Document:

Exhibit
10.1

 

Note:
April 29, 2020

 

NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. 

 

THIS
NOTE DOES NOT REQUIRE PHYSICAL SURRENDER OF THE NOTE IN THE EVENT OF A PARTIAL REDEMPTION OR CONVERSION. AS A RESULT, FOLLOWING
ANY REDEMPTION OR CONVERSION OF ANY PORTION OF THIS NOTE, THE OUTSTANDING PRINCIPAL SUM REPRESENTED BY THIS NOTE MAY BE LESS THAN
THE PRINCIPAL SUM AND ACCRUED INTEREST SET FORTH BELOW.

 

10%
FIXED CONVERTIBLE PROMISSORY NOTE 

 

OF

 

SIMPLICITY
ESPORTS AND GAMING COMPANY

 

Issuance
Date: April 29, 2020

Principal
Sum: $152,500

 

This
Note is a duly authorized Fixed Convertible
Promissory Note of Simplicity Esports and Gaming Company, a corporation duly organized and existing under the laws of the State
of Delaware (the “Company”), designated as the Company’s
10% Fixed Convertible Promissory Note due October 29, 2020 (“Maturity Date”) in the face amount of $152,500
(the “Note”).

 

For
Value Received, the Company hereby
promises to pay to the order of Harbor Gates Capital, LLC or its registered assigns or successors-in-interest (the “Holder”)
the Principal Sum of $152,500 (the “Principal Sum”) and to pay “guaranteed” interest on the
principal balance hereof at an amount equivalent to 10% of the Principal Sum, to the extent such Principal Sum and
“guaranteed” interest and any other interest, fees, liquidated damages and/or items due to Holder herein have not
been repaid or converted into the Company’s Common Stock (the “Common Stock”), in accordance with
the terms hereof. The sum of $150,000 shall be remitted and delivered to the Company, and $2,500 shall be retained by the
Holder through an original issue discount (the “OID”) for due diligence and legal bills related to this
transaction. The Company covenants that within _______ months  of the Effective Date of the Note, it shall utilize
approximately $150,000 of the proceeds in the manner set forth on Schedule 1, attached hereto (the “Use of
Proceeds”), and shall promptly provide evidence thereof to Holder, in sufficient detail as reasonably requested by
Holder.

 

    	 

    	 

    

 

In
addition to the “guaranteed” interest referenced above, and upon the occurrence of an Event of Default (as defined
in Section 4.00(a)), additional interest will accrue from the date of the Event of Default at the rate equal to the lower of 20%
per annum or the highest rate permitted by law (the “Default Rate”).

 

This
Note will become effective only upon the execution by both parties, including the execution of Exhibits B, C, D, E, Schedule 1
(collectively, the “Exhibits”), and the Irrevocable Transfer Agent Instructions (the “Date of Execution”)
and delivery of the initial payment of consideration by the Holder (the “Effective Date”). The Company acknowledges
and agrees the Exhibits are material provisions of this Note.

 

For
purposes hereof the following terms shall have the meanings ascribed to them below:

 

“Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City of New York
are authorized or required by law or executive order to remain closed.

 

“Fixed
Conversion Price” shall be fixed at a price per share equal to $1.00.

 

“Principal
Amount” shall refer to the sum of (i) the original principal amount of this Note (including the original issue discount,
prorated if the Note has not been funded in full), (ii) all guaranteed and other accrued but unpaid interest hereunder, (iii)
any fees due hereunder, (iv) liquidated damages, and (v) any default payments owing under the Note, in each case previously paid
or added to the Principal Amount.

 

“Principal
Market” shall refer to the primary exchange or trading platform on which the Company’s common stock is traded
or quoted.

 

“Trading
Day” shall mean a day on which there is trading or quoting for any security on the Principal Market.

 

“Underlying
Shares” means the shares of Common Stock into which the Note is convertible (including interest, fees, liquidated
damages and/or principal payments in common stock as set forth herein) in accordance with the terms hereof.

 

The
following terms and conditions shall apply to this Note:

 

Section
1.00 Repayment.

 

(a)
The Company may pay this Note, in whole or in part, in cash or in other good funds, according to the following schedule:

 

	Days
    Since Effective Date	 	Payment
    Amount
	Under
    30	 	115%
    of Principal Amount so paid
	31-60	 	120%
    of Principal Amount so paid
	61-90	 	125%
    of Principal Amount so paid
	91-180	 	135%
    of Principal Amount so paid

 

    	 

    	 

    

 

(b)
135% of the remaining unpaid and unconverted Principal Amount, plus all accrued and unpaid interest shall be due and payable on
the Maturity Date. Whenever any amount expressed to be due by the terms of this Note is due on any day that is not a Business
Day, the same shall instead be due on the next succeeding day that is a Business Day. Other than the payment due on the Maturity
Date, the Company shall provide the Holder with two weeks’ prior written notice of the Company’s determination to
pay any or all of its obligations hereunder. During such two-week period, the Holder may exercise any or all of its conversion
rights hereunder. In the event that the Holder does not exercise its conversion rights in respect of any or all of such noticed,
prospective payment, the Company shall tender the full amount set forth in such notice (less any amount in respect of which the
Holder has exercised its conversion rights) to the Holder within 2 Business Days following the Holder’s exercise (or notification
to the Company of non-exercise) of the Holder’s conversion rights in respect of the amount set forth in such notice.

 

Section
2.00 Origination Shares

 

(a)
Origination Shares. Upon the Effective Date of this Note, and as an investment incentive, the Company agrees it shall issue
to Holder shares of its Common Stock, which shall be issued in two tranches according to the following schedule:

 

(i)
10,000 shares of Common Stock shall be issued and delivered to the Holder within 3 Trading Days of the Effective Date (the “Initial
Origination Shares”); and

 

(ii)
In the event the average of the 3 volume weighted average prices for the Company’s Common Stock, as quoted on the Principal
Market, (the average of such lowest volume weighted prices being herein referred to as, the “True-up Price”)
during the 3 consecutive Trading Days immediately preceding the date which is the 180th day following the Effective
Date (the “True-up Pricing Period”) is less than $1.00 per share, then the Holder shall be entitled, and the
Company shall issue to the Holder, additional shares of the Company’s Common Stock (the “True-up Shares”,
and, together with the Initial Origination Shares, the “Origination Shares”) equal to the quotient obtained
by dividing [(B-A)*(X)] by (A):

 

(A)
= the True Up Price

 

(B)
= $1.00

 

(X)
= the Initial Origination Shares (10,000)

 

The
True-up Shares shall be issued and delivered to the Holder within 5 days following the end of the True-up Pricing Period.

