Investor and the Permitted Transferees; provided,
however, that the term “Holder” shall not include any of the foregoing that ceases to own or hold any Registrable Securities. 
 “Qualifying Holder” shall have the meaning ascribed thereto in Section 4 hereof. 
 “Registrable Securities” shall mean the Shares and Warrant Shares of Common Stock, and shall include any shares of the Company’s Common Stock issued with respect to the Registrable
Securities as a result of any stock split, stock dividend, recapitalization, exchange or similar event; provided, however, that all Registrable Securities shall cease to be Registrable Securities once they have been sold pursuant to a registration
statement or in a transaction exempt from registration under the Securities Act. 
 “Rule
144” shall mean Rule 144 promulgated under the Securities Act and any successor or substitute rule, law or provision. 
 “SEC” shall mean the Securities and Exchange Commission. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated there under. 

 “Purchase Date” shall mean the date of this
Agreement. 
 2. Effectiveness. This Agreement shall become effective and legally binding with respect to
an investor upon the investor’s Purchase of the Common Stock. 
 3. Registration Rights. 

3.1. Piggyback Registration. If the Company at any time after the Purchase Date proposes for any
reason to register any of its equity securities under the Securities Act (other than pursuant to a registration statement on Forms S-8 or S-4 or similar or successor form which is not available for registering the Common Stock for sale to the public
(collectively, the “Excluded Forms”)), it shall each such time promptly give written notice to all Holders of outstanding Shares, the Warrant and Warrant Shares of its intention so to do but in no event less than 30 days before the
anticipated filing date, and, upon the written request, given within 10 days after receipt of any such notice, of the Holders of any such Shares, Warrant and Warrant Shares to register any shares of Registrable Securities, shall use its best efforts
to cause all such shares of Registrable Securities then held by each such Holder to be registered under the Securities Act promptly upon receipt of the written request of such Holders for such registration, all to the extent requisite to permit the
sale or other disposition (in accordance with the intended methods thereof, as set forth in the holder’s written request) by the then Holders of the shares of Registrable Securities so registered. In the event that the proposed registration by
the Company is, in whole or in part, an underwritten public offering of securities of the Company, any request pursuant to this Section 3.1 to register shares of Registrable Securities may so specify, and such shares shall be included in the
underwriting on the same terms and conditions as the shares of Common Stock, if any, otherwise being sold through underwriters under such registration; provided, however, that the Company and all Holders proposing to distribute their
Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting (including, without limitation, a market stand-off agreement
of up to 180 days after the effective date of such registration if required by such underwriters). Notwithstanding any other provision of this Agreement, if the managing underwriter(s) determine(s) in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing underwriter(s) may exclude shares (including up to 100% of the Registrable Securities from the registration and the underwriting, with the number of Registrable Securities, if
any, included in the registration and the underwriting being allocated to each of the Holders requesting inclusion of their Registrable Securities in such Registration Statement on a pro rata basis based on the total number of Registrable Securities
then held by each such Holder, provided that the number of Registrable Securities to be offered by the Holders may not be reduced below an amount equal to 15% of the total Registrable Securities offered. If any Holder disapproves of the terms of any
such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least 10 business days prior to the effective date of the Registration Statement. Any Registrable Securities
excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. In each case, those shares of Registrable Securities which are excluded from the underwritten public offering shall be withheld from the market by
the holders thereof for a period, not to exceed 90 days, which the managing underwriter reasonably determines is necessary in order to effect the underwritten public offering. 

  
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 3.2. Preparation and Filing. If and whenever the
Company is under an obligation pursuant to the provisions of this Section 3 to use its best efforts to effect the registration of any shares of Registrable Securities, the Company shall, as promptly as reasonably practicable: 

(a) Prepare and file with the SEC such amendments and supplements to any Registration Statement and the
prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the contemplated distribution of all securities covered by such Registration Statement for up to
90 days. 
 (b) Furnish to each Holder such number of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, as the Holder may reasonably request in order to facilitate the public sale or other disposition of such shares of Registrable Securities then held by such Holder.

