Document:

Exhibit
10.16 

 

PLEDGE
AGREEMENT

 

THIS
PLEDGE AGREEMENT (“this Agreement”) dated as of August 31, 2016 is made by FRANKLY INC., a British
Columbia corporation (the “Pledgor”), in favor of RAYCOM MEDIA, INC., a Delaware corporation (the “Lender”).

 

recitals

 

A.       Pursuant
to that certain Credit Agreement dated August 31, 2016 between the Pledgor and the Lender (the “Credit Agreement”),
the Lender has agreed to provide certain loan facilities to the Pledgor (the “Loans”).

 

B.       In
order to secure the Borrower’s Obligations to the Lender under the Credit Agreement, Pledgor will pledge the Collateral
(as hereinafter defined), all as hereinafter set forth.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, to induce the Lender to extend credit to the Pledgor, the Pledgor hereby agrees as follows:

 

1.       Pledge
and Grant of Security Interest. The Pledgor hereby pledges, assigns and delivers to the Lender, and grants to the Lender a
Lien upon and security interest in, all of the Pledgor’s right, title and interest in and to the following, in each case
whether now owned or existing or hereafter acquired or arising (collectively, the “Collateral”):

 

(i)       all
of the issued and outstanding shares, interests or other equivalents of capital stock of each Person that is a direct Subsidiary
of the Pledgor as of the date hereof or that becomes a direct Subsidiary of the Pledgor at any time after the date hereof, at
any time now or hereafter owned by the Pledgor, whether voting or non-voting and whether common or preferred; all partnership,
joint venture, limited liability company, trust or other equity interests in each Person not a corporation that is a direct Subsidiary
of the Pledgor as of the date hereof or that becomes a direct Subsidiary of the Pledgor at any time after the date hereof, at
any time now or hereafter owned by the Pledgor; all options, warrants and other rights to acquire, and all securities convertible
into, any of the foregoing; all rights to receive interest, income, dividends, distributions, returns of capital and other amounts
(whether in cash, securities, property, or a combination thereof), and all additional stock, warrants, options, securities, interests
and other property, from time to time paid or payable or distributed or distributable in respect of any of the foregoing (but
subject to the provisions of Section 7), including, without limitation, all rights of the Pledgor to receive amounts due
and to become due under or in respect of any partnership agreement, joint venture agreement, limited liability company operating
agreement, stockholders agreement, trust agreement or other agreement creating, governing or evidencing any such capital stock
or equity interests and to which the Pledgor is now or hereafter becomes a party, as any such agreement may be amended, modified,
supplemented, restated or replaced from time to time (collectively, “Ownership Agreements”) or upon the termination
thereof; all rights of access to the books and records of any such Subsidiary; and all other rights, powers, privileges, interests,
claims and other property in any manner arising out of or relating to any of the foregoing, of whatever kind or character (including
any tangible or intangible property or interests therein), and whether provided by contract or granted or available under applicable
law in connection therewith, including, without limitation, the Pledgor’s right to vote and to manage and administer the
business of any such Subsidiary pursuant to any applicable Ownership Agreement; together with all certificates, instruments and
entries upon the books of financial intermediaries at any time evidencing any of the foregoing, in each case whether now owned
or existing or hereafter acquired or arising (collectively, the “Pledged Interests”); and

 

    	 	 	 

     

    

 

(ii)       any
and all proceeds (as defined in the Uniform Commercial Code) of or from any and all of the foregoing and, to the extent not otherwise
included in the foregoing, (y) all payments under any insurance (whether or not the Lender is the loss payee thereunder), indemnity,
warranty or guaranty with respect to any of the foregoing Collateral and (z) all other amounts from time to time paid or payable
under or with respect to any of the foregoing Collateral (collectively, “Proceeds”). For purposes of this Agreement,
the term “Proceeds” includes whatever is receivable or received when Collateral or Proceeds are sold, exchanged, collected
or otherwise disposed of, whether voluntarily or involuntarily.

 

2.       Security
for Secured Obligations. This Agreement and the Collateral secure the full and prompt payment, at any time and from time to
time as and when due (whether at the stated maturity, by acceleration or otherwise), of all Borrower’s Obligations under
the Credit Agreement and the other Loan Documents, including, without limitation, all principal of and interest on the Loans,
all fees, expenses, indemnities and other amounts payable by the Pledgor under the Credit Agreement or any other Loan Document
(including interest accruing after the filing of a petition or commencement of a case by or with respect to the Pledgor seeking
relief under any applicable federal and state laws pertaining to bankruptcy, reorganization, arrangement, moratorium, readjustment
of debts, dissolution, liquidation or other debtor relief, specifically including, without limitation, the Bankruptcy Code and
any fraudulent transfer and fraudulent conveyance laws, whether or not the claim for such interest is allowed in such proceeding),
and (i) all such liabilities and obligations that, but for the operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, would become due, and (ii) all fees, costs and expenses payable by the Pledgor under Section 11, whether now existing
or hereafter created or arising and whether direct or indirect, absolute or contingent, due or to become due (the liabilities
and obligations of the Pledgor described in this Section 2, collectively, the “Secured Obligations”).

 

3.       Representations
and Warranties. The Pledgor represents and warrants as follows:

 

(a)       As
of the date hereof, the Pledged Interests required to be pledged hereunder by the Pledgor consist of the number and type of shares
of capital stock (in the case of issuers that are corporations) or the percentage and type of other Pledged Interests (in the
case of issuers other than corporations) as described in Annex A. All of the Pledged Interests have been duly and validly
issued and are fully paid and nonassessable (or, in the case of partnership, limited liability company or similar Pledged Interests,
not subject to any capital call or other additional capital requirement) and not subject to any preemptive rights, warrants, options
or similar rights or restrictions in favor of third parties or any contractual or other restrictions upon transfer. As to each
issuer thereof, the Pledged Interests pledged hereunder constitute 100% of the outstanding capital stock of or other equity interests
in such issuer.

 

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(b)       The
Pledgor owns all Pledged Interests purported to be pledged by it hereunder, free and clear of any Liens except for the Liens granted
to the Lender, pursuant to this Agreement. As of the date hereof and after giving effect to the consummation of the transactions
contemplated by the Credit Agreement, no security agreement, financing statement or other public notice with respect to all or
any part of the Collateral is on file or of record in any government or public office (except for filings with respect to which
termination statements and other necessary releases have been delivered to the Lender for filing), and the Pledgor has not filed
or consented to the filing of any such statement or notice, except Uniform Commercial Code financing statements naming the Lender
as secured party.

 

(c)       This
Agreement, together with (i) in the case of uncertificated Pledged Interests, (x) the filing of a duly completed Uniform Commercial
Code financing statement naming the Pledgor as debtor, the Lender as secured party, and describing such Collateral, in the jurisdiction
in which the Pledgor is incorporated or organized (which jurisdiction, together with the location of the Pledgor’s chief
executive office, is set forth beneath the Pledgor’s name on Annex B hereto), and (y) registration of transfer thereof
to the Lender on the issuer’s books or the execution by the issuer of a control agreement in the form sent forth on Exhibit
B satisfying the requirements of Section 8-106 (or its successor provision) of the Uniform Commercial Code, and (ii) the delivery
to the Lender of all certificates and instruments included in the Collateral (and assuming continued possession thereof by the
Lender), creates, and at all times shall constitute, a valid and perfected security interest in and Lien upon the Collateral in
favor of the Lender to the extent a security interest therein can be perfected by such filings or possession, as applicable, superior
and prior to the rights of all other Persons therein except for the security interest created by this Agreement, and no other
or additional filings, registrations, recordings or actions are or shall be necessary or appropriate in order to maintain the
perfection and priority of such Lien and security interest except for continuation statements required under the Uniform Commercial
Code.

 

(d)       No
authorization, consent or approval of, or declaration or filing with, any Governmental Authority is required for the valid execution,
delivery and performance by the Pledgor of this Agreement, the grant by it of the Lien and security interest in favor of the Lender
provided for herein, or the exercise by the Lender of its rights and remedies hereunder, except for (i) the Uniform Commercial
Code filings with respect to any Pledged Interests in any partnership or limited liability company, as described in Section
13(c), and (ii) such filings and approvals as may be required in connection with a disposition of any of the Pledged Interests
by laws affecting the offering and sale of securities generally.

 

4.       Delivery
of Collateral. All certificates or instruments representing or evidencing any Collateral shall be delivered to and held by
or on behalf of the Lender pursuant hereto, shall be in form suitable for transfer by delivery and shall be delivered together
with undated instruments of transfer or assignment duly executed in blank, appropriate endorsements or other necessary instruments
of registration, transfer or assignment, duly executed and in form and substance satisfactory to the Lender, and in each case
such other instruments or documents as the Lender may reasonably request.

 

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5.       Certain
Covenants.

 

(a)       If
the Pledgor shall, at any time and from time to time after the date hereof, acquire any additional capital stock or other Pledged
Interests in any Person of the types described in the definition of the term “Pledged Interests,” the same shall be
automatically deemed to be Pledged Interests hereunder, and to be pledged to the Lender pursuant to Section 1 and the Pledgor
will forthwith pledge and deposit the same with the Lender and deliver to the Lender any certificates therefor, together with
undated instruments of transfer or assignment, duly executed in blank and in form and substance reasonably satisfactory to the
Lender, together with such other certificates and instruments as the Lender may reasonably request (including Uniform Commercial
Code financing statements or appropriate amendments thereto), and will promptly thereafter deliver to the Lender a fully completed
and duly executed amendment to this Agreement in the form of Exhibit A (each, a “Pledge Amendment”) in
respect thereof. The Pledgor hereby authorizes the Lender to attach each such Pledge Amendment to this Agreement, and agrees that
all such Collateral listed on any Pledge Amendment shall for all purposes be deemed Collateral hereunder and shall be subject
to the provisions hereof; provided that the failure of the Pledgor to execute and deliver any Pledge Amendment with respect
to any such additional Collateral as required hereinabove shall not impair the security interest of the Lender in such Collateral
or otherwise adversely affect the rights and remedies of the Lender hereunder with respect thereto. Further, the Pledgor will
not (i) change its name, identity or corporate structure, (ii) change its chief executive office from the location thereof listed
on Annex B, or (iii) change the jurisdiction of its incorporation or organization from the jurisdiction listed on Annex
B (whether by merger or otherwise), unless in each case the Pledgor has (1) given twenty (20) days’ prior written notice
to the Lender of its intention to do so, together with information regarding any such new location and such other information
in connection with such proposed action as the Lender may reasonably request, and (2) delivered to the Lender ten (10) days prior
to any such change or removal such documents, instruments and financing statements as may be reasonably required by the Lender,
all in form and substance reasonably satisfactory to the Lender, paid all necessary filing and recording fees and taxes, and taken
all other actions reasonably requested by the Lender (including, at the request of the Lender, delivery of opinions of counsel
reasonably satisfactory to the Lender to the effect that all such actions have been taken), in order to perfect and maintain the
Lien upon and security interest in the Collateral provided for herein in accordance with the provisions of Section 3(c).

 

(b)       If
any Pledged Interests (whether now owned or hereafter acquired) included in the Collateral are “uncertificated securities”
within the meaning of the Uniform Commercial Code or are otherwise not evidenced by any certificate or instrument, the Pledgor
will promptly notify the Lender thereof and will promptly take and cause to be taken, and will (if the issuer of such uncertificated
securities is a Person other than a Subsidiary of the Pledgor) use commercially reasonable efforts to cause the issuer to take,
all actions required under Articles 8 and 9 of the Uniform Commercial Code and any other applicable law, to enable the Lender
to acquire “control” of such uncertificated securities (within the meaning of such term under Section 8-106 (or its
successor provision) of the Uniform Commercial Code) and as may be otherwise necessary to perfect the security interest of the
Lender therein.

 

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(c)       The
Pledgor will not sell or otherwise dispose of, grant any option with respect to, or mortgage, pledge, grant any Lien with respect
to or otherwise encumber any of the Collateral or any interest therein, except for the security interest created in favor of the
Lender hereunder and except as may be otherwise expressly permitted in accordance with the terms of this Agreement and the Credit
Agreement (including any applicable provisions therein regarding delivery of proceeds of sale or disposition to the Lender).

 

(d)       The
Pledgor will cause the Pledged Interests in each issuer pledged hereunder to constitute at all times 100% of the capital stock
or other Pledged Interests in such issuer, such that the issuer shall be a direct or indirect wholly owned Subsidiary of the Pledgor
and unless the Lender shall have given its prior written consent, the Pledgor will cause or permit any such issuer to issue or
sell any new capital stock, any warrants, options or rights to acquire the same, or other Pledged Interests of any nature to any
Person other than the Pledgor, or cause, permit or consent to the admission of any other Person as a stockholder, partner or member
of any such issuer.

 

(e)       The
Pledgor agrees that it will, at its own cost and expense, take any and all actions necessary to warrant and defend the right,
title and interest of the Lender in and to the Collateral against the claims and demands of all other Persons.

 

6.       Voting Rights. So long as no Event of Default shall have occurred and be
continuing, the Pledgor shall be entitled to exercise all voting and other consensual rights pertaining to its Pledged
Interests (subject to its obligations under Section 5(a) and for that purpose the Lender will execute and deliver or
cause to be executed and delivered to the Pledgor all such proxies and other instruments as the Pledgor may reasonably
request in writing to enable the Pledgor to exercise such voting and other consensual rights; provided, however,
that the Pledgor will not cast any vote, give any consent, waiver or ratification, or take or fail to take any action, in any
manner that would, or could reasonably be expected to, violate or be inconsistent with any of the terms of this Agreement,
the Credit Agreement or any other Loan Document or have the effect of materially and adversely impairing the position or
interests of the Lender.