 

The
Company agrees the Origination Shares are a material obligation of the Note and that the Origination Shares are deemed fully earned
as of the Effective Date of the Note.

 

    	 

    	 

    

 

Section
3.00 Conversion.

 

(a)
Conversion Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have
the right, at the Holder’s sole option, at any time and from time to time to convert in whole or in part the outstanding
and unpaid Principal Amount under this Note into shares of Common Stock at the Conversion Price (defined below), but not to exceed
the Restricted Ownership Percentage, as defined in Section 3.00(f). The date of any conversion notice (“Conversion Notice”)
hereunder shall be referred to herein as the “Conversion Date”.

 

(b)
Stock Certificates or DWAC. The Company will deliver to the Holder, or Holder’s authorized designee, no later than
2 Trading Days after the Conversion Date, a certificate or certificates (which certificate(s) shall be free of restrictive legends
and trading restrictions if the shares of Common Stock underlying the portion of the Note being converted are eligible under a
resale exemption pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) of the Securities Act of 1933, as amended) representing
the number of shares of Common Stock being acquired upon the conversion of this Note. In lieu of delivering physical certificates
representing the shares of Common Stock issuable upon conversion of this Note, provided the Company’s transfer agent is
participating in Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer (“FAST”)
program, the Company shall instead use commercially reasonable efforts to cause its transfer agent to electronically transmit
such shares issuable upon conversion to the Holder (or its designee), by crediting the account of the Holder’s (or such
designee’s) broker with DTC through its Deposits and Withdrawal at Custodian (“DWAC”) program (provided
that the same time periods herein as for stock certificates shall apply).

 

(c)
Charges and Expenses. Issuance of Common Stock to Holder, or any of its assignees, upon the conversion of this Note shall
be made without charge to the Holder for any issuance fee, transfer tax, legal opinion and related charges, postage/mailing charge
or any other expense with respect to the issuance of such Common Stock. Company shall pay all transfer agent fees incurred from
the issuance of the Common Stock to Holder, as well as any and all other fees and charges required by the transfer agent as a
condition to effectuate such issuance. Any such fees or charges, as noted in this Section that are paid by the Holder (whether
from the Company’s delays, outright refusal to pay, or otherwise), will be automatically added to the Principal Sum of the
Note and tack back to the Effective Date for purposes of Rule 144.

 

(d)
Delivery Timeline. If the Company fails to deliver to the Holder such certificate or certificates (or shares through the
DWAC program) pursuant to this Section (free of any restrictions on transfer or legends, if eligible) prior to 3 Trading Days
after the Conversion Date, the Company shall pay to the Holder as liquidated damages an amount equal to $2,000 per day, until
such certificate or certificates are delivered. The Company acknowledges that it would be extremely difficult or impracticable
to determine the Holder’s actual damages and costs resulting from a failure to deliver the Common Stock and the inclusion
herein of any such additional amounts are the agreed upon liquidated damages representing a reasonable estimate of those damages
and costs. Such liquidated damages will be automatically added to the Principal Sum of the Note and tack back to the Effective
Date for purposes of Rule 144.

 

(e)
Reservation of Underlying Securities. The Company covenants that it will at all times reserve and keep available for Holder,
out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note, free from preemptive
rights or any other actual contingent purchase rights of persons other than the Holder, three times the number of shares
of Common Stock as shall be issuable (taking into account the adjustments under this Section 3.00, but without regard to any ownership
limitations contained herein) upon the conversion of this Note (consisting of the Principal Amount), under the formula in Section
4.00(c) below, to Common Stock (the “Required Reserve”). The Company covenants that all shares of Common Stock
that shall be issuable will, upon issue, be duly authorized, validly issued, fully-paid, non-assessable and freely-tradable (if
eligible). If the amount of shares on reserve in Holder’s name at the Company’s transfer agent for this Note shall
drop below the Required Reserve, the Company will, within 2 Trading Days of notification from Holder, instruct the transfer agent
to increase the number of shares so that the Required Reserve is met. In the event that the Company does not instruct the transfer
agent to increase the number of shares so that the Required Reserve is met, the Holder will be allowed, if applicable, to provide
this instruction as per the terms of the Irrevocable Transfer Agent Instructions attached to this Note. The Company agrees that
the maintenance of the Required Reserve is a material term of this Note and any breach of this Section 3.00(e) will result in
a default of the Note.

 

    	 

    	 

    

 

(f)
Conversion Limitation. The Holder will not submit a conversion to the Company that would result in the Holder beneficially
owning more than 9.99% of the then total outstanding shares of the Company (“Restricted Ownership Percentage”).

 

(g)
Conversion Delays. If the Company fails to deliver shares in accordance with the timeframe stated in Section 3.00(c), the
Holder, at any time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion
attributable to the unsold shares. The rescinded conversion amount will be returned to the Principal Sum with the rescinded conversion
shares returned to the Company, under the expectation that any returned conversion amounts will tack back to the Effective Date.

 

(h)
Shorting and Hedging. Holder may not engage in any “shorting” or “hedging” transaction(s) in the
Common Stock of the Company prior to conversion.

 

(i)
Conversion Right Unconditional. If the Holder shall provide a Conversion Notice as provided herein, the Company’s
obligations to deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment,
or alleged breach by the Holder of any obligation to the Company.

 

Section
4.00 Defaults and Remedies.