 (c) Use its best efforts to register or qualify the shares of Registrable Securities covered
by such registration statement under the securities or blue sky laws of such jurisdictions as shall be appropriate, as reasonably requested by any of the selling Holders; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business, to file a general consent to service of process or to become subject to any material tax in any such states or jurisdictions and, provided, further, that
(notwithstanding anything in this Agreement to the contrary with respect to the bearing of expenses) if any jurisdiction in which any of such Registrable Securities then held by a selling Holder shall be qualified shall require that expenses
incurred in connection with the qualification therein of any such Registrable Securities be borne by the selling Holders without reimbursement by the Company, then each selling Holder shall, to the extent required by such jurisdiction, pay its
respective pro rata share of such qualification expenses. 
 (d) Notify each Holder of shares of
Registrable Securities covered by such registration statement, at any time when a related prospectus is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading in light of the circumstances in which they are made; and, thereafter, the Company
shall prepare and furnish to the Holders a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus, as so supplemented
or amended, shall not include an untrue statement of a material fact or omit to state a fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided,
however, that upon such notification by the Company, the selling Holders agree that they shall not offer or sell Registrable Securities unless and until (i) the Company has notified such selling Holders that it has prepared a supplement
or amendment to such prospectus and delivered copies of such supplement or amendment to such selling Holders or (ii) the Company has advised such selling Holders in writing that the use of the applicable prospectus may be resumed (it being
understood and agreed by the Company that the foregoing proviso shall in no way diminish or otherwise impair the Company’s obligation to prepare a prospectus amendment or supplement as 

  
 3 

 
above provided in this Section 3.2(d) and deliver copies of same as above provided in Section 3.2(b). 

(e) In connection with a sale of Registrable Securities pursuant to such Registration Statement (assuming
that no stop order is in effect with respect to such Registration Statement at the time of such sale), cooperate with the selling Holder and provide the transfer agent for the Registrable Securities with such instructions and legal opinions as may
be required in order to facilitate the issuance to the purchaser (or the selling Holder’s broker) of new unlegended certificates for such Registrable Securities. 

(f) Use its best efforts to cause all Registrable Securities covered by the Registration Statement to be
listed on each securities exchange on which similar securities issued by the Company are then listed 
 3.3. Expenses. All expenses incurred by the Company in effecting all registrations for Holders of Registrable Securities pursuant to this Section 3, including, without limitation, all
registration and filing fees, fees and expenses of complying with securities and blue sky laws, printing expenses and fees and disbursements of not more than one counsel for all the Holders of Registrable Securities requesting registration
thereunder, and of the independent certified public accountants (including the expenses of any special audits in connection with any such registration) (but excluding the compensation of regular employees of the Company which shall be paid in any
event by the Company), shall be paid by the Company; provided, however, that all underwriting discounts and selling commissions applicable to the shares of Registrable Securities covered by such registration shall be borne by the Holder or
Holders thereof; provided, further, that anything in this Agreement to the contrary notwithstanding, if any jurisdiction in which the securities shall be qualified shall require that expenses incurred in connection with the qualification of
the securities in that jurisdiction be borne by selling shareholders, then such expenses shall be payable by such selling shareholders pro rata based on the number of securities being registered, to the extent required by such jurisdiction.