 

7.       Dividends
and Other Distributions. So long as no Event of Default shall have occurred and be continuing (or would occur as a result
thereof), and except as provided otherwise herein, all interest, income, dividends, distributions and other amounts payable in
cash in respect of the Pledged Interests may be paid to and retained by the Pledgor; provided, however, that all
such interest, income, dividends, distributions and other amounts shall, at all times after the occurrence and during the continuance
of an Event of Default, be paid to the Lender and retained by it as part of the Collateral (except to the extent applied upon
receipt to the repayment of the Secured Obligations). The Lender shall also be entitled at all times (whether or not during the
continuance of an Event of Default) to receive directly, and to retain as part of the Collateral, (i) all interest, income, dividends,
distributions or other amounts paid or payable in cash or other property in respect of any Pledged Interests in connection with
the dissolution, liquidation, recapitalization or reclassification of the capital of the applicable issuer to the extent representing
(in the reasonable judgment of the Lender) an extraordinary, liquidating or other distribution in return of capital, (ii) all
additional Pledged Interests or other securities or property (other than cash) paid or payable or distributed or distributable
in respect of any Pledged Interests in connection with any noncash dividend, distribution, return of capital, spin-off, stock
split, split-up, reclassification, combination of shares or interests or similar rearrangement, and (iii) without affecting any
restrictions against such actions contained in the Credit Agreement, all additional Pledged Interests or other securities or property
(including cash) paid or payable or distributed or distributable in respect of any Pledged Interests in connection with any consolidation,
merger, exchange of securities, liquidation or other reorganization. All interest, income, dividends, distributions or other amounts
that are received by the Pledgor in violation of the provisions of this Section shall be received in trust for the benefit of
the Lender, shall be segregated from other property or funds of the Pledgor and shall be forthwith delivered to the Lender as
Collateral in the same form as so received (with any necessary endorsements). Any and all money and other property paid over to
or received by the Lender pursuant to the provisions of this Section shall be retained by the Lender in a Collateral Account (as
hereinafter defined) upon receipt of such money or other property and shall be applied in accordance with the provisions of Section
9. The Lender shall, within five Business Days after all Events of Default have been cured or waived, repay to the Pledgor
all cash interest, income, dividends, distributions and other amounts that the Pledgor would otherwise be permitted to retain
pursuant to the provisions of this Section and that remain in such Collateral Account.

 

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8.       Remedies.
If an Event of Default shall have occurred and be continuing, the Lender shall be entitled to exercise in respect of the Collateral
all of its rights, powers and remedies provided for herein or otherwise available to it under any other Loan Document, by law,
in equity or otherwise, including all rights and remedies of a secured party under the Uniform Commercial Code, and shall be entitled
in particular, but without limitation of the foregoing, to exercise the following rights, which the Pledgor agrees to be commercially
reasonable:

 

(a)       To
transfer to or register in its name or the name of any of its agents or nominees all or any part of the Collateral, without notice
to the Pledgor and with or without disclosing that such Collateral is subject to the security interest created hereunder;

 

(b)       To
exercise (i) all voting, consensual and other rights and powers pertaining to the Pledged Interests (whether or not transferred
into the name of the Lender), at any meeting of shareholders, partners, members or otherwise, and (ii) any and all rights of conversion,
exchange, subscription and any other rights, privileges or options pertaining to the Pledged Interests as if it were the absolute
owner thereof (including, without limitation, the right to exchange at its discretion any and all of the Pledged Interests upon
the merger, consolidation, reorganization, reclassification, combination of shares or interests, similar rearrangement or other
similar fundamental change in the structure of the applicable issuer, or upon the exercise by the Pledgor or the Lender of any
right, privilege or option pertaining to such Pledged Interests), and in connection therewith, the right to deposit and deliver
any and all of the Pledged Interests with any committee, depositary, transfer agent, registrar or other designated agency upon
such terms and conditions as the Lender may determine, and give all consents, waivers and ratifications in respect of the Pledged
Interests, all without liability except to account for any property actually received by it, but the Lender shall have no duty
to exercise any such right, privilege or option or give any such consent, waiver or ratification and shall not be responsible
for any failure to do so or delay in so doing; and for the foregoing purposes the Pledgor will promptly execute and deliver or
cause to be executed and delivered to the Lender, upon request, all such proxies and other instruments as the Lender may reasonably
request to enable the Lender to exercise such rights and powers; AND IN FURTHERANCE OF THE FOREGOING AND WITHOUT LIMITATION THEREOF,
THE PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE LENDER AS THE TRUE AND LAWFUL PROXY AND ATTORNEY-IN-FACT OF THE PLEDGOR,
WITH FULL POWER OF SUBSTITUTION IN THE PREMISES, TO EXERCISE ALL SUCH VOTING, CONSENSUAL AND OTHER RIGHTS AND POWERS TO WHICH
ANY HOLDER OF ANY PLEDGED INTERESTS WOULD BE ENTITLED BY VIRTUE OF HOLDING THE SAME, WHICH PROXY AND POWER OF ATTORNEY, BEING
COUPLED WITH AN INTEREST, IS IRREVOCABLE AND SHALL BE EFFECTIVE FOR SO LONG AS THIS AGREEMENT SHALL BE IN EFFECT; and

 

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(c)       To
sell, resell, assign and deliver, in its sole discretion, all or any of the Collateral, in one or more parcels, on any securities
exchange on which any Pledged Interests may be listed, at public or private sale, at any of the Lender’s offices or elsewhere,
for cash, upon credit or for future delivery, at such time or times and at such price or prices and upon such other terms as the
Lender may deem satisfactory. If any of the Collateral is sold by the Lender upon credit or for future delivery, the Lender shall
not be liable for the failure of the purchaser to purchase or pay for the same and, in the event of any such failure, the Lender
may resell such Collateral. In no event shall the Pledgor be credited with any part of the Proceeds of sale of any Collateral
until and to the extent cash payment in respect thereof has actually been received by the Lender. Each purchaser at any such sale
shall hold the property sold absolutely, free from any claim or right of whatsoever kind, including any equity or right of redemption
of the Pledgor, and the Pledgor hereby expressly waives all rights of redemption, stay or appraisal, and all rights to require
the Lender to marshal any assets in favor of the Pledgor or any other party or against or in payment of any or all of the Secured
Obligations, that it has or may have under any rule of law or statute now existing or hereafter adopted. No demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law, as referred to below), all of which are hereby
expressly waived by the Pledgor, shall be required in connection with any sale or other disposition of any part of the Collateral.
If any notice of a proposed sale or other disposition of any part of the Collateral shall be required under applicable law, the
Lender shall give the Pledgor at least ten (10) days’ prior notice of the time and place of any public sale and of the time
after which any private sale or other disposition is to be made, which notice the Pledgor agrees is commercially reasonable. The
Lender shall not be obligated to make any sale of Collateral if it shall determine not to do so, regardless of the fact that notice
of sale may have been given. The Lender may, without notice or publication, adjourn any public or private sale or cause the same
to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice,
be made at the time and place to which the same was so adjourned. Upon each public sale and, to the extent permitted by applicable
law, upon each private sale, the Lender may purchase all or any of the Collateral being sold, free from any equity, right of redemption
or other claim or demand, and may make payment therefor by endorsement and application (without recourse) of the Secured Obligations
in lieu of cash as a credit on account of the purchase price for such Collateral.

 

9.       Application
of Proceeds.

 

(a)       All
Proceeds collected by the Lender upon any sale, other disposition of or realization upon any of the Collateral, together with
all other moneys received by the Lender hereunder, shall be applied in accordance with the provisions of the Credit Agreement.

 

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(b)       In
the event that the proceeds of any such sale, disposition or realization are insufficient to pay all amounts to which the Lender
is legally entitled, the Pledgor shall be liable for the deficiency, together with interest thereon at the highest rate specified
in any applicable Loan Document for interest on overdue principal or such other rate as shall be fixed by applicable law, together
with the costs of collection and all other fees, costs and expenses payable hereunder.

 

(c)       Upon
any sale of any Collateral hereunder by the Lender (whether by virtue of the power of sale herein granted, pursuant to judicial
proceeding, or otherwise), the receipt of the Lender or the officer making the sale shall be a sufficient discharge to the purchaser
or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of
any part of the purchase money paid over to the Lender or such officer or be answerable in any way for the misapplication thereof.

 

(d)       Upon
the occurrence and during the continuance of an Event of Default, the Lender shall have the right to cause to be established and
maintained, one or more accounts (collectively, “Collateral Accounts”) for the collection of cash Proceeds of
the Collateral. Such Proceeds, when deposited, shall continue to constitute Collateral for the Secured Obligations and shall not
constitute payment thereof until applied as herein provided. The Lender shall have sole dominion and control over all funds deposited
in any Collateral Account, and such funds may be withdrawn therefrom only by the Lender. Upon the occurrence and during the continuance
of an Event of Default, the Lender shall have the right to apply amounts held in the Collateral Accounts in payment of the Secured
Obligations in the manner provided for in the Credit Agreement.

 

10.       Registration;
Private Sales.

 

(a)       If,
at any time after the occurrence and during the continuance of an Event of Default, the Pledgor shall have received from the Lender
a written request or requests that the Pledgor cause any registration, qualification or compliance under any federal or state
securities law or laws to be effected with respect to all or any part of the Pledged Interests, the Pledgor will, as soon as practicable
and at its expense, use its best efforts to cause such registration to be effected and be kept effective and will use its best
efforts to cause such qualification and compliance to be effected and be kept effective as may be so requested and as would permit
or facilitate the sale and distribution of such Pledged Interests, including, without limitation, registration under the Securities
Act of 1933, as amended (the “Securities Act”), appropriate qualifications under applicable blue sky or other
state securities laws and appropriate compliance with any other applicable requirements of Governmental Authorities; provided,
that the Lender shall furnish to the Pledgor such information regarding the Lender as the Pledgor may reasonably request in writing
and as shall be required in connection with any such registration, qualification or compliance. The Pledgor will cause the Lender
to be kept reasonably advised in writing as to the progress of each such registration, qualification or compliance and as to the
completion thereof, will furnish to the Lender such number of prospectuses, offering circulars or other documents incident thereto
as the Lender from time to time may reasonably request, and will indemnify the Lender and all others participating in the distribution
of such Pledged Interests against all claims, losses, damages and liabilities caused by any untrue statement (or alleged untrue
statement) of a material fact contained therein (or in any related registration statement, notification or the like) or by any
omission (or alleged omission) to state therein (or in any related registration statement, notification or the like) a material
fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same may
have been caused by an untrue statement or omission based upon information furnished in writing to the Pledgor by the Lender expressly
for use therein.

 

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(b)       The
Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act and applicable state securities laws
as in effect from time to time, the Lender may be compelled, with respect to any sale of all or any part of the Pledged Interests
conducted without registration or qualification under the Securities Act and such state securities laws, to limit purchasers to
any one or more Persons who will represent and agree, among other things, to acquire such Pledged Interests for their own account,
for investment and not with a view to the distribution or resale thereof. The Pledgor acknowledges that any such private sales
may be made in such manner and under such circumstances as the Lender may deem necessary or advisable in its sole and absolute
discretion, including at prices and on terms that might be less favorable than those obtainable through a public sale without
such restrictions (including, without limitation, a public offering made pursuant to a registration statement under the Securities
Act), and, notwithstanding such circumstances, agrees that any such sale shall not be deemed not to have been made in a commercially
reasonable manner solely because it was conducted as a private sale, and agrees that the Lender shall have no obligation to conduct
any public sales and no obligation to delay the sale of any Pledged Interests for the period of time necessary to permit its registration
for public sale under the Securities Act and applicable state securities laws, and shall not have any responsibility or liability
as a result of its election so not to conduct any such public sales or delay the sale of any Pledged Interests, notwithstanding
the possibility that a substantially higher price might be realized if the sale were deferred until after such registration. The
Pledgor hereby waives any claims against the Lender or any other Lender arising by reason of the fact that the price at which
any Pledged Interests may have been sold at any private sale was less than the price that might have been obtained at a public
sale or was less than the aggregate amount of the Secured Obligations, even if the Lender accepts the first offer received and
does not offer such Pledged Interests to more than one offeree.

 

(c)       The
Pledgor agrees that a breach of any of the covenants contained in this Section will cause irreparable injury to the Lender, that
the Lender has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained
in this Section shall be specifically enforceable against the Pledgor.

 

11.       Indemnity
and Expenses. The Pledgor agrees:

 

(a)       To
indemnify and hold harmless the Lender and each of its directors, officers, employees, agents and affiliates from and against
any and all claims, damages, demands, losses, obligations, judgments and liabilities (including, without limitation, reasonable
attorneys’ fees and expenses) in any way arising out of or in connection with this Agreement and the transactions contemplated
hereby, except to the extent the same shall arise as a result of the gross negligence or willful misconduct of the party seeking
to be indemnified; and

 

(b)       To
pay and reimburse the Lender upon demand for all reasonable costs and expenses (including, without limitation, reasonable attorneys’
fees and expenses) that the Lender may incur in connection with (i) the custody, use or preservation of, or the sale of, collection
from or other realization upon, any of the Collateral, including the reasonable expenses of re-taking, holding, preparing for
sale or lease, selling or otherwise disposing of or realizing on the Collateral, (ii) the exercise or enforcement of any rights
or remedies granted hereunder, under any of the other Loan Documents or otherwise available to it (whether at law, in equity or
otherwise), or (iii) the failure by the Pledgor to perform or observe any of the provisions hereof. The provisions of this Section
shall survive the execution and delivery of this Agreement, the repayment of any of the Secured Obligations, and the termination
of this Agreement or any other Loan Document.

