Document:

Exhibit
10.11

 

BRIDGE
LOAN FACILITY AGREEMENT

 

This
Bridge Loan Facility Agreement (this “Agreement”) is made as of September 21, 2018 (the “Effective Date”),
by and between Howard S. Jonas (“Lender”) and IDW Media Holdings, Inc., a Delaware corporation (“Debtor”).
Unless otherwise expressly provided herein, all defined terms used in this Agreement shall have the meanings set forth in Section
1.

 

 

W
I T N E S S E T H:

 

WHEREAS, the Debtor
desires to borrow up to an aggregate amount of US$26 million, from time to time. and Lender is willing to lend such amount to the
Debtor on the terms and conditions set forth herein;

 

WHEREAS, the Debtor
and the Lender desire to make certain representations, warranties and agreements in connection with the transactions contemplated
hereby and also to prescribe certain conditions thereto.

 

NOW, THEREFORE,
in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

 

1. DEFINITIONS.
The following terms shall have the following meanings for all purposes of this Agreement:

 

“Action”
has the meaning set forth in Section 7.

 

“Advance”
means any advance of the proceeds of the Loan made by Lender pursuant to the terms of Section 2.

 

“Affiliate”
means any Person which directly or indirectly controls, is under common control with, or is controlled by any other Person. For
purposes of this definition, “controls”, “under common control with” and “controlled by” means
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person,
whether through ownership of voting securities or otherwise.

 

“Borrowing
Termination Date” means January 31, 2019.

 

“Business
Day” means any day on which banks are open for general banking business in the State of New Jersey other than a Saturday,
Sunday, a legal holiday or any other day on which banks in the State of New Jersey are required or authorized by law to close.

 

“Code”
means the United States Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., as amended.

 

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“Debt”
means as to a Person at any time (without duplication): (a) all obligations of such Person for borrowed money; (b) all obligations
of such Person evidenced by bonds, notes, debentures or other similar instruments; (c) all obligations of such Person to pay the
deferred purchase price of property or services; (d) all capital lease obligations of such Person; (e) all contingent obligations
or other obligations of others guaranteed by such Person; (f) all obligations secured by a lien existing on property owned by such
Person, whether or not the obligations secured thereby have been assumed by such Person or are nonrecourse to the credit of such
Person; and (g) all reimbursement obligations of such Person (whether contingent or otherwise) in respect of letters of credit,
bankers’ acceptances, surety or other bonds and similar instruments.

 

“Effective
Date” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Event of
Default” has the meaning set forth in Section 7.

 

“Governmental
Authority” shall mean any nation or government, any state or other political subdivision thereof, and any agency, department
or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Indemnified
Parties” has the meaning set forth in Section 9.

 

“Liability”
means any liability or obligation of whatever kind or nature (whether known or unknown, whether asserted or un-asserted, whether
absolute or contingent, whether accrued or unaccrued, whether liquidated or un-liquidated, and whether due or to become due), including
any liability for Taxes.

 

“LIBOR”
means the 3-Month London Interbank Offering Rate as quoted in the Wall Street Journal (or other reputable publication if no such
quote is available).

 

“Lien”
means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, transfer restriction,
security interest, easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever (including, without limitation, any title retention agreement, any financing lease having substantially
the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement perfecting a
security interest as to assets owned by the relevant Person under the Uniform Commercial Code or comparable law of any jurisdiction).

 

“Loan”
means the loan hereunder by the Lender to the Company, and the borrowing hereunder by the Company from the Lender, up to the Maximum
Loan Amount as described in Section 2.

 

“Loan Documents”
means, collectively, this Agreement, the Note, the Security Agreement, the Pledge Agreement and all other documents, instruments
and agreements executed in connection therewith or contemplated thereby.

 

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“Material
Adverse Effect” means any event or series of events that, in the reasonable judgment of the Lender, has had, or is reasonably
likely to have, a material adverse effect on (i) the business, assets, condition, financial or otherwise, or prospects or financial
condition of Debtor or any of its Subsidiaries, or (ii) the ability of Debtor to perform its obligations under the Loan Documents.

 

“Maturity
Date” means January 31, 2019 or such earlier date on which the principal amount of the loan shall be due and payable under
any of the Loan Agreements, subject to the Borrower’s right to extend the Maturity Date under Section 2.E. hereof.