 3.4. Indemnification. 

(a) Indemnification by the Company. The Company will indemnify each Holder of Registrable
Securities with respect to which registration has been effected pursuant to this Agreement, each of such Holder’s partners, officers, directors, employees, advisors and agents and each person controlling such Holder, against all claims, losses,
damages, costs, expenses and liabilities of any nature whatsoever (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any Registration Statement or prospectus
incident to any such registration, qualification or compliance, or arising out of or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any state securities law or of any rule or regulation promulgated under the Securities Act or any state securities law applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration, and will reimburse each such Holder, each of its partners, officers, directors, employees, advisors and agents and each person controlling such Holder for any legal and other expenses
reasonably incurred in connection with investigating or defending 

  
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any such claim, loss, damage, cost, expense, liability or action, except that the Company will not be liable in any such case to the extent that any such claim, loss, damage, cost, expense,
liability or action arises out of or is based on any untrue statement or omission based upon information furnished to the Company by a Holder and stated to be specifically for use therein, and except that the foregoing indemnity agreement is subject
to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement) or omission (or alleged omission) made in the preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at
the time the Registration Statement becomes effective or in the amended prospectus filed with the SEC pursuant to Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall not inure to the benefit of any Holder if a copy of the
Final Prospectus was furnished to the person or entity asserting the claim, loss, damage, cost, expense, liability or action at or prior to the time such action was required by the Securities Act. 

(b) Indemnification by the Holders. Each Holder will, if Registrable Securities held by or issuable
to such Holder are included in the securities to which a registration is being effected, indemnify the Company, each of its directors and officers and each person who controls the Company within the meaning of the Securities Act, and each other
Holder, each of such other Holder’s officers and directors and each person controlling such other Holder, against all claims, losses, damages, costs, expenses and liabilities of any nature whatsoever (or actions in respect thereof) arising out
of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such Registration Statement or that prospectus incident to any such registration, or arising out of or based on any omission (or alleged omission)
to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by such Holder of the Securities Act or any state securities law or of any rule or regulation promulgated
under the Securities Act or any state securities law applicable to such Holder and relating to action or inaction required of such Holder in connection with any such registration, and will reimburse the Company, such other Holders, and such
directors, officers and other persons for any legal or other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, cost, expense, liability or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement or prospectus in reliance upon and in conformity with information furnished to the Company by such indemnifying
Holder and stated to be specifically for use therein, except that the foregoing indemnity agreement is subject to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement) or omission (or alleged omission)
made in the preliminary prospectus but eliminated or remedied in the Final Prospectus, such indemnity agreement shall not inure to the benefit of the Company or any Holder if a copy of the Final Prospectus was furnished to the person or entity
asserting the claim, loss, damage, cost, expense, liability or action at or prior to the time such action was required by the Securities Act. The liability of any indemnifying Holder under this Section 3.4(b) shall be limited in respect of any
Registration Statement to an amount equal to the aggregate proceeds received in respect of the Registrable Securities sold by such Holder under such Registration Statement. 

(c) Indemnification Procedures. Each party entitled to indemnification under this Section 3
(the “Indemnified Party”), shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought,
and shall permit the Indemnifying 

  
 5 

 
Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or
litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense. Failure of the Indemnified Party to give notice as provided herein shall relieve
the Indemnifying Party of its obligations under this Section 3 only to the extent that the failure or delay in giving notice has a material adverse impact on the ability of the Indemnifying Party to defend against such claim. No Indemnifying
Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof, the giving of a
release from all liability in respect to such claim or litigation. If any such Indemnified Party shall have been advised by counsel chosen by it that there may be one or more legal defenses available to such Indemnified Party that are different from
or additional to those available to the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party and will reimburse such Indemnified Party and any person controlling
such Indemnified Party for the reasonable fees and expenses of any counsel retained by the Indemnified Party, it being understood that the Indemnifying Party shall not, in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for such Indemnified Party or controlling person, which firm shall be
designated in writing by the Indemnified Party to the Indemnifying Party. 
 (d)
Contribution. In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (a) any party entitled to indemnification under this Section 3, makes a claim for
indemnification pursuant to this Section 3 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact that this Section 3 provides for indemnification in such case, or (b) contribution under the Securities Act may be required on the part of any such party in
circumstances for which indemnification is provided under this Section 3; then, and in each such case, the Company and each Holder whose securities were included in the registration in question will contribute to the aggregate losses, claims,
damages or liabilities to which they may be subject in such proportion as is appropriate to reflect the relative fault of each such party in connection with the events giving rise to such claims, losses, damages, costs, expenses and liabilities, as
well as any other relevant equitable considerations, provided, that each participating Holder shall be limited in respect of any Registration Statement to an amount equal to the aggregate proceeds received in respect of the Registrable Securities
sold by such Holder under such Registration Statement, provided further, however, that, in any such case, no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will
be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation 
 (e) Alternative Indemnification. Notwithstanding the foregoing provisions of this Section 3.4, if the Company, the selling shareholders and the underwriters, pursuant to an underwritten public
offering of the Common Stock, enter into an underwriting or purchase agreement relating to such offering which contains provisions covering indemnification or contribution among the parties thereto in connection with such offering, then the

