Document:

Exhibit 10.20

 

Exhibit 10.18

  

 

SUPER
LEAGUE GAMING, INC. INVESTORS’ RIGHTS AGREEMENT

 

THIS INVESTORS’ RIGHTS AGREEMENT
(this “Agreement”),
is made as of __________________,
by and among Super League Gaming, Inc., a Delaware corporation (the
“Company”),
and the purchasers of the Company’s 9% Secured Convertible
Promissory Notes (the “Investors”).

 

RECITALS

 

WHEREAS, the Company and the Investors
are parties to that certain Note Purchase Agreement of even date
herewith (the “Purchase
Agreement”).

 

WHEREAS, in order to induce the Company
to enter into the Purchase Agreement and to induce the Investors to
invest funds in the Company pursuant to the Purchase Agreement, the
Investors and the Company hereby agree that this Agreement shall
govern the rights of the Investors to cause the Company to register
shares of common stock issuable to the Investors upon conversion of
the 9% Secured Convertible Promissory Notes (collectively, the
“Notes”)
and upon exercise of the Callable Common Stock Purchase Warrants
(collectively, the “Warrants”)(the

Notes and the 
Warrants are collectively referred to herein as the
“Securities”),
to receive certain information from the Company, and to participate
in future equity offerings by the Company, and shall govern certain
other matters as set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, the parties to this
Agreement agree as follows:

 

1.

Definitions. For
purposes of this Agreement:

 

1.1 “Affiliate”
means, with respect to any specified Person, any other Person who,
directly or indirectly, controls, is controlled by or is under
common control with such Person, including, without limitation, any
general partner, managing member, officer or director of such
Person, or such Person’s principal, or any venture capital
fund, financial investment firm or collective investment vehicle
now or hereafter existing that is controlled by one or more general
partners or managing members (or any affiliates thereof, which
shall include any series or cell of a general partner or managing
member that is structured as a series limited liability company)
of, or shares the same management company with, such Person. For
purposes of this definition, the terms “controlling,”
“controlled by,” or “under common control
with” shall mean the possession, directly or indirectly,
of (a) the power to
direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by
contract, or otherwise, or (b) the power to elect or appoint at
least 50% of the directors, managers, general partners, or Persons
exercising similar authority with respect to such Person. For the
avoidance of doubt, an “Affiliate” of a specified
Person shall include (x) such Person’s partners, members,
stockholders, other equity owners, officers, directors,
managers, former or retired partners, former or retired members,
former or retired stockholders, former or retired other equity
owners, and the estate of any of the foregoing and (y) a parent or
subsidiary of a Person that is an entity.

 

 

 

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1.2 “Board”
means the board of directors of the Company.

 

1.3 “Common
Stock” means shares of the Company’s common
stock, par value $0.001 per share.
For the avoidance of doubt, the term Common Stock as used herein
shall include shares of Common Stock issuable upon conversion of
the Notes and exercise of the Warrants.

 

1.4 “Damages”
means any loss, damage, claim or liability (joint or several) to
which a party hereto may become subject under the Securities Act,
the Exchange Act, or other federal or state law, insofar as such
loss, damage, claim or liability (or any action in respect thereof)
arises out of or is based upon: (i) any untrue statement or alleged
untrue statement of a material fact contained in any registration
statement of the Company, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements
thereto, and any free-writing prospectus and any issuer information
(as defined in Rule 433 of the Securities Act) filed or required to
be filed pursuant to Rule 433(d) under the Securities Act or any
other document incident to such registration prepared by or on
behalf of the Company or used or referred to by the Company; (ii)
an 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 (iii) any violation or alleged violation
by the indemnifying party (or any of its agents or Affiliates) of
the Securities Act, the Exchange Act, any state securities law, or
any rule or regulation promulgated under the Securities Act, the
Exchange Act, or any state securities law.

 

1.5 “Deemed
Liquidation Event” has the meaning given to such term
in the Restated Certificate in effect on the date
hereof.

 

1.6 “Derivative
Securities” means any securities or rights convertible
into, or exercisable or exchangeable for (in each case, directly or
indirectly), Common Stock, including the Notes, Warrants, stock
options and other warrants to purchase shares of the
Company’s Common Stock.

 

1.7 “Exchange
Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated
thereunder.

 

1.8 “Excluded
Registration” means (i) a registration relating to the
sale of securities to employees of the Company or a subsidiary
pursuant to a stock option, stock purchase, or similar plan; (ii) a
registration relating to an SEC Rule 145 transaction; or (iii) a
registration on any form that does not include substantially the
same information as would be required to be included in a
registration statement covering the sale of the Registrable
Securities.

 

 

 

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1.9 “Exempted
Securities” means: (i) securities issued pursuant to a
Recapitalization; (ii) securities issued to employees, consultants,
officers or directors for bona fide compensatory
purposes pursuant to the Company’s existing equity incentive
plan(s), such issuances to be approved by a majority of the Board;
(iii) securities issued upon exercise or conversion of options,
warrants or other exercisable or convertible securities outstanding
as of April 24, 2018; (iv) securities issued in connection with the
closing of the IPO; (v) securities issued in connection with a bona
fide acquisition of another entity by the Company by merger,
purchase of substantially all of the assets or other reorganization
or a joint venture agreement approved by a majority of the Board;
(vi) securities issued to banks, equipment lessors or other
financial institutions pursuant to a debt financing or commercial
leasing transaction approved by a majority of the Board; (vii)
securities issued in connection with sponsored research,
collaboration, technology license, development, marketing or other
similar agreements or strategic partnerships approved by a majority
of the Board; and (viii) securities issued to suppliers or third
party service providers in connection with the provision of goods
or services pursuant to transactions approved by a majority of the
Board.

 

1.10 “Form
1-A” means such
form under the Securities Act as in effect on the date hereof or
any successor offering statement under the Securities Act
subsequently adopted by the SEC.

 

1.11 “Form
S-1” means such form under the Securities Act as in
effect on the date hereof or any successor registration form under
the Securities Act subsequently adopted by the SEC.

 

1.12 “Form
S-3” means such form under the Securities Act as in
effect on the date hereof or any registration form under the
Securities Act subsequently adopted by the SEC that permits
incorporation of substantial information by reference to other
documents filed by the Company with the SEC.

 

1.13 “GAAP”
means generally accepted accounting principles in the United
States, consistently applied.

 

1.14 “Holder”
means any holder of Registrable Securities who is a party to
this

Agreement.

 

1.15 “Immediate
Family Member” means a child, stepchild, grandchild,
parent,

stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including, adoptive relationships, of a natural person referred to
herein.

 

1.16 “Initiating
Holders” means, collectively, Holders who properly
initiate a registration request under this Agreement.

 

1.17 “IPO”
means the Company’s initial public offering of its Common
Stock.

 

1.18 “New
Securities” means, collectively, equity securities of
the Company, whether or not currently authorized, as well as any
rights, options, or warrants to purchase such equity securities, or
securities of any type whatsoever that are, or may become,
convertible or exchangeable into or exercisable (in each case,
directly or indirectly) for such equity securities.

 

1.19 “Person”
means any individual, corporation, partnership, trust, limited
liability company, association or other entity.

 

 

 

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1.20 “Recapitalization”
means any stock dividend, stock split, combination of shares,
reorganization, recapitalization, reclassification or other similar
event.

 

1.21 “Registrable
Securities” means (i) any Common Stock issued pursuant
to conversion of the Notes and upon exercise of the Warrants (the
Notes and Warrants being issued pursuant to the Purchase
Agreement), (ii) any Common Stock, or any Common Stock issued or
issuable (directly or indirectly) upon conversion and/or exercise
of any other securities of the Company, currently owned, or
acquired after the date hereof, by any Investor or its
Affiliate(s); and

(iii)
any Common Stock issued as (or issuable upon the conversion or
exercise of any warrant, right, or other security that is issued
as) a dividend or other distribution with respect to, or in
exchange for or in replacement of, the shares referenced in clauses
(i)-(ii) above held by an Investor; excluding in all cases,
however, any Registrable Securities sold by a Person in a
transaction in which the applicable rights under this Agreement are
not assigned pursuant to Section 6.1,
and excluding for purposes of Section 2 any shares for which
registration rights have terminated pursuant to Section 2.12 of this Agreement.

 

1.22 “Registrable
Securities then outstanding” means the number of
shares determined by adding the number of shares of outstanding
Common Stock that are Registrable Securities and the number of
shares of Common Stock issuable (directly or indirectly) pursuant
to then exercisable and/or convertible securities that are
Registrable Securities.

 

1.23 “Restated
Certificate” means the Company’s Amended and
Restated Certificate of Incorporation, as amended from time to
time.

 

1.24 “Restricted
Securities” means the securities of the Company
required to be notated with the legend set forth in Section
2.11(b) hereof.

 

1.25 “SEC”
means the Securities and Exchange Commission.

 

1.26 “SEC
Rule 144” means Rule 144 promulgated by the SEC under
the Securities Act.
Act.

 

1.27
“SEC
Rule 145” means Rule 145 promulgated by the SEC under
the Securities

 

1.28
“Securities
Act” means the Securities Act of 1933, as amended, and
the rules and regulations
promulgated thereunder.

 

1.29 “Selling
Expenses” means all underwriting discounts, selling
commissions, and stock transfer taxes applicable to the sale of
Registrable Securities, and fees and disbursements of counsel for
any Holder, all of which shall be borne and paid for by the
Holder(s) as described in this Agreement,
except for the fees and disbursements of the Selling Holder Counsel
(as defined herein) borne and paid by the Company as provided in
Section 2.6.

 

 

 

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2.

Registration
Rights. The Company covenants and agrees as follows:

 

2.1 Company
Registration.

 

(a) Form 1-A.
Approximately thirty percent (30.0%) (which percentage may be
increased based on the aggregate offering amount stated in the Form
1-A) of (i) the shares of common stock issuable upon conversion of
the Notes (“Conversion
Shares”), or (ii) the shares of common stock issuable
upon exercise of the Warrants (“Warrant
Shares”), shall be made available for resale in the
Company’s Form 1-A filed with the SEC. The Company shall have
the exclusive right to determine whether the Conversion Shares or
Warrant Shares are included in the Form 1-A. The shares of common
stock made available for resale on Form 1-A shall be subject to the
following lock-up restriction: (x) 20% shall become freely
tradeable on each of the 60-day, 90-day, 120-day, 150-day and
180-day anniversaries of the IPO closing.

 

(b) Form S-1. Within 45
days of closing of the IPO, the Company shall file a registration
statement on Form S-1 with the SEC to register the Conversion
Shares and Warrant Shares not otherwise included in the Form 1-A.
The shares of common stock registered in the Form S-1 shall be
subject to the following lock-up restriction: (x) 20% shall become
freely tradeable on each of the 60- day, 90-day, 120-day, 150-day
and 180-day anniversaries of the date the S-1 is declared effective
by the SEC.

 

2.2 Demand
Registration.

 

(a) Form S-1 Demand. If
at any time after the earlier of (i) three (3) years after the date
of this Agreement or (ii) one (1) year after the effective date of
the registration statement for the IPO, the Company receives a
request from Holders of at least fifty percent (50%) of the
Registrable Securities then outstanding that the Company file a
Form S-1 registration statement with respect to Registrable
Securities then outstanding with an anticipated aggregate offering
price, net of Selling Expenses, in excess of $10,000,000, then the
Company shall (x) within ten (10) days after the date such request
is given, give notice thereof (the “Demand
Notice”) to all Holders other than the Initiating
Holders; and (y) as soon as practicable, and in any event within
one hundred twenty (120) days after the date such request is given
by the Initiating Holders, file such Form S-1 registration
statement under the Securities Act covering all Registrable
Securities that the Initiating Holders requested to be registered
and any additional Registrable Securities requested to be included
in such registration by any other Holders, as specified by notice
given by each such Holder to the Company within twenty (20) days of
the date the Demand Notice is given, and in each case, subject to
the limitations of Subsections 2.2(c) and 2.3.