 

“Maximum
Loan Amount” means US$26,000,000.00.

 

“Note”
means the secured promissory note, dated as of the Effective Date, executed by Debtor in favor of Lender in the form of Exhibit
A attached to this Agreement, as such Note may be amended and/or amended and restated and/or substituted from time to time as contemplated
by Section 2. The term “Note” shall also include all additional promissory notes executed and delivered by Debtor to
Lender from time to time as contemplated by Section 2.

 

“Person”
shall mean any individual, corporation, partnership, limited liability company, trust, unincorporated organization, governmental
authority or any other form of entity.

 

“Pledge Agreement”
means the pledge agreement, dated as of the Effective Date, between the Debtor and Lender in the form of Exhibit B attached to
this Agreement.

 

“Security
Agreement” means the security agreement, dated as of the Effective Date, between the Debtor and Lender in the form of Exhibit
C attached to this Agreement.

 

“Stock Price”
means as of any date, the average of the closing prices for the Borrower’s Class B common stock, par value $0.01 per share,
on the principal market or quotation service on which it is then listed or quoted for the ten (10) trading days ending on the trading
day before such date.

 

“Subsidiary”
means any corporation or other entity of which at least a majority of the outstanding shares of stock or other ownership interests
having by the terms thereof ordinary voting power to elect a majority of the board of directors (or Persons performing similar
functions) of such corporation (irrespective of whether or not at the time stock of any other class or classes of such corporation
or entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly
owned or controlled by Debtor or one or more of the Subsidiaries or by Debtor and one or more of the Subsidiaries.

 

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2. LOAN; WARRANTS.

 

A. On the terms
and subject to the satisfaction by Debtor of the conditions set forth in this Agreement, Lender agrees to make the Loan to Debtor,
which Loan will be in the form of Advances made from time to time as provided in this Agreement. The aggregate amount of Advances
made under the Loan shall not exceed the Maximum Loan Amount. So long as no event has occurred which is, or with the passage of
time or the giving of notice or both under the Loan Documents would constitute, an Event of Default, Debtor may borrow or prepay,
from the Effective Date until the Borrowing Termination Date, an amount up to the Maximum Loan Amount. To the extent that any amount
has been prepaid prior to the Borrowing Termination Date, the Maximum Loan Amount shall be reduced by the principal amount prepaid,
and no amounts prepaid may be reborrowed hereunder.

 

B. Simultaneously
with the execution and delivery of this Agreement, Debtor shall execute and deliver to Lender the Note. The obligation of Debtor
to pay the outstanding aggregate principal amount of all Advances plus interest thereon shall be evidenced by the Note. Debtor
irrevocably authorizes Lender to make or cause to be made, at or about the time of any Advance or at the time of Lender’s
receipt of any payment of the principal amount of the Note, an appropriate notation in Lender’s records reflecting the amount
of such Advance or payment, as applicable. The outstanding aggregate principal amount of the Note plus accrued interest thereon
set forth in Lender’s records maintained with respect to the Note (which may include computer records) shall, absent manifest
error, be prima facie evidence of the outstanding aggregate principal amount plus accrued interest thereon due and owing to Lender,
but the failure to record, or any error in so recording, any such amount on Lender’s records shall not limit or otherwise
affect the obligations of Debtor under the Note to make payments when due. Notwithstanding the foregoing, Debtor agrees to execute
such amendments to the Note, amendments and restatements of the Note and/or substitute and/or additional promissory notes in the
form of the Note as Lender may reasonably request to evidence Debtor’s obligations to Lender under the Loan Documents.

 

C. Debtor shall
notify Lender in writing at least five (5) days before the Business Day on which Debtor desires to receive an Advance (each such
written request, a “Notice”). Each Notice shall set forth the requested amount of such Advance (provided, however,
no Advance shall be more than US$3.0 million other than requests received prior to October 31, 2018) and the requested funding
date. Debtor shall not request funding less than seven (7) days following the prior requested funding date. Each Notice shall constitute
a certification by Debtor that the representations and warranties of Debtor set forth in the Loan Documents, are true, correct
and complete in all material respects as of the date of such Notice and as of the date of such requested Advance and that Debtor
has satisfied each of the conditions precedent set forth in this Agreement. Lender’s obligation to fund each Advance shall
be subject to the satisfaction of the following conditions precedent as of the date of the requested Advance:

 

(i) no event shall have occurred
which is, or with the passage of time or the giving of notice or both under the Loan Documents would constitute, an Event of Default;

 

(ii) Debtor shall be in compliance
with each of the covenants set forth in Section 5;

 

(iii) the outstanding principal
balance of the Loan, together with the amount of the requested Advance, must not exceed the Maximum Loan Amount (as adjusted to
such date); and

 

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(iv) there shall have been
no Material Adverse Effect since the Effective Date, as determined by Lender in his reasonable discretion.

