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SECOND AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT AND WAIVER

THIS SECOND AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT AND WAIVER (this “Second Amendment”), dated as of May 2, 2022 (the “Second Amendment Effective Date”), is by and among Berry Petroleum Company, LLC, a Delaware limited liability company (the “Borrower”), Berry Corporation (bry), a Delaware corporation (the “Parent”, and together with the Borrower, the “Loan Parties”), each of the Lenders that is a signatory hereto and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).
R E C I T A L S
A.    The Borrower, the Parent, the Administrative Agent, the Issuing Bank and the Lenders are parties to that certain Credit Agreement dated as of August 26, 2021 (as amended by that certain First Amendment to Credit Agreement dated as of December 8, 2021 and as further amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), pursuant to which the Lenders have, subject to the terms and conditions set forth therein, made certain credit available to and on behalf of the Borrower. 
B.     The Borrower (i) made Restricted Payments to its Equity Interest holders in an aggregate amount of $5,235,839.78  (the “Specified Q1 2022 Restricted Payment”) and the Specified Q1 2022 Restricted Payment would not be permitted under Section 9.04(e) of the Credit Agreement as a result of it exceeding 100% of Free Cash Flow for the fiscal quarter ended December 31, 2021, (ii) intended to make, and has now made, Investments in C&J Well Services, LLC and/or CJ Berry Well Services Management, LLC, in an aggregate amount in excess of $15,000,000 before December 31, 2021 and in additional amounts after December 31, 2021 (the “Specified C&J Investments”) and such Investments would not be permitted under Section 9.05(r)(ii) of the Credit Agreement, and (iii) has not entered into and maintained Hedge Agreements for any full calendar month from and after January 1, 2025 as required under Section 8.17 of the Credit Agreement (the “Specified Q1 2025 Hedging Requirement”).
C.     The parties hereto desire to enter into this Second Amendment to, among other things, (i) amend the Credit Agreement as set forth herein effective as of the Second Amendment Effective Date and (ii) evidence the Lenders’ (x) consent to the Specified Q1 2022 Restricted Payment, effective as of March 31, 2022 and the Specified C&J Investments, effective as of October 1, 2021 and (y) extension of the dates upon which the Borrower must satisfy the Specified Q1 2025 Hedging Requirement, effective as of March 31, 2022.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Second Amendment, shall have the meaning ascribed such term in the Credit Agreement, as amended hereby.  Unless otherwise indicated, all section references in this Second Amendment refer to the Credit Agreement.
Section 2.Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Credit Agreement shall be amended effective as of the Second Amendment Effective Date in the manner provided in this Section 2.
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1.1New Definitions.  Section 1.02 of the Credit Agreement is hereby amended to add thereto in alphabetical order the following definitions which shall read in their respective entireties as follows:
“Second Amendment” means that certain Second Amendment to Credit Agreement and Limited Consent and Waiver, dated as of the Second Amendment Effective Date, among the Borrower, the Parent, the Administrative Agent and the Lenders party thereto.
“Second Amendment Effective Date” means May 2, 2022.
1.2Restated Definitions.  The following definitions contained in Section 1.02 of the Credit Agreement are hereby amended and restated in their entirety to read in full as follows:
“Designated Basic NewCo” means, individually and collectively, (i) C&J Well Services, LLC, a Delaware limited liability company, and (ii) CJ Berry Well Services Management, LLC, a Delaware limited liability company.
“Free Cash Flow” means, for any fiscal quarter for which financial statements have been delivered (for purposes of Section 9.04(c)), (a) EBITDAX (without regard for any pro forma adjustments for Material Acquisitions or Material Dispositions) for such fiscal quarter minus (b) the increase (or plus the decrease) in Working Capital from the previous fiscal quarter (except any increase or decrease in Working Capital due to the reclassification of liabilities from short-term liabilities to long-term liabilities or vice versa)  minus (c) the sum, in each case without duplication, of the following amounts paid during such fiscal quarter: (i) voluntary and scheduled cash prepayments and repayments of Debt during such fiscal quarter, in each case, which cannot be reborrowed pursuant to the terms of such Debt (and for the avoidance doubt, in the case of a voluntary or a mandatory prepayment of Borrowings, solely to the extent such prepayment is accompanied by a simultaneous and equivalent reduction in the Commitments), (ii) the aggregate amount actually paid in cash by the Loan Parties during such fiscal quarter on account of capital expenditures, (iii) interest expense paid in cash during such fiscal quarter, (iv) taxes paid in cash during such fiscal quarter, (v) exploration expenses paid in cash during such fiscal quarter, (vi)  Restricted Payments made in cash (other than to the Borrower or any Guarantor) during such fiscal quarter, (vii) Investments made in cash (other than any such Investments (A) to any Loan Party or any Restricted Subsidiary thereof to the extent permitted under this Agreement or (B) to Designated Basic NewCo to the extent permitted under Section 9.05(r) of this Agreement) during such fiscal quarter and (viii) to the extent not included in the foregoing and added back in the calculation of EBITDAX (other than Material Acquisitions or Material Dispositions) for such fiscal quarter, any other cash charge that reduces the earnings of the Loan Parties except, in the case of each of the forgoing clauses in this definition, to the extent financed with proceeds of issuances of any Equity Interests or capital contributions other than proceeds from Disqualified Capital.
