Document:

SECURITY AGREEMENT
AND

    FINANCING
STATEMENT

    

    THIS
SECURITY AGREEMENT AND FINANCING STATEMENT is made this 21st day of
September, 2010, between WELLS
FARGO BANK, NATIONAL ASSOCIATION, acting through its Wells Fargo Business
Credit, operating division (the "SECURED PARTY"), and SOUTHPEAK INTERACTIVE, L.L.C., a Virginia limited
liability company, GONE
OFF  DEEP, LLC, a Delaware limited liability company, SOUTHPEAK INTERACTIVE CORP., a
Delaware corporation, and VID
SUB, LLC, a  Delaware limited
liability company (collectively, the "DEBTOR"), as follows:

    

    BACKGROUND:

    

    
      	
              A.

            	
              On
      this date, the Secured Party and Debtor entered into a Master Purchase
      Order Assignment Agreement (the "Assignment
  Agreement").

            

    

    

    
      	
              B.

            	
              It
      is a condition to Secured Party's performance of its obligations under the
      Assignment Agreement that the Debtor execute and deliver this Agreement to
      secure performance and payment of the "Liabilities" (as hereinafter
      defined).

            

    

    

    THEREFORE, in consideration of
the agreements described in this Agreement and the Assignment Agreement, the
parties agree as follows:

    

    1.           Definitions.  In this
Agreement, the following frequently used terms are defined as set forth in this
¶1:

    

    (a)         Each
term used in this Agreement which is defined in the Assignment Agreement will
have the same meaning herein as that ascribed to it in the Assignment
Agreement.

    

    (b)         The
"LIABILITIES" are all
payments and other obligations from time to time due or owing to the Secured
Party by the Debtor under the Assignment Agreement, this Agreement and any
agreement referred to in the Assignment Agreement or this
Agreement.

    

    (c)         The
"PRIMARY COLLATERAL"
means those assets of the Debtor set forth on Exhibit "A" attached to and made
part of this Agreement, whether now or hereafter existing or acquired, together
with all the proceeds thereof and Debtor's interests therein.

    

    (d)         The
"COMMON COLLATERAL" are
those assets of Debtor set forth on Exhibit "B" attached to and made part of
this Agreement, whether now or hereafter existing or acquired, together with all
the proceeds thereof and Debtor's interests therein which from time to time are
also pledged to a Senior Lender and as to which the Secured Party shall maintain
a subordinated security interest.  If no Senior Lender is involved in
the subject transaction, Exhibit "A" shall be excluded from this Agreement and
the Primary Collateral and Common Collateral shall refer to the same
assets.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (e)         The
"COLLATERAL" means the
Primary Collateral and the Common Collateral and the Secured Party's security
interest in the Collateral is referred to as the "LIEN".

    

    (f)          The
"SENIOR LIEN" is the
security interest in the Common Collateral maintained by a Senior Lender (if
any).

    

    (g)         The
"LOCATIONS" are Debtor's
facilities set forth at the end of this Agreement at which all or a portion of
the Collateral will be located.

    

    2.           Grant of
Security Interest.  As security for
the performance and payment of the Liabilities, the Debtor hereby assigns,
grants, conveys, mortgages, hypothecates, pledges, and sets over to the Secured
Party a continuing first priority security interest for the use and benefit of
the Secured Party in the Primary Collateral; and a security interest for the use
and benefit of the Secured Party in the Common Collateral which is subordinate
only to the Senior Lien, if any.

    

    3.           Representations
and Warranties.  The Debtor
represents, warrants, and agrees that: (i) except with respect to the Senior
Lien, no financing statement or other lien notice covering any portion of the
Collateral is on file in any public office; (ii) the Debtor is and at all times
will be the lawful owner of all Collateral, free of all liens and claims
whatsoever except the Senior Lien and the Lien; (iii) the Debtor has full power
and authority to execute this Agreement and to perform the Debtor's obligations
hereunder, and to subject the Collateral to the Lien; (iv) all information with
respect to Collateral set forth in any schedule, certificate or other writing at
any time heretofore, and all other written information heretofore or hereafter
furnished by the Debtor to the Secured Party is and will be true and correct in
all respects as of the date furnished; (v) the Locations include the address at
which any portion of the Collateral is located and Debtor will immediately
notify Secured Party of any other location at which any portion of the
Collateral is hereafter located; and (vi) there is no litigation or regulatory
complaint against the Debtor or affecting or relating to the Collateral or any
portion thereof which is pending or threatened as of this date other than as set
forth on Exhibit "E" of the Assignment Agreement.

