Document:

Exhibit 10.4

 

 

AGREEMENT

 

This Agreement (this
“Agreement”), dated as of September 1, 2020, is entered into by and among Eagle Equity Partners II,
LLC, a Delaware limited liability company (the “Sponsor”) and Skillz Inc. (the “Company”).

 

RECITALS

 

WHEREAS, concurrently
herewith, Flying Eagle Acquisition Corp., the Company, FEAC Merger Sub Inc. and Andrew Paradise, solely in his capacity as the
stockholder representative, are entering into an Agreement and Plan of Merger (as amended, supplemented, restated or otherwise
modified from time to time, the “Merger Agreement”; capitalized terms used but not otherwise defined in this
Agreement shall have the meanings ascribed to them in the Merger Agreement), pursuant to which (and subject to the terms and conditions
set forth therein) Merger Sub will merge with and into the Company, with the Company surviving the merger (the “Merger”);

 

WHEREAS, the
Sponsor is currently the record owner of 17,190,000 outstanding Sponsor Shares and 10,033,333 outstanding Acquiror Private Placement
Warrants (the Sponsor Shares and Acquiror Private Placement Warrants owned by the Sponsor, together with any additional shares
of Acquiror Common Stock or Sponsor Shares (or any securities convertible into or exercisable or exchangeable for Acquiror Common
Stock or Sponsor Shares) in which the Sponsor acquires record or beneficial ownership after the date hereof, including by purchase,
as a result of a stock dividend, stock split, recapitalization, combination, reclassification, exchange or change of such shares,
or upon exercise or conversion of any securities, the “Covered Shares”).

 

WHEREAS, as
a condition and inducement to the willingness of the Company to enter into the Merger Agreement, the Company and the Sponsor are
entering into this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
the Sponsor and the Company agree as follows:

 

1.            Agreement
to Vote. Subject to the earlier termination of this Agreement in accordance with Section 21 and the last paragraph
of this Section 1, the Sponsor, solely in its capacity as a stockholder of Acquiror, irrevocably and unconditionally
agrees that, at the Special Meeting, at any other meeting of the stockholders of the Acquiror (whether annual or special and whether
or not an adjourned or postponed meeting, however called and including any adjournment or postponement thereof) and in connection
with any written consent of the stockholders of the Acquiror, the Sponsor shall, and shall cause any other holder of record of
any of the Sponsor's Covered Shares to:

 

(a)            when
such meeting is held, appear at such meeting or otherwise cause the Sponsor’s Covered Shares to be counted as present thereat
for the purpose of establishing a quorum;

 

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(b)            vote
(or execute and return an action by written consent), or cause to be voted at such meeting (or validly execute and return and cause
such consent to be granted with respect to), all of the Sponsor’s Covered Shares owned as of the record date for such meeting
(or the date that any written consent is executed by the Sponsor) in favor of each Proposal and any other matters necessary or
reasonably requested by the Company for consummation of the Merger and the other transactions contemplated by the Merger Agreement;
and

 

(c)            vote
(or execute and return an action by written consent), or cause to be voted at such meeting (or validly execute and return and cause
such consent to be granted with respect to), all of the Sponsor’s Covered Shares against any Acquiror Business Combination
Proposal (as defined below) and any other action that would reasonably be expected to materially impede, interfere with, delay,
postpone or adversely affect the Merger or any of the other transactions contemplated by the Merger Agreement or result in a breach
of any covenant, representation or warranty or other obligation or agreement of the Acquiror under the Merger Agreement or result
in a breach of any covenant, representation or warranty or other obligation or agreement of the Sponsor contained in this Agreement.

 

The obligations of
the Sponsor specified in this Section 1 shall apply whether or not the Merger or any action described above is recommended
by the Acquiror Board or the Acquiror Board previously recommended the Merger but changed such recommendation.

 

2.            No
Inconsistent Agreements. The Sponsor hereby covenants and agrees that the Sponsor shall not, at any time prior to the Termination
Date, (i) enter into any voting agreement or voting trust with respect to any of the Sponsor’s Covered Shares that is
inconsistent with the Sponsor’s obligations pursuant to this Agreement, (ii) grant a proxy or power of attorney with
respect to any of the Covered Shares that is inconsistent with the Sponsor’s obligations pursuant to this Agreement, or (iii) enter
into any agreement or undertaking that is otherwise inconsistent with, or would interfere with, or prohibit or prevent it from
satisfying, its obligations pursuant to this Agreement.

 

3.            Representations
and Warranties of the Sponsor. The Sponsor hereby represents and warrants to the Company as follows:

 

(a)            The
Sponsor is the only record and a beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of, and has good,
valid and marketable title to, the Covered Shares, free and clear of Liens other than as created by this Agreement or the organizational
documents of the Acquiror (including, for the purposes hereof, any agreement between or among stockholders of the Acquiror). As
of the date hereof, other than the Covered Shares, the Sponsor does not own beneficially or of record any shares of capital stock
of Acquiror (or any securities convertible into shares of capital stock of the Acquiror) or any interest therein.