  
 6 

 
indemnification or contribution provisions of this Section 3.4 shall be deemed inoperative for purposes of such offering. 

3.5. Information from Holders. In connection with any registration effected pursuant to this
Section 3, each holder of the shares of Registrable Securities then held by such Holder included in any registration effected pursuant to this Section 3 shall furnish to the Company such information with respect to it and its proposed
distribution as the Company shall reasonably request in writing on a timely basis and as shall be required by federal or state securities or blue sky laws applicable to such registration. The Company may exclude from such registration the
Registrable Securities of any such Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request. 
 4. Transfer of Registration Rights. None of the rights of any Holder under this Agreement shall be transferred or assigned to any person unless (i) such person is a Qualifying Holder (as
defined below), (ii) such person agrees to become a party to, and bound by all of the terms and conditions of, this Agreement by duly executing and delivering to the Company an Instrument of Adherence in the form attached as Exhibit A hereto,
(iii) the transfer or assignment is made in accordance with the applicable requirements of the Purchase Agreement and (iv) following the transfer or assignment, the further disposition of the Registrable Securities by such person is
restricted under the Securities Act and applicable state securities laws. For purposes of this Section 4, the term “Qualifying Holder” shall mean, with respect to any Holder, any corporation, partnership or other affiliated entity
controlling, controlled by, or under common control with, such Holder, or any partner, if such Holder is a partnership, or any member, if such Holder is a limited liability company. None of the rights of any Holder under this Agreement shall be
transferred or assigned to any person that acquires Registrable Securities in the event that and to the extent that such Person is eligible to resell all of such Registrable Securities pursuant to Rule 144 of the Securities Act within a three-month
period. 
 5. Entire Agreement. This Agreement constitutes and contains the entire agreement and
understanding of the parties with respect to the subject matter hereof, and it also supersedes any and all prior negotiations, correspondence, agreements or understandings with respect to the subject matter hereof. 

6. Deferral. Notwithstanding anything in this Agreement to the contrary, if the Company shall furnish to the
selling Holders a certificate signed by the President and Chief Executive Officer of the Company stating that the Board has made the good faith determination (i) that continued use by the selling Holders of the Registration Statement for
purposes of effecting offers or sales of Registrable Securities pursuant thereto would require, under the Securities Act, disclosure in the Registration Statement (or the prospectus relating thereto) of material, nonpublic information concerning the
Company, its business or prospects or any proposed transaction involving the Company, (ii) that such disclosure would be premature and would be adverse to the Company, its business or prospects or any such proposed transaction or would make the
successful consummation by the Company of any such transaction significantly less likely and (iii) that it is therefore essential to suspend the use by the Holders of such Registration Statement (and the prospectus relating thereto) for
purposes of effecting offers or sales of Registrable Securities pursuant thereto, then the right of the selling Holders to use the Registration Statement (and the prospectus relating thereto) for purposes of effecting offers or