    

    4.           Certificates,
Schedules and Reports.  The Debtor will
from time to time, as the Secured Party may request, deliver to the Secured
Party such schedules and such certificates and reports respecting the Collateral
to such extent as the Secured Party may reasonably request.  Any such
schedule, certificate or report shall be executed by an authorized officer of
the Debtor and shall be in such form and detail as the Secured Party may
specify.  The Debtor shall immediately notify the Secured Party of the
occurrence of any event causing a material loss or depreciation in the value of
any item of Collateral, and the amount of such loss or
depreciation.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5.           Agreements
of the Debtor.  The Debtor (i)
hereby authorizes the Secured Party (at the Debtor’s expense) to file such
financing statements and other documents necessary to perfect its Lien on the
Collateral, and do such other acts and things as Secured Party may from time to
time deem necessary to establish and maintain valid perfected security interests
in the Collateral; (ii) will keep all items of Collateral at the Locations;
(iii) will keep its records concerning all items of Collateral at the Locations,
which records will be of such character as will enable Secured Party to
determine at any time the status thereof; (iv) will furnish the Secured Party
such information concerning the Debtor and the Collateral as the Secured Party
may from time to time reasonably request; (v) will permit the Secured Party or
its designees, at all times, to inspect the Collateral, and to inspect, audit
and make copies of and extracts from all records and all other papers in the
possession of the Debtor, and will, upon request of the Secured Party, deliver
to the Secured Party all of such records and papers that pertain to the
Collateral; (vi) will, upon request of the Secured Party, stamp on its records
concerning the Collateral (and/or enter in its computer records concerning the
Collateral) a notation, in form reasonably satisfactory to the Secured Party, of
the security interests of the Secured Party hereunder; (vii) except as consented
to in writing by the Secured Party, will not sell, lease, assign or create or
permit to exist any lien on or security interest in any item of Collateral to or
in favor of anyone other than the Secured Party and the Senior Lender(s); (viii)
will at all times keep all items of Collateral insured against loss, damage,
theft and other risks, in such amounts, by such companies, under such policies
and in such form as may be required pursuant to the Assignment Agreement, which
policies shall contain a so-called lender's loss payable (or comparable) clause,
whereby a denial of payment based on policy conditions will not prevent recovery
by Secured Party, and such policies or certificates thereof shall be deposited
with the Secured Party; (ix) furnish to the Secured Party no less than thirty
(30) days prior to the occurrence of any change in the Locations or in Debtor's
name, notice in writing of such change; and (x) will reimburse the Secured Party
for all expenses, including reasonable attorneys' fees and legal expenses
incurred by the Secured Party in seeking to collect or enforce any rights under
this Agreement or the Assignment Agreement.

    

    6.           Remedies.  Whenever Debtor
shall fail to perform any obligation in the manner and at the time required by
the Assignment Agreement or this Agreement, or whenever the Debtor or any of
them shall breach or default on a covenant made by any Debtor pursuant to the
Assignment Agreement or this Agreement (collectively an "event of default"), the
Secured Party may exercise any rights and remedies available to it under the
Assignment Agreement and applicable law.  The Debtor and each of them
agrees, upon the occurrence of an event of default and during the continuance
thereof, if requested by the Secured Party, to assemble, at the Debtor's
expense, all or any part of the Collateral at a place designated by the Secured
Party.  Without limiting the foregoing, upon an event of default the
Secured Party may, to the fullest extent permitted by applicable law, without
notice, advertisement, hearing or process of law of any kind, (i) enter upon any
premises where any of the Collateral may be located and take possession of and
remove such Collateral, (ii) sell any or all of the Collateral, free of all
rights and claims of the Debtor therein and thereto, at any public or private
sale, and (iii) bid for and purchase any or all of the Collateral at any such
sale.  The Debtor and each of them hereby expressly waives, to the
fullest extent permitted by applicable law, any and all notices, advertisements,
hearings or process of law in connection with the exercise by the Secured Party
of any of its rights and remedies upon an event of default.  Any
notification of the intended disposition of any of the Collateral required by
law shall be deemed reasonably and properly given if given at least ten (10)
days before such disposition.  Any proceeds of any disposition by the
Secured Party of any of the Collateral will be applied by the Secured
Party.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    First, to the payment
of the Secured Party's reasonable out-of-pocket expenses in connection with the
Collateral or this Agreement and enforcement of the Secured Party's rights with
respect thereto or hereunder, including reasonable attorney's fees and legal
expenses;