 

(b)            The
Sponsor (i) except as provided in this Agreement, has full voting power, full power of disposition and full power to issue
instructions with respect to the matters set forth herein, in each case, with respect to the Covered Shares, (ii) has not
entered into any voting agreement or voting trust with respect to any of the Covered Shares that is inconsistent with the Sponsor’s
obligations pursuant to this Agreement, (iii) has not granted a proxy or power of attorney with respect to any of the Sponsor’s
Covered Shares that is inconsistent with the Sponsor’s obligations pursuant to this Agreement and (iv) has not entered
into any agreement or undertaking that is otherwise inconsistent with, or would interfere with, or prohibit or prevent it from
satisfying, its obligations pursuant to this Agreement.

 

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(c)            The
Sponsor (i) is a legal entity duly organized, validly existing and, to the extent such concept is applicable, in good standing
under the Laws of the jurisdiction of its organization, and (ii) has all requisite limited liability company or other power
and authority and has taken all limited liability company or other action necessary in order to, execute, deliver and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed
and delivered by the Sponsor and constitutes a valid and binding agreement of the Sponsor enforceable against the Sponsor in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws
affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity.

 

(d)            Other
than the filings, notices and reports pursuant to, in compliance with or required to be made under the Exchange Act, no filings,
notices, reports, consents, registrations, approvals, permits, waivers, expirations of waiting periods or authorizations are required
to be obtained by the Sponsor from, or to be given by the Sponsor to, or be made by the Sponsor with, any Governmental Authority
in connection with the execution, delivery and performance by the Sponsor of this Agreement, the consummation of the transactions
contemplated hereby or the Merger and the other transactions contemplated by the Merger Agreement.

 

(e)            The
execution, delivery and performance of this Agreement by the Sponsor does not, and the consummation of the transactions contemplated
hereby or the Merger and the other transactions contemplated by the Merger Agreement will not, constitute or result in (i) a
breach or violation of, or a default under, the limited liability company agreement or similar governing documents of the Sponsor,
(ii) with or without notice, lapse of time or both, a breach or violation of, a termination (or right of termination) of or
a default under, the loss of any benefit under, the creation, modification or acceleration of any obligations under or the creation
of a Lien on any of the properties, rights or assets of the Sponsor pursuant to any Contract binding upon the Sponsor or, assuming
(solely with respect to performance of this Agreement and the transactions contemplated hereby), compliance with the matters referred
to in Section 3(d), under any applicable Law to which the Sponsor is subject or (iii) any change in the rights
or obligations of any party under any Contract legally binding upon the Sponsor, except, in the case of clause (ii) or (iii) directly
above, for any such breach, violation, termination, default, creation, acceleration or change that would not, individually or in
the aggregate, reasonably be expected to prevent or materially delay or impair the Sponsor’s ability to perform its obligations
hereunder or to consummate the transactions contemplated hereby, the consummation of the Merger or the other transactions contemplated
by the Merger Agreement.

 

(f)            As
of the date of this Agreement, there is no action, proceeding or investigation pending against the Sponsor or, to the knowledge
of the Sponsor, threatened against the Sponsor that questions the beneficial or record ownership of the Covered Shares, the validity
of this Agreement or the performance by the Sponsor of its obligations under this Agreement.

 

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(g)            Neither
the Sponsor nor any of its Affiliates has ever been suspended or expelled from membership in any securities or commodities exchange
or association or had a securities or commodities license or registration denied, suspended or revoked.

 

(h)            Neither
the Sponsor nor any Affiliate of the Sponsor, nor any director or officer of the Sponsor or Acquiror, shall receive (or be entitled
to receive) from Acquiror, PubCo or the Company any finder’s fee, reimbursement, consulting fee, monies or consideration
in the form of equity in respect of any repayment of a loan or other compensation prior to, or in connection with, any services
rendered in order to effectuate the consummation of the Acquiror’s initial Business Combination (regardless of the type of
transaction that it is, but including, for the avoidance of doubt, the Merger).

 

(i)            The
Sponsor understands and acknowledges that the Company is entering into the Merger Agreement in reliance upon the Sponsor’s
execution and delivery of this Agreement and the representations, warranties, covenants and other agreements of the Sponsor contained
herein.

 

4.            Certain
Covenants of the Sponsor. The Sponsor hereby covenants and agrees as follows:

 