“Loan Documents” means this Agreement, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Letter of Credit Fee Letters, the Security Instruments, the First Amendment, the Second Amendment and any certificate or fee letter delivered under, or in connection with, this Agreement by or on behalf of the Borrower or any other Loan Party.
“Unrestricted Subsidiary” means any Subsidiary of the Borrower designated in writing to the Administrative Agent to be an Unrestricted Subsidiary pursuant to Section 9.23.  As of 
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the Second Amendment Effective Date, the Unrestricted Subsidiaries are the Designated Basic NewCo.
1.3Deleted Definition.  The definition of “Borrowing Base Redetermination Period” is hereby deleted.
1.4Minimum Hedging.  Section 8.17 of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows.
Section 8.17    Minimum Hedging.  Commencing from and after March 31, 2022, the Borrower shall maintain Hedge Agreements (other than three-way collars) with one or more Approved Counterparties hedging minimum notional volumes of (i) at least 75% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the first full calendar month following each Minimum Hedging Requirement Date (as hereinafter defined) through and including the 24th full calendar month following each such Minimum Hedging Requirement Date and (ii) at least 50% of the reasonably projected production of crude oil from Oil and Gas Properties classified as “proved developed producing” in the Reserve Report most recently delivered to the Administrative Agent, for each full calendar month during the period from and including the 25th full calendar month following each such Minimum Hedging Requirement Date through and including the 36th full calendar month following each such Minimum Hedging Requirement Date; provided that, notwithstanding the foregoing, until the Minimum Hedging Requirement Date occurring on October 1, 2022, Borrower shall not be required to maintain any Hedge Agreements pursuant to this Section 8.17 for any full calendar month from and after January 1, 2025; provided further, that in the case of each of the foregoing clauses (i) and (ii), the notional volumes hedged under such Hedge Agreements shall be deemed reduced by the notional volumes of any short puts or other similar derivatives having the effect of exposing the Borrower or any other Loan Party to commodity price risk below the “floor” created by such Hedge Agreements of the Loan Parties for each applicable calendar month. On or prior to the date each Reserve Report (other than the Initial Reserve Report) is required to be delivered by the Borrower pursuant to Section 8.11(a) (each, a “Minimum Hedging Requirement Date”), the Borrower shall deliver evidence in form and substance satisfactory to the Administrative Agent that it has entered into Hedge Agreements to be in compliance with this Section 8.17 as of such Minimum Hedging Requirement Date.
1.5Current Ratio.  Section 9.01(b) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
(b)    Current Ratio. The Parent will not permit, as of the last day of any fiscal quarter, commencing with the fiscal quarter ending September 30, 2021, its ratio of (i) consolidated current assets (including the unused amount of the total Commitments then available to be borrowed, but excluding (x) non-cash assets under FASB ASC 815 and (y) any assets of any Unrestricted Subsidiary) to (ii) consolidated current liabilities (excluding (x) non-cash obligations under FASB ASC 410 and 815, (y) current maturities under this Agreement and (z) any liabilities of any Unrestricted Subsidiary) to be less than 1.00 to 1.00.
1.6Restricted Payments.  Sections 9.04(e) and (f) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
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(e)    the Borrower (and Intermediate Holdco, if applicable) may make cash distributions to the Parent, and the Parent may make Restricted Payments to the holders of its Equity Interests:
(X) within 60 days after the declaration or announcement of such Restricted Payment (or, if no such declaration or announcement is made, on the date of making such Restricted Payment) in an aggregate amount not to exceed 100% of Free Cash Flow for the fiscal quarter most recently ended prior to the date of such declaration or announcement (or, if no such declaration or announcement is made, on the date of making such Restricted Payments), so long as both immediately before, and immediately after giving effect to, any such Restricted Payment, (i) no Default or Event of Default exists or would exist, (ii) the unused portion of the Commitments is greater than 20% of the total Commitments, (iii) the Leverage Ratio is less than or equal to 2.00 to 1.00 (on a pro forma basis as the Leverage Ratio is recomputed on the date of such declaration or announcement (or, if no such declaration or announcement is made, on the date of making such Restricted Payments) using (A) Total Debt outstanding on such date and (B) EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available) and (iv) the Administrative Agent shall have received a certificate of a Financial Officer, setting forth reasonably detailed calculations of Free Cash Flow for the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 8.01(a) or Section 8.01(b), as applicable, which shall be in substantially the form of Exhibit I hereto; and