 

(b) Form S-3 Demand. If
at any time when it is eligible to use a Form S-3 registration
statement, the Company receives a request from Holders of at least
fifty percent (50%) of the Registrable Securities then outstanding
that the Company file a Form S-3 registration statement
with
respect to outstanding Registrable Securities of such Holders
having an anticipated aggregate offering price, net of Selling
Expenses, of at least $5,000,000, then the Company shall (i) within
ten (10) days after the
date such request is given, give a Demand Notice to all Holders
other than the Initiating Holders; and (ii) as soon as practicable,
and in any event within sixty (60) days after the date such request
is given by the Initiating Holders, file such Form S-3 registration
statement under the Securities Act covering all Registrable
Securities requested to be included in such registration by any
other Holders, as specified by notice given by each such Holder to
the Company within twenty

(20)
days of the date the Demand Notice is given, and in each case,
subject to the limitations of Subsections 2.2(c) and
2.3.

 

 

 

 

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(c) Notwithstanding the
foregoing obligations, if the Company furnishes to Holders
requesting a registration pursuant to this Subsection 2.1 a certificate signed by the Company’s
chief executive officer stating that in the good faith judgment of
the Board it would be materially detrimental to the Company and its
stockholders for such registration statement to either become
effective or remain effective for as long as such registration
statement otherwise would be required to remain effective, because
such action would (i) materially interfere with a significant
acquisition, corporate reorganization, or other similar transaction
involving the Company; (ii) require premature disclosure of
material information that the Company has a bona fide business
purpose for preserving as confidential; or (iii) render the Company
unable to comply with requirements under the Securities Act or
Exchange Act, then the Company shall have the right to defer taking
action with respect to such filing for a period of not more than
one hundred eighty (180) days after the request of the Initiating
Holders is given; provided, however, that the Company may not
invoke this right more than once in any twelve (12) month period;
and provided further that the Company shall not register any
securities for its own account or that of any other stockholder
during such ninety (90) day period other than an Excluded
Registration.

 

(d) The Company shall not
be obligated to effect, or to take any action to effect, any
registration pursuant to Subsection 2.2(a): (i) during the period that is ninety (90)
days before the Company’s good faith estimate of the date of
filing of, and ending on a date that is one hundred eighty (180)
days after the effective date of, a Company-initiated registration,
provided that the Company is actively employing in good faith
commercially reasonable efforts to cause such registration
statement to become effective; (ii) after the Company has effected
two registrations pursuant to Subsection 2.2(a); or (iii) if the Initiating Holders propose
to dispose of shares of Registrable Securities that may be
immediately registered on Form S-3 pursuant to a request made
pursuant to Subsection 2.2(b). The
Company shall not be obligated to effect, or to take any action to
effect, any registration pursuant to Subsection 2.2(b): (i) during the period that is forty-five
(45) days before the Company’s good faith estimate of the
date of filing of, and ending on a date that is ninety
(90)
days after the effective date of, a Company-initiated registration,
provided that the Company is actively employing in good faith
commercially reasonable efforts to cause such registration
statement to become effective; or (ii) if the Company has effected
two registrations pursuant to Subsection 2.2(b) within the twelve (12) month period
immediately preceding the date of such request. A registration
shall not be counted as “effected” for purposes of this
Subsection 2.2(d) until such time as the
applicable registration statement has been declared effective by
the SEC, unless the Initiating Holders withdraw
their request for such registration, elect not to pay the
registration expenses therefor, and forfeit their right to one (1)
demand registration statement pursuant to Subsection 2.6, in which case such withdrawn registration
statement shall be counted as “effected” for purposes
of this Subsection 2.2(d).

 

 

 

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2.3 Underwriting
Requirements.

 

(a) If, pursuant to
Section 2.2, the Initiating Holders intend to distribute the
Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their
request made pursuant to Section 2.2, and the Company shall include
such information in the Demand Notice. The underwriter(s) will be
selected by the Company and shall be reasonably acceptable to a
majority in interest of the Initiating Holders. In such event, the
right of any Holder to include such Holder’s Registrable
Securities in such registration shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion
of such Holder’s Registrable Securities in the underwriting
to the extent provided herein. All Holders proposing to distribute
their securities through such underwriting shall (together with the
Company as provided in Section 2.4(e))
enter into an underwriting agreement in customary form with the
underwriter(s) selected for such underwriting. Notwithstanding any
other provision of this Section 2.4, if the managing underwriter(s)
advise(s) the Initiating Holders in writing that marketing or other
factors, in its reasonable discretion, require a limitation on the
number of shares to be underwritten, or the elimination thereof,
then the Initiating Holders shall so advise all Holders of
Registrable Securities that otherwise would be underwritten
pursuant hereto, and the number of Registrable Securities that may
be included in the underwriting shall be allocated among such
Holders of Registrable Securities, including the Initiating
Holders, in proportion (as nearly as practicable) to the number of
Registrable Securities owned by each Holder or in such other
proportion as shall unanimously be agreed to by all such selling
Holders; provided, however,
that the number of Registrable Securities held by the Holders, to
be included in such underwriting, shall only be reduced in
proportion to the percentage reduction of other registrable
securities of the Company included in such underwriting and not
part of the Registrable Securities defined herein. To facilitate
the allocation of shares in accordance with the above provisions,
the Company or the underwriters may round the number of shares
allocated to any Holder to the nearest one hundred (100)
shares.

 

 

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(b) In connection with
any offering involving an underwriting of shares of the
Company’s capital stock pursuant to Section 2.3, the Company
shall not be required to include any of the Holders’
Registrable Securities in such underwriting unless the Holders
accept the terms of the underwriting as agreed upon between the
Company and its underwriters, and then only in such quantity, if
any, as the underwriters in their sole discretion determine will
not jeopardize the success of the offering by the Company. If the
total number of securities, including Registrable Securities,
requested by stockholders to be included in such offering exceeds
the number of securities to be sold (other than by the Company),
that the underwriters in their reasonable discretion determine is
compatible with the success of the offering, then the Company shall
be required to include in the offering only that number of such
securities, including Registrable Securities, which the
underwriters and the Company in their sole discretion determine
will not jeopardize the success of the offering. If
the
underwriters determine that less than all of the Registrable
Securities requested to be registered can be included in such
offering, then the Registrable Securities that are included in such
offering shall be allocated among the selling Holders in proportion
(as nearly as practicable) to the number of Registrable Securities
owned by each selling Holder or in such other proportions as shall
mutually be agreed to by all such selling Holders. To facilitate
the allocation of shares in accordance with the above provisions,
the Company or the underwriters may round the number of shares
allocated to any Holder to the nearest one hundred (100) shares.
Notwithstanding the foregoing, in no event shall (i) the number of
Registrable Securities included in the offering be reduced unless
all other securities (expressly excluding securities to be sold by
the Company) are proportionally reduced, or (ii) the number of
Registrable Securities included in the offering be reduced below
fifty percent (50%) of the total number of securities included in
such offering, unless such offering is the IPO, in which case the
selling Holders may be excluded in full if the underwriters make
the determination described above and no other stockholder’s
securities are included in such offering. For purposes of the
provision in this Section 2.3(b) concerning apportionment, for any
selling Holder that is a partnership, limited liability company, or
corporation, the partners, members, retired partners, retired
members, stockholders, and Affiliates of such Holder, or the
estates and Immediate Family Members of any such partners, retired
partners, members, and retired members and any trusts for the
benefit of any of the foregoing Persons, shall be deemed to be a
single “selling Holder,” and any pro rata reduction
with respect to such “selling Holder” shall be based
upon the aggregate number of Registrable Securities owned by all
Persons included in such “selling Holder,” as defined
in this sentence.

 

(c) For purposes of
Section 2.2, a registration shall not be counted as
“effected” if, as a result of an exercise of the
underwriter’s cutback provisions in Section 2.3(a), fewer
than twenty-five percent (25%) of the total number of Registrable
Securities that Holders have requested to be included in such
registration statement are actually included.

 

2.4 Obligations of the
Company. Whenever required under this Section 2 to effect the
registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible:

 

(a) prepare and file
with the SEC a registration statement with respect to such
Registrable Securities and use its commercially reasonable efforts
to cause such registration statement to become effective and, upon
the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement
effective for a period of up to one hundred twenty (120) days or,
if earlier, until the distribution contemplated in the registration
statement has been completed; provided, however, that such one
hundred twenty (120) day period shall be extended for a period of
time equal to the period the Holder refrains, at the request of an
underwriter of Common Stock (or other securities) of the Company,
from selling any securities included in such
registration;

 

(b) prepare and file
with the SEC such amendments and supplements to such registration
statement, and the prospectus used in connection with such
registration statement, as may be necessary
to comply with the Securities Act in order to enable the
disposition of all securities covered by such registration
statement;

 

 

 

 

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(c) furnish to the
selling Holders such numbers of copies of a prospectus, including a
preliminary prospectus, as required by the Securities Act, and such
other documents as the Holders may reasonably request in order to
facilitate their disposition of their Registrable
Securities;

 

(d) use its
commercially reasonable efforts to register and qualify the
securities covered by such registration statement under such other
securities or blue-sky laws of such jurisdictions as shall be
reasonably requested by the selling Holders; provided that the Company shall not be
required to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, unless the
Company is already subject to service in such jurisdiction and
except as may be required by the Securities Act;

 

(e) in the event of any
underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary
form, with the underwriter(s) of such offering;

 

(f) use its
commercially reasonable efforts to cause all such Registrable
Securities covered by such registration statement to be listed on a
national securities exchange or trading system and each securities
exchange and trading system (if any) on which similar securities
issued by the Company are then listed;

 

(g) provide a transfer
agent and registrar for all Registrable Securities registered
pursuant to this Agreement and provide a CUSIP number for all such
Registrable Securities, in each case not later than the effective
date of such registration;

 

(h) promptly make
available for inspection by the selling Holders, any underwriter(s)
participating in any disposition pursuant to such registration
statement, and any attorney or accountant or other agent retained
by any such underwriter or selected by the selling Holders, all
financial and other records, pertinent corporate documents, and
properties of the Company, and cause the Company’s officers,
directors, employees, and independent accountants to supply all
information reasonably requested by any such seller, underwriter,
attorney, accountant, or agent, in each case, as necessary or
advisable to verify the accuracy of the information in such
registration statement and to conduct appropriate due diligence in
connection therewith;

 

(i) notify each selling
Holder, promptly after the Company receives notice thereof, of the
time when such registration statement has been declared effective
or a supplement to any prospectus forming a part of such
registration statement has been filed; and

 

(j) after such
registration statement becomes effective, notify each selling
Holder of any request by the SEC that the Company amend or
supplement such registration statement or prospectus.

 

In
addition, the Company shall ensure that, at all times after any
registration statement covering a public offering of securities of
the Company under the Securities Act shall have become effective,
its insider trading policy shall provide that the Company’s
directors may implement a trading program under Rule 10b5-1 of the
Exchange Act.

 

 

 

 

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2.5 Furnish
Information. It shall be a condition precedent to the obligations
of the Company to take any action pursuant to this Section 2 with
respect to the Registrable Securities of any selling Holder that
such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it, and the intended
method of disposition of such securities as is reasonably required
to effect the registration of such Holder’s Registrable
Securities.

 

2.6 Expenses of
Registration. All expenses (other than Selling Expenses) incurred
in connection with registrations, filings, or qualifications
pursuant to Section 2, including all registration, filing, and
qualification fees; printers’ and accounting fees; fees and
disbursements of counsel for the Company; and the reasonable fees
and disbursements, not to exceed $25,000, of one counsel for the
selling Holders (“Selling
Holder Counsel”), shall be borne and paid by the
Company; provided, however,
that the Company shall not be required to pay for any expenses of
any registration proceeding begun pursuant to Section 2.1 if the registration request is subsequently
withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered (in which case all selling
Holders shall bear such expenses pro rata based upon the number of
Registrable Securities that were to be included in the withdrawn
registration), unless the Holders of a majority of the Registrable
Securities agree to forfeit their right to one registration
pursuant to Sections 2.2(a) or 2.2(b), as the case may be, in which case the
Holders shall not be required to pay any of such expenses and shall
not forfeit their right to one registration pursuant to Sections
2.2(a) or 2.2(b). All Selling Expenses relating to
Registrable Securities registered pursuant to this Section 2 shall
be borne and paid by the Holders pro rata on the basis of the
number of Registrable Securities registered on their
behalf.