 

Upon Debtor’s satisfaction of
the foregoing conditions, Lender will disburse the requested Advance in immediately available funds to such account as Debtor shall
have specified in the Notice or as otherwise directed by Debtor in the Notice.

 

D. The Loan shall
bear interest at a rate of interest as set forth in the Note. Interest shall be payable quarterly and all amounts owing hereunder,
including unpaid interest, shall be payable upon the Maturity Date or upon any prepayment of the Note. Debtor shall have the right
to prepay (without premium or penalty) the Note in whole or in part at any time provided that any such prepayment shall only be
made on a regularly scheduled payment date upon not less than 10 days prior written notice from Debtor to Lender. Debtor shall
pay on the Maturity Date, and there shall become absolutely due and payable on the Maturity Date, the outstanding principal amount
of the Loan and all accrued but unpaid interest thereon.

 

E. Upon not less
than five (5) days’ prior written request of the Borrower, the Maturity Date shall be extended for up to a total of three
(3) successive one (1) calendar month periods, provided that during any such extended period following the original Maturity Date,
the Interest Rate shall be increased as set forth in the definition of Interest Rate. Upon the initial election of the Company
to extend the Maturity Date under this Section, the Company shall issue to Lender warrants to purchase a number of shares of Class
B common stock as shall equal US$2.6 million divided by the Stock Price as of January 31, 2019. Such warrants shall have a term
of three (3) years and an exercise price per share equal to the Stock Price as of January 31, 2019.

 

F. Upon the occurrence
of an Event of Default that is not cured within the time period therefor set forth herein or in the Note, the Company shall issue
to Lender warrants to purchase a number of shares of Class B common stock as shall equal 10% of the then outstanding principal
balance of, plus accrued and unpaid interest on, the Loan divided by the Stock Price as of such date. Such warrants shall have
a term of three (3) years and an exercise price per share equal to the Stock Price as of such date.

 

G. All costs and
expenses of the transaction described in this Agreement (including Lender’s expenses related to any collection of the Loan
after an Event of Default) shall be paid by Debtor, in connection with the preparation of this Agreement.

 

3. REPRESENTATIONS
AND WARRANTIES OF DEBTOR. The representations and warranties of Debtor contained in this Section are being made by Debtor as of
the Effective Date and the date of each Advance to induce Lender to enter into this Agreement and consummate the transactions contemplated
herein, and Lender has relied, and will continue to rely, upon such representations and warranties from and after the Effective
Date and the date of each Advance. Debtor represents and warrants to Lender as follows:

 

A.  Organization,
Good Standing and Qualification. The Debtor is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has full corporate power and authority to conduct its business. The Debtor is duly qualified
to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse
Effect.

 

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B.  Authorization;
Enforceability. The Debtor has all corporate right, power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby. All corporate action on the part of the Debtor, its directors and stockholders necessary for
the (i) authorization execution, delivery and performance of this Agreement by the Debtor and the performance of the Debtor’s
obligations hereunder has been taken. This Agreement has been duly executed and delivered by the Debtor and constitutes a legal,
valid and binding obligation of the Debtor, enforceable against the Debtor in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive
relief or other equitable remedies, and to limitations of public policy.

 

C  No
Conflict; Governmental Consents: Approval Obtained.

 

(i)  The
Debtor has obtained all required consents to, and waivers of any rights arising from, the Debtor’s entering into this Agreement
and effecting any of the transactions contemplated by any of the Loan Documents.

 

(ii)  The
execution and delivery by the Debtor of this Agreement and the consummation of the transactions contemplated hereby will not result
in the violation of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental
authority to or by which the Debtor is bound, or of any provision of the Certificate of Incorporation or By-Laws of the Debtor,
and will not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute (with due notice
or lapse of time or both) a default under, any lease, loan agreement, mortgage, security agreement, trust indenture or other agreement
or instrument to which the Debtor is a party or by which it is bound or to which any of its properties or assets is subject, nor
result in the creation or imposition of any lien upon any of the properties or assets of the Debtor, a reduction to any conversion
price or exercise price provided therein, or any other adjustment to the terms thereof.