(Y) within 60 days after the declaration or announcement of such Restricted Payments (or, if no such declaration or announcement is made, on the date of making such Restricted Payments), so long as both immediately before, and immediately after giving effect to, any such distribution, (i) no Default or Event of Default exists or would exist, (ii) the unused portion of the Commitments is greater than 75% of the total Commitments, and (iii) the Leverage Ratio is less than or equal to 1.50 to 1.00 (as calculated on the date of such declaration or announcement (or, if no such declaration or announcement is made, on the date of making such Restricted Payments) using (A) Total Debt outstanding on such date and (B) EBITDAX as of the most recent fiscal quarter end for which financial statements have been delivered to the Administrative Agent pursuant to Section 8.01(a) or Section 8.01(b), as applicable, for the quarter ending (1) March 31, 2022, multiplied by four, (2) June 30, 2022, multiplied by two, (3) September 30, 2022, multiplied by one and one-third, and (4) thereafter, EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date); 
(f)    the Parent, the Borrower and its Restricted Subsidiaries may redeem, acquire, retire or repurchase, for cash, shares of Equity Interests (other than Disqualified Capital Stock) of the Parent, the Borrower held by any present or former officer, manager, director or employee of the Parent, the Borrower or any of its Restricted Subsidiaries upon the death, disability, retirement or termination of employment of any such Person or otherwise make Restricted Payments to such employees, directors, officers or managers in accordance with any equity option or equity appreciation rights plan, any management, director and/or employee equity ownership, benefit or incentive plan or agreement, equity subscription plan, employment termination agreement or any other employment agreements or equity holders’ agreement, so long as all such Restricted Payments do not exceed $1,000,000 in the aggregate in any fiscal year;
1.7Investments, Loans and Advances.  Section 9.05(r) of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:
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(r)    (i) a one-time direct or indirect Investment in Designated Basic NewCo made on or before December 31, 2021 in an aggregate amount not to exceed the purchase price for the acquisition of Designated Basic NewCo, (ii) other direct or indirect Investments in Designated Basic NewCo made on or before December 31, 2021 not to exceed $15,000,000.00 in an aggregate amount at any time outstanding; provided that, in each case of clauses (i) and (ii) above, any such Investment in Designated Basic NewCo shall only be permitted so long as both before, and immediately after giving effect to, the making of such Investment (A) the Loan Parties shall have Liquidity at least equal to the greater of (1) $200,000,000.00 and (2) the then-effective Borrowing Base and (B) the Leverage Ratio is less than or equal to 2.25 to 1.00 (on a pro forma basis as the Leverage Ratio is recomputed on such date using (1) Total Debt outstanding on such date and (2) EBITDAX for the four fiscal quarters ending on the last day of the fiscal quarter immediately preceding such date for which financial statements are available), (iii) other Investments in Designated Basic NewCo to be used for working capital purposes made on or after January 1, 2022 and on or before June 30, 2022 not to exceed $10,000,000.00 in an aggregate amount at any time outstanding and (iv) other Investments in Designated Basic NewCo to be used for working capital purposes made after June 30, 2022 not to exceed $5,000,000 in an aggregate amount at any time outstanding, provided that, in each case of clauses (iii) and (iv), both before, and immediately after giving effect to any such Investment, (1) no Default or Event of Default exists or would exist and (2) no Borrowing Base Deficiency exists or would result therefrom;
Section 3.Conditions Precedent.  The effectiveness of this Second Amendment is subject to the following:
1.1Counterparts.  The Administrative Agent shall have received counterparts of this Second Amendment from the Loan Parties and the Lenders constituting the Majority Lenders.
1.2Consent Fees.  The Administrative Agent shall have received, for the account of each Lender that executes and delivers to the Administrative Agent a counterpart of this Second Amendment before 1:00 p.m. (New York City time), on or prior to May 2, 2022, a consent fee in an amount equal to 0.10% of the aggregate amount of each such Lender’s Commitment in effect immediately prior to the Second Amendment Effective Date.
1.3Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent or counsel to the Administrative Agent may reasonably request.