 

(a)
Events of Default. An “Event of Default” is: (i) a default in payment of any amount due hereunder; (ii)
a default in the timely issuance of underlying shares upon and in accordance with terms of Section 3.00, which default continues
for 2 Trading Days after the Company has failed to issue shares or deliver stock certificates within the 3rd Trading Day following
the Conversion Date; (iii) if the Company does not issue the press release or file the Current Report on Form 8-K, in each case
in accordance with the provisions and the deadlines referenced Section 6.00(i); (iv) failure by the Company for 5 days after notice
has been received by the Company to comply with any material provision of this Note; (iv) any representation or warranty of the
Company in this Note that is found to have been incorrect in any material respect when made, including, without limitation, the
Exhibits; (vi) failure of the Company to remain compliant with DTC, thus incurring a “chilled” status with DTC; (vii)
any default of any mortgage, indenture or instrument which may be issued, or by which there may be secured or evidenced any indebtedness,
for money borrowed by the Company or for money borrowed the repayment of which is guaranteed by the Company, whether such indebtedness
or guarantee now exists or shall be created hereafter; (viii) if the Company is subject to any Bankruptcy Event; (ix) any failure
of the Company to satisfy its “filing” obligations under Securities Exchange Act of 1934, as amended (the “1934
Act”) and the rules and guidelines issued by OTC Markets News Service, OTCMarkets.com and their affiliates; (x) failure
of the Company to remain in good standing under the laws of its state of domicile; (xi) any failure of the Company to provide
the Holder with information related to its corporate structure including, but not limited to, the number of authorized and outstanding
shares, public float, etc. within 3 Trading Days of request by Holder; (xii) failure by the Company to maintain the Required Reserve
in accordance with the terms of Section 3.00(f); (xiii) failure of Company’s Common Stock to maintain a closing bid price
in its Principal Market for more than 3 consecutive Trading Days; (xiv) any delisting from a Principal Market for any reason;
(xv) failure by Company to pay any of its transfer agent fees in excess of $2,000 or to maintain a transfer agent of record; (xvi)
failure by Company to notify Holder of a change in transfer agent within 3 Trading Days of such change; (xvii) any trading suspension
imposed by the United States Securities and Exchange Commission (the “SEC”) under Sections 12(j) or 12(k) of
the 1934 Act; (xviii) failure by the Company to meet all requirements necessary to satisfy the availability of Rule 144 to the
Holder or its assigns, including but not limited to the timely fulfillment of its filing requirements as a fully-reporting issuer
registered with the SEC, requirements for XBRL filings, and requirements for disclosure of financial statements on its website;
or (xix) failure of the Company to abide by the Use of Proceeds or failure of the Company to inform the Holder of a change in
the Use of Proceeds.

 

    	 

    	 

    

 

(b)
Remedies. If an Event of Default occurs, the outstanding Principal Amount of this Note owing in respect thereof through
the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the “Mandatory
Default Amount”. The Mandatory Default Amount means 35% of the outstanding Principal Amount of this Note will be automatically
added to the Principal Sum of the Note and tack back to the Effective Date for purposes of Rule 144. Commencing 5 days after the
occurrence of any Event of Default that results in the eventual acceleration of this Note, this Note shall accrue additional interest,
in addition to the Note’s “guaranteed” interest, at a rate equal to the lesser of 20% per annum or the maximum
rate permitted under applicable law. In connection with such acceleration described herein, the Holder need not provide, and the
Issuer hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a holder of the note until such time, if any, as the Holder receives full payment pursuant
to this Section 4.00(b). No such rescission or annulment shall affect any subsequent event of default or impair any right consequent
thereon. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure
to timely deliver certificates representing shares of Common Stock upon conversion of the Note as required pursuant to the terms
hereof.

 

(c)
Variable Conversion Price. If the Note is not retired on or before the Maturity Date, then at any time and from time to
time after the Maturity Date, and subject to the terms hereof and restrictions and limitations contained herein, the Holder shall
have the right, at the Holder’s sole option, to convert in whole or in part the outstanding and unpaid Principal Amount
under this Note into shares of Common Stock at the Variable Conversion Price. The “Variable Conversion Price”
(together with the Fixed Conversion Price, the “Conversion Price”) shall be equal to the lower of: (a)
the Fixed Conversion Price or (b) 70% of the lowest volume weighted average price of the Company’s Common Stock during the
15 consecutive Trading Days prior to the date on which Holder elects to convert all or part of the Note. For the purpose of calculating
the Variable Conversion Price only, any time after 4:00 pm Eastern Time (the closing time of the Principal Market) shall be considered
to be the beginning of the next Business Day. If the Company is placed on “chilled” status with the DTC, the discount
shall be increased by 5%, i.e., from 30% to 35%, until such chill is remedied. If the Company is not DWAC eligible
through their transfer agent and DTC’s FAST system, the discount will be increased by 5%, i.e., from 30% to
35%. In the case of both, the discount shall be a cumulative increase of 10%, i.e., from 30% to 40%.

 

    	 

    	 

    

 

Section
5.00 Representations and Warranties of Holder.

 

Holder
hereby represents and warrants to the Company that:

 

(a)
Holder is an “accredited investor,” as such term is defined in Regulation D of the Securities Act of 1933, as amended
(the “1933 Act”), and will acquire this Note and the Underlying Shares (collectively, the “Securities”)
for its own account and not with a view to a sale or distribution thereof as that term is used in Section 2(a)(11) of the 1933
Act, in a manner which would require registration under the 1933 Act or any state securities laws. Holder has such knowledge and
experience in financial and business matters that such Holder is capable of evaluating the merits and risks of the Securities.
Holder can bear the economic risk of the Securities, has knowledge and experience in financial business matters and is capable
of bearing and managing the risk of investment in the Securities. Holder recognizes that the Securities have not been registered
under the 1933 Act, nor under the securities laws of any state and, therefore, cannot be resold unless the resale of the Securities
is registered under the 1933 Act or unless an exemption from registration is available. Holder has carefully considered and has,
to the extent Holder believes such discussion necessary, discussed with its professional, legal, tax and financial advisors, the
suitability of an investment in the Securities for its particular tax and financial situation and its advisers, if such advisors
were deemed necessary, and has determined that the Securities are a suitable investment for it. Holder has not been offered the
Securities by any form of general solicitation or advertising, including, but not limited to, advertisements, articles, notices
or other communications published in any newspaper, magazine, or other similar media or television or radio broadcast or any seminar
or meeting where, to Holders’ knowledge, those individuals that have attended have been invited by any such or similar means
of general solicitation or advertising. Holder has had an opportunity to ask questions of and receive satisfactory answers from
the Company, or any person or persons acting on behalf of the Company, concerning the terms and conditions of the Securities and
the Company, and all such questions have been answered to the full satisfaction of Holder. The Company has not supplied Holder
any information regarding the Securities or an investment in the Securities other than as contained in this Agreement, and Holder
is relying on its own investigation and evaluation of the Company and the Securities and not on any other information.