    

    Second, toward the
payment or satisfaction of the Liabilities in full; and

    

    Third, any surplus to
be paid to the Debtor, its successors and assigns, or as a court of competent
jurisdiction may direct.

    

    7.           Relationship
with Senior Lender.  If a Senior Lender is involved in the
instant transaction, the Secured Party and each Senior Lender have entered into
a Subordination Agreement of even date herewith which defines and sets forth the
respective rights and interests of the Secured Party and each Senior Lender in
connection with the Collateral.

    

    8.           Miscellaneous.  (a)   The
Secured Party shall be deemed to have exercised reasonable care in the custody
and preservation of any of the Collateral in its possession if it takes such
action for that purpose as the Debtor requests in writing, but failure of the
Secured Party to comply with any such request shall not of itself be deemed a
failure to exercise reasonable care, and no failure of the Secured Party to
preserve or protect any rights with respect to such Collateral against prior
parties, or to do any act with respect to the preservation of such Collateral
not so requested by the Debtor, shall be deemed a failure to exercise reasonable
care in the custody or preservation of such Collateral.

    

    (b)         All
notices required or permitted pursuant to this Agreement shall be in writing and
either personally delivered, sent by facsimile transmission (provided evidence
of transmission is maintained and the original of the transmittal notice is sent
by U.S. mail), or Federal Express or similar overnight delivery service, to the
Secured Party at its address set forth at the end of this Agreement and to the
Debtor at any one of the Locations.  Notices given in the manner
prescribed herein shall be deemed given on the date sent or transmitted (as the
case may be).  Either party may change its notice address by notice to
the other party in the manner prescribed herein.

    

    (c)         No
delay on the part of the Secured Party in the exercise of any right or remedy
shall operate as a waiver thereof, and no single or partial exercise by the
Secured Party of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy.

    

    (d)         No
amendment to, modification or waiver of, or consent with respect to, any
provision of this Agreement shall in any event be effective unless the same
shall be in writing and signed and delivered by the Secured Party, and then any
such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (e)         All
obligations of the Debtor and all rights, powers and remedies of the Secured
Party expressed herein are in addition to all other rights, powers and remedies
possessed by Secured Party, including, without limitation, those provided by
applicable law or in any other written instrument or agreement relating to any
of the Liabilities or security therefor.

    

    (f)          The
Agreement shall in all respects be a continuing agreement and shall remain in
full force and effect until final payment in full of all the
Liabilities.

    

    (g)         THIS
AGREEMENT HAS BEEN DELIVERED AT DEERFIELD, ILLINOIS, AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, SUBJECT,
HOWEVER, TO THE UNIFORM COMMERCIAL CODE OF ANY APPLICABLE
JURISDICTION.  WHENEVER POSSIBLE, EACH PROVISION OF THIS AGREEMENT
SHALL BE INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER
APPLICABLE LAW, BUT IF ANY PROVISION OF THIS AGREEMENT SHALL BE HELD INVALID,
ILLEGAL OR UNENFORCEABLE UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE
INEFFECTIVE TO THE EXTENT OF SUCH INVALIDITY, ILLEGALITY OR UNENFORCEABILITY,
WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS
OF THIS AGREEMENT.