Section 4.Limited Consents and Waivers.  In reliance on the representations, warranties, covenants and agreements contained in this Second Amendment, the receipt and sufficiency of which are hereby acknowledged and confessed, and subject to the satisfaction of the conditions precedent in Section 3 hereof, the Lenders hereby (a) consent to the Specified Q1 2022 Restricted Payment, effective as of March 31, 2022 and the Specified C&J Investments effective as of October 1, 2021, (b) waive the Specified Q1 2025 Hedging Requirement effective as of March 21, 2022 and (c) waive any breach, Default or Event of Default which may have arisen as a result of the Specified Q1 2022 Restricted Payment, the Specified C&J Investments or the Specified Q1 2025 Hedging Requirement; provided that nothing contained herein, nor any past indulgence by Administrative Agent or any Lender nor any other action or inaction on behalf of Administrative Agent or any Lender, shall constitute or be deemed to constitute a consent to, or waiver of, any other action or inaction of the Borrower or any of the other Loan Parties which constitutes (or would constitute) a violation of any provision of the Credit Agreement or any other Loan Document, or which results (or would result) in a breach, Default or Event of Default under the Credit Agreement or any other Loan Document, nor shall this Second Amendment constitute a course of conduct or dealing among the parties.  The 
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Administrative Agent and the Lenders shall have no obligation to grant any future waivers, consents or amendments with respect to the Credit Agreement or any other Loan Document, and the parties hereto agree that the limited consent and waivers provided herein shall constitute one-time consents and waivers as specifically set forth herein and shall not waive, affect or diminish any right of the Administrative Agent and the Lenders to hereafter demand strict compliance with the Credit Agreement and the other Loan Documents. 
Section 5.Miscellaneous.
1.1Confirmation and Effect.  The provisions of the Credit Agreement (as amended by this Second Amendment) shall remain in full force and effect in accordance with their terms following the effectiveness of this Second Amendment, and this Second Amendment shall not constitute a waiver of any provision of the Credit Agreement or any other Loan Document, except as expressly provided for herein.  Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference to the Credit Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby.
1.2Ratification and Affirmation of Loan Parties.  Each of the Loan Parties hereby expressly (i) acknowledges the terms of this Second Amendment, (ii) ratifies and affirms its obligations under the Loan Documents to which it is a party, (iii) acknowledges and renews its continued liability under the Loan Documents to which it is a party, (iv) agrees, with respect to each Loan Party that is a Guarantor, that its guarantee under the Guaranty Agreement remains in full force and effect with respect to the Guaranteed Obligations as amended hereby, (v) represents and warrants to the Lenders and the Administrative Agent that each representation and warranty of such Loan Party contained in the Credit Agreement and the other Loan Documents to which it is a party is true and correct in all material respects as of the date hereof, after giving effect to this Second Amendment, except (A) to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date hereof, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date, and (B) to the extent that any such representation and warranty is expressly qualified by materiality or by reference to Material Adverse Effect, such representation and warranty (as so qualified) shall continue to be true and correct in all respects, (vi) represents and warrants to the Lenders and the Administrative Agent that the execution, delivery and performance by such Loan Party of this Second Amendment are within such Loan Party’s corporate, limited partnership or limited liability company powers (as applicable), have been duly authorized by all necessary action and that this Second Amendment constitutes the valid and binding obligation of such Loan Party enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (vii) represents and warrants to the Lenders and the Administrative Agent that, immediately after giving effect to this Second Amendment, no Event of Default exists.
1.3Counterparts.  Delivery of an executed counterparty of a signature page of this Second Amendment that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.
1.4No Oral Agreement.  THIS SECOND AMENDMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR 
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SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
1.5Governing Law.  THIS SECOND AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
1.6Payment of Expenses.  The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with this Second Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
1.7Severability.  Any provision of this Second Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
1.8Successors and Assigns.  This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
1.9Loan Document.  This Second Amendment constitutes a Loan Document under and as defined in the Credit Agreement.
[Signature Pages Follow.]
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The parties hereto have caused this Second Amendment to be duly executed as of the day and year first above written.