(a)            No
Solicitation. Prior to the Termination Date, the Sponsor agrees not to, directly or indirectly, (i) solicit, initiate
or knowingly encourage or facilitate any inquiry, proposal or offer which constitutes, or could reasonably be expected to lead
to, a Business Combination proposal other than with the Company, its shareholders and their respective Affiliates and Representatives,
in each case, in their capacity as such (such Business Combination proposal other than with the Company, its shareholders and their
respective Affiliates and Representatives, an “Acquiror Business Combination Proposal”), (ii) participate
in any discussions or negotiations regarding, or furnish or receive to or from any Person (other than Merger Sub, the Company,
the Company’s Affiliates and their respective Representatives) any nonpublic information relating to the Acquiror and its
Subsidiaries, in connection with any Acquiror Business Combination Proposal, (iii) approve or recommend, or make any public
statement approving or recommending, an Acquiror Business Combination Proposal, (iv) enter into any letter of intent, merger
agreement or other similar agreement providing for an Acquiror Business Combination Proposal, (v) make, or in any manner participate
in a “solicitation” (as such term is used in the rules of the SEC) of proxies or powers of attorney or similar
rights to vote, or seek to advise or influence any Person with respect to the voting of Acquiror Common Stock or Sponsor Shares
intending to facilitate any Acquiror Business Combination Proposal or cause any holder of shares of Acquiror Common Stock or Sponsor
Shares not to vote to adopt the Merger Agreement and approve the Merger or any of the other transactions contemplated thereby,
(vi) become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with respect
to any voting securities of the Acquiror that takes any action in support of an Acquiror Business Combination Proposal or (vii) otherwise
resolve or agree to do any of the foregoing. The Sponsor shall promptly (and in any event within 48 hours) notify the Company after
receipt by the Sponsor of any Acquiror Business Combination Proposal, any inquiry or proposal that would reasonably be expected
to lead to an Acquiror Business Combination Proposal or any inquiry or request for nonpublic information relating to the Acquiror
and its Subsidiaries by any Person who has made or would reasonably be expected to make an Acquiror Business Combination Proposal.
Thereafter, the Sponsor shall keep the Company reasonably informed, on a prompt basis (and in any event within 48 hours), regarding
any material changes to the status and material terms of any such proposal or offer. The Sponsor agrees that, following the date
hereof, it and its Representatives shall cease and cause to be terminated any existing activities, solicitations, discussions or
negotiations by the Sponsor or its Representatives with any parties conducted heretofore with respect to any Acquiror Business
Combination Proposal. Notwithstanding anything in this Agreement to the contrary, (i) the Sponsor shall not be responsible
for the actions of Acquiror or its Board of Directors (or any committee thereof), any Subsidiary of Acquiror, or any officers,
directors (in their capacity as such), employees and professional advisors of any of the foregoing (the “Acquiror Related
Parties”), including with respect to any of the matters contemplated by this Section 4(a), (ii) the Sponsor
makes no representations or warranties with respect to the actions of any of the Acquiror Related Parties, and (iii) any breach
by Acquiror of its obligations under Section 7.08 of the Merger Agreement shall not be considered a breach of this Section 4(a) (it
being understood for the avoidance of doubt that the Sponsor shall remain responsible for any breach by it or its Representatives
(other than any such Representative that is a Acquiror Related Party) of this Section 4(a)).

 

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(b)            Support
of the Merger. Prior to the Termination Date, the Sponsor shall use reasonable best efforts to take, or cause to be taken,
all actions and to do, or cause to be done, all things reasonably necessary to consummate the Merger and the other transactions
contemplated by the Merger Agreement on the terms and subject to the conditions set forth therein and shall not take any action
that would reasonably be expected to materially delay or prevent the satisfaction of any of the conditions to the Merger set forth
in Article IX of the Merger Agreement.

 

(c)            Waiver
of Anti-Dilution Protections. The Sponsor hereby irrevocably and unconditionally (but subject to the consummation of the Merger)
(x) agrees that pursuant to Section 4.3(b)(i) of the Certificate of Incorporation the Sponsor Shares held by it
shall convert into shares of Acquiror Class A Common Stock at the Initial Conversion Ratio (as such term is defined in the
Certificate of Incorporation) (as adjusted to account for any subdivision (by stock split, subdivision, exchange, stock dividend,
reclassification, recapitalization or otherwise) or combination (by reverse stock split, exchange, reclassification, recapitalization
or otherwise) or similar reclassification or recapitalization of the outstanding shares of shares of Acquiror Class A Common
Stock) and (y) waives any adjustment to the Initial Conversion Ratio to which it would otherwise be entitled pursuant to Section 4.3(b)(ii) of
the Certificate of Incorporation. The Sponsor further agrees not to redeem any Sponsor Shares or shares of Acquiror Class A
Common Stock received upon the conversion of such Sponsor Shares and not to commence or participate in, and to take all actions
necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against the Acquiror,
the Company, any affiliate or designee of the Sponsor acting in his or her capacity as director or any of their respective successors
and assigns relating to the negotiation, execution or delivery of this Agreement, the Merger Agreement or the consummation of the
transactions contemplated hereby and thereby.

 

(d)            Pre-Closing
Transfer Restrictions. Prior to the Termination Date, the Sponsor hereby agrees not to, directly or indirectly, (i) sell,
transfer, pledge, encumber, assign, hedge, swap, convert or otherwise dispose of (including by merger (including by conversion
into securities or other consideration), by tendering into any tender or exchange offer, by testamentary disposition, by operation
of Law or otherwise), either voluntarily or involuntarily (collectively, “Transfer”), or enter into any Contract
or option with respect to the Transfer of, any of the Sponsor’s Covered Shares, or (ii) take any action that would make
any representation or warranty of the Sponsor contained herein untrue or incorrect or have the effect of preventing or disabling
the Sponsor from performing its obligations under this Agreement; provided, however, that nothing herein shall prohibit
a Transfer or forfeiture that is or has been agreed upon by the Company in writing (including pursuant to the terms of this Agreement
and the Merger Agreement) .