 

2.7 Delay of
Registration. No Holder shall have any right to obtain or seek an
injunction restraining or otherwise delaying any registration
pursuant to this Agreement as the result of any controversy that
might arise with respect to the interpretation or implementation of
this Section 2.

 

2.8 Indemnification. If
any Registrable Securities are included in a registration statement
under this Section 2:

 

(a) To the extent
permitted by law, the Company will indemnify and hold harmless each
selling Holder, and the partners, members, officers, directors, and
stockholders of each such Holder; legal counsel and accountants for
each such Holder; any underwriter (as defined in the Securities
Act) for each such Holder; and each Person, if any, who controls
such Holder or underwriter within the meaning of the Securities Act
or the Exchange Act, against any Damages, and the Company will pay
to each such Holder, underwriter, controlling Person, or other
aforementioned Person any legal or other expenses reasonably
incurred thereby in connection with investigating or
defending any claim
or proceeding from which Damages may result, as such expenses are
incurred; provided,
however, that the indemnity agreement contained in this
Section 2.8(a) shall not apply to amounts paid in
settlement of any such claim or proceeding if such settlement is
effected without the consent of the Company, which consent shall
not be unreasonably withheld, nor shall the Company be liable for
any Damages to the extent that they arise out of or are based upon
actions or omissions made in reliance upon and in conformity with
written information furnished by or on behalf of any such Holder,
underwriter, controlling Person, or other aforementioned Person
expressly for use in connection with such
registration.

 

 

 

 

-10-

 

 

(b) To the extent
permitted by law, each selling Holder, severally and not jointly,
will indemnify and hold harmless the Company, and each of its
directors, each of its officers who has signed the registration
statement, each Person (if any), who controls the Company within
the meaning of the Securities Act, legal counsel and accountants
for the Company, any underwriter (as defined in the Securities
Act), any other Holder selling securities in such registration
statement, and any controlling Person of any such underwriter or
other Holder, against any Damages, in each case only to the extent
that such Damages arise out of or are based upon actions or
omissions made in reliance upon and in conformity with written
information furnished by or on behalf of such selling Holder
expressly for use in connection with such registration; and each
such selling Holder will pay to the Company and each other
aforementioned Person any legal or other expenses reasonably
incurred thereby in connection with investigating or defending any
claim or proceeding from which Damages may result, as such expenses
are incurred; provided,
however, that the indemnity agreement contained in this
Section 2.8(b) shall not apply to
amounts paid in settlement of any such claim or proceeding if such
settlement is effected without the consent of the Holder, which
consent shall not be unreasonably withheld; and provided further that in no event shall
the aggregate amounts payable by any Holder by way of indemnity or
contribution under Sections 2.8(b) and
2.8(d) exceed the proceeds from the
offering received by such Holder (net of any Selling Expenses paid
by such Holder), except in the case of fraud or willful misconduct
by such Holder.

 

(c) Promptly after
receipt by an indemnified party under this Section 2.8 of notice of the commencement of any action
(including any governmental action) for which a party may be
entitled to indemnification hereunder, such indemnified party will,
if a claim in respect thereof is to be made against any
indemnifying party under this Section 2.8, give the indemnifying party notice of the
commencement thereof. The indemnifying party shall have the right
to participate in such action and, to the extent the indemnifying
party so desires, participate jointly with any other indemnifying
party to which notice has been given, and to assume the defense
thereof with counsel mutually satisfactory to the parties;
provided, however, that an
indemnified party (together with all other indemnified parties that
may be represented without conflict by one counsel) shall have the
right to retain one separate counsel, with the fees and expenses to
be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party
represented by such counsel in such action. The failure to give
notice to the indemnifying party within a reasonable time of the
commencement of any such action shall relieve such indemnifying
party of any liability to the indemnified party under this Section
2.8, to the extent that
such
failure materially prejudices the indemnifying party’s
ability to defend such action. The failure to give notice to the
indemnifying party will not relieve it of any liability that it may
have to any indemnified party otherwise than under this Section
2.8.

 

 

 

 

-11-

 

 

(d) To provide for just
and equitable contribution to joint liability under the Securities
Act in any case in which either: (i) any party otherwise entitled
to indemnification hereunder makes a claim for indemnification
pursuant to this Section 2.8 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 2.8 provides
for indemnification in such case, or (ii) contribution under the
Securities Act may be required on the part of any party hereto for
which indemnification is provided under this Section 2.8, then, and in each such case, such parties
will contribute to the aggregate losses, claims, damages,
liabilities, or expenses to which they may be subject (after
contribution from others) in such proportion as is appropriate to
reflect the relative fault of each of the indemnifying party and
the indemnified party in connection with the statements, omissions,
or other actions that resulted in such loss, claim, damage,
liability, or expense, as well as to reflect any other relevant
equitable considerations. The relative fault of the indemnifying
party and of the indemnified party shall be determined by reference
to, among other things, whether the untrue or allegedly untrue
statement of a material fact, or the omission or alleged omission
of a material fact, relates to information supplied by the
indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission;
provided, however, that, in
any such case (x) no Holder will be required to contribute any
amount in excess of the public offering price of all such
Registrable Securities offered and sold by such Holder pursuant to
such registration statement, and

 

(y) no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) will be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation; and
provided further that in no
event shall a Holder’s liability pursuant to this Section 2.8(d), when combined with the amounts paid
or payable by such Holder pursuant to Section 2.8(b), exceed the proceeds from the offering
received by such Holder (net of any Selling Expenses paid by such
Holder), except in the case of willful misconduct or fraud by such
Holder.

 

(e) Notwithstanding the
foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into
in connection with the underwritten public offering are in conflict
with the foregoing provisions, the provisions in the underwriting
agreement shall control.

 

(f) Unless otherwise
superseded by an underwriting agreement entered into in connection
with the underwritten public offering, the obligations of the
Company and Holders under this Section
2.8 shall survive the completion of any offering of Registrable
Securities in a registration under this Section 2, and otherwise
shall survive the termination of this Agreement.

 

2.9 Reports Under
Exchange Act. With a view to making available to the Holders the
benefits of SEC Rule 144 and any other rule or regulation of the
SEC that may at any time permit a Holder to sell
securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company
shall:

 

(a) make and keep
available adequate current public information, as those terms are
understood and defined in SEC Rule 144, at all times after the
effective date of the registration statement filed by the Company
for the IPO;

 

 

 

 

-12-

 

 

(b) use commercially
reasonable efforts to file with the SEC in a timely manner all
reports and other documents required of the Company under the
Securities Act and the Exchange Act (at any time after the Company
has become subject to such reporting requirements);
and

 

(c) furnish to any
Holder, so long as the Holder owns any Registrable Securities,
forthwith upon request to the extent accurate, a written statement
by the Company that it has complied with the reporting requirements
of SEC Rule 144 (at any time after ninety (90) days after the
effective date of the registration statement filed by the Company
for the IPO), the Securities Act, and the Exchange Act (at any time
after the Company has become subject to such reporting
requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after
the Company so qualifies); and (ii) such other information as may
be reasonably requested in availing any Holder of any rule or
regulation of the SEC that permits the selling of any such
securities without registration (at any time after the Company has
become subject to the reporting requirements under the Exchange
Act) or pursuant to Form S-3 (at any time after the Company so
qualifies to use such form).

 

2.10 “Market Stand-off”
Agreement. Each Holder hereby agrees that it will not, without the
prior written consent of the managing underwriter, during the
period commencing on the date of the final prospectus relating to
the registration by the Company of shares of its Common Stock or
any other equity securities under the Securities Act on a
registration statement on Form S-1 or Form S-3, and ending on the
date specified by the Company and the managing underwriter (such
period not to exceed one hundred eighty (180) days in the case of
the IPO, or such other period as may be requested by the Company or
an underwriter to accommodate regulatory restrictions on (1) the
publication or other distribution of research reports, and (2)
analyst recommendations and opinions, including, but not limited
to, the restrictions contained in FINRA Rule 2711(f)(4) or NYSE
Rule 472(f)(4), or any successor provisions or amendments thereto),
(i) lend; offer; pledge; sell; contract to sell; sell any option or
contract to purchase; purchase any option or contract to sell;
grant any option, right, or warrant to purchase; or otherwise
transfer or dispose of, directly or indirectly, any shares of
Common Stock or any securities convertible into or exercisable or
exchangeable (directly or indirectly) for Common Stock held
immediately before the effective date of the registration statement
for such offering or (ii) enter into any swap or other arrangement
that transfers to another, in whole or in part, any of the economic
consequences of ownership of such securities, whether any such
transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash, or
otherwise. The foregoing provisions of this Section 2.100 shall apply only to the IPO, shall
not apply to the sale of any shares to an underwriter
pursuant to an
underwriting agreement, or the transfer of any shares to any trust
for the direct or indirect benefit of the Holder or the immediate
family of the Holder, provided that the trustee of the trust agrees
to be bound in writing by the restrictions set forth herein, and
provided further that any such transfer shall not involve a
disposition for value. The underwriters in connection with such
registration are intended third-party beneficiaries of this
Section 2.10 and shall have the right,
power and authority to enforce the provisions hereof as though they
were a party hereto. Each Holder further agrees to execute such
agreements as may be reasonably requested by the underwriters in
connection with such registration that are consistent with this
Section 2.10 or that are necessary to
give further effect thereto, and the Company shall cause all future
stockholders of the Company to execute a document containing a
market stand-off agreement comparable to this Section 2.10. Any
discretionary waiver or termination of the restrictions of any or
all of such agreements by the Company or the underwriters shall
apply pro rata to all Holders subject to such agreements, based on
the number of shares subject to such agreements.

 

 

 

 

-13-

 

 

2.11 Restrictions
on Transfer.

 

(a) The Registrable
Securities shall not be sold, pledged, or otherwise transferred
other than in conformity with the Securities Act, and the Company
shall not recognize and shall issue stop-transfer instructions to
its transfer agent (when a transfer agent has been engaged by the
Company) with respect to any such sale, pledge, or transfer, except
upon the conditions specified in this Agreement, which conditions
are intended to ensure compliance with the provisions of the
Securities Act. A transferring Holder will cause any proposed
purchaser, pledgee, or transferee of the Registrable Securities
held by such Holder to agree to take and hold such securities
subject to the provisions and upon the conditions specified in this
Agreement.

 

(b) Each certificate,
instrument, or book entry representing (i) the Registrable
Securities, and (ii) any other securities issued in respect of the
securities referenced in clause (i), upon any Recapitalization,
merger, consolidation, or similar event, shall (unless otherwise
permitted by the provisions of Section 2.11(c)) be notated with a
legend substantially in the following form:

 

THE
SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH
SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE
SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE
WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.

 

The
Holders consent to the Company making a notation in its records and
giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer set
forth in this Section 2.11.

 

 

 

 

-14-

 

 

(c) The holder of such
Restricted Securities, by acceptance of ownership thereof, agrees
to comply in all respects with the provisions of this Section 2.
Before any proposed sale, pledge, or transfer of any Restricted
Securities, unless there is in effect a registration statement
under the Securities Act covering the proposed transaction, the
Holder thereof shall give notice to the Company of such
Holder’s intention to effect such sale, pledge, or transfer.
Each such notice shall describe the manner and circumstances of the
proposed sale, pledge, or transfer in sufficient detail and, if
reasonably requested by the Company, shall be accompanied at such
Holder’s expense by either (i) a written opinion of legal
counsel who shall, and whose legal opinion shall, be reasonably
satisfactory to the Company, addressed to the Company, to the
effect that the proposed transaction may be effected without
registration under the Securities Act; (ii) a “no
action” letter from the SEC to the effect that the proposed
sale, pledge, or transfer of such Restricted Securities without
registration will not result in a recommendation by the staff of
the SEC that action be taken with respect thereto; or (iii) any
other evidence reasonably satisfactory to counsel to the Company to
the effect that the proposed sale, pledge, or transfer of the
Restricted Securities may be effected without registration under
the Securities Act, whereupon the Holder of such Restricted
Securities shall be entitled to sell, pledge, or transfer such
Restricted Securities in accordance with the terms of the notice
given by the Holder to the Company. The Company will not require
such a legal opinion or “no action” letter or detail
with respect to such transfer other than the number of shares and
the name of the transferee (x) in any transaction in compliance
with SEC Rule 144; or (y) in any transaction in which such Holder
distributes Restricted Securities to an Affiliate of such Holder
for no consideration; provided that each transferee agrees in
writing to be subject to the terms of this Section 2.11. Each
certificate, instrument, or book entry representing the Restricted
Securities transferred as above provided shall be notated with,
except if such transfer is made pursuant to SEC Rule 144, the
appropriate restrictive legend set forth in Section 2.11(b), except that such certificate instrument, or
book entry shall not be notated with such restrictive legend if, in
the opinion of counsel for such Holder and the Company, such legend
is not required in order to establish compliance with any
provisions of the Securities Act.