BORROWER:    BERRY PETROLEUM COMPANY, LLC
    By: /s/ Cary Baetz                    
    Name:  Cary Baetz
    Title:    Authorized Representative

PARENT:    BERRY CORPORATION (BRY)
    By: /s/ Cary Baetz                    
    Name:  Cary Baetz
    Title:    Executive Vice President and Chief Financial Officer

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

ADMINISTRATIVE AGENT:            JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and Lender
By: /s/ Michael A. Harvey            
Name:  Michael A. Harvey
Title:    Authorized Officer

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

LENDERS:                        KEYBANK NATIONAL                                         ASSOCIATION, as a Lender

By: /s/ David M. Bornstein            
Name:  David M. Bornstein
Title:   Senior Vice President

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            BOKF, NA as a Lender

By: /s/ Sonja W Bruce                
Name:  Sonja W Bruce
Title:    Senior Vice President

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            TRI COUNTIES BANK, as a Lender

By: /s/ Aytom Salomon            
Name:  Aytom Salomon
Title:    Senior Vice President

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            CAPITAL ONE, NATIONAL                         ASSOCIATION, as a Lender

By: /s/ Christopher Kuna            
Name:  Christopher Kuna
Title:    Senior Director

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            CATHAY BANK, as a Lender

By: /s/ Dale T Wilson                
Name:  Dale T Wilson
Title:    Senior Vice President

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            GOLDMAN SACHS LENDING                         PARTNERS, as a Lender

By: /s/ Lauren Shockey            
Name:  Lauren Shockey
Title:    Authorized Signatory

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]

            MACQUARIE INVESTMENTS US INC, 
as a Lender
    

By: /s/ Nicole Jasper                
Name: Nicole Jasper
Title:   Senior Managing Director – CGM 

By: /s/ James M. Jordan            
Name: James M. Jordan
Title:   Executive Director – CGM Legal

[Signature Page to Second Amendment to Credit Agreement and Limited Consent and Waiver  – Berry Petroleum Company, LLC]Exhibit
10.1

 

Esports
Entertainment Group

Block
6, Level 2, Triq Paceville,

St
Julians STJ 3109 Malta

 

________
20__

 

Dear
________________:

 

This
is to confirm the terms of your appointment as a Non-Executive Director of Esports Entertainment Group, Inc. (the
“Company”). Your appointment is contingent upon approval by the existing Board and/or shareholders in accordance with
the Company’s bylaws.