 

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(e)            Non-Redemption
Agreements. Unless otherwise approved in writing by the Company (such approval not to be unreasonably withheld, conditioned
or delayed), the Sponsor shall not permit any amendment or modification to be made to, or any waiver (in whole or in part) of,
or provide consent to (including consent to termination) any provision or remedy under, or any replacement of, any Non-Redemption
Agreement. The Sponsor shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary to satisfy,
in all material respects on a timely basis, all conditions and covenants applicable to the Sponsor in connection with the entry
into each Non-Redemption Agreement and otherwise comply with its obligations in connection therewith and to enforce its rights
under each Non-Redemption Agreement. Without limiting the generality of the foregoing, the Sponsor shall give the Company prompt
written notice of: (A) any breach or default (or any event or circumstance that, with or without notice, lapse of time or
both, could give rise to any breach or default) by a party to any Non-Redemption Agreement, and (B) the receipt of any written
notice or other written communication from any other party to the Non-Redemption Agreement with respect to any actual, potential,
threatened or claimed expiration, lapse, withdrawal, breach, default, termination or repudiation by any party under any such Non-Redemption
Agreement or any provisions of any such Non-Redemption Agreement.

 

(f)            Earnout
Shares. At the Closing, the Sponsor agrees to execute and deliver a counterpart signature page to the Earnout Escrow Agreement
and to deposit the Earnout Shares into the Earnout Escrow Account. The Sponsor acknowledges and agrees that the Earnout Shares
will be subject to the vesting and forfeiture conditions set forth in Section 3.07 of the Merger Agreement and agrees
to be bound by such terms as though it were party thereto.

 

(g)            Sponsor
Forfeiture. At the Closing, the Sponsor hereby agrees to take all necessary actions to forfeit and cause to be cancelled: (i) 899,797
Sponsor Shares, and (ii) 5,016,667 Acquiror Private Placement Warrants.

 

(h)            Acquiror
Copy. The Sponsor hereby authorizes Acquiror to maintain a copy of this Agreement at either the executive office or the registered
office of Acquiror.

 

5.            Further
Assurances. From time to time, at the Company’s request and without further consideration, the Sponsor shall execute
and deliver such additional documents and take all such further action as may be reasonably necessary or reasonably requested to
effect the actions and consummate the transactions contemplated by this Agreement. The Sponsor further agrees not to commence or
participate in, and to take all actions necessary to opt out of any class in any class action with respect to, any action or claim,
derivative or otherwise, against the Acquiror, Acquiror’s Affiliates, the Company or the Company’s Affiliates or any
of their respective successors and assigns challenging the transactions contemplated by this Agreement or the Merger Agreement.

 

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6.            Disclosure.
The Sponsor hereby authorizes the Company and Acquiror to publish and disclose in any announcement or disclosure required by the
SEC the Stockholder’s identity and ownership of the Covered Shares and the nature of the Stockholder’s obligations
under this Agreement; provided, that prior to any such publication or disclosure the Company and Acquiror have provided
the Sponsor with an opportunity to review and comment upon such announcement or disclosure, which comments the Company and Acquiror
will consider in good faith.

 

7.            Changes
in Capital Stock. In the event of a stock split, stock dividend or distribution, or any change in the Company’s capital
stock by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, exchange of shares or the
like, equitable adjustment shall be made to the provisions of this Agreement (including with respect to the nature and number of
equity interests covered by the terms “Covered Shares,” “Sponsor Shares” and “Acquiror Private Placement
Warrants”) as may be required so that the intended rights, privileges, duties and obligations hereunder shall be given full
effect.

 

8.            Amendment
and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or
otherwise, except by an instrument in writing signed by the Sponsor and the Company.

 

9.            Waiver.
No failure or delay by any party hereto exercising any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. The rights and remedies of the parties hereto hereunder are cumulative and are not exclusive of any rights
or remedies which they would otherwise have hereunder. Any agreement on the part of a party hereto to any such waiver shall be
valid only if set forth in a written instrument executed and delivered by such party.