 

2.12 Termination of Registration
Rights. The right of any Holder to request registration or
inclusion of Registrable Securities in any registration pursuant to
Section 2 shall terminate upon the earliest to occur
of:

 

(a) such time as Rule
144 or another similar exemption under the Securities Act is
available for the sale of all of such Holder’s shares without
limitation during a three-month period without registration;
and

 

(b) the fifth
anniversary of the IPO.

 

3.

Information
Rights.

 

3.1 Delivery of
Financial Statements. The Company shall deliver to each
Investor:

 

 

 

 

-15-

 

 

(a) as soon as
practicable, but in any event within one hundred twenty
(120)
days after the end of each fiscal year of the Company (i) a balance
sheet as of the end of such year, (ii) statements of income and of
cash flows for such year, and (iii) a statement of
stockholders’ equity as of the end of such year, all prepared
in accordance with GAAP and audited and certified by independent
public accountants of nationally recognized standing selected by
the Company;

 

(b) as soon as
practicable, but in any event within sixty (60) days after the end
of each of the first three (3) quarters of each fiscal year of the
Company, unaudited statements of income and cash flows for such
fiscal quarter, and an unaudited balance sheet, all prepared in
accordance with GAAP (except that such financial statements may (i)
be subject to normal year-end audit adjustments; and (ii) not
contain all notes thereto that may be required in accordance with
GAAP);

 

(c) as soon as
practicable, but in any event before the end of each fiscal year, a
budget and business plan for the next fiscal year (collectively,
the “Budget”),
prepared on a monthly basis, including balance sheets, income
statements, and statements of cash flow for such months and,
promptly after prepared, any other budgets or revised budgets
prepared by the Company; and

 

(d) such other
information relating to the financial condition, business,
prospects, or corporate affairs of the Company as any Investor may
from time to time reasonably request; provided, however, that the Company shall not be
obligated under this Section 3.1 to
provide information that the Company reasonably determines in good
faith (i) to be a trade secret or confidential information (unless
covered by an enforceable confidentiality agreement, in a form
reasonably acceptable to the Company) or (ii) would, if disclosed,
adversely affect the attorney-client privilege between the Company
and its counsel.

 

If, for
any period, the Company has any subsidiary whose accounts are
consolidated with those of the Company, then in respect of such
period the financial statements delivered pursuant to the foregoing
sections shall be the consolidated and consolidating financial
statements of the Company and all such consolidated
subsidiaries.

 

Notwithstanding
anything else in this Section 3.1 to the
contrary, the Company may cease providing the information set forth
in this Section 3.1 during the period
starting with the date one hundred twenty (120) days before the
Company’s good-faith estimate of the date of filing of a
registration statement if it reasonably concludes it must do so to
comply with the SEC rules applicable to such registration statement
and related offering; provided that the Company’s
covenants under this Section 3.1 shall be reinstated at
such time as the Company is no longer actively employing its
commercially reasonable efforts to cause such registration
statement to become effective.

 

3.2 Inspection. The
Company shall permit each Investor, at such Investor’s
expense, to visit and inspect the Company’s properties;
examine its books of account and records; and discuss the
Company’s affairs, finances, and accounts with its officers,
during normal business hours of the Company as may be reasonably
requested by the Investor upon at least five (5) days’
notice; provided, however,
that the Company shall not be obligated pursuant to this
Section 3.2 to provide access to
any information that it reasonably and in good faith determines (a)
to be a trade secret or confidential information (unless covered by
an enforceable confidentiality agreement, in form reasonably
acceptable to the Company) (b) would, if disclosed, adversely
affect the attorney- client privilege between the Company and its
counsel.

 

 

 

 

-16-

 

 

3.3 Termination of Information Rights and
Observer Right. The covenants set forth in Sections 3.1, and 3.2 shall terminate and be
of no further force or effect immediately before the consummation
of an IPO.

 

3.4 Confidentiality.
Each Investor agrees that such Investor will keep confidential and
will not disclose, divulge, or use for any purpose (other than to
monitor its investment in the Company) any confidential information
obtained from the Company pursuant to the terms of this Agreement
(including notice of the Company’s intention to file a
registration statement), unless such confidential information (a)
is known or becomes known to the public in general (other than as a
result of a breach of this Section 3.44 by such Investor), (b) is or
has been independently developed or conceived by the Investor
without use of the Company’s confidential information as
evidenced by written documentation, or (c) is or has been made
known or disclosed to the Investor by a third party without a
breach of any obligation of confidentiality such third party may
have to the Company; provided,
however, that an Investor may disclose confidential
information (i) to its attorneys, accountants, consultants, and
other professionals to the extent necessary to obtain their
services in connection with monitoring its investment in the
Company; (ii) to any prospective purchaser of any Registrable
Securities from such Investor, if such prospective purchaser agrees
to be bound by the provisions of this Section 3.44; (iii) to any Affiliate,
partner, member, stockholder, or wholly owned subsidiary of such
Investor in the ordinary course of business, provided that such Investor informs
such Person that such information is confidential and directs such
Person to maintain the confidentiality of such information; or (iv)
as may otherwise be required by law, provided that the Investor promptly
notifies the Company of such disclosure and takes reasonable steps
to minimize the extent of any such required
disclosure.

 

4.

Rights Related to
Future Stock Issuances.

 

4.1

Pro Rata Purchase
Rights. Subject to the terms and conditions of this
Section

 

4.1 and applicable
securities laws, if, after the date of this Agreement, the Company
proposes to offer or sell any New Securities, the Company shall
first offer such New Securities to each Investor. Each Investor
shall be entitled to apportion the pro rata purchase right hereby
granted to it among itself and its Affiliates in such proportions
as it deems appropriate.

 

(a) The Company shall
give notice (the “Offer
Notice”) to each Investor, stating (i) its bona fide
intention to offer such New Securities, (ii) the number of such New
Securities to be offered, and (iii) the price and terms, if any,
upon which it proposes to offer such New Securities.

 

 

 

 

-17-

 

 

(b) By notification to
the Company within twenty (20) days after the Offer Notice is
given, each Investor may, in its sole discretion, elect to purchase
or otherwise acquire, at the price and on the terms specified in
the Offer Notice, up to that portion of such New Securities which
equals the proportion that the number of shares of Common Stock
then held by such Investor (including all shares of Common Stock
then issuable (directly or indirectly) upon conversion and/or
exercise, as applicable, of any and all Derivative Securities then
held by such Investor) bears to the total number of shares of
Common Stock of the Company then outstanding (assuming full
conversion and/or exercise, as applicable, of all Derivative
Securities). The closing of any sale pursuant to this Section
4.1(b) shall occur at the same closing covering the initial sale of
New Securities pursuant to Section 4.1(c).

 

(c) If all New
Securities referred to in the Offer Notice are not elected to be
purchased or acquired as provided in Section 4.1(b), the Company may, during
the ninety (90) day period following the expiration of the period
provided in Section
4.1(b), offer and sell the
remaining unsubscribed portion of such New Securities to any
Person(s) at a price not less than, and upon terms no more
favorable to the offeree than, those specified in the Offer Notice.
If the Company does not enter into an agreement for the sale of the
New Securities within such period, or if such agreement is not
consummated within thirty (30) days of the execution thereof, the
right provided hereunder shall be deemed to be revived and such New
Securities shall not be offered unless first reoffered to the
Investors in accordance with this Section 4.1.

 

(d) The pro rata
purchase rights in this Section 4.1 shall not be applicable
to Exempted Securities.

 

4.2 Termination. The
covenants set forth in Section 4.1, shall terminate and be
of no further force or effect immediately before the consummation
of the IPO.

 

5.

Additional
Covenants.

 

5.1 Employee
Agreements. The Company will cause each person now or hereafter
employed by it or by any subsidiary (or engaged by the Company or
any subsidiary as a consultant/independent contractor) with access
to confidential information and/or trade secrets to enter into a
nondisclosure and proprietary rights assignment agreement. In
addition, the Company shall not amend, modify, terminate, waive, or
otherwise alter, in whole or in part, any of the above- referenced
agreements or any restricted stock agreement between the Company
and any employee, without the majority consent of the
Board.

 

5.2 Employee Stock.
Unless otherwise approved by a majority of the Board, all future
employees and consultants of the Company who purchase, receive
options to purchase, or receive awards of shares of the
Company’s capital stock after the date hereof shall be
required to execute restricted
stock or option agreements, as applicable, providing for vesting of
shares over a four (4) year period, with vesting in equal monthly
installments over the forty-eight (48) months.

 

 

 

 

-18-

 

 

5.3 Qualified Small
Business Stock. The Company shall use commercially reasonable
efforts to cause the shares of Common Stock issued upon conversion
of the Notes and exercise of the Warrants pursuant to the Purchase
Agreement to constitute “qualified small business
stock” as defined in Section 1202(c) of the Internal Revenue
Code (the “Code”);
provided, however, that
such requirement shall not be applicable if the Board determines,
in its good-faith business judgment, that such qualification is
inconsistent with the best interests of the Company. The Company
shall submit to its stockholders (including the Investors) and to
the Internal Revenue Service any reports that may be required under
Section 1202(d)(1)(C) of the Code and the regulations promulgated
thereunder. In addition, within twenty (20) business days after any
Investor’s written request therefor, the Company shall, at
its option, either (i) deliver to such Investor a written statement
indicating whether (and what portion of) such Investor’s
interest in the Company constitutes “qualified small business
stock” as defined in Section 1202(c) of the Code or (ii)
deliver to such Investor such factual information in the
Company’s possession as is reasonably necessary to enable
such Investor to determine whether (and what portion of) such
Investor’s interest in the Company constitutes
“qualified small business stock” as defined in Section
1202(c) of the Code.

 

5.4 Board Matters. The
Company shall reimburse its directors for all reasonable
out-of-pocket travel expenses incurred (consistent with the
Company’s travel policy) in connection with attending
meetings of the Board or any committees thereof and in connection
with attending any other events (e.g. meetings and trade shows) required
by or at the request of the Company.

 

5.5 Successor
Indemnification. If the Company or any of its successors or
assignees consolidates with or merges into any other Person and is
not the continuing or surviving corporation or entity of such
consolidation or merger, then to the extent necessary, proper
provision shall be made so that the successors and assignees of the
Company assume the obligations of the Company with respect to
indemnification of members of the Board as in effect immediately
before such transaction, whether such obligations are contained in
the Company’s Bylaws, the Restated Certificate, or elsewhere,
as the case may be

 

5.6 Termination of
Covenants. The covenants set forth in this Section 5, except for Section 5.5, shall terminate
and be of no further force or effect immediately before the
consummation of a Qualified Public Offering.

 

 

 

-19-

 

 

 

6.

Miscellaneous.