 

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12.       Standard
of Care. The Lender will hold all items of the Collateral at any time received under this Agreement in accordance with the
provisions hereof. The obligations of the Lender as holder of the Collateral and interests therein and with respect to the disposition
thereof, and otherwise under this Agreement and the other Loan Documents, are only those expressly set forth in this Agreement
and the other Loan Documents. The powers conferred on the Lender hereunder are solely to protect its interest in the Collateral,
and shall not impose any duty upon it to exercise any such powers. Except for treatment of the Collateral in its possession in
a manner substantially equivalent to that which the Lender, in its individual capacity, accords its own property of a similar
nature, and the accounting for moneys actually received by it hereunder, the Lender shall have no duty as to any Collateral or
as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to the Collateral.
The Lender shall not be liable to the Pledgor (i) for any loss or damage sustained by the Pledgor, or (ii) for any loss, damage,
depreciation or other diminution in the value of any of the Collateral that may occur as a result of or in connection with or
that is in any way related to any exercise by the Lender of any right or remedy under this Agreement, any failure to demand, collect
or realize upon any of the Collateral or any delay in doing so, or any other act or failure to act on the part of the Lender,
except to the extent that the same is caused by its own gross negligence or willful misconduct.

 

13.       Further
Assurances; Attorney-in-Fact.

 

(a)       The
Pledgor agrees that it will join with the Lender to execute and, at its own expense, file and refile under the Uniform Commercial
Code such financing statements, continuation statements and other documents and instruments in such offices as the Lender may
reasonably deem necessary or appropriate, and wherever required or permitted by law, in order to perfect and preserve the Lender’s
security interest in the Collateral, and hereby authorizes the Lender to file financing statements and amendments thereto relating
to all or any part of the Collateral where permitted by law, and agrees to do such further acts and things and to execute and
deliver to the Lender such additional conveyances, assignments, agreements and instruments as the Lender may reasonably require
to perfect, establish, confirm and maintain the security interest and Lien provided for herein, to carry out the purposes of this
Agreement or to further assure and confirm unto the Lender its rights, powers and remedies hereunder.

 

(b)       The
Pledgor hereby irrevocably appoints the Lender its lawful attorney-in-fact, with full authority in the place and stead of the
Pledgor and in the name of the Pledgor, the Lender or otherwise, and with full power of substitution in the premises (which power
of attorney, being coupled with an interest, is irrevocable for so long as this Agreement shall be in effect), from time to time
in the Lender’s discretion after the occurrence and during the continuance of an Event of Default (except for the actions
described in clause (i) below, which may be taken by the Lender without regard to whether an Event of Default has occurred) to
take any action and to execute any instruments that the Lender may deem necessary or advisable to accomplish the purpose of this
Agreement, including, without limitation;

 

    	 	 	10

     

    

 

(i)       to
sign the name of the Pledgor on any notice or other similar document that, in the Lender’s opinion, should be made or filed
in order to perfect or continue perfected the security interest granted under this Agreement;

 

(ii)       to
ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral;

 

(iii)       to
receive, endorse and collect any checks, drafts, instruments, chattel paper and other orders for the payment of money made payable
to the Pledgor representing any interest, income, dividend, distribution or other amount payable in respect of any of the Collateral
and to give full discharge for the same;

 

(iv)       to
file any claims or take any action or institute any proceedings that the Lender may deem necessary or advisable for the collection
of any of the Collateral or otherwise to enforce the rights of the Lender with respect to any of the Collateral; and

 

(v)       to
use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal with any and all of the Collateral as
fully and completely as though the Lender were the absolute owner of the Collateral for all purposes, and to do from time to time,
at the Lender’s option and the Pledgor’s expense, all other acts and things deemed necessary by the Lender to protect,
preserve or realize upon the Collateral and to more completely carry out the purposes of this Agreement.

 

(c)       If
the Pledgor fails to perform any covenant or agreement contained in this Agreement after written request to do so by the Lender
(provided that no such request shall be necessary at any time after the occurrence and during the continuance of an Event
of Default), the Lender may itself perform, or cause the performance of, such covenant or agreement and may take any other action
that it deems necessary and appropriate for the maintenance and preservation of the Collateral or its security interest therein,
and the reasonable expenses so incurred in connection therewith shall be payable by the Pledgor under Section 11.

 

14.       The
Pledgor Remains Liable. Notwithstanding anything herein to the contrary, (i) the Pledgor shall remain liable under all Ownership
Agreements to which it is a party to perform all of its obligations thereunder to the same extent as if this Agreement had not
been executed, (ii) the exercise by the Lender of any of its rights or remedies hereunder shall not release the Pledgor from any
of its obligations under any of such Ownership Agreements, and (iii) except as specifically provided for hereinbelow, the Lender
shall not have any obligation or liability by reason of this Agreement under any of such Ownership Agreements, nor shall the Lender
be obligated to perform any of the obligations or duties of the Pledgor thereunder or to take any action to collect or enforce
any claim for payment assigned hereunder. This Agreement shall not in any way be deemed to obligate the Lender or any purchaser
at a foreclosure sale under this Agreement to assume any of the Pledgor’s obligations, duties or liabilities under any Ownership
Agreement, including, without limitation, the Pledgor’s obligations, if any, to manage the business and affairs of the applicable
partnership, joint venture, limited liability company or other issuer (collectively, the “Equity Owner Obligations”),
unless the Lender or such other purchaser otherwise agrees in writing to assume any or all of such Equity Owner Obligations. In
the event of foreclosure by the Lender hereunder, then except as provided in the preceding sentence, the Pledgor shall remain
bound and obligated to perform its Equity Owner Obligations and the Lender shall not be deemed to have assumed any Equity Owner
Obligations. In the event the Lender or any purchaser at a foreclosure sale elects to become a substitute partner or member in
place of the Pledgor, the party making such election shall adopt in writing such Ownership Agreement and agree to be bound by
the terms and provisions thereof; and subject to the execution of such written agreement, the Pledgor hereby irrevocably consents
in advance to the admission of the Lender or any such purchaser as a substitute partner or member to the extent of the Pledged
Interests acquired pursuant to such sale, and agrees to execute any documents or instruments and take any other action as may
be necessary or as may be reasonably requested in connection therewith. The powers, rights and remedies conferred on the Lender
hereunder are solely to protect its interest and privilege in such Ownership Agreements, as Collateral, and shall not impose any
duty upon it to exercise any such powers, rights or remedies.

 

    	 	 	11

     

    

 

15.       Waivers.
The Pledgor, to the greatest extent not prohibited by applicable law, hereby (i) agrees that it will not invoke, claim or assert
the benefit of any rule of law or statute now or hereafter in effect (including, without limitation, any right to prior notice
or judicial hearing in connection with the Lender’s possession, custody or disposition of any Collateral or any appraisal,
valuation, stay, extension, moratorium or redemption law), or take or omit to take any other action, that would or could reasonably
be expected to have the effect of delaying, impeding or preventing the exercise of any rights and remedies in respect of the Collateral,
the absolute sale of any of the Collateral or the possession thereof by any purchaser at any sale thereof, and waives the benefit
of all such laws and further agrees that it will not hinder, delay or impede the execution of any power granted hereunder to the
Lender, but that it will permit the execution of every such power as though no such laws were in effect, (ii) waives all rights
that it has or may have under any rule of law or statute now existing or hereafter adopted to require the Lender to marshal any
Collateral or other assets in favor of the Pledgor or any other party or against or in payment of any or all of the Secured Obligations,
and (iii) waives all rights that it has or may have under any rule of law or statute now existing or hereafter adopted to demand,
presentment, protest, advertisement or notice of any kind (except notices expressly provided for herein).

 

16.       No
Waiver. The rights and remedies of the Lender expressly set forth in this Agreement and the other Loan Documents are cumulative
and in addition to, and not exclusive of, all other rights and remedies available at law, in equity or otherwise. No failure or
delay on the part of the Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any
other right, power or privilege or be construed to be a waiver of any Default or Event of Default. No course of dealing between
the Pledgors and the Lender or their agents or employees shall be effective to amend, modify or discharge any provision of this
Agreement or any other Loan Document or to constitute a waiver of any Default or Event of Default. No notice to or demand upon
the Pledgor in any case shall entitle the Pledgor to any other or further notice or demand in similar or other circumstances or
constitute a waiver of the right of any Lender to exercise any right or remedy or take any other or further action in any circumstances
without notice or demand.

 

    	 	 	12

     

    

 

17.       [Intentionally
deleted].

 

18.       Amendments,
Waivers, etc. No amendment, modification, waiver, discharge or termination of, or consent to any departure by the Pledgor
from, any provision of this Agreement, shall be effective unless in a writing signed by the Lender, and then the same shall be
effective only in the specific instance and for the specific purpose for which given.

 

19.       Continuing
Security Interest; Term; Successors and Assigns; Assignment; Termination and Release; Survival. This Agreement shall create
a continuing security interest in the Collateral and shall secure the payment and performance of all of the Secured Obligations
as the same may arise and be outstanding at any time and from time to time from and after the date hereof, and shall (i) remain
in full force and effect until the occurrence of the Termination Requirements (as hereinafter defined), (ii) be binding upon and
enforceable against the Pledgor and its successors and assigns (provided, however, that the Pledgor may not sell,
assign or transfer any of its rights, interests, duties or obligations hereunder without the prior written consent of the Lender)
and (iii) inure to the benefit of and be enforceable by the Lender and its successors and assigns. Upon any sale or other disposition
by the Pledgor of any Collateral in a transaction expressly permitted hereunder or under or pursuant to the Credit Agreement or
any other applicable Loan Document, the Lien and security interest created by this Agreement in and upon such Collateral shall
be automatically released, and upon the satisfaction of all of the Termination Requirements, this Agreement and the Lien and security
interest created hereby shall automatically terminate; and in connection with any such release or termination, the Lender, at
the request and expense of the Pledgor, will execute and deliver to the Pledgor such documents and instruments evidencing such
release or termination as the Pledgor may reasonably request and will assign, transfer and deliver to the Pledgor, without recourse
and without representation or warranty, such of the Collateral as may then be in the possession of the Lender (or, in the case
of any partial release of Collateral, such of the Collateral so being released as may be in its possession). All representations,
warranties, covenants and agreements herein shall survive the execution and delivery of this Agreement and any Pledge Amendment.
For purposes of this Agreement, “Termination Requirements” shall mean the payment in full in cash of the Secured
Obligations (other than contingent and indemnification obligations not then due and payable).

 

    	 	 	13

     

    

 

20.       Consent
to Jurisdiction; Service of Process. The Pledgor hereby submits to the jurisdiction of any state or federal court sitting
in Montgomery County, Alabama, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document
(an “Agreement Action”) and agrees that all claims and disputes in respect of such action or proceeding may be
heard and determined in such Alabama state court or, to the extent permitted by applicable law, in such federal court. The Pledgor
hereby waives, and hereby acknowledges that it is estopped from raising, to the extent permitted by applicable law, the claims,
objections or defenses of lack of personal jurisdiction, improper venue or inconvenient forum to the maintenance of such action
or proceeding. The Pledgor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by applicable law, and further agrees not to institute
any action or proceeding against the Lender or any director, employee, agent or property of the Lender, concerning any matter
arising out of or relating to any Loan Document or the financing contemplated therein, in any court other than one located in
Montgomery County, Alabama. The Pledgor further consents to the service of process on the Pledgor in any Agreement Action by the
mailing of a copy thereof by registered or certified mail, postage prepaid, to the Pledgor at the Pledgor’s address designated
in or pursuant to Section 22, and agrees that service in such manner shall in every respect be effective and binding on the Pledgor
to the same extent as though served on the Pledgor in person by a person duly authorized to serve such process. THE PLEDGOR AGREES
THAT THE PROVISIONS OF THIS SECTION, EVEN IF FOUND NOT TO BE STRICTLY ENFORCEABLE BY ANY COURT, SHALL CONSTITUTE “FAIR WARNING”
TO THE PLEDGOR THAT THE EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY SUBMIT THE PLEDGOR TO THE JURISDICTION OF
EACH STATE OR FEDERAL COURT SITTING IN MONTGOMERY COUNTY, ALABAMA, WITH RESPECT TO ANY AGREEMENT ACTION, AND THAT IT IS FORESEEABLE
BY THE PLEDGOR THAT THE PLEDGOR MAY BE SUBJECTED TO THE JURISDICTION OF SUCH COURTS AND MAY BE SUED IN THE STATE OF ALABAMA IN
ANY AGREEMENT ACTION. Each agreement or waiver of the Pledgor in this Section is irrevocable and is made voluntarily and knowingly.
Nothing in this Section shall affect or impair the right of the Lender to serve legal process in any manner permitted by law or
to enforce its rights and remedies against the Pledgor or its property in any other court of competent jurisdiction.

 

21.       Other
Terms. All terms in this Agreement that are not capitalized shall, unless the context otherwise requires, have the meanings
provided by the Uniform Commercial Code to the extent the same are used or defined therein. As used in this Agreement, “Uniform
Commercial Code” shall mean the Uniform Commercial Code as the same may be in effect from time to time in the State of Alabama;
provided that if, by reason of applicable law, the validity or perfection of any security interest in any Collateral granted
under this Agreement is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Alabama, then as to
the validity or perfection, as the case may be, of such security interest, “Uniform Commercial Code” shall mean the
Uniform Commercial Code as in effect from time to time in such other jurisdiction.

 

22.       Notices.
All notices and other communications provided for hereunder shall be given to the parties in the manner and subject to the other
notice provisions set forth in the Credit Agreement.

 

23.       Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Alabama (without
regard to the conflicts of law provisions thereof).

 

24.       Severability.
To the extent any provision of this Agreement is prohibited by or invalid under the applicable law of any jurisdiction, such provision
shall be ineffective only to the extent of such prohibition or invalidity and only in such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining provisions of this Agreement in any jurisdiction.