 

(b)
The Holder is a limited liability company duly organized, validly existing and in good standing under the laws of the state of
its incorporation and has all requisite corporate power and authority to carry on its business as now conducted. The Holder is
duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have
a material adverse effect on its business or properties.

 

(c)
All limited liability company action has been taken on the part of the Holder, its officers, directors, managers and members necessary
for the authorization, execution and delivery of this Note. The Holder has taken all limited liability company action required
to make all of the obligations of the Holder reflected in the provisions of this Note, valid and enforceable obligations.

 

    	 

    	 

    

 

(d)
Each certificate or instrument representing Securities will be endorsed with the following legend (or a substantially similar
legend), unless or until registered under the 1933 Act or exempt from registration:

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES,
THE TRANSFER IS MADE IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THESE SECURITIES WHICH IS REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

Section
6.00 General.

 

(a)
Payment of Expenses. The Company agrees to pay all reasonable charges and expenses, including attorneys’ fees and
expenses, which may be incurred by the Holder in successfully enforcing this Note and/or collecting any amount due under this
Note.

 

(b)
Assignment, Etc. The Holder may assign or transfer this Note to any transferee at its sole discretion. This Note shall
be binding upon the Company and its successors and shall inure to the benefit of the Holder and its successors and permitted assigns.

 

(c)
Amendments. This Note may not be modified or amended, or any of the provisions of this Note waived, except by written agreement
of the Company and the Holder.

 

(d)
Funding Window. The Company agrees that it will not enter into a convertible debt financing transaction, including 3(a)(9)
and 3(a)(10) transactions, with any party other than the Holder for a period of 30 Trading Days following the Effective Date.
The Company agrees that this is a material term of this Note and any breach of this will result in a default of the Note.

 

(e)
Terms of Future Financings. After the Effective Date of this Note, and so long as this Note is outstanding, upon any issuance
by the Company or any of its subsidiaries of any new debt security which is convertible into the Common Stock of the Company (whether
such debt begins with a convertible feature or such feature is added at a later date) with any term more favorable to the holder
of such security or with a term in favor of the holder of such security that was not similarly provided to the Holder in this
Note, then the Company shall notify the Holder of such additional or more favorable term and such term, at the Holder’s
option, shall become a part of this Note and its supporting documentation. The types of terms contained in the other security
that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts,
terms addressing maturity, conversion look back periods, interest rates, original issue discount percentages and warrant coverage.

 

    	 

    	 

    

 

(f)
Governing Law; Jurisdiction.

 

(i)
Governing Law. This Note will be governed by, and construed and interpreted in accordance with, the laws of the state of Delaware
without regard to any conflicts of laws or provisions thereof that would otherwise require the application of the law of any other
jurisdiction.

 

(ii)
Jurisdiction and Venue. Any dispute, claim, suit, action or other legal proceeding arising out of or relating to this Note
or the rights and obligations of each of the parties shall be brought only in the state courts of New York, or in the federal
courts of the United States of America located in New York City, New York.

 

(iii)
No Jury Trial. The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with
respect to any litigation based on, or arising out of, under, or in connection with, this Note.

 

(iv)
Delivery of Process by the Holder to the Company. In the event of an action or proceeding by the Holder against the Company,
and only by the Holder against the Company, service of copies of summons and/or complaint and/or any other process that may be
served in any such action or proceeding may be made by the Holder via U.S. Mail, overnight delivery service such as FedEx or UPS,
email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Company at its last known attorney
as set forth in its most recent SEC filing.

 

(v)
Notices. Any notice required or permitted hereunder (including Conversion Notices) must be in writing and either personally
served, sent by facsimile or email transmission, or sent by overnight courier. Notices will be deemed effectively delivered at
the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited
with the courier service for delivery.

 

(g)
No Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act of 1933,
as amended, on the basis of being a “bad actor” as that term is established in the September 13, 2013 Small Entity
Compliance Guide published by the SEC.

 

(h)
Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates any applicable law
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim
or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal, fees, liquidated
damages or interest on this Note.

 

    	 

    	 

    

 

(i)
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:30 a.m. Eastern Time on the Trading Day immediately following
the Date of Execution, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file
a Current Report on Form 8-K with the SEC within the time required by the 1934 Act. From and after the filing of such press release,
the Company represents to the Holder that it shall have publicly disclosed all material, non-public information delivered to the
Holder by the Company, or any of its officers, directors, employees, or agents in connection with the transactions contemplated
by this Note. The Company and the Holder shall consult with each other in issuing any other press releases with respect to the
transactions contemplated hereby, and neither the Company nor the Holder shall issue any such press release nor otherwise make
any such public statement without the prior consent of the Company, with respect to any press release of the Holder, or without
the prior consent of the Holder, with respect to any press release of the Company, none of which consents shall be unreasonably
withheld, delayed, denied, or conditioned except if such disclosure is required by law, in which case the disclosing party shall
promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the
Company shall not publicly disclose the name of the Holder, or include the name of the Holder in any filing with the SEC or any
regulatory agency or Principal Market, without the prior written consent of the Holder, except to the extent such disclosure is
required by law or Principal Market regulations, in which case the Company shall provide the Holder with prior notice of such
disclosure permitted hereunder.

 

The
Company agrees that this is a material term of this Note and any breach of this Section 6.00(i) will result in a default of the
Note.