 

Overall,
in terms of time commitment, we expect your attendance at all the Board of Directors (the “Board”) meetings, meetings of
the audit, compensation and nomination committees of the Board (as applicable) and the General Meetings (if requested). In addition,
you will be expected to devote appropriate preparation time ahead of each meeting. Board meetings may be held by remote communication
or at a specific location as the Company may decide.

 

By
accepting this appointment, you have confirmed that you are able to allocate sufficient time to meet the expectations of this position.

 

	1.	For
    and in consideration of the services to be performed by you, Company agrees to pay you for each full Year of service as follows:

 

	 	1.1.	Fee.
    An annual fee equal to the amount of $60,000 (Sixty Thousand U.S. Dollars), payable on a quarterly basis, subject to your continuous
    service as a member of the Board (the “Annual Fee”). Should you be nominated and elected to chair a committee then you
    shall be entitled to receive an additional annual fee equal to the amount of $20,000 (Twenty Thousand U.S. Dollars) payable on a
    quarterly basis, subject to your continuous service as a member of the Board and committee chairperson.

 

	 	1.2.	Stock
    Options. Subject to all approvals required by law, the Company will grant you options to purchase shares of common stock in the Company
    on or around October 22nd each year in accordance with the rules of the Company’s Equity and Incentive Plan as may be in place
    from time to time. Stock options are granted at the beginning of the year to which they relate (the “Annual
Stock Options”) provided that if at any point after the Annual Stock Options are granted and prior to their exercise your membership
of the Board ceases for any reason, your entitlement to exercise such Annual Stock Options shall be rescinded. For the avoidance of doubt,
the Annual Stock Options for the Year ending September 30th 2022 have been granted as at the date of this Letter.

 

    	 

     

    

 

	 	1.3.	For
    the purposes of this Letter, a “Year” of service is deemed to run from 1 October to the 30th September.
	 	 	 
	 	1.4.	Company
    agrees to reimburse you for out-of-pocket expenses incurred by you in connection with your service (including out-of-pocket expenses
    and “Business Class” transportation expenses, provided that such expenses are against original and valid receipts and
    pre-approved by the Company in writing (the “Expenses”).
	 	 	 
	 	1.5.	Payment
    of the Expenses, as applicable, shall be made against your itemized invoice following the receipt of the relevant invoice, which
    invoice shall be submitted to the Company within seven (7) days of the end of each calendar month during the term of this letter
    of appointment.
	 	 	 
	 	1.6.	For
    the avoidance of any doubt, the Fee and the aforementioned Expenses constitute the full and final consideration for your appointment,
    and you shall not be entitled to any additional consideration, of any form, for your appointment and service.

 

	2.	Certain
    Representations. You represent and agree that you are accepting the Annual Stock Options being issued to you pursuant to this Agreement
    for your own account and not with a view to or for sale of distribution thereof. You understand that the securities are restricted
    securities and you understand the meaning of the term “restricted securities.” You further represent that you were not
    solicited by publication of any advertisement in connection with the receipt of the shares and that you have consulted tax counsel
    as needed regarding the shares.

 

	3.	You
    will undertake such travelling as may reasonably be necessary for the performance of your duties, including travelling overseas for
    Board meetings and site visits if required.

 

	4.	You
    will undertake such duties and powers relating to the Company, and any subsidiaries or associated
companies of the Company (the “Group”) as the Board may from time to time reasonably request. Directors have the same
general legal responsibilities to the Company as any other director. The Board as a whole is collectively responsible for
promoting the success of the Company by directing and supervising the Company’s affairs, inter alia, as follows:

 

	 	4.1.	Providing
    entrepreneurial leadership of the Group within a framework of prudent and effective controls which enable risk to be assessed and
    managed; and

 

	 	4.2.	Setting
    the Group’s strategic aims, ensures that the necessary financial and human resources are in place for the Group to meet its
    objectives and reviews management performance; and

 

	 	4.3.	Setting
    the Group’s values and standards and ensures that its obligations to its shareholders and others are understood and met.