 

6.1 Successors and
Assigns. The rights under this Agreement may be assigned (but only
with all related obligations) by a Holder to a transferee of
Registrable Securities that (i) is an Affiliate of a Holder, (ii)
is a Holder’s Immediate Family Member or trust for the
benefit of an individual Holder or one or more of such
Holder’s Immediate Family Members, or (iii) after such
transfer, holds at least 100,000 shares of Registrable Securities
(subject to appropriate adjustment for Recapitalizations);
provided, however, that (x)
the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such
transferee and the Registrable Securities with respect to which
such rights are being transferred; and (y) such transferee agrees
in a written instrument delivered to the Company to be bound by and
subject to the terms and conditions of this Agreement, including
the provisions of Section 2.10. For the
purposes of determining the number of shares of Registrable
Securities held by a transferee, the holdings of a transferee (1)
that is an Affiliate or stockholder of a Holder; (2) who is a
Holder’s Immediate Family Member; or (3) that is a trust for
the benefit of an individual Holder or such Holder’s
Immediate Family Member shall be aggregated together and with those
of the transferring Holder; provided further that all transferees
who would not qualify individually for assignment of rights shall
have a single attorney- in-fact for the purpose of exercising any
rights, receiving notices, or taking any action under this
Agreement. The terms and conditions of this Agreement inure to the
benefit of and are binding upon the respective successors and
permitted assignees of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and permitted
assignees any rights, remedies, obligations or liabilities under or
by reason of this Agreement, except as expressly provided
herein.

 

6.2 Governing Law. This
Agreement shall be governed by and construed under the internal
laws of the State of Delaware, irrespective of conflict of law
principles.

 

6.3 Counterparts. This
Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Counterparts may be
delivered via facsimile, electronic mail (including pdf or any
electronic signature complying with the U.S. federal ESIGN Act of
2000, e.g.,
www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly
delivered and be valid and effective for all purposes.

 

6.4 Titles and
Subtitles. The titles and subtitles used in this Agreement are for
convenience only and are not to be considered in construing or
interpreting this Agreement.

 

6.5 Notices. All
notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given
upon the earlier of actual receipt or (i) personal delivery to the
party to be notified; (ii) when sent, if sent by electronic mail or
facsimile during the recipient’s normal business hours, and
if not sent during normal business hours, then on the
recipient’s next business day; (iii) five (5) days after
having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (iv) one (1) business day after the
business day of deposit with a nationally recognized overnight
courier, freight prepaid, specifying next-day delivery, with
written verification of receipt. All communications shall be sent
to the respective parties at their addresses as set forth on
Schedule 1 hereto, or to the principal office of the Company and to
the attention of the Chief Executive Officer, in the case of the
Company, or to such email address, facsimile number, or address as
subsequently modified by written notice given in accordance with
this Section
6.5. If notice is given to
the Company, a copy shall also be sent to Ann Hand,
President & CEO, Super
League Gaming, Inc., 2906 Colorado Ave., Santa Monica, CA 90404,
ann.hand@superleague.com,.

 

 

 

 

-20-

 

 

6.6 Amendments and
Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either
generally or in a particular instance, and either retroactively or
prospectively) only with the written consent of the Company and the
holders of at least a majority of the Registrable Securities then
outstanding; Notwithstanding the foregoing, this Agreement may not
be amended or terminated and the observance of any term hereof may
not be waived with respect to any Investor without the written
consent of such Investor, unless such amendment, termination, or
waiver applies to all Investors in the same fashion. The Company
shall give prompt notice of any amendment or termination hereof or
waiver hereunder to any party hereto that did not consent in
writing to such amendment, termination, or waiver. Any amendment,
termination, or waiver effected in accordance with this
Section
6.6 shall be
binding on all parties hereto, regardless of whether any such party
has consented thereto. No waivers of or exceptions to any term,
condition, or provision of this Agreement, in any one or more
instances, shall be deemed to be or construed as a further or
continuing waiver of any such term, condition, or
provision.

 

6.7 Severability. In
case any one or more of the provisions contained in this Agreement
is for any reason held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality, or unenforceability shall
not affect any other provision of this Agreement, and such invalid,
illegal, or unenforceable provision shall be reformed and construed
so that it will be valid, legal, and enforceable to the maximum
extent permitted by law.

 

6.8 Aggregation of
Stock. All shares of Registrable Securities held or acquired by
Affiliates shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement and
such Affiliated persons may apportion such rights as among
themselves in any manner they deem appropriate.

 

6.9 Entire Agreement.
This Agreement constitutes the full and entire understanding and
agreement among the parties with respect to the subject matter
hereof, and any other written or oral agreement relating to the
subject matter hereof existing between the parties is expressly
canceled.

 

6.10 Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally
submit to the jurisdiction of the federal and state courts located
in Los Angeles County, California for the purpose of any suit,
action or other proceeding arising out of or based upon this
Agreement, (b) agree not to commence any suit, action or other
proceeding arising out of or based upon this Agreement except in
the federal and state courts located in Los Angeles County,
California, and (c) hereby waive, and agree not to assert, by way
of motion, as a defense, or otherwise, in any such suit, action or
proceeding, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt
or immune from attachment or execution, that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of
the suit, action or proceeding is improper or that this Agreement
or the subject matter hereof may not be enforced in or by such
court.

 

 

 

-21-

 

 

 

WAIVER
OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE
SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY
DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL
NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER
WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL.

 

6.11 Delays
or Omissions. No delay or omission to exercise any right, power, or
remedy accruing to any party under this Agreement, upon any breach
or default of any other party under this Agreement, shall impair
any such right, power, or remedy of such non-breaching or non-
defaulting party, nor shall it be construed to be a waiver of or
acquiescence to any such breach or default, or to any similar
breach or default thereafter occurring, nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring. All remedies, whether
under this Agreement or by law or otherwise afforded to any party,
shall be cumulative and not alternative

 

6.12 Acknowledgment.
The Company acknowledges that certain of the Investors are in the
business of venture capital investing and therefore review the
business plans and related proprietary information of many
enterprises, including enterprises which may have products or
services which compete directly or indirectly with those of the
Company. Nothing in this Agreement shall preclude or in any way
restrict the Investors from investing or participating in any
particular enterprise whether or not such enterprise has products
or services that compete with those of the Company.

 

 

 

[Signature Pages Follow]

 

 

 

-22-

	

 

 

 

IN
WITNESS WHEREOF, the parties have executed this Investors’
Rights Agreement as of the date first written above.

 

COMPANY:

 

 

 

SUPER
LEAGUE GAMING, INC.

 

 

By:  Ann
Hand

Chief
Executive Officer & President

 

 

 

 

 

 

 

 

-23-

	

 

 

 

IN
WITNESS WHEREOF, the parties have executed this Investors’
Rights Agreement as of the date first written above.

 

INVESTOR:

 

By:
                                                                       

 

Name:
                                                                       

 

 

Title:
                                                                       

 

 

 

 

 

 

 

 

-24-Blueprint

	

 

 

 

 Exhibit 10.19

 

 

 

MASTER
SERVICE AGREEMENT

 

 

 

CONTRACTOR
INFORMATION:

 

Company
or Individual Name: Super League Gaming, Inc.

Place
of Incorporation: Delaware

Principal Place of
Business Address: 2906 Colorado Ave.

City/State/Province:
Santa Monica,
CA                             
Zip/Postal Code: 90404

Country:
USA

Coordinator/Contact
Name: Matt
Edelman                        
Contact Phone: 310,770,7194

E-Mail Address:
matt@superleague.com

 

 

 

LOGITECH
INFORMATION:

 

Logitech entity:
Logitech Inc.

Street
Address: 7700 Gateway Blvd

City/State: Newark,
CA                                                   
Zip/Postal Code: 94560

Country:
USA

Coordinator/Contact
Name: Peter
Kingsley                     
Contact Phone:

E-Mail
Address: pkingsley@logitech.com

 

 

 

This
Agreement consists of 11 pages.

 

EFFECTIVE DATE:
March 1, 2018

 

Signatures
of the parties to the Master Service Agreement

 

 

	
 Super
League Gaming, Inc.

	
 

	
Logitech
Inc.

	
 

	
 

	
 

	
 /s/
Ann Hand 

	
 

	

/s/ Ujesh Desai

	
 Authorized
Signature

	
 

	
Authorized
Signature

	
 

	
 

	

	
Ann
Hand

	
 

	
Ujesh
Desai

	
Name

	
 

	
Name

	
 

CEO &
President

	
 

	

 

VP/GM
Logitech G Gaming

	
Title 

	
 

	
Title

	
 

	
 

	
 

	
3/16/2018

	
 

	
3/16/2018

	
Date

 

	
 

	

Date

  

 

 

	

 

 

	

 

 

 

This
Master Service Agreement (“Agreement”) is made and
entered into as of the effective date set forth on the cover page
(“Effective Date”) by and between the Logitech entity
set forth on the cover page (“Logitech”), and the
contractor set forth on the cover page (“Contractor”).
Logitech desires to retain Contractor as an independent contractor
to perform services for Logitech and its Affiliates, and Contractor
is willing to complete these services on terms set forth more fully
below. For purposes of this Agreement, “Affiliate”
means any entity which directly or indirectly, controls, is
controlled by, or is under common control with Logitech, where
“control” means ownership of at least fifty percent
(50%) of the outstanding shares or securities (representing the
right to vote for the election of directors or other managing
authority). In consideration of the mutual promises contained
herein, the parties agree as follows:

 

 

1.

ENGAGEMENT
OF SERVICES

 

 

1.1 Services, Deliverables. Subject
to the terms of this Agreement, Contractor will render the services
(“Services”) and develop the deliverables
(“Deliverables”) as requested by Logitech on a project
by project basis. Each new project will be described in a Purchase
Order (“PO”) delivered by Logitech or an Affiliate or,
upon request by Logitech or an Affiliate, a statement of work
(“SOW”) agreed to by both parties substantially in the
form of the SOW attached hereto as Exhibit A. The deadline(s) to
deliver the Services and Deliverables will be defined in each PO
or, if applicable, each SOW.

 

 

1.2 Purchase Order, Statement of
Work. Each PO delivered by Logitech or an Affiliate under
this Agreement will become effective according to the terms of the
PO and be subject to the terms and conditions of this Agreement.
Each SOW will become effective and subject to the terms and
conditions of this Agreement once mutually agreed and signed by
both parties. If a SOW is requested by Logitech or an Affiliate,
Contractor agrees that it will not commence work under any SOW
prior to receiving both a signed PO issued by Logitech or an
Affiliate and a fully executed SOW.

 

 

1.3 Term. This Agreement will
commence on the Effective Date and will continue unless terminated
earlier pursuant to Section 4 below.

 

 

2.

COMPENSATION

 

 

2.1 Compensation.
Logitech will pay Contractor a fee according to the schedule of
payments set forth in the applicable PO or SOW. Contractor will use
its commercially reasonable efforts to implement procedures to
reduce costs and expenses without adversely impacting its
performance. The rates and fees set forth in a PO or SOW will not
be increased for the term of such PO or SOW without
Logitech’s prior written approval. Contractor warrants that
the compensation due to Contractor under each PO and SOW will not
exceed the lowest compensation due to Contractor for similar
services and work of like quality performed for similarly situated
customers.

 

 

 

2.2 Reimbursement of Approved
Expenses. Contractor will be liable for all expenses
incurred in the performance of the Services except those
specifically set out in a SOW or PO or otherwise authorized by
Logitech in writing in advance and documented for reimbursement by
Logitech. Contractor will provide receipts and other supporting
documentation to Logitech for such expenses. Any reimbursable
expenses for business travel by Contractor will be subject to
Logitech’s travel guidelines.

 

 

2.3 Payment Term. Logitech agrees
to pay Contractor on amounts invoiced, within
forty-five

 

(45)
days of receipt of each such invoice. Each invoice must contain a
complete description of the work performed and/or Deliverables
provided and reference the applicable Logitech PO. If the fees are
based on a time and materials basis, the invoice must also include
an itemization of the hours worked.

 

 

 

2.4 Taxes, Labor and other Legal
Obligations. Unless otherwise provided in a SOW or PO, the
fees payable by Logitech to Contractor for the Services and
Deliverables under this Agreement do not include taxes, and
Logitech will pay sales, use, service and value-added taxes
assessed on the provision of the Services and Deliverables under
this Agreement. Contractor will pay taxes assessed on
Contractor’s income, and bear full responsibility for
complying with all applicable tax, contractual, labor and social
security obligations in relation to employees, agents or
representatives hired or retained by the Contractor in connection
with the performance of the Services and delivery of the
Deliverables. Contractor will be responsible for the calculation,
reporting, deposit and payment of any such taxes and other
obligations in full on

 

	

 

 

	

 

 

 

a
timely basis and prior to the imposition of any interest or
penalties. Logitech will not reimburse Contractor nor have any
liability for any penalties or interest which may be imposed due to
a failure by Contractor to timely file returns or deposit or pay
the due taxes or other obligations.