 

(iii)
 No consent, approval, authorization or other order of any governmental authority is required
to be obtained by the Debtor in connection with the authorization, execution and delivery of this Agreement, except for any required
filings with any state, federal or foreign blue sky or securities regulatory authority after the Closing.

 

D.
 Litigation. Except as set forth on Schedule 3.4, there are no pending, and the
Debtor knows of no threatened, legal or governmental proceedings against the Debtor or its Subsidiaries. Neither the Debtor nor
its Subsidiaries is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no action, suit, proceeding or investigation by the Debtor currently pending in any court or
before any arbitrator or that the Debtor intends to initiate.

 

E.
 Disclosure. Neither the Debtor nor any of its officers or its representatives
have made any untrue statement of a material fact to the Lender in any Loan Document or its representatives or omitted to state
a material fact necessary in order to make any statements made to the Lender or its representatives, in light of the circumstances
under which they were made, not misleading.

 

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F.  Investment
Company. The Debtor is not an “investment company” within the meaning of such term under the Investment Debtor
Act of 1940, as amended, and the rules and regulations of the SEC thereunder.

 

G.  Brokers’
Fees. The Debtor has no Liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect
to the transactions contemplated by this Agreement or any of the Loan Documents.

 

4. REPRESENTATIONS
AND WARRANTIES OF LENDER. The representations and warranties of Lender contained in this Section are being made by Lender as of
the Effective Date to induce Debtor to enter into this Agreement and consummate the transactions contemplated herein, and Debtor
has relied, and will continue to rely, upon such representations and warranties from and after the execution of this Agreement.
Lender represents and warrants to Debtor as follows:

 

A.  The
Lender has full power and legal authority to execute and deliver this Agreement and make the Loan. This Agreement constitutes the
legal, valid and binding obligation of the Lender, enforceable against the Lender in accordance with its terms, except (i) as such
enforceability may be limited by (A) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies
and (B) laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (ii) insofar
as indemnification and contribution provisions may be limited by applicable law.

 

B. The execution
of this Agreement by Lender does not, and the performance of his obligations contemplated by this Agreement shall not conflict
with, or result in any violation or liability arising under, any agreement between Lender and a third-party.

 

C. The
Lender is not a broker-dealer registered with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or an entity engaged in a business that would require it to be so registered.

 

5. COVENANTS. Debtor
covenants to Lender from and after the Effective Date as follows:

 

A. Capital Raise.
The Debtor shall, as soon as practicable, take all action necessary to raise equity capital (including securities convertible into,
or exercisable or exchangeable for, equity securities) (a “Capital Raise”) from existing stockholders upon terms and
conditions reasonably acceptable to Lender. In the event the Debtor commences a Capital Raise, then the Lender may apply all or
any portion of the outstanding principal amount of, or accrued and unpaid interest or other amounts owing in respect of, the Loan
toward the subscription or purchase price for Lender’s (or any of his Affiliates’) subscription or purchase in connection
with such Capital Raise.

 

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B. Prepayment.
The Debtor shall use commercially reasonable best efforts to arrange, as soon as practicable following the Effective Date, for
borrowings (“OF Debt”) by Debtor or an Affiliate of Debtor, on commercially reasonable terms, from one or more institutional
lenders, of not less than US$18 million to finance costs, and secured by certain tangible and intangible assets, related to the
production of the television series known as “October Faction” and to immediately utilize the proceeds therefrom
to repay the Loan in an amount of not less than the lesser of US$11 million and the then total outstanding amount of the Loan (such
prepayment or a payment of the same or greater magnitude from any source, the “OF Prepayment”).

 

C. Reporting Obligations.
Debtor will provide Lender with each of the following:

 

(i) Event of Default.
Promptly, but in any event within five days, after Debtor becomes aware of an Event of Default, written notification to Lender
specifying the nature and period of existence thereof and what action Debtor is taking or proposes to take with respect thereto.