 

10.            Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, by email
(with confirmation of receipt) or sent by a nationally recognized overnight courier service, such as Federal Express, to the parties
hereto at the following addresses (or at such other address for a party as shall be specified by like notice made pursuant to this
Section 10):

 

if to the Company, to it at:

 

Attention: Charlotte Edelman, VP
of Legal

Email: cedelman@skillz.com

legal@skillz.com

 

with a copy (which shall not constitute
notice) to:

 

Winston &
Strawn LLP

1901 L Street N.W.

Washington, D.C. 20036

Attn: Christopher
Zochowski

Steve Gavin

Kyle Gann

 

Facsimile No.: (202)
282-5100

 

Email: czochowski@winston.com

sgavin@winston.com

kgann@winston.com

 

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if to the Sponsor, to it at:

 

2121 Avenue of the Stars, Suite 2300

Los Angeles, CA 90067

Attention: Eli Baker

E-mail: elibaker@geacq.com

 

11.            No
Ownership Interest. Until the Closing, nothing contained in this Agreement shall be deemed to vest in the Company any direct
or indirect ownership or incidence of ownership of or with respect to the Covered Shares of the Sponsor. Until the Closing, all
rights, ownership and economic benefits of and relating to the Covered Shares of the Sponsor shall remain vested in and belong
to the Sponsor.

 

12.            Entire
Agreement. This Agreement and the Merger Agreement constitute the entire agreement and supersede all prior agreements and understandings,
both written and oral, between the parties hereto with respect to the subject matter hereof and thereof.

 

13.            No
Third-Party Beneficiaries. The Sponsor hereby agrees that its representations, warranties and covenants set forth herein are
solely for the benefit of the Company in accordance with and subject to the terms of this Agreement, and this Agreement is not
intended to, and does not, confer upon any Person other than the parties hereto any rights or remedies hereunder, including the
right to rely upon the representations and warranties set forth herein, and the parties hereto hereby further agree that this Agreement
may only be enforced against, and any Action that may be based upon, arise out of or relate to this Agreement, or the negotiation,
execution or performance of this Agreement may only be made against, the Persons expressly named as parties hereto; provided,
that the Acquiror shall be an express third party beneficiary with respect to Section 3 and Section 4 hereof.

 

14.            Governing
Law and Venue; Service of Process; Waiver of Jury Trial.

 

(a)            This
Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to conflicts
of laws principles or rules to the extent such principles or rules are not mandatorily applicable and would require or
permit the application of the Law of any jurisdiction other than the State of Delaware.

 

(b)            In
addition, each of the parties (i) consents to submit itself, and hereby submits itself, to the personal jurisdiction of the
Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction, any state or federal court
located in the State of Delaware having subject matter jurisdiction, in the event any dispute arises out of this Agreement or any
of the transactions contemplated by this Agreement, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction
by motion or other request for leave from any such court, and agrees not to plead or claim any objection to the laying of venue
in any such court or that any judicial proceeding in any such court has been brought in an inconvenient forum, (iii) agrees
that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court
other than the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction, any state
or federal court located in the State of Delaware having subject matter jurisdiction, and (iv) consents to service of process
being made through the notice procedures set forth in Section 10.

 

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(c)            EACH
OF THE PARTIES HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

15.            Assignment;
Successors. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the
parties hereto in whole or in part (whether by operation of Law or otherwise) without the prior written consent of the other party,
and any such assignment without such consent shall be null and void. This Agreement shall be binding upon, inure to the benefit
of and be enforceable by the parties hereto and their respective successors and permitted assigns.

 

16.            Enforcement.
The rights and remedies of the parties shall be cumulative with and not exclusive of any other remedy conferred hereby. The parties
agree that irreparable damage would occur and that the parties would not have any adequate remedy at law in the event that any
of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches or threatened breaches
of this Agreement and to enforce specifically the terms and provisions of this Agreement, including the Sponsor’s obligations
to vote its Covered Shares as provided in this Agreement, in the Court of Chancery of the State of Delaware or, if under applicable
law exclusive jurisdiction over such matter is vested in the federal courts, any state or federal court located in the State of
Delaware, without proof of actual damages or otherwise (and each party hereby waives any requirement for the securing or posting
of any bond in connection with such remedy), this being in addition to any other remedy to which they are entitled at law or in
equity.

 

17.            Severability.
If any term or other provision of this Agreement is held by a court of competent jurisdiction or other authority to be invalid,
void, unenforceable or against its regulatory policy, the remainder of the terms and provisions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, so long as the economic and legal substance
of the transactions contemplated hereby, taken as a whole, are not affected in a manner materially adverse to any party hereto.
Upon such a determination, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the fullest extent possible.

 

18.            Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, it being
understood that each party need not sign the same counterpart. This Agreement shall become effective when each party shall have
received a counterpart hereof signed by all of the other parties. Signatures delivered electronically or by facsimile shall be
deemed to be original signatures.

 

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19.            Interpretation
and Construction. The words “hereof,” “herein” and “hereunder” and words of like import
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The descriptive
headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning
or interpretation of this Agreement. References to Sections are to Sections of this Agreement unless otherwise specified. Any singular
term in this Agreement shall be deemed to include the plural, and any plural term the singular. The definitions contained in this
Agreement are applicable to the masculine as well as to the feminine and neuter genders of such term. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation,” whether or not they are in fact followed by those words or words of like import. “Writing,”
“written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic
media) in a visible form. References to any statute shall be deemed to refer to such statute and to any rules or regulations
promulgated thereunder. References to any person include the successors and permitted assigns of that person. References from or
through any date mean, unless otherwise specified, from and including such date or through and including such date, respectively.
In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly
by the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship
of any of the provisions of this Agreement.