 

    	 	 	14

     

    

 

25.       Construction.
The headings of the various sections and subsections of this Agreement have been inserted for convenience only and shall not in
any way affect the meaning or construction of any of the provisions hereof. Unless the context otherwise requires, words in the
singular include the plural and words in the plural include the singular.

 

26.       Counterparts.
This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of
which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

 

[Remainder
of page intentionally left blank]

 

    	 	 	15

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal by their duly authorized officers as of
the date first above written.

 

	 	FRANKLY
    INC.
	 	 	 
	 	By:	/s/
    Steve Chung
	 	Name:	Steven
    Chung
	 	Title:	Chief
    Executive Officer
	 	 	 

	RAYCOM
    MEDIA, INC., as Lender	 
	 	 	 
	By:	/s/
    Warren Spector	 
	Name:	Warren
    Spector	 
	Title:	Chief
    Financial Officer	 

 

[Signature Page to Pledge Agreement] 

 

    	 	 	

     

    

 

ANNEX
A

 

PLEDGED
INTERESTS

 

	Pledgor	 	Name
    of Issuer	 	Type
    of Interests	 	Certificate
    

    Number (if
 applicable	 	No.
    of Shares/
 Units (if applicable)	 	Percentage
                                         of Outstanding
 interests in
 Issuer
 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
                                         Inc.

                                             
		Frankly
    Media LLC	 	Units	 	N/A	 	99,352,941
    
(common units) 
  
Class A Preferred 
(11,188,316) 
  
Class B Preferred 
(12,984,743)	 	 	100	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Frankly
    Inc.	 	Frankly
    Co.	 	Common
    Stock	 	N/A	 	100	 	 	100	%

 

    	 

    

    

 

ANNEX
B

 

JURISDICTION
OF ORGANIZATION, CERTAIN LOCATIONS

 

	Frankly
    Inc.
	 
	Jurisdiction
    of incorporation/organization: British Columbia
	 
	Chief
    executive office: 333 Bryant Street, Suite 240, San Francisco, CA 94107
	 
	Filing
    location: Ontario, Canada and British Columbia, Canada

 

    	 

    

    

 

EXHIBIT
A

 

PLEDGE
AMENDMENT

 

THIS
PLEDGE AMENDMENT, dated as of ________________, ______, is delivered by FRANKLY INC., a British Columbia corporation (the
“Pledgor”), pursuant to Section 5 of the Pledge Agreement referred to hereinbelow. The Pledgor hereby agrees
that this Pledge Amendment may be attached to the Pledge Agreement, dated as of August ___, 2016, made by the Pledgor in favor
of Raycom Media, Inc. (as amended, modified, restated or supplemented from time to time, the “Pledge Agreement,”
capitalized terms defined therein being used herein as therein defined), and that the Pledged Interests listed on Annex A
to this Pledge Amendment shall be deemed to be part of the Pledged Interests within the meaning of the Pledge Agreement and shall
become part of the Collateral and shall secure all of the Secured Obligations as provided in the Pledge Agreement. This Pledge
Amendment and its attachments are hereby incorporated into the Pledge Agreement and made a part thereof.

 

	 	FRANKLY
    INC.
	 	 	 
	 	By:	 
	 	 	 
		Title:	 

 

    	 

    

    

 

Annex
A

 

Pledged
Interests

 

	 
 
 
Name
                                         of Issuer
	 	 	 	 
 
Type
                                         of
 Interests
	 	 	 
 
Certificate

                                         Number
	 	 	 
 
No.
                                         of shares
 (if
                                         applicable)
	 	 	Percentage
                                         of
 Outstanding
 Interests
 in
                                         Issuer

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 

    

    

 

EXHIBIT
B

 

Control
Agreement

 

This
CONTROL AGREEMENT (“this Agreement”), dated as of ________, 20___, is made among FRANKLY INC., a British
Columbia corporation (the “Pledgor”), RAYCOM MEDIA, INC., a Delaware corporation (the “Lender”),
and ____________________, a ____________ limited liability company (the “LLC”). All references herein to the
“UCC” refer to the Uniform Commercial Code as in effect from time to time in the State of Alabama.

 

WHEREAS,
Pledgor has entered into that certain Credit Agreement dated as of August ____, 2016 (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”) with the Lender;

 

WHEREAS,
the Pledgor is the registered holder of 100% of the equity interest of the LLC (the “Securities”);

 

WHEREAS,
pursuant to the Pledge Agreement, dated as of August ___, 2016 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Pledge Agreement”) by and among the Pledgor and the Lender, the Pledgor has granted a
continuing Lien on and security interest (the “Security Interest”) in, to and under the Securities, whether now
existing or hereafter arising or acquired; capitalized terms used but not otherwise defined herein shall have the meanings assigned
to such terms in the Pledge Agreement;

 

WHEREAS,
it is a condition precedent to the making and maintaining of the Loans by the Lender under the Credit Agreement that the parties
hereto execute and deliver this Agreement in order to perfect the Security Interest in the Securities.

 

NOW,
THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.       The
LLC confirms that:

 

(a)       The
LLC is the issuer of the Securities and the Pledgor is registered on the books and records of the LLC as the registered holder
of the Securities.

 

(b)       The
Security Interest in the Securities is registered on the books and records of the LLC.

 

(c)       The
Securities are fully-paid and nonassessable.

 

2.       The
Pledgor hereby irrevocably agrees that, for so long as this Agreement remains in effect, the Lender shall have exclusive “control”
(within the meaning of Section 8-106 of the UCC) of the Securities. In furtherance of such agreement, the Pledgor hereby irrevocably
authorizes and directs the LLC, and the LLC hereby agrees:

 

    	 

    

    

 

(a)       To
comply with any and all “instructions” (as defined in Section 8-102 of the UCC) originated by the Lender relating to
any or all of the Securities without further consent by the Pledgor or any other Person.

 

(b)       Subject
to the provisions of Section 3 hereof, (i) not to comply with any instructions relating to any or all of the Securities originated
by any Person other than the Lender or a court of competent jurisdiction and (ii) to distribute as instructed by the Lender dividends,
interest and other distributions from time to time paid or made upon or with respect to the Securities. In the event of any conflict
between any instruction originated by the Lender and any instruction originated by any other Person, the LLC shall comply only
with the instruction originated by the Lender.

 

3.       In
addition to, and not in lieu of, the obligation of the LLC to honor instructions as agreed in Section 2 hereof, the LLC and the
Lender hereby agree as follows:

 

(a)       Subject
to the rights of the Pledgor described herein, the LLC agrees that, from and after the date hereof, the Securities shall be under
the exclusive dominion and control of the Lender.

 

(b)       So
long as the LLC has not received a written notice from the Lender that it is exercising exclusive control over the Securities
(a “Notice of Exclusive Control”), the LLC may comply with instructions of the Pledgor concerning the Securities.
After the LLC receives a Notice of Exclusive Control from the Lender, the LLC will not accept any instructions concerning the
Securities from any Person other than the Lender, unless otherwise ordered by a court of competent jurisdiction.

 

(c)       The
LLC shall deliver to the Lender all non-cash dividends, interest and other non-cash distributions paid or made upon or with respect
to the Securities. After the LLC receives a Notice of Exclusive Control from the Lender, the LLC shall deliver to the Lender all
dividends, interest and other distributions paid or made upon or with respect to the Securities.

 

(d)       Until
the LLC receives a Notice of Exclusive Control, the Pledgor shall be entitled to direct the LLC with respect to voting the Securities.

 

(e)       Complete
copies of all notices, statements of accounts, reports, prospectuses, financial statements and other communications to be sent
to the Pledgor by the LLC in respect of the Securities will also be sent simultaneously to the Lender.

 

(f)       All
items of income, gain, expense and loss recognized in respect of the Securities shall be reported to the Internal Revenue Service
and all state and local taxing authorities under the name and taxpayer identification number of the Pledgor.

 

4.       This
Agreement shall not subject the LLC to any obligation or liability except as expressly set forth herein and in Article 8 of the
UCC. In particular, the LLC need not investigate whether the Lender is entitled under the Pledge Agreement or otherwise to give
an instruction or Notice of Exclusive Control.

 

    	 

    

    

 

5.       The
LLC hereby represents, warrants and covenants with the Lender that:

 

(a)       This
Agreement has been duly authorized, executed and delivered by the LLC and constitutes a legal, valid and binding obligation of
the LLC enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally and subject to equitable principles (regardless of whether enforcement
is sought in equity or at law).

 

(b)       The
LLC has not entered into, and until termination of this Agreement will not enter into, any agreement with any other Person relating
to the Securities pursuant to which it has agreed, or will agree, to comply with “instructions” (as defined in Section
8-102 of the UCC) of such Person. The LLC has not entered into any other agreement with the Pledgor or the Lender purporting to
limit or condition the obligation of the LLC to comply with instructions as agreed in Section 2 hereof.

 

(c)       Except
for the claims and interests of the Lender and the Pledgor in the Securities, the LLC does not know of any claim to, or interest
in, the Securities. If any Person asserts any Lien, encumbrance or adverse claim (including any writ, garnishment, judgment, attachment,
execution or similar process) against the Securities, the LLC will promptly notify the Lender and the Pledgor thereof.

 

(d)       There
is no agreement (except this Agreement) between the LLC and the Pledgor with respect to the Securities. In the event of any conflict
between this Agreement (or any portion hereof) and any other agreement with respect to the Securities, whether now existing or
hereafter entered into, the terms of this Agreement shall prevail.

 

(e)       The
granting by the Pledgor of the Security Interest in the Securities to the Lender does not violate the charter, by-laws, partnership
agreement, operating agreement or any other agreement governing the LLC or the Securities.

 

6.       The
LLC waives any security interest, Lien or right of set-off that it may now have or hereafter acquire in or with respect to the
Securities. The LLC’s obligations in respect of the Securities will not be subject to deduction, set-off or any other right
in favor of any Person other than the Lender.

 

7.       This
Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

 

8.       Each
notice, request or other communication to a party under this Agreement shall be in writing, will be sent to the party’s
address set forth under its name below or to such other address as the party may notify the other parties and will be effective
on receipt.

 

9.       No
amendment or modification of this Agreement or waiver of any right hereunder shall be binding on any party hereto unless it is
in writing and is signed by all the parties hereto.

 

    	 

    

    

 

10.       The
rights and powers granted herein to the Lender (a) have been granted in order to perfect the Security Interest in the Securities,
(b) are powers coupled with an interest and (c) will not be affected by any bankruptcy of the Pledgor or any lapse in time. The
obligations of the LLC hereunder shall continue in effect until the Lender has notified the LLC in writing that the Security Interest
in the Securities has been terminated pursuant to the Pledge Agreement.

 

11.       This
Agreement shall be governed by and construed in accordance with the laws of the State of Alabama.

 

12.       If
any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction.

 

13.       This
Agreement may be executed in counterparts.

 

[Remainder
of page intentionally left blank]

 

    	 

    

    

 

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

 

	FRANKLY
    INC.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:		 

 

	[NAME
    OF LLC]	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 

 

	RAYCOM
    MEDIA, INC., as Lender	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:EXHIBIT 10.17 

 

SECURITY AGREEMENT

 

This
SECURITY AGREEMENT (“this Security Agreement”) is made as of the 31st day of August, 2016, by FRANKLY INC., a corporation
existing under the laws of the Province of British Columbia (“Debtor”), in favor of RAYCOM MEDIA, INC., a Delaware corporation
(“Lender”), under that certain Credit Agreement dated August 31, 2016 (as it may be amended or supplemented from time
to time, the “Credit Agreement”) by and among Debtor.

 

W
I T N E S S E T H :

 

WHEREAS,
pursuant to the Credit Agreement, Lender has agreed to provide a loan facility to Debtor (the “Loan”);

 

WHEREAS,
in consideration of the benefits to be derived by Debtor from the Loan, and to induce Lender to extend the Loan to Debtor and
to secure the Outstanding Obligations, Debtor is willing to execute and deliver to Lender this Security Agreement;

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration,
the receipt of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.       Defined
Terms. Unless otherwise defined herein capitalized terms used in this Security Agreement shall have the meanings ascribed
to them on Exhibit A to this Security Agreement. Capitalized terms not defined herein or on Exhibit A have the meanings
ascribed to them in the Credit Agreement.