 

	5.	Confidential
    Information.

 

	 	5.1.	You
    undertake to the Company that you shall maintain in strict confidentiality all trade, business, technical or other information regarding
    the Company, the Group, its affiliated entities and their business affairs including, without limitation, all marketing, sales, technical
    and business know- how, intellectual property, trade secrets, identity and requirements of customers and prospective customers, the
    Company’s methods of doing business and any and all other information relating to the operation of the Company (collectively,
    the “Confidential Information”). You shall at no time disclose any Confidential Information to any person, firm, or entity,
    for any purpose unless such disclosure is required in order to fulfil your responsibilities as director. You further undertake that
    you shall not use such Confidential Information for personal gain.

 

    	 

     

    

 

	 	5.2.	“Confidential
    Information” shall not include information that (i) is or becomes part of the public domain other than as a result of disclosure
    by you, (ii) becomes available to you on a non- confidential basis from a source other than the Company, provided that the source
    is not bound with respect to that information by a confidentiality agreement with the Group or is otherwise prohibited from transmitting
    that information by a contractual legal or fiduciary obligation, or (iii) can be proven by you to have been in your possession prior
    to disclosure of the information by the Company. In the event that you are requested or required (by oral questions, interrogatories,
    requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information,
    it is agreed that you, to the extent practicable under the circumstances, will provide the Company with prompt notice of any such
    request or requirement so that the Company may seek an appropriate protective order or waive compliance with this paragraph 6. If
    a protective order or the receipt of a waiver hereunder has not been obtained, you may disclose only that portion of the Confidential
    Information which you are legally compelled to disclose.

 

	 	5.3.	Blackout
    Period. You understand that we have a policy pursuant to which no officer, director or key executive may not engage in transactions
    in our stock during the period commencing two weeks prior to the end of a fiscal quarter and ending the day after the financial information
    for the quarter and year have been publicly released. As a member of the audit committee, if you have information concerning our
    financial results at any time, you may not engage in transactions in our securities until the information is publicly disclosed.

 

	6.	Term
    and Termination.

 

	 	6.1.	The
    term of your appointment as a Non-Executive Director of the Company shall be for one year or until the next Annual Meeting of Stockholders
    unless terminated earlier as provided herein.

 

	 	6.2.	Subject
    to paragraph 6.2 hereunder, this appointment shall terminate immediately and without claim for compensation on the occurrence of
    any of the following events:

 

	 	6.2.1.	if
    you resign as a director of the Company for any reason; and/or

 

	 	6.2.2.	if
    this appointment is cancelled by the holder or the holders of the shares by which you were appointed; and/or

 

	 	6.2.3.	if
    you were appointed by other directors in order to temporary fill vacancy on the Board and said appointment is cancelled by the Board;
    and/or

 

	 	6.2.4.	if
    you are removed or not re-appointed as a director of the Company at a General Meeting of the Company in accordance with the requirements
    of Chapter 78 of the Nevada and/or any other applicable law or regulation (the “Law”) and/or the Company’s Articles
    of Incorporation; and/or

 

    	 

     

    

 

	 	6.2.5.	if
    you have been declared bankrupt or made an arrangement or composition with or for the benefit of your creditors; and/or

 

	 	6.2.6.	if
    you have been disqualified from acting as a director (including, but not limited to, an event in which you are declared insane or
    become of unsound mind or become physically incapable of performing your functions as director for a period of at least 60 days)
    ; and/or

 

	 	6.2.7.	with
    your death and if you are a corporation or either entity, with your liquidation.

 

	 	6.2.8.	if
    an order of a court having jurisdiction over the Company requires you to resign.

 

	 	6.3	Any
    termination of this letter of appointment shall be without payment of damages or compensation (except that you shall be entitled
    to any accrued Fees or Expenses properly incurred under the terms of this letter of appointment prior to the date of such termination).