 

(j)
Attempted Below-par Issuance. In the event that the Holder delivers a Conversion Notice to the Company and, if as of such
date, (i) the Conversion Price would be less than par value of the Company’s Common Stock and (ii) within three business
days of the delivery of the Conversion Notice, the Company shall not have reduced its par value such that all of the requested
conversion transaction may then be accomplished, then the Company and the Holder shall utilize the following conversion protocol
for Par Value Adjustment. The Holder shall transmit to the Company: (X) a “preliminary” Conversion Notice for the
full number of shares of Common Stock that would be issued at the Conversion Price without regard to any below-par value conversion
issues; followed by (Y) a “par value” Conversion Notice for the number of shares of Common Stock with the Conversion
Price increased from the “preliminary” Conversion Price to a Conversion Price at par value; and, finally, (Z) a “liquidated
damages” Conversion Notice for that number of shares of Common Stock that represents the difference between the “preliminary”
Conversion Notice full number of shares and the “par value” Conversion Notice limited number of shares. The Conversion
Price of such “liquidated damages Common Shares” would be the par value of the Common Stock. Accordingly, through
this protocol, the Company would issue, in two transactions, an amount of shares of its Common Stock equivalent to the full number
of shares of Common Stock that would have been issued in accordance with the “preliminary” Conversion Notice without
regard to any below-par value conversion issues. In the event that the Holder is precluded from exercising any or all of its conversion
rights hereunder as a result of a proposed “below par” conversion, the Company agrees that, in lieu of actual damages
for such failure, liquidated damages may be assessed and recovered by the Holder without being required to present any evidence
of the amount or character of actual damages sustained by reason thereof. The amount of such liquidated damages shall be an amount
equivalent to the trading price utilized in the “preliminary” Conversion Notice multiplied by the number of shares
calculated on the “liquidated damages” Conversion Notice. Such amount shall be assessed and become immediately due
and payable to the Holder (at its election) in the form of a (i) cash payment, (ii) an addition to the Principal Sum of this Note,
or (iii) the immediate issuance of that number of shares of Common Stock as calculated on the “liquidated damages”
Conversion Notice. Such liquidated damages are intended to represent estimated actual damages and are not intended to be a penalty,
but, by virtue of their genesis and subject to the election of the Holder (as set forth in the immediately preceding sentence),
will be automatically added to the Principal Sum of the Note and tack back to the Effective Date for purposes of Rule 144, as
the Company’s failure to maintain the par value of its Common Stock at an amount that would not result in a “below
par” conversion failure is equivalent to a default as of the Issuance Date of the Note.

 

[Signature
Page to Follow.]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Fixed Convertible Promissory Note to be duly executed on the day and in the year
first above written.

 

	 	SIMPLICITY
    ESPORTS AND GAMING COMPANY 
	 	 	 
	 	By:	/s/
                                         Roman Franklin

	 	Name:
    	Roman
    Franklin
	 	Title:
    	President
	 	Email:	 
	 	Address:	7000
    W Palmetto Park Rd, Suite 505 Boca Raton, FL 33433

 

This
Fixed Convertible Promissory Note of April 29, 2020 is accepted this 30 day of April   , 2020 by

 

	HARBOR
    GATES CAPITAL, LLC	 
	 	 	 
	By:
    	/s/
    Michael Sobeck	 
	Name:
    	Michael
    Sobeck	 
	Title:
    	Manager	 

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF CONVERSION NOTICE

 

(To
be executed by the Holder in order to convert all or part of that certain $152,500 Fixed Convertible Promissory Note identified
as the Note)

 

	DATE:	____________________________
	 	 
	FROM:	Harbor
    Gates Capital, LLC 

 

	Re:	$152,500 Fixed Convertible Promissory Note (this
“Note”) originally issued by Simplicity Esports and Gaming Company, a Delaware corporation, to Harbor Gates Capital,
LLC on April 29, 2020.

 

The
undersigned, on behalf of Harbor Gates Capital, LLC, hereby elects to convert $_______________________ of the aggregate
outstanding Principal Amount (as defined in the Note) indicated below of this Note into shares of Common Stock, $0.0001 par value
per share, of Simplicity Esports and Gaming Company (the “Company”), according to the conditions hereof, as
of the date written below. If shares are to be issued in the name of a person other than undersigned, the undersigned will pay
all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes,
if any. The undersigned represents as of the date hereof that, after giving effect to the conversion of this Note pursuant to
this Conversion Notice, the undersigned will not exceed the “Restricted Ownership Percentage” contained in this Note.

 

	Conversion
    information:	 
	 	Date
    to Effect Conversion
	 	 
	 	 
	 	Aggregate
    Principal Sum of Note Being Converted
	 	 
	 	 
	 	Aggregate
    Interest/Fees of Principal Amount Being Converted
	 	 
	 	 
	 	Remaining
    Principal Balance
	 	 
	 	 
	 	Number
    of Shares of Common Stock to be Issued
	 	 
	 	 
	 	Applicable
    Conversion Price
	 	 
	 	 
	 	Signature
    
	 	 
	 	 
	 	Name
	 	 
	 	 
	 	Address

 

    	 

    	 

    

 

EXHIBIT
B

 

WRITTEN
CONSENT OF THE BOARD OF DIRECTORS OF

 

SIMPLICITY
ESPORTS AND GAMING COMPANY

 

The
undersigned, being directors of Simplicity Esports and Gaming Company, a Delaware corporation (the “Company”),
acting pursuant to the Bylaws of the Corporation, do hereby consent to, approve and adopt the following preamble and resolutions:

 

Convertible
Note with Harbor Gates Capital, LLC

 

The
board of directors of the Company has reviewed and authorized the following documents relating to the issuance of a Fixed Convertible
Promissory Note in the amount of $152,500 with Harbor Gates Capital, LLC.

 

The
documents agreed to and dated April 29, 2020 are as follows:

 

10%
Fixed Convertible Promissory Note of Simplicity Esports and Gaming Company

Irrevocable
Transfer Agent Instructions

Certificate
of Corporate Secretary

Disbursement
Instructions

Schedule
1 – Use of Proceeds

 

The
board of directors further agree to authorize and approve the issuance of shares to the Holder at Conversion prices that are below
the Company’s then current par value.