 

20.            Defined
Terms. As used herein, “Sponsor Shares” shall mean the shares held by Sponsor of Acquiror Class B Common
Stock, par value $0.0001 per share, and the shares of PubCo Common Stock issuable upon conversion of such shares in connection
with the Closing.

 

21.            Termination.
This Agreement shall terminate upon the earliest of (i) the Effective Time (which, for the avoidance of doubt shall be deemed
to occur following the performance of the covenants set forth in Sections 4(c) 4(f) and 4(g)), (ii) the
termination of the Merger Agreement in accordance with its terms, and (iii) the time this Agreement is terminated upon the
mutual written agreement of the Company and the Sponsor (the earliest such date under clause (i), (ii) and (iii) being
referred to herein as the “Termination Date”); provided, that the provisions set forth in Sections
9 through 19 shall survive the termination of this Agreement; provided further, that no party hereto shall be
relieved from any liability to the other party hereto resulting from a Willful Breach. For purposes of this Agreement, “Willful
Breach” means, with respect to any agreement, a party’s knowing and intentional material breach of any of its representations
or warranties as set forth in such agreement, or such party’s material breach of any of its covenants or other agreements
set forth in such agreement, which material breach constitutes, or is a consequence of, a purposeful act or failure to act by such
party with the knowledge that the taking of such act or failure to take such act would cause a material breach of such agreement.

 

[The remainder of
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    10

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed (where applicable, by their respective officers or other authorized
Persons thereunto duly authorized) as of the date first written above.

 

	 	Eagle Equity Partners II, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Eli Baker 
	 	 	Name: Eli Baker
	 	 	Title:
    Managing Member
	 	 	 
	 	SKILLZ INC.
	 	 	 
	 	 	 
	 	By:	/s/ Andrew Paradise 
	 	 	Name: Andrew Paradise
	 	 	Title: CEOex_202668.htm

Exhibit 10.1

 

SECURED PROMISSORY NOTE

OF

SPINE INJURY SOLUTIONS, INC. 

 

FOR VALUE RECEIVED, SPINE INJURY SOLUTIONS, INC., a Delaware corporation with its principal office located at 5151 Mitchelldale, Suite A2, Houston, Texas, 77092 (the “Company”), unconditionally promises to pay to PETER DALRYMPLE, whose address is 13451 Belhaven Dr., Houston, Texas, 77069, or the registered assignee, upon presentation of this Secured Promissory Note (the “Promissory Note”) by the registered holder hereof (the “Holder”) at the office of the Company, the principal sum of $610,000 (the “Principal Amount”), together with any accrued and unpaid interest thereon, subject to the terms and conditions set forth below, on August 31, 2021 (the “Maturity Date”), if not sooner paid. The effective date of execution and issuance of this Promissory Note is August 31, 2020 (“Original Issue Date”).

 

The following terms shall apply to this Promissory Note:

 

1.     Schedule for Payment of Principal and Interest. The Company shall pay to the Holder 11 monthly payments of interest only on the Principal Amount outstanding hereunder, in cash, in arrears, at the rate of 6% per annum from the Original Issuance Date, commencing on October 1, 2020, and continuing thereafter on the 1st day of each successive month throughout the term of this Promissory Note. On the Maturity Date, the Company shall pay the Holder one balloon payment of the entire outstanding Principal Amount of this Promissory Note plus any accrued and unpaid interest thereon.

 

2.     Payment. Payment of any sums due to the Holder under the terms of this Promissory Note shall be made in United States Dollars by check or wire transfer at the option of the Company. Payment shall be made at the address last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. If any payment hereunder would otherwise become due and payable on a day on which banks are closed or permitted to be closed in Houston, Texas, such payment shall become due and payable on the next succeeding day on which banks are open and not permitted to be closed in Houston, Texas (“Business Day”). The forwarding of such funds shall constitute a payment of outstanding principal and/or interest hereunder and shall satisfy and discharge the liability for principal and interest on this Promissory Note to the extent of the sum represented by such payment.

 

3.     Security for Payment. This Promissory Note is secured by (i) all accounts receivables of the Company and (ii) a pledge of 100% of the issued and outstanding common stock of Quad Video Halo, Inc., a Texas corporation and wholly-owned subsidiary of the Company, as set forth in the Security Agreement entered into between the parties of even date herewith (the “Collateral”).

 

4.     Representations and Warranties of the Company. The Company represents and warrants to the Holder that:

 

(a)     Organization. The Company is validly existing and in good standing under the laws of the State of Delaware and has the requisite power to own, lease and operate its properties and to carry on its business as now being conducted.

 

 

Secured Promissory Note – Page 1

 

 

(b)     Power and Authority. The Company has the requisite power to execute, deliver and perform this Promissory Note, and to consummate the transactions contemplated hereby. The execution and delivery of this Promissory Note by the Company and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company. This Promissory Note has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company and is enforceable against the Company in accordance with its terms except (i) that such enforcement may be subject to bankruptcy, insolvency, moratorium or similar laws affecting creditors' rights and (ii) that the remedy of specific performance and injunctive and other forms of equitable relief are subject to certain equitable defenses and to the discretion of the court before which any proceedings therefor may be brought.