 

(ii) Litigation.
Within ten days after Debtor becomes aware of any action, suit or proceeding pending or threatened in writing against or involving
Debtor and/or Debtor’s properties, except (1) for those actions, suits or proceedings for which damages of less than US$250,000
have been sought, threatened or are likely to be incurred, and (2) which Debtor in good faith determines will be covered by its
insurance (including worker’s compensation claims), Debtor shall notify Lender of such action, suit or proceeding and in
such notice specify the nature thereof, whether the alleged liability therein is covered by insurance then in effect and, if so
covered, the monetary coverage thereof, and what action Debtor is taking or proposes to take with respect thereto.

 

D. Payment of Taxes,
Etc. Unless Debtor shall contest the amount or validity thereof in the manner described below, Debtor shall pay all taxes, assessments
and governmental charges or levies imposed upon it or upon its income or profits, or upon any properties belonging to it, prior
to the date on which penalties attach thereto, and all lawful claims which, if unpaid, might become a lien upon any of its properties.
Debtor may, at its own expense, contest or cause to be contested such taxes, assessments, governmental charges or levies or other
claims (i) in good faith, (ii) by proper proceedings, and (iii) against which adequate reserves in accordance with generally accepted
accounting principles are being maintained.

 

E. Organization
of Debtor. Debtor will continue to be a corporation duly organized, validly existing and in good standing under the laws of its
jurisdiction and qualified to do business in any jurisdiction where such qualification is required.

 

F. Licenses, Permits,
Consents and Approvals. Debtor shall maintain in full force and effect all required licenses, permits, consents and approvals,
both governmental and private, to use and operate its assets and conduct its business in the intended manner.

 

G. Debt; Liens.
Debtor shall not, and shall not permit any Subsidiary to, incur, create, assume or permit to exist any Debt senior to or pari
passu with the Loan, except Debt existing as of the date hereof and OF Debt (subject to Debtor effecting the OF Prepayment).
Debtor shall not grant any general lien or security interest in the Collateral (as such term is defined in the Security Agreement)
of the Pledged Equity (as defined in the Pledge Agreement), provided, however, Lender shall agree to release his lien on the Collateral
(but not the Pledged Equity) related to the production of October Faction in order for Debtor (or an affiliate) to incur
the OF Debt, so long as Debtor immediately effects the OF Prepayment.

 

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H. Disposition
of Assets. Without the prior written consent of Lender, Debtor shall not, directly or indirectly, sell, assign, lease, transfer
or otherwise dispose of its assets (other than in the ordinary course of business for full and fair consideration).

 

I. Maintenance
of Assets. Debtor shall maintain, keep and preserve, and will cause each Subsidiary to maintain, keep and preserve, all of its
tangible and intangible property and other assets that are necessary and useful in proper conduct of its business.

 

J. Compliance with
Laws. The Company will at all times be in full compliance with all laws, statutes, ordinances, codes, constitution, charters, treaties,
rules and regulations of any federal, state or local government, or any political subdivision thereof, or any court, agency or
other body, organization, group, stock market or exchange exercising any executive, legislative, judicial, quasi-judicial, regulatory
or administrative function of government, except for any instances which would not reasonably be expected to have a Material Adverse
Effect.

 

K. Use of Proceeds.
The Debtor will use the proceeds of the Loans for costs and expenses related to the production of television shows and for other
general corporate purposes.

 

L. Affiliate Transactions.
Debtor will not enter into any transaction with any affiliate of the Debtor, expect for transactions existing as of the Effective
Date.

 

6. TRANSACTION
CHARACTERIZATION. This Agreement is a contract to extend a financial accommodation (as such term is used in the Code) for the benefit
of Debtor. It is the intent of the parties hereto that the business relationship created by this Agreement, the Note and the other
Loan Documents is solely that of creditor and debtor and has been entered into by both parties in reliance upon the economic and
legal bargains contained in the Loan Documents.

None of the agreements contained in the Loan Documents is intended, nor shall the same be deemed or construed, to create a partnership
between Debtor and Lender, to make them joint venturers, to make Debtor an agent, legal representative, partner, subsidiary or
employee of Lender, nor to make Lender in any way responsible for the debts, obligations or losses of Debtor.