    

    (h)         THE
DEBTOR IRREVOCABLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION, OR ANY
COURT OF THE STATE OF ILLINOIS LOCATED IN COOK COUNTY, AND WAIVES ANY AND ALL
OBJECTIONS TO JURISDICTION OR VENUE THAT ANY SUCH PARTY MAY HAVE UNDER THE LAWS
OF THE STATE OF ILLINOIS OR OTHERWISE IN THOSE COURTS IN ANY SUCH SUIT, ACTION,
OR PROCEEDING.  FURTHER, TO THE EXTENT PERMITTED BY LAW, SERVICE OF
PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST THE DEBTOR
MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS
ADDRESS FOR NOTICE AS PROVIDED IN THIS AGREEMENT.

    

    (i)          DEBTOR AND SECURED PARTY ACKNOWLEDGE
AND AGREE THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT, ANY OTHER
AGREEMENT RELATED HERETO OR WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY WOULD BE BASED UPON DIFFICULT AND COMPLEX ISSUES, AND THEREFORE, THE
PARTIES AGREE THAT ANY COURT PROCEEDING ARISING OUT OF ANY SUCH CONTROVERSY WILL
BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A
JURY.

    

    (j)          This
Agreement shall be binding upon, and shall inure to the benefit of, the Secured
Party and the Debtor and their respective successors and
assigns.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (k)         At
the option of the Secured Party, this Agreement, or a carbon, photographic or
other reproduction of this Agreement or of any Uniform Commercial Code financing
statement covering the Collateral or any portion thereof, shall be sufficient as
a Uniform Commercial Code financing statement and may be filed as
such.

    

    (l)          This
Agreement is the Security Agreement referred to in the Assignment
Agreement.

    

    (m)        In
the case of any irreconcilable conflict between the provisions of this Agreement
and the Assignment Agreement, the provisions of the Assignment Agreement shall
control.

    

    (n)         If
more than one person or entity is included as a Debtor hereunder, each of
Debtor's obligations, covenants, warranties, and representations hereunder is
joint, several and mutually binding on each such party.

    

    (o)         This
Agreement may be executed in one or more counterparts, each of which taken
together shall constitute one and the same instrument, admissible into
evidence.  Delivery of an executed counterpart of this Agreement by
facsimile shall be equally as effective as delivery of a manually executed
counterpart of this Agreement.  Any party delivering an executed
counterpart of this Agreement by facsimile shall also deliver a manually
executed counterpart of this Agreement, but the failure to deliver a manually
executed counterpart shall not affect the validity, enforceability, and binding
effect of this Agreement.

    

    * * * * *
* * * * *

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, this
Agreement has been duly signed at Deerfield, Illinois on the day and year first
above written.

    

    
      
        	 
      	
                SECURED
      PARTY:

              
	 
      	 
      
	 
      	
                WELLS
      FARGO BANK, NATIONAL ASSOCIATION

              
	 
      	 
      
	 
      	
                By:

              	
                  

              
	 
      	
                Title:

              	
                  

              
	 
      	
                Address: 

              	
                520 Lake Cook Road, Suite
    315

              
	 
      	 
      	
                Deerfield, IL 60015

              
	 
      	 
      	 
      
	 
      	
                DEBTOR:

              
	 
      	 
      
	 
      	
                SOUTHPEAK
      INTERACTIVE, L.L.C.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Reba McDermott

              
	 
      	
                Title:

              	
                Chief Financial Officer

              
	 
      	 
      	 
      
	 
      	
                GONE
      OFF  DEEP, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Reba McDermott

              
	 
      	
                Title:

              	
                Chief Financial Officer

              
	 
      	 
      	 
      
	 
      	
                SOUTHPEAK
      INTERACTIVE CORP.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Reba McDermott

              
	 
      	
                Title:

              	
                Chief Financial Officer

              
	 
      	 
      	 
      
	 
      	
                VID
      SUB, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Reba McDermott

              
	 
      	
                Title:

              	
                Chief Financial Officer

              
	 
      	 
      	 
      
	 
      	
                LOCATIONS:

              
	 
      	 
      	 
      
	 