 

IN
WITNESS WHEREOF, the undersign member(s) of the board of the Company executed this unanimous written consent as of April 29, 2020.

 

	 /s/
    Roman Franklin	 
	By:
    Roman Franklin	 
	Its:
    Director 	 

 

    	 

    	 

    

 

EXHIBIT
C

 

NOTARIZED
CERTIFICATE OF CORPORATE SECRETARY OF

 

SIMPLICITY
ESPORTS AND GAMING COMPANY

 

(Two
Pages)

 

The
undersigned, _______________________ is the duly elected Corporate Secretary of Simplicity Esports and Gaming Company,
a Delaware corporation (the “Company”).

 

I
hereby warrant and represent that I have undertaken a complete and thorough review of the Company’s corporate and financial
books and records, including, but not limited to, the Company’s records relating to the following:

 

		(A)	The
                                         issuance of that certain convertible promissory note dated April 29, 2020 (the “Note
                                         Issuance Date”) issued to Harbor Gates Capital, LLC (the “Holder”)
                                         in the stated original principal amount of $152,500 (the “Note”);
	 	 	 
		(B)	The
                                         Company’s Board of Directors duly approved the issuance of the Note to the Holder;
	 	 	 
		(C)	The
                                         Company has not received and does not contemplate receiving any new consideration from
                                         any persons in connection with any later conversion of the Note and the issuance of the
                                         Company’s Common Stock upon any said conversion;
	 	 	 
		(D)	To
                                         my best knowledge and after completing the aforementioned review of the Company’s
                                         stockholder and corporate records, I am able to certify that the Holder (and the persons
                                         affiliated with the Holder) are not officers, directors, or directly or indirectly, ten
                                         percent (10.00%) or more stockholders of the Company and none of said persons has had
                                         any such status in the one hundred (100) days immediately preceding the date of this
                                         Certificate;
	 	 	 
		(E)	The
                                         Company’s Board of Directors have approved duly adopted resolutions approving the
                                         Irrevocable Instructions to the Company’s Stock Transfer Agent dated April 29,
                                         2020;
	 	 	 
		(F)	Mark
                                         the appropriate selection:

 

___
The Company represents that it is not a “shell company,” as that term is defined in Section 12b-2 of the Securities
Exchange Act of 1934, as amended, and has never been a shell company, as so defined; or

 

    	 

    	 

    

 

___
The Company represents that (i) it was a “shell company,” as that term is defined in Section 12b-2 of the Securities
Exchange Act of 1934, as amended, (ii) since ______, 201__, it has no longer been a shell company, as so defined, and (iii) on
_______, 201__, it provided Form 10-type information in a filing with the United States Securities and Exchange Commission.

 

		(G)	I
                                         understand the constraints imposed under Rule 144 on those persons who are or may be
                                         deemed to be “affiliates,” as that term is defined in Rule 144(a)(1) of the
                                         Securities Act of 1933, as amended.
	 	 	 
		(H)	I
                                         understand that all of the representations set forth in this Certificate will be relied
                                         upon by counsel to Harbor Gates Capital, LLC in connection with the preparation of a
                                         legal opinion.

 

I
hereby affix my signature to this Notarized Certificate and hereby confirm the accuracy of the statements made herein.

 

	Signed:
    	 	 	Date:
    	 
	 	 	 	 	 
	Name:
    	 	 	Title:
    	 

 

SUBSCRIBED
AND SWORN TO BEFORE ME ON THIS ________ DAY OF ____________________ 2020.

 

	 	Commission
    Expires:	

 

	 	 
	Notary
    Public	 

 

    	 

    	 

    

 

EXHIBIT
D

 

	TO:
    	Harbor
    Gates Capital, LLC
	FROM:
    	Simplicity
    Esports and Gaming Company
	DATE:
    	April
    29, 2020
	RE:
    	Disbursement
    of Funds

 

Pursuant
to that certain Fixed Convertible Promissory Note between the parties listed above and dated April 29, 2020, a disbursement of
funds will take place in the amount and manner described below:

 

	Please
    disburse to:	 
	Amount
    to disburse:	$150,000
	Form
    of distribution	Wire
	Name	Simplicity
    Esports and Gaming Company
	Company
    Address	7000
                                         W Palmetto Park Rd, Suite 505

        Boca
        Raton, FL 33433

	Wire
    Instructions: SEE ATTACHED	Bank:
                                         US Bank

        ABA
        Routing Number:

        Account
        Number:

        SWIFT
        Code:

        Account
        Name: RBC Capital Markets Further Credit the Account of Simplicity Esports and Gaming Company

        Phone:
        888-799-4737

	 	 
	 	                     TOTAL:
    $150,000

 

	For:
    	Simplicity
    Esports and Gaming Company	 	 	 
	 	 	 	 	 
	By:
    	/s/
    Roman Franklin 	 	Dated:
    	April
    29, 2020
	Name:
    	Roman Franklin	 	 	 
	Its:	 	 	 	 

 

    	 

    	 

    

 

EXHIBIT
E

 

COMPANY
CAPITALIZATION TABLE AS OF APRIL 29, 2020

 

COMMON
STOCK AND COMMON STOCK EQUIVALENTS

 

ISSUED,
OUTSTANDING AND RESERVED

 

	DESCRIPTION	 	AMOUNT	 
	Authorized
    Common Stock	 	 	20,000,000	 
	Authorized
    Capital Stock	 	 	21,000,000	 
	Authorized
    Common Stock	 	 	20,000,000	 
	Issued
    Common Stock	 	 	8,537,195	 
	Outstanding
    Common Stock	 	 	8,537,195	 
	Treasury
    Stock	 	 	n/a
                                         	 
	*Authorized,
    but unissued	 	 	11,462,805	 
	 	 	 	 	 
	Authorized
    Preferred Stock	 	 	1,000,000	 
	Issued
    Preferred Stock	 	 	n/a	 
	 	 	 	 	 
	Reserved
    for Equity Incentive Plans	 	 	45,000	 
	Reserved
    for Convertible Debt	 	 	1,000,000	 
	Reserved
    for Options and Warrants $11.50 strike price warrants	 	 	5,200,000	 
	Reserved
    for Other Purposes	 	 	n/a	 
	 	 	 	 	 
	TOTAL
    COMMON STOCK AND COMMON STOCK EQUIVALENTS OUTSTANDING	 	 	17,707,805	 

 

*
This number includes all shares reserved for Convertible Debt

 

Note:
If not applicable, enter “n/a” or “zero” in Column 2.