 

2.       Grant
of Security Interest.

 

(a)       Collateral.
As security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise)
of all Outstanding Obligations, and to induce Lender to enter into the Credit Agreement and to make the Loan in accordance with
the terms of the Credit Agreement, Debtor hereby assigns, conveys, mortgages, pledges, hypothecates and transfers to Lender and
hereby grants to Lender a continuing first priority security interest in, all of Debtor’s right, title and interest in,
to and under the following, whether now existing or hereafter incurred, created, arising or entered into (all of which being hereinafter
collectively called the “Collateral”):

 

	 	(i)	all
    Accounts of Debtor (provided that, notwithstanding anything to the contrary in this Security Agreement or in the Credit Agreement,
    any security interest granted to Lender in Debtor’s accounts receivable and cash will be subordinate to any security
    interest in such accounts receivable granted by Debtor to Debtor’s accounts receivable revolving credit lender (the
    “AR Lien”);

 

    	 	 	 

     

    

 

	 	(ii)	all
    Chattel Paper of Debtor;
	 	 	 
	 	(iii)	all
    Contracts of Debtor;
	 	 	 
	 	(iv)	all
    Documents of Debtor;
	 	 	 
	 	(v)	all
    Equipment and Tangible Collateral of Debtor;
	 	 	 
	 	(vi)	all
    General Intangibles of Debtor;
	 	 	 
	 	(vii)	all
    Instruments of Debtor;
	 	 	 
	 	(viii)	all
    Securities and letters of credit of Debtor;
	 	 	 
	 	(ix)	all
    Inventory of Debtor;
	 	 	 
	 	(x)	all
    Permits and Licenses of Debtor and the proceeds thereof, to the extent now or hereafter permitted by applicable law;
	 	 	 
	 	(xi)	all
    leases and use agreements of personal property entered into by Debtor as lessor with other persons as lessees, and all rights
    of Debtor under such leases and agreements, including the right to receive and collect all rentals and other moneys (including
    security deposits) at any time payable under such leases and agreements, whether paid or accruing before or after the filing
    of any petition by or against Debtor under the federal Bankruptcy Code;
	 	 	 
	 	(xii)	all
    leases and use agreements of personal property entered into by Debtor as lessee with other persons as lessor, and all rights,
    titles and interests of Debtor thereunder, including the leasehold interest of Debtor in such property and all options to
    purchase such property or to extend any such lease or agreement;
	 	 	 
	 	(xiii)	to
    the extent not described above, all fixtures of Debtor;
	 	 	 
	 	(xiv)	all
    Copyrights, Patents and Trademarks of Debtor;
	 	 	 
	 	(xv)	all
    moneys of Debtor, all Deposit Accounts of Debtor in which such moneys may at any time be invested and all certificates, instruments
    and documents of Debtor from time to time representing or evidencing any such moneys;
	 	 	 
	 	(xvi)	all
    other goods and personal property of Debtor, whether tangible or intangible, now owned or hereafter acquired by Debtor or
    in which Debtor now has or hereafter acquires any rights and wherever located;

 

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	 	xvii)	all
    property of Debtor held by Lender, including all property of every description, now or hereafter in the possession or custody
    of or in transit to Lender for any purpose, including safekeeping, collection or pledge, for the account of Debtor, or as
    to which Debtor may have any right or power;
	 	 	 
	 	(xviii)	all
    insurance policies related to the foregoing; and
	 	 	 
	 	(xix)	subject
    to the provisions of Section 2(b) below, to the extent not otherwise included, all Proceeds of each of the foregoing and all
    accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing and all books
    and records in whatever media (whether on computer or otherwise) whether recorded or stored relating to each of the foregoing,
    and all equipment and general intangibles necessary or beneficial to retain, access or process the information contained in
    those books and records.

 

(b)       Disposition
of Assets. Any provision of this Security Agreement to the contrary notwithstanding and except for sales and dispositions
in the ordinary course of business that are not material, Debtor shall not have the right to sell or otherwise dispose of all
or part of the Collateral otherwise than as expressly permitted under the terms of the Credit Agreement.

 

(c)       Submission
of Schedules. No submission by Debtor to Lender of a schedule or other particular identification of Collateral shall be necessary
to vest in Lender the Lien contemplated by this Security Agreement in each and every item of Collateral of Debtor now existing
or hereafter created and acquired, but rather such Liens shall vest in Lender immediately upon the creation or acquisition of
any item of Collateral hereafter created or acquired, without the necessity for any other or further action by Debtor or by Lender.
Debtor shall take such steps and observe such formalities as may be reasonably required or as Lender may reasonably request from
time to time to create and maintain in favor of Lender the Liens contemplated by this Security Agreement in all of the Collateral,
whether now owned or hereafter acquired by Debtor, and whether now existing or hereafter incurred, created, arising or entered
into.

 

3.       Representations
and Warranties. Debtor hereby represents and warrants that:

 

(a)       Sole
Owner. Except for the Liens granted to Lender pursuant to this Security Agreement and other Permitted Liens, Debtor is, as
of the date hereof and, as to Collateral acquired by it from time to time after the date hereof, Debtor will be, the sole owner
of, or has valid rights as lessee or licensee with respect to, each item of the Collateral in which it purports to grant a security
interest hereunder, having good and marketable title thereto, free and clear of any and all Liens (other than Permitted Liens).
Debtor has all power and authority to grant to Lender the Liens contemplated by this Security Agreement to the extent permitted
by applicable law or the provisions of any material Contracts.

 

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(b)       No
Security Agreement. No effective security agreement, financing statement, equivalent security or lien instrument or continuation
statement covering all or any part of the Collateral is on file or of record in any public office, except such as may have been
filed by Debtor in favor of Lender pursuant to this Security Agreement or such as relate to other Permitted Liens.

 

(c)       Necessary
Filings. Financing Statements on Form UCC-1 have been prepared and delivered to Lender herewith. When this Security Agreement
is duly executed and delivered and (i) such financing statements have been filed in the jurisdictions indicated thereon and (ii)
this Security Agreement, and/or the Pledge of Patents or Trademark Security Agreement, is filed and accepted in the United States
Patent and Trademark Office and the U.S. Copyright Office, then all filings shall have been made to create, preserve, protect
and perfect the security interest granted by Debtor to Lender hereby in respect of such of the Collateral in which a security
interest can be perfected by the filing of a financing statement under Article 9 of the UCC or the filing of a security agreement
with the United States Patent and Trademark Office and the U.S. Copyright Office. When such filings are duly made, the security
interest granted to Lender pursuant to this Security Agreement in and to such Collateral constitutes and, as long as such filings
remain in effect, hereinafter will constitute perfected Liens and security interest therein in favor of Lender. This Security
Agreement is enforceable as such against creditors of and purchasers from Debtor (other than purchasers of Inventory in the ordinary
course of business) and against any purchaser of real property where any of the Equipment, Inventory or other Tangible Collateral
is located and any present or future creditor obtaining a Lien on such real property.

 

(d)       Locations.
Debtor’s principal place of business, its chief executive office, and place where its records concerning the Collateral
are located, and each location at which any Inventory, Equipment or other Tangible Collateral is kept (or in the case of any motor
vehicles, principally garaged) other than Equipment or other Tangible Collateral that is moveable in the ordinary course of business,
are set forth on Schedule II hereto. To the best knowledge of Debtor, no change has occurred in such address(es)
in the five years immediately preceding the execution of this Security Agreement.

 

(e)       Tradenames.
Debtor does not conduct business under any name or tradename other than as set forth on Schedule III hereto.

 

(f)       Patents,
Trademarks, Copyrights, Licenses, etc. Schedule I attached hereto contains a list that is accurate and complete
in all material respects as of the date hereof of all registered and applied for Patents, Trademarks, Copyrights and Licenses
(collectively, the “Intellectual Property”) owned or licensed by Debtor. All information set forth relating to the Intellectual
Property is accurate and complete in all material respects. Debtor has the right to use all Intellectual Property and all computer
programs and other similar rights material to Debtor’s business. There is not pending or to the knowledge of Debtor, threatened
any claim or litigation against or affecting Debtor contesting the validity of any of the Intellectual Property or such computer
programs or other rights.

 

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(g)       No
Consents. Except as heretofore obtained and in effect, no consent (except for consents required under the terms of material
Contracts) of any party (including stockholders or creditors of Debtor), and no consent, authorization, approval or other action
by, and except for filings of financing statements as required under Section 3(c) hereof, no notice to or filing with any Governmental
Authority or regulatory body or other person is required either (x) for the pledge by Debtor of the Collateral pledged by it pursuant
to this Security Agreement or the execution, delivery or performance of the Security Agreement by Debtor, or (y) for the exercise
by Lender of the rights provided for in this Security Agreement or (z) for the exercise of Lender of the remedies in respect of
the Collateral pursuant to this Security Agreement.

 

(h)       No
Conflicts. The execution, delivery and performance by Debtor of this Security Agreement do not (or with notice of lapse of
time or both, will not) violate, conflict with or constitute a default under, or result in the termination of, or accelerate the
performance required by, or result in their being declared void, voidable or without further binding effect any provision of any
other material instrument or material agreement to which Debtor is a party.

 

4.       Special
Provisions Regarding Accounts.

 

(a)       Special
Representations and Warranties. As of the time when each of its Accounts arises, Debtor shall be deemed to have represented
and warranted that such Accounts and all records, papers and documents relating thereto (i) are genuine and correct and in all
material respects what they purport to be and (ii) will, except for the original or duplicate original invoice sent to a purchaser
evidencing such purchaser’s account, be the only original writings evidencing and embodying such obligation of the Account
Debtor named therein.

 

(b)       Maintenance
of Records. Debtor shall keep and maintain at its own cost and expense reasonably satisfactory and complete records of each
Account, in a manner consistent with past practice, including records of all payments received, all credits granted thereon, all
merchandise returned and all other documentation relating thereto. After the occurrence of an Event of Default, Debtor shall,
at Debtor’s sole cost and expense, deliver all tangible evidence of Accounts, including all documents evidencing Accounts
and any books and records relating thereto to Lender or to its representatives (copies of which evidence and books and records
may be retained by Debtor) at any time upon Lender’s demand. Upon the occurrence and during the continuance of an Event
of Default, Lender may transfer a full and complete copy of Debtor’s books, records, credit information, reports, memoranda
and all other writings relating to the Accounts to and for the use by any Person that has acquired or is contemplating acquisition
of an interest in the Accounts or Lender’s security interest therein without the consent of Debtor.

 

    	 	 	 5

     

    

 

(c)       Modification
of Terms, etc. Except in the ordinary course of business consistent with past practice, Debtor shall not rescind or cancel
any material indebtedness evidenced by any Account or materially modify any term thereof or make any material adjustment with
respect thereto, or extend or renew any such indebtedness, or compromise or settle any dispute, claim, suit or legal proceeding
relating thereto, or sell any Account or interest therein, without the prior written consent of Lender (which consent shall not
unreasonably be withheld or delayed). Debtor shall timely fulfill in all material respects all obligations on its part to be fulfilled
under or in connection with the Accounts.

 

(d)       Collection.
Debtor shall cause to be collected from the Account Debtor of each of the Accounts, as and when due, any and all amounts owing
under or on account of any such Account, and apply forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Account, and Debtor may, with respect to an Account, allow in the ordinary course of business (i)
a refund or credit due as a result of returned or damaged or defective merchandise and (ii) such extensions of time to pay amounts
due in respect of Accounts and such other modifications of payment terms or settlements in respect of Accounts as shall be commercially
reasonable in the circumstances, all in accordance with Debtor’s ordinary course of business consistent with its collection
practices as in effect from time to time. The reasonable costs and expenses (including reasonable attorneys’ fees) of collection,
in any case, whether incurred by Debtor, shall be paid by Debtor.

 

5.       Special
Provisions Regarding Intellectual Property.

 

(a)       Modifications.
Debtor authorizes Lender to modify this Security Agreement by amending Schedule I annexed hereto to include any
future Intellectual Property of Debtor.

 

(b)       Applications.
Except in the ordinary course of business consistent with past practice and as may also otherwise be specified in the Credit Agreement,
Debtor shall not abandon any right to file an application with respect to Intellectual Property necessary for the operation of
Debtor’s business or any pending application without the prior written consent of Lender.

 

(c)       Restriction
on Licensing Intellectual Property. Debtor shall not license any Intellectual Property or any portion thereof reasonably necessary
for the operation of Debtor’s business, or amend or permit the amendment of any of the Licenses in either case in a manner
that adversely affects the right to receive any material amount of payments thereunder, or is in any manner adverse to the interests
of Lender in the Intellectual Property without the consent of Lender (which consent shall not be unreasonably withheld).

 

    	 	 	 6

     

    

 

6.       Covenants.
Debtor covenants and agrees with Lender that from and after the date of this Security Agreement and until the Outstanding Obligations
are fully satisfied:

 

(a)       Further
Documentation; Pledge of Instruments. At any time and from time to time, upon the written request of Lender, and at the sole
expense of Debtor, Debtor will promptly and duly execute and deliver any and all such further instruments, documents and agreements
and take such further action as Lender may reasonably deem desirable to obtain the full benefits of this Security Agreement and
of the rights and powers herein granted, including the filing of any financing or continuation statements under the UCC with respect
to the liens and security interests granted hereby, transferring Collateral to Lender’s possession (if a security interest
in such Collateral can be perfected only by possession), and using its best efforts to obtain waivers of Liens and consents to
assignments from landlords and mortgagees. Debtor hereby irrevocably makes, constitutes and appoints Lender (and all Persons designated
by Lender for that purpose) as Debtor’s true and lawful attorney-in-fact, effective upon the failure or refusal of Debtor
upon request to execute and/or deliver to Lender any financing statement, continuation statement, instrument, document, or agreement
that Lender may reasonably deem desirable to obtain the full benefits of this Security Agreement and of the rights and powers
granted hereunder (herein, “Supplemental Documentation”), to sign Debtor’s name on any such Supplemental Documentation
and to deliver any such Supplemental Documentation to such Person as Lender, in its sole discretion, shall elect. Debtor also
hereby authorizes Lender to file any financing or continuation statement without the signature of Debtor to the extent permitted
by applicable law. Debtor agrees that a carbon, photographic, photostatic, or other reproduction of this Security Agreement or
of a financing statement is sufficient as a financing statement and may be filed by Lender in any filing office. If any amount
payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument or Document, such Instrument
or Document shall be immediately pledged to Lender hereunder, and shall be duly endorsed in a manner satisfactory to Lender and
delivered to Lender. In the event that Debtor shall acquire after the Closing Date any letters of credit, Securities, Chattel
Paper, Documents, or Instruments having a value in excess of $10,000, Debtor shall promptly so notify Lender and deliver the originals
of all of the foregoing to Lender and in any event within ten (10) days of each acquisition.

 

(b)       Limitation
on Liens on Collateral. Debtor will not create, permit or suffer to exist, and will defend the Collateral against and take
such other action as is necessary to promptly remove, any Lien on the Collateral except Permitted Liens, and will defend the right,
title and interest of Lender in and to any of Debtor’s rights under the Collateral against the claims and demands of all
Persons whomsoever.