  
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sales of Registrable Securities pursuant thereto shall be suspended for a period (the “Suspension Period”) of not more than 90 days after delivery by the Company of the certificate
referred to above in this Section 6. During the Suspension Period, the Holders agree that they shall not offer or sell any Registrable Securities pursuant to or in reliance upon the Registration Statement (or the prospectus relating thereto).
The Company may not exercise this right more than two times in each year after the Purchase Date. 
 7.
Miscellaneous. 
 (a) This Agreement shall be governed by and construed and enforced in
accordance with the laws of the Commonwealth of Pennsylvania, and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors or assigns, provided that the terms and
conditions of Section 4 hereof are satisfied. This Agreement shall also be binding upon and inure to the benefit of any transferee of any of the Registrable Securities provided that the terms and conditions of Section 4 hereof are
satisfied. Notwithstanding anything in this Agreement to the contrary, if at any time any Holder shall cease to own all of its Registrable Securities or the Warrant, all of such Holder’s rights under this Agreement shall immediately terminate.

 (i) Any notices, reports or other correspondence (hereinafter collectively referred to as
“correspondence”) required or permitted to be given hereunder shall be sent by courier (overnight or same day) or telecopy or delivered by hand to the party to whom such correspondence is required or permitted to be given hereunder. The
date of giving any notice shall be the date of its actual receipt. 
 (ii) All correspondence to
the Company shall be addressed as follows: 
 eGames, Inc. 

2000 Cabot Boulevard, Suite 110 

Langhorne, PA 19047-1833 

Attention: Gerald Klein, Chief Executive Officer 

Facsimile: 215-750-3722 

jklein@egames.com 

with a copy to: 

McCausland Keen & Buckman 

Radnor Court, Suite 160 

259 North Radnor-Chester Road 

Radnor, PA 19087-5251 

Attention: Nancy D. Weisberg, Esq. 

Facsimile: (610) 341-1099 

nweisberg@mkbattorneys.com 

(iii) All correspondence to any Holder shall be sent to the address set forth on such Holder’s
signature page hereto (or, in the case of a Permitted Transferee, such Permitted Transferee’s Instrument of Adherence hereto). 

  
 8 

 (iv) Any party may change the address to which
correspondence to it is to be addressed by notification as provided for herein. 
 (c) The
parties acknowledge and agree that in the event of any breach of this Agreement, remedies at law may be inadequate, and each of the parties hereto shall be entitled to seek specific performance of the obligations of the other parties hereto and such
appropriate injunctive relief as may be granted by a court of competent jurisdiction. 
 (d) This
Agreement may be executed in a number of counterparts, each of which together shall for all purposes constitute one Agreement, binding on all the parties hereto notwithstanding that all such parties have not signed the same counterpart. 

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date and year first
above written. 
  

			
	eGAMES, INC.
		
	 By:
	 	 /s/ Gerald W. Klein

	 Name:
	 	 Gerald W. Klein

	 Title: 
	 	 CEO

			
	
	 
		
	By:	 	 /s/ William D. Blake

 Investor’s Address and Fax Number for Notice: 

  
 9 

 EXHIBIT A 
 INSTRUMENT OF ADHERENCE 
 Reference is hereby made to that certain
Registration Rights Agreement, dated as of March 18, 2010, among eGames, Inc., a Pennsylvania corporation (the “Company”) and the Investor and the Permitted Transferees, as amended and in effect from time to time (the
“Registration Rights Agreement’). Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Registration Rights Agreement. 

The undersigned, in order to become the owner or holder of, or have the right to acquire,
                     shares of Registrable Securities, hereby agrees that, from and after the date hereof, the undersigned has become a party
to the Registration Rights Agreement in the capacity of a Permitted Transferee, and is entitled to all of the benefits under, and is subject to all of the obligations, restrictions and limitations set forth in, the Registration Rights Agreement that
are applicable to Permitted Transferees. This Instrument of Adherence shall take effect and shall become a part of the Registration Rights Agreement immediately upon execution. 
 Print Name of Permitted Transferee: 
  

			
	
	 
		
	By:	 	 
	Name:	 	
	Title:	 	

 Permitted Transferee’s Address and Fax Number for Notice: 

 

			
	
	 
	
	 
	
	 
	
	Accepted:
	
	eGames, Inc.

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