 

3. RELATIONSHIP
OF PARTIES AND ADDITIONAL OBLIGATIONS

 

 

 

3.1 Nature of Relationship.
Contractor and Logitech are independent contractors and nothing in
this Agreement creates a partnership, joint venture, or
employer-employee relationship. Contractor will not be supervised
by Logitech. Contractor is required to use its discretion in
performing the Services, subject to the general direction of
Logitech and the express condition that Contractor will at all
times comply with applicable law. Contractor is not the agent of
Logitech and is not authorized to make any representation,
contract, or commitment on behalf of Logitech unless specifically
requested or authorized to do so by Logitech. Contractor agrees to
accept exclusive liability for complying with all applicable state
and federal laws governing independent contractors, including
obligations such as payment of taxes, social security,
workers’ compensation, disability, and other contributions
based on fees paid to Contractor, its agents, or employees, under
this Agreement. Contractor hereby agrees to indemnify and defend
Logitech against any and all such taxes or contributions, including
without limitation, penalties and interest.

 

 

3.2 Warranties. Contractor
represents and warrants to Logitech that:

 

 

a. Contractor has all
requisite right and authority to enter into this Agreement, and the
performance of its obligations hereunder will not conflict with any
of its agreements with or obligations to any third
party.

 

 

b. Contractor will
establish and maintain its status as an independent contractor by
participating in Logitech’s independent contractor evaluation
and scoring process from time to time as specified by
Logitech.

 

 

c. Contractor will
perform all Services in a professional and workmanlike manner, in
accordance with the best practices of Contractor’s industry,
and the Services and Deliverables will conform to the applicable
specification, PO and/or SOW.

 

 

d. The Deliverables
will not violate any patent, copyright, trademark, trade secret or
other intellectual property right of any third party, or any
privacy right of any third party.

 

 

e. Contractor is the
sole and exclusive owner of, or has the right to enter into this
Agreement on behalf of the owner of, any services or work product
provided hereunder and any derivative works thereof prepared by or
for Contractor pursuant to this Agreement.

 

 

f. Contractor
represents and warrants that, in performing its obligations under
this Agreement, it complies with all applicable laws, orders and
regulations of any governmental authority with jurisdiction over
its activities in connection with this Agreement, including but not
limited to, laws, orders and regulations pertaining to imports,
exports, environmental laws, and any applicable laws against
bribery and corruption, including the United States Foreign Corrupt
Practices Act. Contractor will furnish to Logitech any information
required to enable Logitech to comply with applicable laws, orders
and regulations related to this Agreement.

 

 

g. In addition to, and
without limiting the foregoing, Contractor represents and warrants
that it, and each of its owners, directors, employees and every
other person working on its behalf, has not and will not, in
connection with the transactions contemplated by this Agreement or
in connection with any other business transaction involving
Logitech or Logitech’s products, make, offer or promise to
make any payment or transfer anything of value, directly or
indirectly: (a) to any governmental official or employee (including
employees of government-owned and government-controlled
corporations and public international organization); (b) to any
political party, official of a political party or candidate; (c) to
any intermediary for payment to any of the foregoing; or (d) to any
other person or entity if such payment or transfer would violate
the laws of the country in which it is made or the laws of the
United States. It is the intent of the parties that no payments or
transfers of value will be made which have the purpose or effect of
public or commercial bribery, acceptance of or acquiescence in
extortion, kickbacks or other unlawful or improper means of
obtaining business. Contractor warrants that it is not owned, in
whole or in part, by any non-U.S.

 

	

 

 

	

 

 

 

government or
non-U.S. government agency or instrumentality.

 

 

3.3 Insurance. Contractor will, at
Contractor’s expense, maintain insurance policies that cover
Contractor’s activities under this Agreement and the
activities of Contractor’s employees, agents and
representatives, including, but not limited to, workers
compensation insurance and commercial general liability, bodily
injury liability, property damage liability, errors and omissions
liability and media liability. Contractor’s insurance will be
primary to any insurance maintained by Logitech. Insurance carried
by Logitech will be excess only, and will be noncontributory to
insurance carried by Contractor. Upon the request of Logitech,
Contractor will provide Logitech with a certificate of insurance
evidencing such coverage. In addition, Contractor will provide
Logitech thirty

 

(30)
days advance written notice of any cancellation or reduction in
coverage or limits.

 

 

3.4 Conflict of Interest.
Contractor agrees during the term of this Agreement not to accept
work or enter into a contract or accept an obligation inconsistent
or incompatible with Contractor’s obligations under this
Agreement or the scope of the Services. Contractor further agrees
not to disclose to Logitech, bring onto Logitech’s premises,
or induce Logitech to use any confidential information that belongs
to anyone other than Logitech or Contractor.

 

 

3.5 Indemnification. Contractor
agrees to defend, indemnify and hold harmless Logitech, its
Affiliates and their respective officers, directors, employees and
agents from any and all losses, liabilities or damages that the
indemnified parties may incur or suffer and that arise, result from
or are related to any breach or failure by Contractor to perform
its obligations under this Agreement.

 

 

3.6

Confidentiality.

 

 

a. “Confidential
Information” means all information relating to the terms and
conditions of this Agreement, specifications and information
relating to any SOW or PO, and other business and technical
information disclosed by Logitech and / or its Affiliates.
Confidential Information does not include information that: (1) was
rightfully known to Contractor at the time of disclosure without an
obligation of confidentiality, (2) is lawfully obtained by
Contractor from a third party without

 

 

restriction on use
or disclosure, (3) is or becomes generally known to the public
through no fault or breach of this Agreement, or (4) is developed
independently by Contractor without use of the Confidential
Information.

 

 

b. Contractor will not
use the Confidential Information except as necessary under this
Agreement, and will not disclose any portion of the Confidential
Information to any other person or entity. Contractor will use all
reasonable steps to protect the Confidential Information from
unauthorized use or disclosure, including but not limited to all
steps Contractor uses to protect its own proprietary, confidential
and trade secret information.

 

 

c. The Confidential
Information remains the property of Logitech and/ or its
Affiliates, and no license or other rights in the Confidential
Information is granted hereby, except those granted expressly
herein. The Confidential Information is provided “AS
IS” and without any warranty, express, implied or otherwise,
regarding its accuracy or performance.

 

 

d. Contractor further
agrees that, in the event it determines that any portion of the
Confidential Information is not confidential for the reasons set
forth above, it will give Logitech at least ten (10) days’
notice before disclosing such portion to any third
party.

 

 

e. The obligations of
confidentiality set forth in this Section 3.6 will remain in force
for three (3) years from the termination of this
Agreement.

 

 

3.7 Injunctive Relief. 
Contractor acknowledges that disclosure of any Confidential
Information will give rise to irreparable injury to Logitech and/or
its Affiliates, which may be inadequately compensable in damages.
Accordingly, Logitech and/or its Affiliates may seek injunctive
relief against the breach or threatened breach of the foregoing
undertakings, in addition to any other legal remedies which may be
available.

 

 

3.8 Logitech Property. In the event
that Logitech furnishes any of the following items to Contractor in
connection with this Agreement, such items shall be referred to
herein as “Logitech Property” (regardless of whether
such items constitute the Confidential Information of Logitech):
any equipment, tools, software, access to information technology
systems, or

 

	

 

 

	

 

 

 

documents or other
materials relating to the products of Logitech, its business or
customers or suppliers (which may include, without limitation,
drawings, blueprints, manuals, letters, notes, notebooks, reports,
sketches, formulae, memoranda, records, files, computer programs,
machine listings, data, employee lists, part numbers, costs,
profits, market, sales, customer lists and the like). All Logitech
Property is and remains Logitech’s sole and exclusive
property. All Logitech Property must be kept free of liens and
encumbrances. Contractor will use the Logitech Property solely to
perform its obligations under this Agreement. All Logitech Property
is made available “as is” and with no warranties
whatsoever, express or implied. Contractor agrees to deliver
promptly to Logitech all Logitech Property and all copies of
Logitech Property in Contractor’s possession at any time upon
Logitech’s request. Upon termination of this Agreement for
any reason, Contractor agrees to deliver promptly to Logitech, or,
at Logitech’s option, destroy and provide an officer’s
certification of such destruction, all tangible items of Logitech
Property, together with any other of Logitech’s Property then
in Contractor’s possession, except as Logitech may, by prior
written permission, allow Contractor to retain.

 

 

3.9 Records and Audit. Contractor
will maintain complete and accurate accounting records in
accordance with sound accounting practices to substantiate
Contractor’s fees. Contractor will preserve such records for
a period of at least two (2) years after completion of the
Deliverables. Logitech may audit such records, either through its
own representatives or through an accounting firm selected by
Logitech, at its own expense, to verify Contractor’s fees.
Any audit of Contractor’s records will be conducted during
business hours and in a manner so as not to unreasonably interfere
with Contractor’s normal business operations. If an audit
should disclose an overcharge by Contractor, Contractor will pay to
Logitech the amount of the overcharge within ten

(10)
days from notice thereof.

 

 

3.10 Data
Processing and Security. To the extent, if any, that
Contractor has access to Logitech data, systems or confidential
information, Contractor shall be subject to the additional terms
set out on Exhibit B to this Agreement.

 

 

3.11 Ownership.
Logitech is the owner of all intellectual property rights to all
Deliverables provided hereunder. Contractor agrees to assign and
hereby assigns all rights it has or may acquire in the Deliverables
produced and provided pursuant to this Agreement, including all
intellectual property rights, including moral or publicity rights,
therein. Contractor understands that such work product is a
“work for hire” and will be the exclusive property of
Logitech. Contractor agrees to disclose promptly in writing to
Logitech, or any person designated by Logitech, every computer
program, trade secret, invention,discovery,improvement,
copyrightable material, process, manufacturing technique, formula
or know-how, whether or not patentable, copyrightable or otherwise
protectable, which is conceived, made, reduced to practice, or
learned by Contractor in the course of any work performed for
Logitech under this Agreement. Contractor will assist and cooperate
with Logitech and take such further acts reasonably requested by
Logitech to enable Logitech to acquire and perfect its ownership
rights in the work produced under this Agreement. Nothwithstanding
the foregoing, all pre-existing intellectual property and trade
secrets of Contractor shall remain the exclusive property of
Contractor.

 

 

3.12 Intellectual
Property Rights. Contractor acknowledges that the
intellectual property rights of Logitech and/or its Affiliates,
including but not limited to patent, trademark, trade names,
copyright and trade secret rights, remain exclusively owned by
Logitech and/or its Affiliates. Contractor is hereby granted a non-
exclusive, non-assignable, and limited license to use those
trademarks, logos, trade names, and service marks provided by
Logitech to Contractor (“Marks”) solely during the term
of the applicable PO or SOW for the sole purpose of performing
Services under this Agreement. All goodwill generated by such use
of the Marks will inure exclusively to the benefit of Logitech and
its Affiliates. Contractor’s use of the Marks will comply
with the trademark guidelines set forth at
www.logitech.com.

 

4.

TERMINATION

 

 

4.1 Termination by Logitech.
Logitech may terminate this Agreement or a specific SOW or cancel a
specific PO under this Agreement for convenience at any time with
one hundred

	

 

 

	

 

 

 

twenty
(120) days prior written notice to Contractor.

 

 

4.2 Termination by Contractor.
Contractor may only terminate this Agreement for convenience when
no SOW or PO is in effect and the Contractor provides Logitech with
at least one hundred and twenty (120) days prior written
notice.

 

 

4.3 Termination for Breach. Either
party may terminate this Agreement or a specific SOW or PO if the
other party is in material breach of this Agreement, SOW or PO and
the breaching party fails to cure such material breach within
thirty

(30)
days of receiving notice thereof from the non-breaching party. In
the case of material breach by Contractor, Logitech will not be
obligated to make any payments to Contractor.