 

(c)       Right
of Inspection. Lender and its representatives shall have the right after reasonable prior notice (so long as no Default or
Event of Default has occurred) to enter into and upon any premises where any of the Collateral, or any records related thereto,
are located from time to time during normal business hours for the purpose of inspecting the same, observing its use or otherwise
protecting Lender’s interests therein.

 

    	 	 	 7

     

    

 

(d)       Continuous
Perfection. Debtor will not change its name, identity, federal tax identification number or corporate structure in any manner
which might make any financing or continuation statement filed in connection herewith seriously misleading within the meaning
of Part 5 of Revised Article 9 of the UCC (or any other then applicable provision of the UCC) unless Debtor shall have given Lender
at least 30 days’ prior written notice thereof and shall have taken all action (or made arrangements to take such action
substantially simultaneously with such change if it is impossible to take such action in advance) necessary or reasonably requested
by Lender to amend such financing statement or continuation statement so that it is not seriously misleading.

 

(e)       Deposit
Accounts. Subject to any AR Lien, all proceeds in the Deposit Accounts shall continue to be collateral security for all of
the Outstanding Obligations and shall not constitute payment thereof until applied as hereinafter provided. No instruments deposited
into any Deposit Account or otherwise received by Lender pursuant to this provision shall constitute final payment until finally
collected.

 

(f)       After-Acquired
Property. If, before this Security Agreement shall be terminated in accordance with Section 21 hereof, Debtor shall (i) obtain
any rights to any additional Collateral or (ii) become entitled to the benefit of any additional Collateral or any renewal or
extension thereof, the provisions of this Security Agreement shall automatically apply thereto and any such item enumerated in
clause (i) or (ii) with respect to Debtor shall automatically constitute Collateral if such would have constituted Collateral
at the time of execution of this Security Agreement, and be subject to the Liens and security interests created by this Agreement
without further action by any party other than actions required to perfect such security interest.

 

(g)       Protection
of Security. Debtor shall not take any action that impairs the rights of Lender in the Collateral; it being understood that
nothing herein is intended to limit the rights of Debtor that are expressly provided for in this Security Agreement. Without limiting
the foregoing, Debtor (i) will not enter into any agreement that would materially impair or conflict with Debtor’s obligations
hereunder; (ii) will, promptly following its becoming aware thereof, notify Lender of (a) any materially adverse determination
or development in any proceeding with respect to any Collateral necessary for the operation of Debtor’s business, or (b)
the institution of any proceeding or any adverse determination or development in any federal, state or, local court or administrative
bodies regarding Debtor’s claim of ownership in or right to use any of the Collateral necessary for the operation of such
Debtor’s business, or, with respect to Intellectual Property, its rights to register, as applicable, the Intellectual Property,
or its right to keep and maintain such registration in full force and effect; (iii) will properly maintain and protect the Collateral
necessary or appropriate for the operation of Debtor’s business; (iv) will not permit to lapse or become abandoned any Collateral,
except in the ordinary course of business consistent with past practices; (v) except in the ordinary course of business consistent
with past practices, will not settle or compromise any pending or future litigation or administrative proceeding with respect
to the Collateral without the consent of Lender (which consent shall not unreasonably be withheld); (vi) will furnish to Lender
from time to time statements and amended schedules further identifying and describing the Collateral and such other materials
evidencing or reports pertaining to the Collateral as Lender may from time to time reasonably request, all in reasonable detail;
and (vii) will comply in all material respects with all laws, rules and regulations applicable to the Collateral.

 

    	 	 	 8

     

    

 

7.       Change
of Locations. Debtor covenants and agrees with Lender as follows:

 

(a)       Debtor
shall not add to or change any of the locations set forth in Schedule II or, except for the sale of Inventory in
the ordinary course of business or Equipment or other Tangible Collateral that is moveable in the ordinary course of business,
remove any Tangible Collateral other than motor vehicles from the locations specified therefor in Schedule II, without
Lender’s prior written consent.

 

(b)       Debtor
shall notify Lender in writing of any proposed addition to or change in any of the locations described in Schedule II
at least 30 days prior to the date of the proposed change and shall furnish Lender with any information requested by Lender in
considering the proposed change. In connection with any such addition or change, Debtor shall execute and file any financing statements
required by Lender to perfect, preserve and protect the Liens of Lender in the Collateral.

 

(c)       Debtor
is and shall remain the owner of all of the locations described in Schedule II except any leased locations identified
therein. Upon Lender’s request, Debtor shall use its best efforts to deliver to Lender a written waiver or subordination
(in form and substance satisfactory to Lender) of any Lien that the owner of any leased location might have with respect to the
Collateral.

 

(d)       Debtor
shall not allow any of the Collateral that is not a fixture to become affixed to any real estate other than that shown as being
owned by Debtor in Schedule II without the prior written consent of Lender. If at any time any of the Tangible Collateral
should, notwithstanding the foregoing, be affixed to any other real estate, the security interest of Lender under this Security
Agreement shall nevertheless attach to and include such Tangible Collateral. Debtor shall promptly furnish to Lender a description
of any such real estate and the names of the record owners thereof, execute such additional financing statements and other documents
as Lender may require, obtain from the owners of such real estate and the holders of any Liens thereon such Lien waiver or subordination
agreements and other documents as Lender may request, and take such other actions as Lender may deem necessary or desirable to
preserve and perfect Lender’s security interest in such Tangible Collateral as a first priority perfected security interest.

 

8.       No
Sale, Encumbrance, etc. Debtor will not, without the prior consent of Lender, (i) sell, lease, transfer, convey or otherwise
dispose of any of the Collateral, except sales of Inventory in the ordinary course of business, or (ii) except for Permitted Liens,
permit any Lien to attach to any of the Collateral or any levy to be made thereon or any other financing statement to be on file
with respect to any of the Collateral.

 

    	 	 	 9

     

    

 

9.       Insurance.

 

(a)       Debtor
shall keep the Tangible Collateral insured in such amounts, with such companies and against such risks as are required by the
Credit Agreement and all such policies shall name Lender as an additional insured with loss payable to Lender as its respective
interests may appear on the Tangible Collateral and with a specific endorsement to each such insurance policy pursuant to which
the insurer agrees to give Lender at least thirty (30) days’ written notice before any alteration or cancellation of such
insurance and that no act or default of Debtor shall affect the right of Lender to recover under such policy in the event of loss
or damage. Debtor shall cause duplicate originals of such insurance policies to be deposited with Lender. If requested by Lender,
Debtor shall, at least 10 days prior to the due date, furnish to Lender evidence of the payment of the premiums due on such policies.

 

(b)       Debtor
hereby assigns to Lender each policy of insurance covering any of the Collateral, including all rights to receive the proceeds
and returned premiums of such insurance. With respect to all such insurance policies, Lender is hereby authorized, but not required,
on behalf of Debtor, to collect for, adjust and compromise any losses and to apply the loss proceeds as provided in the Credit
Agreement.

 

(c)       In
case of a sale pursuant to the default provisions hereof, or any conveyance of all or any part of the Collateral in extinguishment
of the Outstanding Obligations, title to all such insurance policies and the proceeds thereof and unearned premiums with respect
thereto shall pass to and vest in the purchaser of the Collateral.

 

10.       Taxes
and Assessments. Debtor shall pay when due all taxes, assessments and other charges levied or assessed against any of the
Collateral, and all other claims that are or may become Liens against any of the Collateral, except any that are Permitted Liens
or that are being contested by Debtor; and should default be made in the payment of same, Lender, at its option, may pay them.

 

11.       Care
of Tangible Collateral; Notice of Loss, etc. Debtor shall: (i) at all times maintain the Tangible Collateral over the useful
life of the Tangible Collateral in as good condition as necessary to operate its business, reasonable wear and tear alone excepted;
(ii) not use the Tangible Collateral, or permit it to be used, in violation of any Law; and (iii) notify Lender promptly in writing
of any event causing material loss or depreciation in value in excess of $10,000 of any material portion of the Collateral and
of the amount thereof (other than ordinary wear and tear and depreciation in accordance with GAAP).

 

12.       Filing
Fees and Taxes. Debtor covenants and agrees, to the extent permitted by law, to pay all recording and filing fees, revenue
stamps, taxes and other expenses and charges payable in connection with the execution and delivery of the Loan Documents, and
the recording, filing, satisfaction, continuation and release thereof.

 

    	 	 	 10

     

    

 

13.       Use
of Tangible Collateral. Debtor covenants and agrees (i) not to conceal or abandon (except in the ordinary course of business
consistent with past practices) the Tangible Collateral; and (ii) not to lease or hire any of the Tangible Collateral to any person
or permit the same to be leased or used for hire except pursuant to Permitted Liens or otherwise in the ordinary course of business.

 

14.       Reporting
and Recordkeeping. Debtor covenants and agrees with Lender that from and after the date of this Security Agreement and until
the Outstanding Obligations have been fully satisfied:

 

(a)       Maintenance
of Records Generally. Debtor will keep and maintain at its own cost and expense satisfactory and complete records of the Collateral.
Upon reasonable notice from Lender and so long as no Default or Event of Default has occurred, Debtor shall permit any representative
of Lender to inspect such books and records during normal business hours and will provide photocopies thereof to Lender. Lender
shall have the right to discuss the affairs, finances and accounts of Debtor with and be advised as to the same by the officers
thereof. Debtor hereby irrevocably authorizes and instructs any accountants at any time acting for Debtor to give Lender any information
Lender may request regarding the financial affairs of Debtor and to furnish Lender with copies of any documents in their possession
related thereto.

 

(b)       Further
Identification of Collateral. Debtor will if so requested by Lender furnish to Lender, as often as Lender reasonably requests,
statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral
as Lender may reasonably request, in all reasonable detail.

 

15.       Events
of Default. Any of the following events or conditions shall, after applicable notice and cure periods set forth below, constitute
an “Event of Default” under this Security Agreement:

 

(a)       the
occurrence, after applicable notice and cure periods, of an Event of Default under the Credit Agreement;

 

(b)       any
warranty or representation made to Lender in Section 3 hereof proves to have been false, inaccurate or misleading in any material
respect when made or furnished; or

 

(c)       Debtor
shall fail or neglect to perform, keep or observe any other material term, provision, condition or covenant contained in this
Security Agreement which is required to be performed, kept or observed by Debtor (other than those described in paragraphs 15(a)
and 15(b) above) and such failure (provided it is curable) is not cured to the Lender’s satisfaction as promptly as possible
(but in any event within thirty (30) days) after Debtor has been notified, or acquires actual knowledge, of such failure.

 

    	 	 	 11

     

    

 

16.       Remedies;
Rights Upon Default.

 

(a)       If,
after applicable notice and cure periods, an Event of Default shall occur and be continuing, Lender may exercise, in addition
to all other rights and remedies granted to it in this Security Agreement, the Credit Agreement and in any other instrument or
agreement securing, evidencing or relating to the Outstanding Obligations, all rights and remedies of a secured party under the
UCC. Without limiting the generality of the forgoing, Debtor expressly agrees that in any such event Lender, without demand of
performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public
or private sale) to or upon Debtor or any person (all and each of which demands, advertisements and/or notices are hereby expressly
waived to the maximum extent permitted by the UCC and other applicable law), may forthwith collect, receive, appropriate and realize
upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give an option or options to purchase, or
sell or otherwise dispose of and deliver said Collateral (on contract to do so), or any part thereof, in one or more parcels at
public or private sale or sales, at any exchange or broker’s board or at any of Lender’s offices or elsewhere at such
prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. Lender shall have
the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase
the whole or any part of said Collateral so sold, free of any right or equity of redemption, which right or equity of redemption
Debtor hereby releases. Debtor further agrees, at Lender’s request, to assemble the Collateral and make it available to
Lender at places which Lender shall reasonably select, whether at Debtor’s premises or elsewhere. Lender shall apply the
net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, as provided in Section 16(d) hereof.
Debtor shall remain liable for any deficiency remaining unpaid after such application, and only after so paying over such net
proceeds and after the payment by Lender of any other amount required by any provision of law, need Lender account for the surplus,
if any, to Debtor. To the maximum extent permitted by applicable law, Debtor waives all claims, damages, and demands against Lender
arising out of the repossession, retention or sale of the Collateral except such as arise out of the gross negligence or wilful
misconduct of Lender. Debtor agrees that Lender need not give more than 15 days’ notice of the time and place of any public
sale or of the time after which a private sale may take place and that such notice is reasonable notification of such matters.

 

(b)       In
addition to, and not in limitation of, Lender’s rights pursuant to Section 14(a) hereof, but at all times subject to the
AR Lien, Lender may at any time, upon the occurrence of any Event of Default (whether or not waived), after first giving three
days’ notice of its intention to do so, open Debtor’s mail and collect any and all amounts due from Account Debtors
and notify Account Debtors of Debtor, parties to the Contracts of Debtor, holders of all Deposit Accounts, obligors of Instruments
of Debtor and obligors in respect of Chattel Paper of Debtor that the Accounts and the right, title and interest of Debtor in
and under such Contracts, such Instruments, such Deposit Accounts and such Chattel Paper have been assigned to Lender and that
payments shall be made directly to Lender or to a lockbox designated by Lender. Upon request of Lender, Debtor will so notify
such Account Debtors, parties to such Contracts, holders of such Deposit Accounts, and Instruments and obligors in respect of
such Chattel Paper. In addition, Lender may enforce payment of any Accounts (subject to the AR Lien), Contracts, Instruments,
and Chattel Paper, prosecute any action or proceeding with respect thereto, extend the time of payment thereof, make allowances
and adjustments with respect thereto, and issue credits against the same, all in the name of Lender or Debtor, and settle, compromise,
extend, renew, release, terminate or discharge, in whole or in part, any Account, Contract, Instrument or Chattel Paper, all as
Lender may deem advisable.

 

    	 	 	 12

     

    

 

(c)       Debtor
hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral.