 

5.     Events of Defaults and Remedies. Each of the following is deemed to be an event of default (“Event of Default”) hereunder: (i) the failure by the Company to pay any installment of interest on the Promissory Note as and when due and payable and the continuance of any such failure for 15 days, (ii) the failure by the Company to pay all or any part of the principal on the Promissory Note when and as the same becomes due and payable, as set forth above, and the continuance of any such failure for 15 days, (iii) the failure by the Company to observe or perform any other covenant or agreement contained in the Promissory Note and the continuance of such failure for a period of 30 days after written notice is given to the Company by the Holder, (iv) the assignment by the Company for the benefit of creditors, or an application by the Company to any tribunal for the appointment of a trustee or receiver of a substantial part of the assets of the Company, or the commencement of any proceedings relating to the Company under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debts, dissolution or other liquidation law of any jurisdiction; or the filing of such application, or the commencement of any such proceedings against the Company and an indication of consent by the Company to such proceedings, or the appointment of such trustee or receiver, or an adjudication of the Company bankrupt or insolvent, or approval of the petition in any such proceedings, and such order remains in effect for 60 days; or (v) a default in the payment of principal or interest when due which extends beyond any stated period of grace applicable thereto or an acceleration for any other reason of maturity of any indebtedness for borrowed money of the Company with an aggregate principal amount in excess of $2,000,000 and (vi) final unsatisfied judgments not covered by insurance aggregating in excess of $2,000,000, at any one time rendered against the Company and not stayed, bonded or discharged within 75 days.

 

If an Event of Default occurs and is continuing (other than an Event of Default specified in clause (v) above with respect to the Company), then in every such case, unless the Principal Amount of the Promissory Note shall have already become due and payable, the Holder of the Promissory Note then outstanding, by notice in writing to the Company (an “Acceleration Notice”), may declare all principal and accrued and unpaid interest thereon to be due and payable immediately. If an Event of Default specified in clause (v) above occurs with respect to the Company, all principal and accrued and unpaid interest thereon will be immediately due and payable on the Promissory Note without any declaration or other act on the part of the Holder. The Holder may rescind such acceleration if the existing Event of Default has been cured or waived.

 

 

Secured Promissory Note – Page 2

 

 

6.     Default Interest. The Company agrees that if the Company defaults in the payment of any payment required hereunder, whether payment of Principal Amount or interest, the Company promises to pay, on demand, interest on any such unpaid amounts, from the date the payment is due to the date of actual payment, at the rate (the “Default Rate”) of the lesser of (i) 12% per annum; and (ii) the maximum nonusurious rate permitted by applicable law.

 

7.     Limitation on Merger, Sale or Consolidation. The Company may not, directly or indirectly, consolidate with or merge into another person or sell, lease, convey or transfer all or substantially all of its assets (computed on a consolidated basis), whether in a single transaction or a series of related transactions, to another person or group of affiliated persons, unless either (a) in the case of a merger or consolidation, the Company is the surviving entity or (b) the resulting, surviving or transferee entity is a corporation or limited liability company organized under the laws of any state of the United States and expressly assumes by supplemental agreement all of the obligations of the Company in connection with the Promissory Note.

 

Upon any consolidation or merger or any transfer of all or substantially all of the assets of the Company in accordance with the foregoing, the successor corporation or limited liability company formed by such consolidation or into which the Company is merged or to which such transfer is made, shall succeed to, and be substituted for, and may exercise every right and power of the Company under the Promissory Note with the same effect as if such successor corporation or limited liability company had been named therein as the Company, and the Company will be released from its obligations under the Promissory Note, except as to any obligations that arise from or as a result of such transaction.

 

8.     No Personal Liability of Shareholders, Officers, Directors. No recourse shall be had for the payment of the Principal Amount or the interest on this Promissory Note, or for any claim based thereon, or otherwise in respect thereof, or based on or in respect of any Promissory Note supplemental thereto, against any incorporator, stockholder, officer, or director (past, present, or future) of the Company, whether by virtue of any constitution, statute, or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being by the acceptance hereof, and as part of the consideration for the issue hereof, expressly waived and released.

 

9.     Listing of Registered Holder of Promissory Note. This Promissory Note will be registered as to principal in the Holder's name on the books of the Company at its principal office in Houston, Texas, after which no transfer hereof shall be valid unless made on the Company's books at the office of the Company, by the Holder hereof, in person, or by attorney duly authorized in writing, and similarly noted hereon.

 

10.     Holder of Promissory Note Not Deemed a Stockholder.     No Holder, in his capacity as Holder of this Promissory Note shall be entitled to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, nor shall anything contained in this Promissory Note be construed to confer upon the Holder hereof, in his capacity as Holder, any of

 

 

Secured Promissory Note – Page 3

 

 

the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise.