 

	 	6.4	On
    termination of this appointment, you shall return all property belonging to a Group company, together with all documents, papers,
    disks and information, howsoever stored, relating to a Group company and used by you in connection with this position with the Company.

 

	7.	Subject
    to the proper performance of your obligations to the Company under this letter of appointment and any applicable law, the Company
    agrees that you will be free to accept other appointments and directorships provided that:

 

	 	7.1.	They
    do not in any way conflict with the interests of the Company or any member of the Group; and

 

	 	7.2.	They
    do not restrict you from devoting the necessary time and attention properly to services to be performed under this letter of appointment;
    and

 

	 	7.3.	In
    the event that you become aware of any potential conflicts of interest, these must be disclosed to the Chairman and/or the Chief
    Executive Officer (the “CEO”) of the Company as soon as they become apparent.

 

	 	7.4.	The
    Company acknowledges that you are currently on the Board of Directors of the following companies:

 

	8.	The
    Company will put directors’ and officers’ liability insurance in place as soon as possible and will use commercial reasonable
    effort to maintain such coverage for the full term of your appointment.

 

	9.	The
    performance of individual directors and the Board and its committees is evaluated annually. If, in the interim, there are any matters
    which cause you concern about your position, you should discuss them with the Chairman and/or the CEO as soon as is appropriate.

 

    	 

     

    

 

	10.	In
    addition to any right pursuant to applicable law, occasions may arise when you consider that you need professional advice in the
    furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek such advice from independent
    advisors at the Company’s expense, to the extent provided under applicable law and subject to the prior written approval of
    a majority of the independent directors of the Company and the CEO, such consent shall not be unreasonably withheld.

 

	11.	This
    letter refers to your appointment as a director of the Company and your membership of the audit, nomination and the remuneration
    committees of the board.

 

	12.	You
    shall procure that you comply at all times with the Company’s inside trading policies as in effect from time to time. You recognize
    that some or all of the Confidential Information may be relevant to the price or value of the Company’s securities, and you
    will not use any such Confidential Information in any way that breaches insider trading provisions of any applicable securities laws.

 

	13.	You
    shall discharge your general duties as a director pursuant to the Company’s Articles of Association of the Company and applicable
    law including all applicable laws, statutes, regulations, and codes relating to the prevention of fraud, bribery, corruption, racketeering,
    money laundering or terrorism.

 

	14.	The
    terms recorded in this letter constitute the entire agreement between you and the Company and supersede all previous agreements,
    promises, representations and understandings between both parties, whether written or oral, relating to its subject matter.

 

	15.	This
    letter of appointment shall be governed by and construed in accordance with the law of the State of New York. You irrevocably agree
    that the courts of New York shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this letter,
    your appointment, and any matter arising therefrom and you irrevocably waive any right that you may have to object to an action being
    brought in those courts, or to claim that the action has been brought in an inconvenient forum, or that those courts do not have
    jurisdiction.

 

	16.	Any
    notice or other communication to be given by one party to the other party under or in connection with this letter shall be in writing
    and signed by or on behalf of the party giving it. Notices to the parties shall be sent to the applicable party’s address as
    set out on page 1 of this letter with a copy to legal@eeg.games (in the case of EEG). Any notice or request shall be deemed to have
    been delivered: (a) on the delivery date if delivered personally to the party to whom the same is directed (where such day does not
    fall on a business day, delivery shall be deemed to be on the first business day following); (b) on the delivery date if delivered
    by email with an original delivered by another means within seventy-two (72) hours thereafter (where such day does not fall on a
    business day, delivery shall be deemed to be on the first business day following); or (c) one (1) business day after deposit with
    a reputable commercial overnight carrier.

 

Signature
Page Follows

 

    	 

     

    

 

Please
sign the attached copy of this letter and return it to the Company to signify your acceptance of the terms set out above.

 

Sincerely
yours,

 

	 	ESPORTS
    ENTERTAINMENT GROUP, INC.
	 	 	 
	 	By:	/s/
    Grant Johnson          
	 	 	Grant
    Johnson

    

	 	 	Chief
    Executive Officer

 

	 	By:	/s/

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