 

(d)       The
Proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be distributed by Lender in
the following order of priorities:

 

first,
to Lender in an amount sufficient to pay in full the reasonable expenses of Lender in connection with such sale, disposition or
other realization, including all expenses, liabilities and advances incurred or made by Lender in connection therewith, including
reasonable attorney’s fees, reasonable paralegal charges and court costs (including for appeals);

 

second,
to Lender, for the benefit of the Lender, in an amount equal to the then unpaid Outstanding Obligations; and

 

finally,
upon payment in full of all of the Outstanding Obligations, to pay to Debtor, or its representatives or as a court of competent
jurisdiction may direct, any surplus then remaining from such Proceeds.

 

(e)       If
any Event of Default shall have occurred and be continuing, upon the written demand of Lender, Debtor shall execute and deliver
to Lender an assignment or assignments of the registered Trademarks and such other documents as are necessary or appropriate to
carry out the intent and purposes of this Security Agreement. Within five Business Days of written notice thereafter from Lender,
Debtor shall make available to Lender, to the extent within Debtor’s power and authority, such personnel in Debtor’s
employ on the date of the Event of Default as Lender may reasonably designate to permit Debtor to continue, directly or indirectly,
to produce, advertise, and sell the products and services sold by Debtor under the registered Trademarks, and such persons shall
be available to perform their prior functions on Lender’s behalf.

 

    	 	 	 13

     

    

 

17.       Repossession,
etc. Upon the occurrence and during the continuance of an Event of Default, Lender may (i) enter upon the premises of Debtor
or any other place where any Collateral is located, and through self-help and without judicial process, without first obtaining
a final judgment or giving Debtor notice and opportunity for a hearing and without any obligation to pay rent, remove the Collateral
therefrom to the premises of Lender for such time as Lender may desire to collect or liquidate the Collateral; (ii) require Debtor
to assemble the Collateral and make it available to Lender at Debtor’s premises or any other place selected by Lender, and
to make available to Lender all of Debtor’s premises and facilities for the purpose of Lender’s taking possession
of, removing or putting the Collateral in salable form; and (iii) use, and permit any purchaser of any of the Collateral from
Lender to use, without charge, Debtor’s labels, General Intangibles and advertising matter or any property of a similar
nature, as it pertains to or is included in the Collateral, in advertising, preparing for sale and selling any Collateral, and
in finishing the processing, packaging and delivery of the Inventory; and Debtor’s rights under all Licenses and all franchise
agreements shall inure to Lender’s benefit. Debtor irrevocably invites Lender and its agents to enter upon any premises
on which any of the Collateral is now or hereafter located for all purposes related to the Collateral, including repossession
thereof, and consents to any such entry and repossession. Any such entry by Lender or its agents shall not be a trespass upon
such premises and any such repossession shall not constitute conversion of any Collateral.

 

18.       Attorney-in-Fact
After Default. Debtor hereby constitutes and appoints Lender, or any person whom Lender may designate, as Debtor’s attorney-in-fact,
at Debtor’s sole cost and expense, to exercise at any time when an Event of Default has occurred and is continuing, the
following powers, all of which powers, being coupled with an interest, shall be irrevocable until all of the Outstanding Obligations
are paid in full and this Security Agreement is terminated in accordance with its terms, but subject to the AR Lien with respect
to Accounts: (i) to transmit to Account Debtors and other parties to Accounts, Contracts, Instruments and Chattel Paper, notice
of Lender’s Liens thereon and to demand and receive from such Account Debtors and other parties information concerning the
Accounts, Contracts, Instruments and Chattel Paper; (ii) to notify such Account Debtors and other parties to make payments on
the Accounts, Contracts, Instruments and Chattel Paper directly to Lender or to a lock box designated by Lender; (iii) to take
or to bring, in the name of Debtor or in the name of Lender, all steps, actions, suits or proceedings deemed by Lender necessary
or desirable to effect collection of the Accounts, Contracts, Instruments and Chattel Paper; (iv) to receive, open and dispose
of all mail addressed to Debtor that is received by Lender; (v) to receive, take, endorse, assign and deliver in Lender’s
or Debtor’s name any documents or instruments relating to Accounts, Contracts, Instruments and Chattel Paper; (vi) to settle,
adjust, compromise, extend, renew, discharge, terminate or release the Collateral in whole or in part or any legal proceedings
brought to collect the Collateral; (vii) to prepare, file and sign Debtor’s name on any proof of claim in bankruptcy or
similar document against any Account Debtor or other party to any Contract, Instrument or Chattel Paper; (viii) to exercise all
of Debtor’s other rights, powers and remedies with respect to the Collateral; and (ix) to do all acts and things necessary,
in Lender’s sole judgment, to carry out the purposes of this Security Agreement or to fulfill Debtor’s obligations
hereunder. All acts of such attorney-in-fact or designee taken pursuant to this section are hereby ratified and approved by Debtor
and said attorney shall not be liable for any acts or omissions, nor for any error of judgment or mistake of fact or law, except
where same constitutes gross negligence or willful misconduct.

 

    	 	 	 14

     

    

 

19.       Limitation
on Lender’s Duty in Respect of Collateral. Lender shall not have any duty as to any Collateral in its possession or
control or in the possession or control of any agent or nominee of it or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto, except that Lender shall use reasonable care with respect to the
Collateral in its possession or under its control. Lender shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral in its possession if it takes such reasonable actions for that purpose as Debtor shall request
in writing, but Lender shall have sole power to determine whether such actions are reasonable. Any omission to do any act not
requested by Debtor shall not be deemed a failure to exercise reasonable care. Upon request of Debtor, Lender shall account for
any moneys received by it in respect of any foreclosure on or disposition of the Collateral. Debtor shall give Lender written
notice within 24 hours of the date of repossession if Debtor alleges that any other property of Debtor was left on or in the repossessed
Collateral at the time of repossession; and such notice shall be an express condition precedent to any action for loss or damages
in connection therewith. After receiving any such notice Lender will have a reasonable time to notify Debtor as to where Debtor
can collect such property.

 

20.       Term
of Agreement; Reinstatement. This Security Agreement and the security interests granted hereunder shall remain in full force
and effect until the Outstanding Obligations have been paid in full and Lender shall have no further obligation to extend any
further credit to Debtor. Further this Security Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against Debtor for liquidation or reorganization, should Debtor become insolvent or make an assignment
for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of Debtor’s assets,
and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Outstanding
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee of the Outstanding Obligations, whether as a “voidable preference,” “fraudulent conveyance,”
or otherwise, all as though such payment or any part thereof, is rescinded, reduced, restored or returned, the Outstanding Obligations
shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

21.       Notices.
All notices, requests, consents, waivers, elections and demands (collectively, “Notices”) required or permitted under
this Security Agreement shall be in writing and shall be personally delivered or sent by messenger, certified U.S. mail (return
receipt requested), express courier service or telecopier (with confirmation copy sent by overnight delivery service unless receipt
of the telecopy, delivered not later than 6:00 P.M. on a Business Day, is confirmed in writing by the receiving party), in all
cases with postage or charges prepaid, and any such Notice shall be effective when first received by the addressee at its address
set forth below:

 

    	 	 	 15

     

    

 

If
to Debtor:

 

Frankly
Inc.

333
Bryant Street, Suite 240

San
Francisco, California 94107

	 	Attention:	 	Steve Chung	 
	 	Telecopier:	 		 
	 	Telephone:	 		 

 

If
to Lender:

 

Raycom
Media, Inc.

RSA
Tower, 20th Floor

201
Monroe Street

Montgomery,
Alabama 36104

Attention: General
Counsel

Telecopier: 334-223-5535

Telephone: 334-206-1435

 

Any
party may alter the address to which Notices are to be sent by giving notice of such change of address in conformity with the
provisions of this Section for the giving of Notices.

 

22.       Expenses.
Debtor shall promptly on demand pay all reasonable costs and expenses, including the reasonable fees and disbursements of counsel
to Lender, incurred by Lender in connection with (i) the negotiation, preparation and review of this Security Agreement (whether
or not the transactions contemplated by this Security Agreement shall be consummated), (ii) the enforcement of this Security Agreement,
(iii) the custody and preservation of the Collateral, (iv) the protection or perfection of Lender’s rights and interests
under this Security Agreement in the Collateral, (v) the exercise by or on behalf of Lender of any of its rights, powers or remedies
under this Security Agreement and (vi) the prosecution or defense of any action or proceeding by or against Lender, Debtor or
any other Person concerning any matter related to this Security Agreement, any of the Collateral, or any of the Outstanding Obligations.
All such amounts shall bear interest from the date demand is made at the default rate of interest provided for in Section 3.1
of the Credit Agreement and shall be included in the Outstanding Obligations. Debtor’s obligations under this section shall
survive the payment in full of the Outstanding Obligations and the termination of this Security Agreement.

 

23.       Severability.
Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

24.       No
Waiver; Cumulative Remedies. Lender shall not by any act, delay, omission or otherwise be deemed to have waived any of its
rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Lender and then only to the extent therein
set forth. A waiver by Lender of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy which Lender would otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on
the part of Lender, any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law. None of the terms or provisions of this Security Agreement may
be waived, altered, modified or amended except by an instrument in writing, duly executed by Lender and, where applicable, by
Debtor.

 

    	 	 	 16

     

    

 

25.       Successors
and Assigns; Governing Law.

 

(a)       This
Security Agreement and all obligations of Debtor hereunder shall be binding upon the successors and assigns of Debtor, and shall,
together with the rights and remedies of Lender hereunder, inure to the benefit of Lender, all future holders of the Note evidencing
the Loan and their respective successors and assigns. No sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the Outstanding Obligations or any portion thereof or interest
therein shall in any manner affect the security interest granted to Lender hereunder.

 

(b)       THIS
SECURITY AGREEMENT SHALL BE GOVERNED BY, AND BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ALABAMA,
WITHOUT REGARD TO THE PROVISIONS THEREOF REGARDING CONFLICTS OF LAWS.

 

26.       Further
Indemnification. Debtor agrees to pay, and to save Lender harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all excise, sales or other similar taxes which may be payable or determined to be payable with
respect to any of the Collateral or in connection with any of the transactions contemplated by this Security Agreement.

 

27.       Counterparts.
This Security Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original,
but all such counterparts shall together constitute but one and the same agreement.

 

28.       No
Oral Agreements. This Security Agreement is the final expression of the agreement between the parties hereto, and this Security
Agreement may not be contradicted by evidence of any prior oral agreement between such parties. All previous oral agreements between
the parties hereto have been incorporated into this Security Agreement and the other Loan Documents, and there is no unwritten
oral agreement between the parties hereto in existence.

 

    	 	 	 17

     

    

 

29.       Advances
by Lender. If Debtor shall fail to comply with any of the provisions of this Security Agreement, Lender may (but shall not
be required to) make advances to perform the same, and where necessary enter any premises where any Collateral is located for
the purpose of performing Debtor’s obligations under any such provision. Debtor agrees to repay all such sums advanced upon
demand, with interest from the date such advances are made at the default rate of interest provided for in Section 3.1 of the
Credit Agreement, and all sums so advanced with interest shall be a part of the Outstanding Obligations. The making of any such
advances shall not be construed as a waiver by Lender of any Event of Default resulting from Debtor’s failure to pay such
amounts.

 

30.       Debtor
Liable on Contracts. Notwithstanding anything in this Security Agreement to the contrary (i) Debtor shall remain liable under
the Contracts to perform all of Debtor’s duties and obligations thereunder to the same extent as if this Security Agreement
had not been executed, (ii) the exercise by Lender of any rights hereunder shall not release Debtor from any of Debtor’s
obligations under the Contracts, and (iii) Lender shall not have any obligation or liability under the Contracts by reason of
this Security Agreement or the receipt by Lender of any payment hereunder, nor shall Lender be obligated to perform any of the
obligations of Debtor under the Contracts, to take any action to collect, file and enforce any claim for payment assigned to Lender
hereunder, or to make any inquiry as to the nature or sufficiency of any payment received by it or the adequacy of any performance
by any party.

 

31.       Construction
of Agreement.

 

(a)       General.
In this Security Agreement, references to statutes or regulations are to be construed as including all statutory or regulatory
provisions consolidated, amending or replacing the statute or regulation referred to unless otherwise stated; references to articles,
parts, sections, paragraphs, clauses, schedules or exhibits are to this Security Agreement unless otherwise indicated; references
to agreements and other contractual instruments shall be deemed to include all exhibits, schedules and appendices attached thereto;
and the use of the words “hereof,” “herein” and “hereunder” and words of similar import shall refer
to this Security Agreement as a whole and not to any particular provision of the Agreement. Whenever the terms “include,”
“includes” or “including” are used in this Security Agreement, they shall be deemed to be followed by the
words “without limitation.” References herein to one gender shall be deemed to include all other genders. In the event
of any inconsistency between the terms of the Credit Agreement and the terms of this Security Agreement, the terms of the Credit
Agreement shall prevail.

 

(b)       Headings.
The section and paragraph titles herein are for convenience only and do not define, limit or construe the contents of such sections
and paragraphs.

 

(c)       Schedules
and Exhibits. All schedules and exhibits attached hereto are hereby incorporated by reference into, and made a part of, this
Security Agreement.