 

11.     Waiver of Demand, Presentment, Etc. The Company hereby expressly waives demand and presentment for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called for hereunder.

 

12.     Attorney’s Fees. The Company agrees to pay all costs and expenses, including without limitation reasonable attorney's fees, which may be incurred by the Holder in collecting any amount due under this Promissory Note as described herein.

 

13.     Enforceability. In case any provision of this Promissory Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Promissory Note will not in any way be affected or impaired thereby.

 

14.     Intent to Comply with Usury Laws. In no event will the interest to be paid on this Promissory Note exceed the maximum rate provided by law. It is the intent of the parties to comply fully with the usury laws of the State of Texas; accordingly, it is agreed that notwithstanding any provisions to the contrary in this Promissory Note, in no event shall such Promissory Note require the payment or permit the collection of interest (which term, for purposes hereof, shall include any amount which, under Texas law, is deemed to be interest, whether or not such amount is characterized by the parties as interest) in excess of the maximum amount permitted by the laws of the State of Texas. If any excess of interest is unintentionally contracted for, charged or received under this Promissory Note, or in the event the maturity of the indebtedness evidenced by the Promissory Note is accelerated in whole or in part, or in the event that all of part of the Principal Amount or interest of this Promissory Note shall be prepaid, so that the amount of interest contracted for, charged or received under this Promissory Note, on the amount of the Principal Amount actually outstanding from time to time under this Promissory Note shall exceed the maximum amount of interest permitted by the applicable usury laws, then in any such event (i) the provisions of this paragraph shall govern and control, (ii) neither the Company nor any other person or entity now or hereafter liable for the payment thereof, shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by such applicable usury laws, (iii) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal amount thereof or refunded to the Company at the Holder’s option, and (iv) the effective rate of interest shall be automatically reduced to the maximum lawful rate of interest allowed under the applicable usury laws as now or hereafter construed by the courts having jurisdiction thereof. It is further agreed that without limitation of the foregoing, all calculations of the rate of interest contracted for, charged or received

 

 

Secured Promissory Note – Page 4

 

 

under the Promissory Note which are made for the purpose of determining whether such rate exceeds the maximum lawful rate of interest, shall be made, to the extent permitted by applicable laws, by amortizing, prorating, allocating and spreading in equal parts during the period of the full stated term of the Promissory Note evidenced thereby, all interest at any time contracted for, charged or received from the Company or otherwise by the Holders in connection with this Promissory Note.

 

15.     Governing Law; Consent to Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Promissory Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Texas, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the Promissory Note (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state or federal courts sitting in Harris County, Texas (the “Harris County Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Harris County Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Harris County Courts, or that such Harris County Courts are improper or inconvenient venue for such proceeding.

 

16.     Amendment and Waiver. Any waiver or amendment hereto shall be in writing signed by the Holder. No failure on the part of the Holder to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Holder of any right hereunder preclude any other or further exercise thereof or the exercise of any other rights. The remedies herein provided are cumulative and not exclusive of any other remedies provided by law.

 

17.     Lost or Mutilated Promissory Note. If this Promissory Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Promissory Note, or in lieu of or in substitution for a lost, stolen or destroyed Promissory Note, a new Promissory Note for the principal amount of this Promissory Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Promissory Note, and of the ownership hereof, reasonably satisfactory to the Company and if requested by the Company, indemnity also reasonably satisfactory to the Company.

 

18.     Entire Agreement; Headings. This Promissory Note constitutes the entire agreement between the Holder and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, written or oral, of such parties. The headings are for reference purposes only and shall not be used in construing or interpreting this Promissory Note.

 

19.     Notices. All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered personally, or sent by registered or certified mail, return receipt requested, postage prepaid, or overnight air courier guaranteeing next day delivery:

 

 

Secured Promissory Note – Page 5

 

 

(a)     If to the Company, to it at the following address:

 

5151 Mitchelldale, Suite A2

Houston, Texas 77092

Attn: William F. Donovan

 

With a copy to:

 

Robert D. Axelrod

Axelrod & Smith

5300 Memorial Drive, Ste. 1000

Houston, Texas 77007

 

(b)     If to registered Holder, to it at the following address:

 

PETER DALRYMPLE

13451 Belhaven Dr.

Houston, Texas 77069

 

A notice or communication will be effective (i) if delivered in person or by overnight courier, on the business day it is delivered and (ii) if sent by registered or certified mail, the date of actual receipt by the party to whom such notice is required to be given.

 

 

[Signature page follows.]

 

 

 

Secured Promissory Note – Page 6

 

 

 

IN WITNESS WHEREOF, Spine Injury Solutions, Inc. has caused this Promissory Note to be duly executed in its corporate name by the manual signature of its President.

 

Dated:     August 31, 2020.

 

Spine Injury Solutions, Inc.

 

By:                  /s/ William F. Donovan CEO                                          

William F. Donovan, President and Chief Executive Officer

 

 

 

 

 

 

 

Secured Promissory Note – Page 7

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