      	
                2900 Polo Parkway, Midlothian, VA
      23113

              

      

    

    
    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    EXHIBIT
"A"

    

    PRIMARY
COLLATERAL

    

    The
"Collateral" with respect to which Secured Party's first priority security
interest applies shall be (i) all merchandise, inventory and goods and all
additions, substitutions and replacements thereof, wherever located, together
with all goods, supplies, incidentals, packaging materials, labels, materials
and any other items used or usable in manufacturing, processing, packaging or
shipping "Products" pursuant to "Accepted Purchase Orders", as such terms are
defined in a certain Master Purchase Order Purchase Agreement dated September
21, 2010 between Secured Party and Debtor, and all products and proceeds of
whatever sort now or hereafter owned by Debtor and related thereto; (ii) all
accounts receivable, credit card receivables, payment intangibles, contract
rights and other customer obligations for the payment of money arising out of
the Debtor's sale, lease, or license of any tangible or intangible property or
the rendering of services pursuant to "Accepted Purchase Orders" now or
hereafter existing; and (iii) all proceeds and products of the
foregoing.

    

    Debtor's
facility at which the Collateral is located is:

    

    2900 Polo Parkway,
Midlothian, VA 23113

    
      
         

      

      
        "A-1"

        
          

        

      

      
         

      

    

    EXHIBIT
"B"

    

    COMMON
COLLATERAL

    

    The
"Collateral" with respect to which Secured Party's subordinated lien applies
shall be (i) all merchandise, inventory and goods and all additions,
substitutions and replacements thereof, wherever located, together with all
goods, supplies, incidentals, packaging materials, labels, materials and any
other items used or usable in manufacturing, processing, packaging or shipping
same, in all stages of production, and all products and proceeds of whatever
sort, including specifically all "inventory" as such term is defined in the
Code, now or hereafter owned by Debtor; (ii) all machinery and equipment, now or
hereafter owned by Debtor, including, but not limited to, all machinery,
equipment, furnishings, movable trade fixtures and vehicles now or hereafter
owned by Debtor and all additions, substitutions and replacements of any of the
foregoing, wherever located, together with all attachments, components, spare
and replacement parts, related computer software, maintenance and repair
supplies and manuals, instructional manuals, warranties, and equipment and
accessories installed thereon or affixed thereto;  (iii) all accounts
receivable, credit card receivables, payment intangibles, contract rights and
other customer obligations for the payment of money arising out of the Debtor's
sale, lease, or license of any tangible or intangible property or the rendering
of services, now existing or hereafter arising; (iv) all trademarks, copyrights,
patents, contract rights, investment property, rights to payment evidenced by
tangible or electronic chattel paper, instruments, and all general intangible
assets of Debtor now or hereafter existing; and (v) all proceeds and products of
the foregoing, except such assets of the Debtor as are described on
Exhibit "A".

    

    Debtor's
facility at which the Collateral is located is:

    

    2900 Polo Parkway,
Midlothian, VA 23113

    
      
         

      

      
        "B-1"GUARANTY

    

    This
Guaranty (the "Guaranty") is made on the 21st day of September, 2010, among the
persons whose names are set forth at the end of this Guaranty (collectively the
"Guarantors"), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, acting through its Wells Fargo Business
Credit, operating division (the "Contractor"), as follows:

    

    BACKGROUND OF
AGREEMENT:

    

    
      	
              A.

            	
              The
      Contractor and SOUTHPEAK
      INTERACTIVE, L.L.C., a Virginia limited liability company (the
      "Distributor"), have on this day entered into a Master Purchase Order
      Assignment Agreement (the "Assignment Agreement") under the terms of which
      the Distributor will assign customer purchase orders to the Contractor and
      request the Contractor to purchase the required materials to fulfill such
      purchase orders; the Contractor will retain the Distributor to
      manufacture, process and ship ordered goods; and fees will be paid to the
      Contractor and the Distributor for their services
    thereunder.

            

    

    

    
      	
              B.

            	
              Each
      of the Guarantors has a substantial financial stake in the Distributor and
      will substantially benefit from the performance by Contractor of its
      obligations under the Assignment
Agreement.