 

 

4.4 Effect of Termination. Except
as provided in this Section 4, upon any termination of this
Agreement, Logitech will pay to Contractor costs for any work
performed and accepted by Logitech up to the effective date of
termination on a time and materials basis or according to the
milestone schedule as reasonably determined by Logitech. Any
invoices for such costs must be received by Logitech within ninety
(90) days after the date of termination. Contractor will promptly
return to Logitech all advance payments, if any, received by
Contractor reduced by Contractor’s fees due on the date of
termination and reasonable and supportable costs incurred by
Contractor up to the notice date of termination. Contractor will
deliver to Logitech all work in process, in whole or in part,
including all versions and portions thereof, and will confirm in
writing the assignment to Logitech of ownership in the
results.

 

 

4.5 No Liability. Neither party
will be liable to the other for damages of any sort solely as a
result of terminating this Agreement in accordance with its terms.
Termination of this Agreement will be without prejudice to any
other right or remedy of either party.

 

5. LIMITATION
OF LIABILITY. IN NO EVENT WILL LOGITECH BE LIABLE FOR LOST
PROFITS, OR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, ARISING IN
ANY WAY IN CONNECTION WITH THIS AGREEMENT. THIS LIMITATION WILL
APPLY EVEN IF LOGITECH HAS BEEN ADVISED OF

 

 

THE
POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF
ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. EACH PARTY ACKNOWLEDGES
AND AGREES THAT THE LIMITATIONS OF LIABILITY CONTAINED IN THIS
SECTION REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT
AND THAT NEITHER PARTY WOULD ENTER INTO THIS AGREEMENT WITHOUT THIS
LIMITATION OF LIABILITY.

 

6. ENTIRE
AGREEMENT; PRECEDENCE. This Agreement, together with all
agreed upon SOWs, and POs represents the entire agreement between
the parties and replaces and supersedes all previous or
contemporaneous oral or written agreements, understandings or
arrangements between the parties with respect to its subject
matter. In case of any conflict among this Agreement and any SOW or
any PO, or any attachments thereto, the terms and conditions of
this Agreement will prevail. In case of any conflict between any
SOW and any PO to which the SOW relates, or any attachments to any
such PO, the terms of the SOW will prevail.

 

 

7. AMENDMENT.
This Agreement may not be modified or amended except in writing
executed by an authorized representative of each
party.

 

8. CHOICE
OF LAW AND VENUE. This Agreement will be exclusively
governed by the laws of California without reference to its
conflicts of law principles. All disputes will be subject to the
exclusive jurisdiction of California.

 

 

 

9. ASSIGNMENT.
As Logitech has specifically contracted for Contractor’s
services, Contractor may not sub-contract, assign or delegate its
obligations under this Agreement either in whole or in part,
without the prior written consent of Logitech. Any attempted
assignment in violation of the provisions of this section will be
void. Notwithstanding the foregoing, in the event of a change of
control involving Contractor, whether in the form of the sale of
all or substantially all of the assets of Contractor or a merger
whereby the stockholders of Contractor immediately prior to the
merger do not maintain voting control following the close of the
merger, then in such event Contractor shall have the right to
assign this Agreement; provided, Contractor shall give Logitech at
least fourteen (14) days prior written notice to the closing of the
change of control

	

 

 

	

 

 

 

transaction, and
the entity or stockholders acquiring control of Contractor and/or
Contractor’s assets are not competitors to Logitech, as
determined solely by Logitech.

 

10. NO
WAIVER. No delay or failure to act in the event of a breach
of this Agreement will be deemed a waiver of that or any subsequent
breach of any provision of this Agreement. Any remedies at law or
equity not specifically disclaimed or modified by this Agreement
remain available to both parties.

 

 

11. INDEPENDENT
EFFORTS. Provided there is no infringement of the other
party’s intellectual property rights, nothing in this
Agreement will impair either party’s right to develop,
manufacture, purchase, use or market, directly or indirectly, alone
or with others, products or services competitive with those offered
by the other.

 

 

12. NO
PUBLICITY. Contractor will not use or reproduce the
trademark, trade name, trade dress or logo of Logitech, or refer to
Logitech as a client of Contractor, without Logitech’s prior
written consent, which consent shall not be unreasonably withheld
in relation to performing the services set forth in an
SOW.

 

 

13. FORCE
MAJEURE. Nonperformance by either party will be excused to
the extent that performance is rendered impossible by any reason
wholly beyond the control and not caused by the negligence of the
nonperforming party; provided that any such nonperformance will be
cause for termination of this Agreement by the other party if the
nonperformance continues for more than thirty (30)
days.

 

 

14. NOTICES.
All notices must be in writing and delivered to the parties listed
on page 1 of this Agreement. For Logitech, a copy must also
be

 

 

 

.

 

 

sent to
Logitech’s Legal Department, 7600 Gateway Blvd., Newark CA
94560, Attn: General Counsel, or by email to
legalnotices@logitech.com. Either party may at any time change the
name and address of persons to who all notices required to be given
under this Agreement must be sent by giving written notice to the
other party.

 

 

15. SURVIVAL. Sections 3.1, 3.5, 3.6,
3.7, 3.8, 3.9, 3.11, 3.12,
4.3, 4.4, 4.5, 5, 8, 10, 11, 12, and 14 through 18 will
survive the termination of this Agreement.

 

16. SEVERABILITY.
In the event any one or more of the provisions of this Agreement
will for any reason be held to be invalid, illegal, or
unenforceable, the remaining provisions of this Agreement will be
unimpaired and the invalid, illegal or unenforceable provision will
be replaced by a provision which, being valid, legal and
enforceable comes close to the intention of the parties underlying
the invalid, illegal, or unenforceable provisions.

 

 

17. BINDING
EFFECT; SUCCESSORS. The provisions of this Agreement will be
binding upon and inure solely to the benefit of the parties and
their respective successors and permitted assignees.

 

18. EXECUTION;
COUNTERPARTS. This Agreement, including any amendment,
waiver or modification hereto, may be executed by original,
facsimile or electronic signature in counterparts, each of which
will be deemed an original, but all of which together will
constitute one and the same instrument. Delivery of an executed
counterpart of a signature page by fax, e-mail or other electronic
delivery or signature method will be as effective as physical
delivery of a manually executed counterpart of this
Agreement.

	

 

 

	

 

 

 

STATEMENT
OF WORK

 

 

The
following is Statement of Work Number (“SOW”) made as
of March 1, 2018, to the Master Service Agreement
(“Agreement”) executed as of March 1, 2018, by and
between Logitech Inc. (“Logitech”) and Super League
Gaming, Inc. (“Contractor”). Except as specifically
stated herein, all terms used in this SOW will have the same
meaning as in the Agreement.

 

 

CONTRACTOR
INFORMATION:

Coordinator/Contact
Name: Matt
Edelman                              
         Contact Phone: (310) 770-7194

E-Mail
Address: matt.edelman@superleague.com

 

 

 

LOGITECH
CONTACT INFORMATION:

Coordinator/Contact
Name: Peter
Kingsley                                        
Contact Phone: E-Mail Address: pkingsley@logitech.com

 

 

Description of
Services and Deliverables: With this SOW, Contractor will
perform certain services and create certain deliverables for
Logitech.

 

Logitech shall be
designated as the official “Gaming Gear Provider” for
Contractor and shall be the exclusive sponsor for such category
during the entirety of this agreement.

 

The
Term shall be as follows:

Initial
Term: the first six months of 2018, up to and including June 2,
2018

 

Option
Term: the second six months of 2018. The Option Term shall be
exercised no later than thirty (30) days prior to the end of the
Initial Term, June 2, 2018.

 

Extended Term:
Calendar year 2019 Full Term: Calendar year 2020

Logitech shall have
the right to continue this partnership in 2019 (Extended Term) and
2020 (Full Term), each upon written notification to Contractor
prior to November 1st of the
prior calendar year.

 

Contractor will
provide multiple ongoing promotional and marketing opportunities
for Logitech, as defined below, through live and digital media
placements, experiential activations, product sampling, prizing and
give-away opportunities, digital branded content, and the
distribution of esports learning and peak performance programs that
will be co-developed with Logitech.

 

The
schedule and deliverables are further described as
follows.

 

Schedule:

 

Initial
Term

 

Q1
2018

 

●

March/April: League of Legends
City Champs Tournament

 

Q2
2018

 

●

April: Minecraft After School
Program

 

 

 

	

 

	

 

 

 

●

April/May: Minecraft City
Champs Tournament

 

Option
Term

 

Q3
2018

 

●

July or August: Game Title TBD
City Champs Tournament (format, venue and number of cities
TBD)

 

●

July or August: Summer Camp
(format, curriculum, location TBD)

 

Q4
2018

 

●

September/October: League of
Legends City Champs Tournament

 

●

October/November: Minecraft
City Champs Tournament

 

●

November/October: Minecraft
After School Program

 

Initial Term Deliverables

 

City
Champs Tournaments

 

●

In-Theater Assets

 

HUD (on
movie screen)

 

●

Logitech
logo on-screen throughout tournament Physical Signage

 

●

Logitech logo
attached to banners and included in digital welcome posters where
offered

 

Printed
Collateral

 

●

Logitech logo on
printed programs, player handbooks, player passes (certain items
may not be available for March/April League of Legends City Champs
Tournament)

 

Interstitial
Content

 

●

:15 or :30 second
videos to be played pre-, during or post-gameplay

 

●

Videos to be either
existing Logitech ‘commercial’ videos or new videos
developed by Contractor and Logitech together, to be produced by
Contractor

 

Emcee
Shout-Outs

 

●

Multiple Logitech
brand references according to agreed-upon messaging during
tournament

Brand
Activation

 

●

Opportunities for
Logitech product sampling, product give-ways, coupon distribution,
sweepstakes, etc.

 

●

Social & Digital Marketing
Social Media

 

●

During seasonal
play, regular posts inclusive of mutually agreed upon Logitech
references on all relevant Contractor accounts

 

●

Off-season,
intermittent posts inclusive of mutually agreed upon Logitech
references on all relevant Contractor accounts

 

Influencer
Marketing

 

●

Contractor to
engage creatively-appropriate, mutually agreed upon social media
influencers to amplify the Video Series.

 

Website

 

●

Logitech logo and
supportive content inclusive of mutually agreed upon Logitech
references to be produced by Contractor on Tournament Central pages
and select promotional inventory dedicated to the
tournaments

 

Email

 

 

 

 

●

Logitech logo
included in tournament promotional and informational email
newsletters, with supportive content in select emails

 

Ticketing

 

 

	

 

	

 

 

 

●

Logitech branding
included in digital ticket design

 

Minecraft
Scholastic

 

●

Social & Digital Marketing
Social Media

 

●

During promotion
and activation of the program, posts inclusive of mutually agreed
upon Logitech references on all relevant Contractor
accounts

 

Website

 

●

Logitech logo and
supportive content on pages that may be dedicated to the
program

 

Email

 

●

Logitech logo
included in promotional and informational email newsletters, with
mutually agreed upon supportive content in select
emails

 

●

Content

 

 

 

 

 

 

 

 

Hero
Videos

 

●

Contractor to
produce a series of 2-5 minute long videos featuring Logitech
Employees, to be distributed digitally and in-school throughout the
program

 

●

Workshop Game Mode

 

Workshop Game
Mode

 

●

Contractor and
Logitech to collaborate on the development of a new Workshop Game
Mode in which students are asked to work as a team to create the
most effective machine to achieve a specific
objective.

 

●

Contractor to
produce the new Workshop Game Mode.

 

●

The Workshop Game
Mode to be included in the Q4 program and presented as developed in
collaboration with Logitech G Academy.

 

Original
Content

 

●

Contractor and
Logitech to collaborate on the development of, and Contractor to
produce, up to 30 minutes of original video content per quarter,
beginning in Q2.

 

●

Each 30 minutes of
content to be produced and packaged as a single episode or as a
series consisting of as many as 20 unique episodes, dependent upon
the creative direction, as mutually agreed.

 

●

Each episode to be
distributed through all relevant Contractor and Logitech social
media accounts, possibly in addition to third party distribution
platforms as mutually agreed.

 

●

Contractor to
engage a creatively-appropriate, mutually agreed upon social media
influencer to assist in the promotion of each content
offering.

 

Option Term Deliverables

 

In
addition to the promotional and marketing support provided
throughout the Initial Term, the aforementioned elements will be
provided throughout the Option Term.