 

    	 	 	 18

     

    

 

32.       Consent
to Jurisdiction; Service of Process. Debtor hereby irrevocably submits and consents to the jurisdiction of any state or federal
court sitting in Montgomery County, Alabama, in any action or proceeding arising out of or relating to this Agreement or any of
the other Debtor’s Loan Documents (“Agreement Action”) and irrevocably agrees that all claims and disputes with
respect to any such Agreement Action may be heard and determined in such Alabama state court or, to the extent permitted by law,
in such federal court and that Debtor shall not initiate any Agreement Action against Lender in any other court. Debtor irrevocably
waives the defenses of improper venue and inconvenient forum to the maintenance of any Agreement Action. Debtor agrees that a
final judgment in any Agreement Action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by applicable law, and further agrees not to institute any Agreement Action against Lender or
any director, employee, other agent or property of Lender, concerning any matter arising out of or relating to this Agreement,
the other Loan Documents or the financing contemplated therein, in any court other than one located in Montgomery County, Alabama.
DEBTOR AGREES THAT THE PROVISIONS OF THIS SECTION, EVEN IF FOUND NOT TO BE STRICTLY ENFORCEABLE BY ANY COURT, SHALL CONSTITUTE
“FAIR WARNING” TO DEBTOR THAT THE EXECUTION OF THIS AGREEMENT AND THE OTHER DEBTOR’S LOAN DOCUMENTS MAY SUBJECT
DEBTOR TO THE JURISDICTION OF EACH STATE OR FEDERAL COURT SITTING IN MONTGOMERY COUNTY, ALABAMA WITH RESPECT TO ANY AGREEMENT
ACTIONS AND THAT IT IS FORESEEABLE BY DEBTOR THAT DEBTOR MAY BE SUBJECTED TO THE JURISDICTION OF SUCH COURTS AND MAY BE SUED IN
THE STATE OF ALABAMA IN ANY AGREEMENT ACTION. Nothing in this section shall affect or impair the right of the Lender to serve
legal process in any other manner permitted by law or to bring any Agreement Action in the courts of other jurisdictions.

 

[Remainder
of page intentionally left blank]

 

    	 	 	 19

     

    

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this instrument as of the date first set forth above.

 

	 	FRANKLY INC.
	 	 	 
	 	By:
    	/s/
    Steve Chung
	 	Name:
    	Steve
    Chung
	 	Title:
    	Chief
    Executive Officer

 

    	 	 	 20

     

    

 

SCHEDULE
I

 

COPYRIGHTS,
TRADEMARKS AND PATENTS

 

NONE

 

    	 	 	 21

     

    

 

SCHEDULE
II

 

LOCATION
OF RECORDS AND CERTAIN COLLATERAL

 

333
Bryant Street, Suite 240, San Francisco, CA 94107

 

5
Hazelton Avenue, Suite 300, Toronto, ON M5R2E1

 

2900-550
Burrard Street, Vancouver, BC V6C 0A3

 

    	 	 	 22

     

    

 

SCHEDULE
III

 

TRADENAMES

 

Frankly

 

    	 	 	 23

     

    

 

EXHIBIT
A

 

SECURITY
AGREEMENT TABLE OF DEFINITIONS

 

“Account
Debtor” shall mean any “account debtor,” as such term is defined in Section 7-9A-102(3) of the UCC.

 

“Accounts”
shall mean any “accounts,” as such term is defined in Section 7-9A-102(2) of the UCC, now owned or hereafter acquired
by Debtor or in which Debtor now has or hereafter acquires any rights, and, in any event, shall include all accounts receivable,
book debts and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments)
now owned or hereafter received or acquired by or belonging or owing to Debtor, whether arising out of goods sold or leased or
services rendered by Debtor or from any other transaction, whether or not the same involves the sale or lease of goods or services
by Debtor (including any such obligation which might be characterized as an account or contract right under the UCC) and all of
Debtor’s right in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services,
and all of Debtor’s rights to any goods represented by any of the foregoing (including unpaid seller’s rights of rescission,
replevin, reclamation and therefor in transit and rights to returned, reclaimed or repossessed goods), and all moneys due or to
become due to Debtor under all contracts for the sale of goods or the performance of services or both by Debtor (whether or not
yet earned by performance on the part of Debtor or in connection with any other transaction), now in existence or hereafter occurring,
including the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantee of
any kind given by any Person with respect to any of the foregoing.

 

“Chattel
Paper” shall mean any “chattel paper,” as such term is defined in Section 7-9A-102(11) of the UCC, now owned
or hereafter acquired by Debtor or in which Debtor now has or hereafter acquires any rights and wherever located and, in any event,
shall include a writing or writings which evidence both a monetary obligation and a security interest in or lease of specific
goods; any returned, rejected or repossessed goods covered by any such writing or writings and all proceeds (in any form including,
without limitation, accounts, contract rights, documents, chattel paper, instruments and general intangibles) of such returned,
rejected or repossessed goods.

 

“Collateral”
shall have the meaning assigned to such term in Section 2 of this Security Agreement.

 

“Contracts”
shall mean all contracts, undertakings or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments)
in or under which Debtor may now or hereafter have any right, title or interest, including with respect to an Account, any agreement
relating to the terms of payment or the terms of performance thereof; including without limitation, all of Debtor’s rights,
if any, under all present and future syndication and other similar contracts and equipment maintenance agreements, advertising
agreements, trade/barter agreements, newsprint contracts and computer/software agreements.

 

    	 		A-1

     

    

 

“Copyrights”
shall mean and include all of Debtor’s rights, title and interest in and to the following whether now owned or hereafter
acquired by Debtor or in which Debtor now has or hereafter acquires any rights and wherever located: (a) all copyrights, rights
and interests in copyrights, works protectable by copyright, copyright registrations, copyright applications, and all renewals
of any of the foregoing, (b) all income, royalties, damages and payments now or hereafter due and/or payable under any of the
foregoing, including, damages or payments for past, current or future infringements of any of the foregoing, (c) the right to
sue for past, present and future infringements of any of the foregoing, and (d) all rights corresponding to any of the foregoing
throughout the world.

 

“Deposit
Accounts” shall mean all bank accounts and other deposit accounts included in the Collateral or established for the
benefit of Lender.

 

“Documents”
shall mean any “documents,” as such term is defined in Section 7-9A-102(30) of the UCC, now owned or hereafter acquired
by Debtor or in which Debtor now has or hereafter acquires any rights and wherever located.

 

“Equipment”
shall mean any “equipment,” as such term is defined in Section 7-9A-102(33) of the UCC, now owned or hereafter acquired
by Debtor or in which Debtor now has or hereafter acquires any rights and wherever located, and, in any event, shall include all
machinery, equipment, furnishings, fixtures, and computers and other electronic data-processing and other office equipment now
owned or hereafter acquired by Debtor or in which Debtor now has or hereafter acquired any rights (to the extent of such rights)
and wherever located, whether or not the same shall be deemed to be affixed to real property, together with all accessions, additions,
fittings, accessories, special tools, and improvements thereto and substitutions therefore and all parts, components and equipment
which may be attached to or which are necessary or beneficial for the operation, use and/or disposition of such personal property,
all licenses, warranties, franchises and general intangibles related thereto or necessary or beneficial for the operation, use
and/or disposition of the same, together with all Accounts, Chattel Paper, Instruments and other consideration received by Debtor
on account of the sale, lease or other disposition of all or any party of the foregoing, and together with all rights under or
arising out of present or future Documents and contracts relating to the foregoing.

 

“General
Intangibles” shall mean any “general intangibles,” as such term is defined in Section 7-9A-102(42) of the
UCC, now owned or hereafter acquired by Debtor or in which Debtor now has or hereafter acquires any rights and in any event, shall
include all books and records, claims (including all claims for income tax and other refunds), choses in action, causes of actions
in tort or equity, contract rights, judgments, customer lists, Patents, Trademarks, IP Licenses, licensing agreements, rights
in intellectual property, goodwill (including goodwill of the Debtor’s business symbolized by and associated with any and
all Trademarks, trademark licenses, Copyrights and/or service marks), royalty payments, all right, title and interest of the Debtor
in and to the Licenses (whether or not designated with initial capital letters), contractual rights, rights as lessee under any
lease of real or personal property, literary rights, Copyrights, service name, service marks, logos, proprietary rights, trade
secrets, amounts received as an award in or settlement of a suit in damages, deposit accounts, interests in joint ventures or
general or limited partnerships, rights in applications for any of the foregoing, books and records in whatever media (paper,
electronic or otherwise) recorded or stored, with respect to any or all of the foregoing and all equipment and general intangibles
necessary or beneficial desirable to retain, access and/or process the information contained in those books and records.

 

    	 		A-2

     

    

 

“Instruments”
shall mean any “instrument,” as such term is defined in Section 7-9A-102(47) of the UCC, now owned or hereafter acquired
by Debtor or in which Debtor now has or hereafter acquires any rights and wherever located, other than instruments that constitute,
or are part of a group of writings that constitute, Chattel Paper.

 

“Intellectual
Property” shall have the meaning assigned to such term in Section 3(f) of this Security Agreement.

 

“Inventory”
shall mean any “inventory,” as such term is defined in Section 7-9A-102(48) of the UCC, now owned or hereafter acquired
by Debtor or in which Debtor now has or hereafter acquires any rights and in any event, shall include all inventory, merchandise,
goods and other personal property, now owned or hereafter acquired by Debtor or in which Debtor now has or hereafter acquires
any rights and wherever located, which are held for sale or lease or are furnished or are to be furnished under a contract of
service or which constitute raw materials, work in process or materials used or consumed or to be used or consumed in Debtor’s
business, or the processing, packaging, delivery or shipping of the same, and all finished goods.

 

“IP
Licenses” shall mean any Patent License, Trademark License or other license as to which Lender has been granted a security
interest hereunder.

 

“Licenses”
shall mean any and all IP Licenses, operating permits, franchises, and other licenses, authorizations, certifications, permits,
or approvals, as the same may from time to time be amended, renewed, restated, reissued, restricted, supplemented or otherwise
modified other than construction permits, issued by, or on behalf of, any Governmental Authority now existing or at any time hereafter
issued, with respect to the acquisition, construction, renovation, expansion, leasing, ownership and/or operation of any facility,
any and all operating licenses issued by any state Governmental Authority.

 

“Patent
License” shall mean all of the following now owned or hereafter acquired by Debtor or in which Debtor now has or hereafter
acquires any rights: any written agreement granting any right to make, use, sell and/or practice any invention or discovery that
is the subject matter of a Patent.

 

“Patent”
or “Patents” shall mean, in each case whether now, existing or hereafter arising, all of Debtor’s rights,
title and interest in and to (a) any and all patents and patent applications, (b) any and all inventions and improvements described
and claimed in such patents and patent applications, (c) reissues, divisions, continuations, renewals, extensions and continuations-in-part
of any patents and patent applications, (d) income, royalties, damages, claims and payments now or hereafter due and/or payable
under and with respect to any patents or patent applications, including, without limitation, damages and payments for past and
future infringements, (e) rights to sue for past, present and future infringements of patents, and (f) all rights corresponding
to any of the foregoing throughout the world.

 

    	 		A-3

     

    

 

“Permits”
shall mean all permits, licenses, certificates, approvals and authorizations, however characterized, issued or in any way furnished
by a Governmental Authority in connection with the business operations of Debtor or any other Collateral other than any permits
that are not assignable without the consent of another Person, which consent has not or cannot be obtained.

 

“Proceeds”
shall mean “proceeds,” as such term is defined in Section 7-9A-102(64) of the UCC and, in any event, shall include
(i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to Debtor from time to time with respect to
any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to Debtor from time to time
in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by
any Governmental Authority (or any person acting under color of Governmental Authority), (iii) any claim of Debtor against third
parties (A) for past, present or future infringement of any Copyright, Patent or Patent License or (B) for past, present or future
infringement or dilution of any Trademark or Trademark License or for injury to the goodwill associated with any Trademark, Trademark
registration or Trademark licensed under any Trademark License, (iv) any and all other amounts from time to time paid or payable
under or in connection with any of the Collateral and (v) the following types of property acquired with cash proceeds: Accounts,
Chattel Paper, Contracts, Documents, General Intangibles, Equipment, Tangible Collateral and Inventory.

 

“Securities”
means the collective reference to each and every certificated or uncertificated security which constitutes a “security”
under the provisions of Title 8 of the Uniform Commercial Code, and all proceeds (cash and non-cash) of the foregoing.

 

“Security
Agreement” shall mean this Security Agreement, as it may be amended or supplemented from time to time.

 

“Supplemental
Documentation” shall have the meaning assigned to it in Section 4(a) of this Security Agreement.

 

“Tangible
Collateral” means all tangible personal property this is part of the Collateral, including all of Debtor’s Equipment,
vehicles, tools, spare parts, Inventory, materials, supplies, goods and leasehold improvements.

 

“Trademark
License” shall mean all of the following now owned or hereafter acquired by Debtor or in which Debtor now has or hereafter
acquires any rights: any written agreement granting any right to use any Trademark or Trademark registration.

 

“Trademark”
or “Trademarks” shall mean one or all of the following now owned or hereafter acquired by Debtor or in which
Debtor now has or hereafter acquires any rights: (i) all trademarks, trade names, corporate names, business names, trade styles,
service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared or appear,
designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, including registrations, recordings and applications in the United Stated
Patent and Trademark Office or in any similar office or agency of any State of the United States or any other country or any political
subdivision thereof, (ii) the goodwill symbolized by any of the foregoing, (iii) any and all licenses of trademarks, service marks,
trade names and/or trade styles, whether as licensor or licensee, (iv) any renewals of any and all trademarks, service marks,
trade names, trade styles and/or licenses of any of the foregoing, (v) income, royalties, damages and payments now or hereafter
due and/or payable with respect thereto, including damages, claims, and payments for past, present and future infringements thereof,
(vi) rights to sue for past, present and future infringements of any of the foregoing, including the right to settle suits involving
claims and demands for royalties owing, and (vii) all rights corresponding to any of the foregoing throughout the world.

 

“UCC”
shall mean the Uniform Commercial Code as the same may, from time to time, be in effect in the State of Alabama; provided,
however, if, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of Lender’s
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State
of Alabama, the term “UCC” shall mean the Uniform Commercial Code as in effect in a jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions.

 

    	 		A-4

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