            

    

    

    
      	
              C.

            	
              The
      execution of this Guaranty is an express condition to the consummation of
      the transactions contemplated by the Assignment Agreement and the
      Contractor is unwilling to enter into or perform in accordance with the
      Assignment Agreement in the absence of the execution of this
      Guaranty.

            

    

    

    THEREFORE,
in consideration of the services to be performed, the payments to be made, and
the obligations to be assumed by the Contractor pursuant to the Assignment
Agreement, and further as an inducement to the Contractor to enter into and
perform in accordance with the Assignment Agreement, the Guarantors hereby agree
as follows:

    

    1.            DEFINITIONS.           In
this Guaranty, the following frequently used terms are defined as set forth in
this ¶1:

    

    (a)          Any
terms used in this Guaranty which are defined in the Assignment Agreement will
have the same meaning herein as is ascribed to such term in the Assignment
Agreement.

    

    (b)          The
"Contract Documents" are, collectively, the Assignment Agreement, the Security
Agreement and Financing Statement between the Contractor and the Distributor
dated this day, the Subordination Agreement between the Contractor, the
Distributor, and the Senior Lender dated this day, and this
Guaranty.

    

    (c)          The
"Obligations" mean all of the obligations of the Distributor and each of the
Guarantors pursuant to the Contract Documents.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (d)          The
term "Guarantors" means all of the undersigned, jointly and severally; and the
term "Guarantor" means each of the undersigned, individually and
collectively.

    

    (e)           A
"Default" means the occurrence of an event of default by the Distributor
pursuant to or in accordance with the provisions of any of the Contract
Documents or the failure of the Guarantors (or any of them) to perform any
covenant or agreement contained in this Guaranty or if any representation or
warranty contained in this Guaranty is found to have been untrue, incomplete or
misleading in any material respect when furnished.

    

    2. 
          GUARANTY.  The Guarantors,
jointly and severally, unconditionally and irrevocably, guaranty to Contractor
the full and prompt payment and performance when due, whether at maturity or
earlier (by reason of acceleration) and at all times thereafter, of all of the
Obligations, and the undersigned further agree to pay all costs and expenses
including, without limitation, all court costs and reasonable attorneys' fees
and expenses paid or incurred by the Contractor in endeavoring to collect all or
any part of the Obligations from, or in prosecuting any action against,
Distributor or any of the Guarantors.  The obligations of the
Guarantors hereunder are secured by that certain Security Agreement and
Financing Statement of even date herewith among the Contractor, Southpeak
Interactive, L.L.C., and the Guarantors.

    

    3.   
        TERMS AND
CONDITIONS.  (a)  Subject
to the provisions of the Contract Documents, Contractor shall have the exclusive
right to determine the application of payments and credits, if any, received by
Contractor from the undersigned, the Distributor, the Senior Lender, and any
Customer. 

    (b)          Contractor
is authorized, without notice or demand, and without affecting the liability of
any of the Guarantors, from time to time to (i) renew, extend, accelerate or
otherwise change the time for payment or performance of, or other terms relating
to, the Obligations or any of them, or otherwise modify, amend or change the
terms of the Contract Documents or any of them, or any other agreement, document
or instrument now or hereafter executed by the Distributor and delivered to
Contractor; (ii) accept partial payments on or performance of the Obligations;
and (iii) settle, release, compromise, collect or otherwise liquidate the
Obligations in any manner, without affecting or impairing the Obligations of the
undersigned.

    

    (c)          At
any time after a Default, Contractor may, at its discretion, upon notice to the
Guarantors and regardless of the acceptance of any security or collateral for
the payment, appropriate and apply toward the payment and satisfaction of the
Obligations (i) any indebtedness due or to become due from Contractor to one or
more of the Guarantors; and (ii) any monies, credits or other property belonging
to one or more of the Guarantors, at any time held by Contractor on deposit or
otherwise.