 

    	 

    	 

    

 

CURRENT
DEBT AND LIABILITIES TABLE

 

CONVERTIBLE
PROMISSORY NOTE BALANCES AND PROMISSORY NOTE BALANCES

 

	DESCRIPTION	 	ISSUANCE
    DATE	 	AMOUNT	 
	Convertible
    Promissory Note	 	12/20/2018	 	1,000,000	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Promissory
    Note	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Other
    Debt and Liabilities	 	 	 	 	 
	Trade
    Accounts Payable	 	Various	 	69,048	 
	Accrued
    Expenses	 	Various	 	598,307	 
	Operating
    Lease Obligation Current and Long Term	 	Various	 	210,601	 
	Deferred
    Revenus	 	Various	 	371,711	 

 

Note:
If not applicable, enter “n/a” or “zero” in Column 2.

 

To
my best knowledge and after completing the aforementioned review of the Company’s stockholder and corporate records, I am
able to certify the accuracy of the statements made herein.

 

	SIMPLICITY
    ESPORTS AND GAMING COMPANY	 	 	 
	 	 	 	 	 
	By:	/s/
    Roman Franklin 	 	Dated:
    	April
    29, 2020 
	Name:
    	Roman
    Franklin	 	 	 
	Title:
    	President	 	 	 

 

    	 

    	 

    

 

SCHEDULE
1

 

USE
OF PROCEEDS

 

Pursuant
to that certain Fixed Convertible Promissory Note between the parties listed above and dated April 29, 2020, the Company
covenants that it will within, 6 month(s) of the Effective Date of the Note, it shall use approximately $150,000 of
the proceeds in the manner set forth below (the “Use of Proceeds”):

 

General
corporate purposes, including payments of expenses of agents and counsel to the Company

 

_______________________________________________________________________________________________

 

_______________________________________________________________________________________________ 

 

_______________________________________________________________________________________________

 

	SIMPLICITY
    ESPORTS AND GAMING COMPANY	 	 	 
	 	 	 	 	 
	By:	/s/
    Roman Franklin 	 	Dated:
    	April
    29, 2020 
	Name:
    	Roman
    Franklin	 	 	 
	Title:
    	PresidentThird_Amendment_to_3rd_AR_Loan_and_Security_Agreement-Final

THIRD AMENDMENT
TO 
THIRD AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT
This Third Amendment to Third Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into this  4th day of May, 2020, by and among (a) Silicon Valley Bank (“Bank”) and (b) (i) AVIAT NETWORKS, INC., a Delaware corporation (“Parent”), (ii) AVIAT U.S., INC., a Delaware corporation (“Opco”, together with Parent, the “US Borrowers” and each a “Borrower”), and (iii) AVIAT NETWORKS (S) PTE. LTD., a private company limited by shares formed under the laws of the Republic of Singapore (“Aviat Singapore” or “Singapore Borrower”, and together with the US Borrowers, individually and collectively, jointly and severally, “Borrower”).
RECITALS
A.    Borrowers and Bank have entered into that certain Third Amended and Restated Loan and Security Agreement dated as of June 29, 2018, as amended by that certain Amendment No. 1 to Third Amended and Restated Loan and Security Agreement dated as of September 28, 2018 by and among Borrowers and Bank, and as further amended by that certain Amendment No. 2 to Third Amended and Restated Loan and Security Agreement, dated as of June 10, 2019 by and among Borrower and Bank (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank amend the Loan Agreement to (i) extend the Revolving Line Maturity Date, and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.    Amendments to Loan Agreement. 

ny-1365713 

2.1    Section 3.4(a) (Procedures for Borrowing).  The last sentence of Section 3.4(a) is amended in its entirety and replaced with the following:
“In addition to such Notice of Borrowing, either Administrative Borrower or Singapore Borrower, as applicable, must promptly deliver to Bank by electronic mail or through Bank’s online banking program such reports and information, including without limitation, sales journals, cash receipts journals, accounts receivable aging reports, as Bank may request in its sole discretion (including an updated Borrowing Base Report if the most recent Borrowing Base Report delivered pursuant to Section 6.2(a) is dated 30 days or more prior to the date of the Notice of Borrowing).”

2.2    Section 6.2(e) (Financial Statements, Reports, Certificates).  Section 6.2(e) is amended in its entirety and replaced with the following:
“    (e)    [Reserved].”

2.3    Section 6.2(k) (Financial Statements, Reports, Certificates).  Section 6.2(k) is amended by deleting the words “Exhibit I” and replacing them with the words “Section 14 of the Perfection Certificate”.
2.4    Section 6.12(a) (Online Banking).  Section 6.12(a) is amended in its entirety and replaced with the following:
“    (a)    Utilize Bank’s online banking platform for all matters requested by Bank which shall include, without limitation (and without request by Bank for the following matters), uploading information pertaining to Accounts and Account Debtors, requesting approval for exceptions, requesting Credit Extensions, and uploading financial statements and other reports required to be delivered by this Agreement (including, without limitation, those described in Section 6.2 of this Agreement).”