 

●

Parents Information Session
In-Theater

 

●

Contractor and
Logitech to collaborate on the development of a 30-45 minute
session specifically designed for parents of Minecraft players to
educate them about the tournament, about Minecraft and about the
benefits of gaming, to take place during the Minecraft City Champs
Tournament Practice Day.

 

●

The session to be
produced by Contractor and presented as developed in collaboration
with Logitech G Academy.

 

Email

 

 

	

 

	

 

 

 

●

Promotional and
informational email newsletters sent about the Parents Information
Session to include mutually agreed upon Logitech
references.

 

 

●

Digital Content

Video
Series

 

●

Contractor and
Logitech to mutually agree upon two short form video series to be
produced by Contractor during and/or after each City Champs season,
based on the City Champs experience and directionally aligned with
Logitech G Academy themes.

 

●

Each video series
to consist of 3 episodes of 1-3 minutes in length and to include
Logitech references according to mutually agreed-upon messaging and
branding.

 

 

●

Player Development Session
In-Theater

 

●

Contractor and
Logitech to collaborate on the development of a 5-10 minute
content-driven presentation specifically designed for League of
Legends players to educate them about peak performance as an
esports athlete, to take place during the League of Legends City
Champs Tournament Practice Day (may not be available for
March/April League of Legends City Champs Tournament based on
timing).

 

●

The session to be
produced by Contractor and presented as developed in collaboration
with Logitech G Academy.

 

 

Email

 

●

Promotional email
newsletters that include information about the peak performance
session to include mutually agreed upon Logitech
references.

 

●

Summer Camp

 

●

Contractor and
Logitech to collaborate on the development of an
‘alpha’ version of a Summer Camp experience designed to
deliver upon the initial core themes and values of the Logitech G
Academy.

 

●

The investment to
produce the Summer Camp experience remains an unknown for both
Parties and is not included in the Fees outlined below in this
Statement of Work.

 

Logitech Commitments

 

●

Social & Digital Marketing
Social Media

 

●

Reasonable number
of posts on relevant Logitech social media accounts announcing
and/or promoting Logitech’s activations with
Contractor.

 

Email

 

●

Reasonable number
of references to activations with Contractor within emails sent to
relevant Logitech email newsletter subscribers.

 

Website

 

●

Dedicated web page
inclusive of mutually agreed upon content within www.logitechg.com

 

●

Minimum Product Commitment

City
Champs (Minecraft and League of Legends)

 

●

Logitech product
awarded to all members of the City Champs Finals
teams.

 

 

	

 

	

 

 

 

●

Minecraft: 240
players

 

●

League of Legends:
168 players

 

●

Logitech product
awarded to a standout single player on each of the 16 City Club
teams for each game title, with selection of the player to be based
on mutually agreed upon criteria.

 

Minecraft
Scholastic

 

●

Logitech product
packs shipped to all participating schools, with contents of the
packs to be determined by Logitech. Each of the estimated 100
schools activated in 2018 to receive only one product pack in
2018.

 

●

Logitech product to
be awarded to select students who excel within the program,
according to criteria and a volume to be mutually agreed
upon.

 

Initial Term
Fees: Total Strategic Investment for the Deliverables in the
Initial Term - $180,000 to be paid as follows:

 

●

50% of payment,
$90,000, due immediately upon execution of SOW

 

●

50% of payment,
$90,000 due no later than June 30, 2018

 

Option Term Fees: Total Strategic Investment for the deliverables
in the Option Term - $180,000 to be paid as follows:

 

●

50% of payment,
$90,000, due immediately upon exercise of the Option
Term

 

●

50% of payment,
$90,000 due no later than December 31, 2018

 

Extended Term and
Full Term Fees, if applicable: Upon continuation of this
partnership into the Extended Term or the Full Term, Logitech
agrees to a minimum Strategic Investment of $450,000 for the same
or an equivalent level of Deliverables as required from Contractor
in 2018, which would be paid as follows:

 

●

50% of payment,
$225,000, due no later than Jan 31st of the applicable year

 

●

25% of payment,
$112,500, due no later than June 30th of the applicable year

 

●

25% of payment,
$112,500 due no later than September 30th of the applicable year

 

If
Contractor and Logitech agree to expand the scope of the
deliverables for the Extended Term and/or the Full Term, the
Parties agree to negotiate in good faith an increase in the amount
of the fees.

 

All payments shall be made in accordance with Section 2.3 of the
Agreement.

 

Performance
Reporting (List any expected reports or management metrics
to be provided with their due dates and frequency, if
any

 

City
Champs

 

●

Number of seasons in 2018

 

●

League of Legends:
2

 

●

Minecraft:
2

 

●

City Clubs by year-end 2018

 

●

16

 

●

Unique Players per season

 

●

League of Legends
qualifier round players: 1,700

 

●

League of Legends
in-theater players: 960

 

●

Minecraft
in-theater players: 800

 

●

Total In-Theater Player Gameplay Hours per season

 

●

League of Legends:
4,500

 

●

Minecraft:
3,500

 

 

	

 

	

 

 

 

●

Total In-Theater Player Hours per season

 

●

League of Legends:
7,500

 

●

Minecraft:
6,000

 

●

Total In-Theater Spectators per season

 

●

League of Legends:
500

 

●

Minecraft:
750

 

Scholastic

 

●

Spring 2018

 

●

20-25 schools;
10-20 students per school

 

●

Fall 2018

 

●

100 schools; 10-20
students per school

 

 

Digital
Impressions

 

●

Minecraft

 

●

Social media
(primarily Facebook) during Contractor tournaments:
25,000

 

●

Social media
(primarily Facebook) in months when Contractor is not running
tournaments: 5,000

 

●

League of Legends

 

●

Social (primarily
Facebook) during tournaments: 50,000

 

●

Social (primarily
Facebook) in months when not running tournaments:
5,000

 

●

Superleague.com

 

●

Pageviews during
tournaments: 200,000

 

●

Pageviews in months
when not running tournaments: 60,000

 

 

 

THIS
STATEMENT OF WORK IS AGREED TO AND ACCEPTED BY CONTRACTOR AND
LOGITECH.

 

 

	
Super League
Gaming,
Inc.                          

	
Logitech
Inc.

	
 

	
 

	
 /s/
Ann
Hand                                                                      

	

/s/ Ujesh
Desai

	
Ann
Hand

	
Ujesh
Desai

	
CEO

	
VP/GM Logitech G
Gaming 3/16/2018

	
3/16/2018

	
 

	
 

	
 

 

 

 

	

 

 

	

 

 

 

EXHIBIT B

 

 

Logitech
Data Processing and Security Standard Terms

 

 

THIS DATA PROCESSING AND SECURITY STANDARD
TERMS (“Addendum”) is effective as

the
same date of the Effective Date of the Master Services Agreement by
and between Logitech and Contractor.

 

WHEREAS, Logitech contractors,
suppliers, distributors, subcontractors or other business partners
and their employees (collectively “Contractors”) must
comply with the requirements set forth in this Addendum with
respect to any information (“Logitech Data”) that
Logitech employees, representatives or business partners make
available to such Contractor in the context of its business
relationship with Logitech, in addition, not in lieu of, any other
contractual obligations and applicable laws it may have with
respect to Logitech Data.

 

 

NOW THEREFORE, the parties agree as
follows:

 

1. Control and Ownership.
Contractor may not access, collect, store, retain, transfer, use or
otherwise process in any manner any Logitech Data, except (a) in
the interest and on behalf of Logitech, and (b) as directed by
authorized personnel of Logitech or one of its affiliates
(collectively “Logitech”) in writing. Without limiting
the generality of the foregoing, Contractor may not make Logitech
Data accessible to any subcontractors or relocate Logitech Data to
new locations, except as set forth in written agreements with, or
written instructions from Logitech.

 

2. Keep Data Secure. Contractor
must keep Logitech Data secure from unauthorized access by using
its best efforts and state-of-the art organizational and technical
safeguards.

 

3. Comply with Approved Policies.
Contractor must comply with its own information security policies,
subject to prior review and written approval by Logitech, or at
Logitech’s discretion, with Logitech’s information
security policies, which shall be provided by Logitech if
applicable. Contractor must refrain from making any changes to such
policies that reduce the level of security and provide 30 days
prior written notice to Logitech of any significant changes to its
own information security policies. If Contractor has conducted SOC
Type II or similar audits, Contractor must comply with its SOC Type
II or similar standards and provide Logitech 30 days notice of any
changes. In addition, Contractor shall provide to Logitech any
3rd party audits and/or
certifications such as SOC2 Type II, SSAE16, SAS70, and
ISO9001.

 

4. Cooperate with Compliance
Obligations. At Logitech’s request, Contractor must
(a) contractually agree with Logitech to comply with laws or
industry standards designed to protect Logitech Data, including,
without limitation, the Standard Contractual Clauses approved by
the European Commission for data transfers to processors, PCI
Standards, HIPAA requirements for business associates (as
applicable), as well as similar and other frameworks, or (b) allow
Logitech to terminate certain or all contracts with Contractor,
subject to (i) a proportionate refund of any prepaid fees, (ii)
transition or migration assistance as reasonably required and at
time and materials rates not exceeding Logitech’s then
current rates for professional services offered to its customers,
and (iii) without applying any early termination charges or other
extra charges.

 

5. Submit to Audits. Contractor
must submit to reasonable data security and privacy compliance
audits by Logitech and, at Logitech’s request, or an
independent third party, to verify compliance with this Addendum,
applicable law, and any other applicable contractual
undertakings.

 

6.
    Data
Breach Notification. In the event of an actual or suspected
breach or compromise to the

 

 

	

 

 

	

 

 

 

physical or
electronic security of Logitech Data, including but not limited to
actual or suspected loss of control, theft or unauthorized
processing, loss, use, disclosure or acquisition of, or access to,
any Protected Personal Data (“Breach”), Contractor
shall notify Logitech’s General Counsel of such actual or
suspected Breach by telephone at 510-795-8500 and in writing at
7700 Gateway Blvd., Newark, California, 94560, USA within 48 hours
of discovery of the actual or suspected Breach. The notice shall
summarize in reasonable detail the nature of the actual or
suspected Breach; the data that has been or is suspected to have
been lost, stolen or potentially compromised; and the corrective
action taken or to be taken by Contractor. Contractor shall
promptly take all necessary and advisable corrective actions, and
shall cooperate fully with Logitech in all reasonable and lawful
efforts to promptly, mitigate or rectify, otherwise respond to,
such Breach.

 

7. Indemnification for Data
Breach. In the event of a Breach, in addition to immediately
notifying Logitech of such Breach, Contractor shall at
Logitech’s option and at the direction of Logitech, whether
or not required by law, provide written notice to the individuals
whose Logitech Data was reasonably connected to the Breach, or
reimburse Logitech for all direct out-of-pocket and commercially
reasonable costs that Logitech incurs in providing such notice.
Contractor shall indemnify Logitech for any additional financial
loss to Logitech arising from such Breach, including without
limitation Logitech (1) obtaining legal advice to assist Logitech
in identifying its legal obligations regarding such Breach; (2)
providing and paying for remediation services offered by third
parties to help prevent or cure identity fraud or theft, including
but not limited to identity theft analytics, fraud monitoring,
identity theft resolution, and credit freezes; and(3) legal damages
awarded against Logitech as a result of the Breach.

 

8. Effects of Termination or
Expiration. Following the effective date of termination,
Contractor shall have ten (10) days (“the Data Removal
Period”) to remove all Logitech Data and other information,
including without limitation backup copies thereof, that Contractor
has stored on any of its storage servers or data that Logitech has
authorized Contractor to upload, store or otherwise input onto any
Contractor storage servers or devices. Contractor shall provide
reasonable migration assistance at then-current time and material
rates for professional services and Contractor may charge regular
fees for data stored during the portion of the Data Removal Period
utilized by Logitech unless Logitech terminates the Agreement for
breach by Contractor, in which case migration assistance and
storage shall be free of charge. Following the expiration of the
Data Removal Period, Contractor shall delete any and all Logitech
Data from Contractor’s server, website or any other data
storage systems, including without limitation any and all backup
copies thereof if Contractor has complied with all of its
obligations under this Agreement and verified that Logitech has in
fact been able to remove Logitech Data.

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