    

    (d)          Contractor
shall not be required to take any steps to preserve any rights against prior
parties (if any) to or in any of the Obligations.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (e)           The
Guarantors agree that to the extent that the Distributor makes a payment(s) to
Contractor, which payment(s) are subsequently invalidated, declared to be
fraudulent or preferential, set aside and/or required to be repaid to a trustee,
receiver or any other party under any bankruptcy act, state or federal law,
common law or equitable cause, then to the extent of such payment or repayment,
the obligation intended to be satisfied shall be renewed and continued in full
force and effect as if said payment had not been made, and the Guarantors shall,
upon demand by Contractor, immediately satisfy such obligation in full in
accordance with the terms of this Guaranty.  The Guarantors further
agree that any and all claims of the Guarantors against the Distributor or
against its properties, arising by reason of any loan, advance, investment or
other payment by the undersigned to Contractor shall be subordinate and subject
in right of payment to the prior payment, in full, of all sums due pursuant to
the Obligations.

    

    (f)           Each
Guarantor assumes responsibility for keeping himself, herself or itself informed
of the financial condition of the Distributor and of all other circumstances
bearing upon the risk of Default.  Contractor shall have no duty to
advise the Guarantors of information known to Contractor regarding such
condition or circumstances.

    

    (g)          No
delay on the part of Contractor in the exercise of any right or remedy shall
operate as a waiver or constitute a discharge of any of the Guarantors'
obligations under this Guaranty, and no single or partial exercise by Contractor
of any right or remedy shall preclude the further exercise to any extent; nor
shall any modification or waiver of any of the provisions of this Guaranty be
binding upon Contractor except as expressly set forth in a writing duly signed
and delivered by an authorized officer of Contractor.  Contractor's
failure at any time to require strict performance by the Distributor or any
other party of any of the provisions, warranties, terms and conditions contained
in the Contract Documents shall not discharge any of the Guarantors' obligations
under this Guaranty, nor shall it waive, affect or diminish any right of the
Contractor at any time to demand strict performance and such right shall not be
deemed to have been waived by any act or knowledge of Contractor unless such
waiver is contained in an instrument in writing, signed by an officer of
Contractor specifying such waiver.  No waiver by Contractor of any
default shall operate as a waiver of either any other default or the same
default on a future occasion, and no action or inaction by Contractor shall in
any way affect or impair Contractor's rights or the obligations of the
Guarantors under this Guaranty.  The Guarantors agree that their
obligations under this Guaranty will not be discharged except by complete
performance of all of the Obligations.  Any determination by a court
of competent jurisdiction of the sums owing by the Distributor to Contractor
shall be conclusive and binding on the Guarantors irrespective of whether any of
the Guarantors was a party to the suit or action in which such determination was
made.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.          
 WARRANTIES
AND REPRESENTATIONS.  Each of the
Guarantors, jointly and severally, hereby represent and warrant to the
Contractor that:

    

    (a)           The
execution, delivery, and performance by each Guarantor of this Guaranty will not
violate any provision of law, any order of any court or other agency of
government, or any agreement or other instrument to which any of the Guarantors
is a party or by which any of the Guarantors is bound or be in conflict with,
result in a breach of or constitute (with due notice or lapse of time, or both)
a default under any such agreement or other instrument, or result in the
creation or imposition of any lien, charge, or encumbrance of any nature
whatsoever upon any of the property or assets of any Guarantor, except as
contemplated by the provisions of this Guaranty; and

    

    (b)          
This Guaranty constitutes the legal, valid and binding obligation of each of the
Guarantors and is enforceable against each of the Guarantors in accordance with
the terms hereof.

    

    5.           
DEFAULT.  (a)          
Upon and during the continuance of any Default, Contractor may, at its sole
election, proceed directly and at once, without notice, against one or more of
the Guarantors to collect and recover the full amount or any portion of the
Obligations, without first proceeding against the Distributor or any other
Guarantor, or any other party or any other person, firm or
corporation.  All of the above rights and powers may be exercised by
Contractor without liability, except the obligation to account for property
actually received.

    

    (b)           Any
right to set-off exercised by Contractor shall be deemed to have been exercised
immediately on the occurrence of a Default, even though such set-off is made or
entered on the books of Contractor at any subsequent time.