2.5    Section 6.13 (Formation or Acquisition of Subsidiaries).  Section 6.13 is amended by inserting the words “(including, without limitation, pursuant to a Division)” immediately following the words “any direct or indirect Material Subsidiary after the Effective Date”.  
2.6    Section 7.1 (Dispositions).  Section 7.1 of the Loan Agreement is amended by inserting the words “(including, without limitation, pursuant to a Division)” to appear immediately prior to the words “(collectively, “Transfer”)”.
2.7    Section 7.3 (Mergers and Acquisitions).  The first clause of Section 7.3 of the Loan Agreement is amended in its entirety and replaced with the following:
“Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to 

ny-1365713 

acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division), except where no Event of Default has occurred and is continuing or would result from such action during the term of this Agreement:”
2.8    Section 10 (Notices).  The notice information appearing in Section 10 is deleted in its entirety and replaced with the following:
“If to any Borrower:    Aviat Networks, Inc.
200 Parker Drive, Suite C100A
Austin, TX 78728
Attn: Eric Chang 
Email: Eric.Chang@aviatnet.com

If to Bank:    Silicon Valley Bank
505 Howard Street
San Francisco, California 94105
Attn: Ashlee Kaji
Email: AKaji@svb.com 

with a copy to:    Morrison & Foerster LLP
200 Clarendon Street
Boston, Massachusetts 02116
Attn:    David A. Ephraim, Esquire
Email:    DEphraim@mofo.com”
2.9    Section 13 (Definitions).  The definition of “Eligible Accounts” in Section 13.1 is amended by (i) deleting the word “and” appearing at the end of clause (w), (ii) deleting the “.” appearing at the end of clause (x) and inserting in lieu thereof “; and”, and (iii) inserting the following new clause (y) thereof to appear immediately following subsection (x) thereof:
“    (y)    Accounts for which Borrower has sold, transferred, assigned, disposed of or granted a Lien on, or agreed to sell, transfer, assign, dispose of or grant a Lien on, any interest therein to or in favor of CitiBank, N.A., or any subsidiary or affiliate thereof.”

2.10    Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 are deleted in their entirety and replaced with the following: 
“    “Borrowing Base” is (a) 80% of Eligible Accounts (other than Singapore Borrower Eligible Accounts) as determined by Bank from Borrower’s most recent Borrowing Base Report, plus (b) 50% of all Domestic unbilled accounts (in the case of clause (b) above, up to a maximum amount of (i) Seven Million Dollars ($7,000,000) when a Streamline Period is in effect and (ii) Three Million Five Hundred Thousand Dollars ($3,500,000) when a Streamline Period is not in effect), plus (c) (i) the Singapore Borrower Eligible Account Advance Rate multiplied by (ii) the Singapore Borrower Eligible Accounts; 

ny-1365713 

provided, however, that Bank has the right to decrease the foregoing amount and percentage in its good faith business judgment to mitigate the impact of events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect the Collateral or its value.”
“    “Consolidated Funded Indebtedness” is, as of any date of determination, for Parent and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including borrowings hereunder) and all debt obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (b) all purchase money Indebtedness, (c) the aggregate Dollar Equivalent amount of all outstanding letters of credit (including drawn but unreimbursed letters of credit and any undrawn letter of credit) plus an amount equal to the Letter of Credit Reserve, bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business), (e) attributable Indebtedness in respect of capital leases and synthetic lease obligations, and (f) all Indebtedness of the types referred to in clauses (a) through (e) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which any Borrower or any Subsidiary is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Borrower or such Subsidiary; provided that the amount of Indebtedness included under this clause (f) shall be restricted to the amount of Indebtedness attributable to such Borrower or such Subsidiary as a general partner or joint venturer; in each case minus any cash collateral posted for any of the foregoing.”
“    “Revolving Line Maturity Date” is June 28, 2021.”

“    “Singapore Borrower Eligible Accounts” is any Eligible Account of the Singapore Borrower, as determined by Bank from Borrower’s most recent Borrowing Base Report.”

2.11    Section 13 (Definitions).  The following new defined term is hereby inserted alphabetically in Section 13.1:
“    “Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity.”

2.12    Section 13 (Definitions).  The following defined term set forth in Section 13.1 is deleted in its entirety:

ny-1365713 

“    “Borrowing Base Certificate” is that certain certificate in the form attached hereto as Exhibit H.”

2.13    Exhibit H.  The Borrowing Base Certificate (as defined in the Loan Agreement until the date of this Amendment) appearing as Exhibit H to the Loan Agreement is deleted in its entirety and replaced with the following: “Exhibit H – Intentionally Omitted”.
3.    Limitation of Amendments.
3.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.
3.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
4.    Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:
4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;
4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
4.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

ny-1365713 

4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
5.    Updated Perfection Certificate.  Each Borrower has delivered an updated Perfection Certificate in connection with this Amendment (individually and collectively, the “Updated Perfection Certificate”) dated as of the date hereof, which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of June 22, 2018.  Borrower agrees that all references in the Loan Agreement to “Perfection Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate.
6.    Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.
7.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
8.    Post-Closing Condition.  On or prior to June 3, 2020, Borrower shall deliver to Bank, each, in form and substance satisfactory to Bank (a) a certificate of good standing from the State of Delaware with respect to Parent, (b) a certificate of good standing as a foreign corporation from the State of California with respect to OpCo, and (c) evidence satisfactory to Bank that the insurance policies and insurance endorsements for each Borrower required by Section 6.7 of the Loan Agreement are in full force and effect, together with appropriate evidence showing  lender loss payable and/or additional insured clauses in favor of Bank.
9.    Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, and (b) Borrower’s payment to Bank of (i) a fully-earned, non-refundable amendment fee in an amount equal to Twenty-Five Thousand Dollars ($25,000.00) and (ii) Bank’s reasonable legal fees and expenses incurred in connection with this Amendment.
[Signature page follows.]

ny-1365713 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	BANK
	BORROWER

	

SILICON VALLEY BANK

By:  _/s/ Ashlee Kaji          
Name: _Ashlee Kaji           
Title:  _Director                  
	

AVIAT NETWORKS, INC.

By:   /s/ Eric Chang                      
Name: _Eric Chang                      
Title:    Chief Financial Officer    

AVIAT U.S., INC.

By:  _/s/ Eric Chang                     
Name:  Eric Chang                       
Title:  Director                              

AVIAT NETWORKS (S) PTE. LTD.

By:   /s/ Eric Chang                      
Name: _Eric Chang                      
Title:  _Director                            

ny-1365713

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