    

    6. 
          INDEMNIFICATION.  The Guarantors
will at all times, now and hereafter, jointly and severally, indemnify and hold
Contractor harmless from and against all loss or damage arising in connection
with this Guaranty and against all claims, liability, demands, actions or suits,
and all liabilities, payments, costs, charges and expenses including, without
limitation, attorneys' fees and costs incurred by Contractor on account of or in
connection with this Guaranty or the transactions or assertions of rights
contemplated or permitted hereunder.

    

    7.   
        MISCELLANEOUS.  (a)  This
Guaranty shall be binding upon the undersigned and upon the heirs, executors,
successors and assigns of the undersigned and shall inure to the benefit of
Contractor's successors and assigns; all references to the Distributor and to
the undersigned shall be deemed to include their respective successors, assigns,
participants, receivers or trustees (as the case may be).

    

    (b)          This
Guaranty embodies the entire understanding of the parties pertaining to the
subject matter hereof, and shall constitute a continuing agreement applicable to
future as well as existing transactions between the Contractor and the
Distributor.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c)          THIS
GUARANTY HAS BEEN DELIVERED AT AND SHALL BE DEEMED TO HAVE BEEN MADE IN
DEERFIELD, ILLINOIS, AND SHALL BE INTERPRETED, AND THE RIGHTS AND LIABILITIES OF
THE PARTIES DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS,
AND AS PART OF THE CONSIDERATION FOR CONTRACTOR'S PERFORMANCE PURSUANT TO THE
CONTRACT DOCUMENTS, THE UNDERSIGNED CONSENT TO THE JURISDICTION OF ANY LOCAL,
STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF ILLINOIS, AND FURTHER CONSENT
THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED OR REGISTERED MAIL
DIRECTED TO THE UNDERSIGNED AT THE ADDRESS STATED HEREIN AND SERVICE SO MADE
SHALL BE DEEMED TO BE COMPLETED TWO (2) DAYS AFTER THE SAME SHALL HAVE BEEN
POSTED.  THE UNDERSIGNED FURTHER CONSENT TO THE GRANTING OF SUCH LEGAL
OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

    

    (d)          The
headings used in this Guaranty are for the convenience of the reader only; such
headings constitute no part whatsoever of the agreement between the
parties.

    

    (e)         
No invalidity, irregularity or unenforceability of the Obligations (or any of
them) hereby secured shall affect, impair or be a defense to any provision
contained in this Guaranty.  If any term, condition or provision of
this Guaranty is determined to be invalid or unenforceable, such determination
shall not affect the validity or enforceability of any other term, condition or
provision of this Guaranty.

    

    (f)          
If this Guaranty shall differ or conflict in terms with any of the Contract
Documents, the agreement which gives Contractor the greater right, as determined
by Contractor, shall prevail.

    

    GUARANTORS:

    

    
      
        
          
            
              
                
                  	 
      	
                          Terry
      Phillips

                        
	 	 
	 
      	
                            

                        
	 
      	
                          Address:

                        	
                            

                        
	 
      	 
      	
                            

                        
	 
      	 
      	
                            

                        
	 
      	 
      	 
      
	 
      	
                          Gone
      Off  Deep, LLC

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	
                            

                        	
                            

                        
	 
      	
                          Name: 

                        	
                            

                        	
                            

                        
	 
      	
                          Address:

                        	
                            

                        
	 
      	 
      	
                            

                        
	 
      	 
      	 
      
	 
      	
                          Southpeak
      Interactive Corp.

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	
                            

                        	 
      
	 
      	
                          Name:

                        	
                            

                        	 
      
	 
      	
                          Address:

                        	
                            

                        
	 
      	 
      	
                              

                        
	 
      	 
      	
                            

                        

                

              

            

          

        

      

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    
      
        	 
      	
                Vid
      Sub, LLC

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                  

              	
                  

              
	 
      	
                Name: 

              	
                  

              	
                  

              
	 
      	
                Address:

              	
                  

              
	 
      	 
      	
                  

              
	 
      	 
      	
                  

              

      

    

     

    
      
         

      

      
        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]