 

7. DEFAULT AND
REMEDIES.

 

A. Each
of the following shall be deemed an event of default by Debtor, after notice, to the extent required hereunder, and after the expiration
of any applicable grace or cure period without the cure thereof (each, an “Event of Default”):

 

(i) If any representation
or warranty of Debtor set forth in any of the Loan Documents is false in any material respect when made or becomes false in any
material respect, or if Debtor renders any materially false statement or account;

 

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(ii) If any principal,
interest or other monetary sum due under the Note or any other Loan Document is not paid within five days from the date when due
and Lender shall have given notice of such failure to Debtor and such failure shall not have been cured by Debtor within five days
from the delivery of such notice;

 

(iii) If Debtor
fails to observe or perform any of the other covenants (except as otherwise provided below), conditions, or obligations of this
Agreement or there is a breach or default under any other Loan Document beyond any applicable notice or cure period; provided,
however, if any such event does not involve the payment of any monetary sum, is not the result of a willful or intentional act
or omission of Debtor, does not place any rights or property of Lender in immediate jeopardy, and is within the reasonable power
of Debtor to promptly cure after receipt of notice thereof, all as determined by Lender in his reasonable discretion, then such
event shall not constitute an Event of Default hereunder, unless otherwise expressly provided herein, unless and until Lender shall
have given Debtor notice thereof and a period of 20 days shall have elapsed, during which period Debtor may correct or cure such
event, upon failure of which an Event of Default shall be deemed to have occurred hereunder (except as otherwise provided in the
following sentence) without further notice or demand of any kind being required. If such nonmonetary event cannot reasonably be
cured within such 20-day period, as determined by Lender in his reasonable discretion, and Debtor is diligently pursuing a cure
of such event, then an Event of Default shall not be deemed to have occurred hereunder upon the expiration of such 20-day period
and Debtor shall have a reasonable period to cure such event beyond such 20-day period, which shall not exceed 30 days after receiving
notice of the event from Lender. If Debtor shall fail to correct or cure such event within such 90-day period, an Event of Default
shall be deemed to have occurred hereunder without further notice or demand of any kind being required;

 

(iv) If Debtor
fails to observe or perform any of the covenants in this Agreement; or

 

(v) If Debtor becomes
insolvent within the meaning of the Code, files or notifies Lender that it intends to file a petition under the Code, initiates
a proceeding under any similar law or statute relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts
(collectively, an “Action”), becomes the subject of either an involuntary Action or petition under the Code without
such involuntary Action or petition being dismissed within 60 days of filing or, if Debtor is diligently proceeding to dismiss
such petition, such longer period of time as if required, but in no event shall such longer period of time be greater than 90 days,
or is not generally paying its debts as the same become due.

 

B. Upon and during
the continuance of an Event of Default, subject to the limitations, notices and cure periods set forth in subsection I, Lender
shall have no obligation to fund any Advance to Debtor and Lender may declare all obligations of Debtor under the Note, this Agreement
and any other Loan Document to be due and payable, and the same shall thereupon become due and payable without any presentment,
demand, protest or notice of any kind except as expressly provided herein. Thereafter, Lender may exercise, at his option, concurrently,
successively or in any combination, all remedies available at law or in equity, including without limitation any one or more of
the remedies available under the Note or any other Loan Document. Neither the acceptance of this Agreement nor its enforcement
shall prejudice or in any manner affect Lender’s right to realize upon or enforce any other security now or hereafter held
by Lender, it being agreed that Lender shall be entitled to enforce this Agreement and any other security now or hereafter held
by Lender in such order and manner as it may in his absolute discretion determine. No remedy herein conferred upon or reserved
to Lender is intended to be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity or by
statute. Every power or remedy given by any of the Loan Documents to Lender, or to which Lender may be otherwise entitled, may
be exercised, concurrently or independently, from time to time and as often as may be deemed expedient by Lender.

 

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8. ASSIGNABILITY.
This Agreement may not be assigned or transferred by Debtor without the prior written consent of the Lender. This Agreement, any
portion of the Note or, if issued warrants, shall be assignable by the Lender.

 

9. INDEMNITY.

 

Debtor shall indemnify,
hold harmless and defend Lender and each of his successors, assigns, agents, experts, licensees, affiliates, lenders, mortgagees
and trustees, as applicable (collectively, the “Indemnified Persons”), harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including attorneys’
fees) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnified
Person (including, but not limited to, those incurred in connection with the investigation of, preparation for or defense of any
pending or threatened claim or any other action or proceeding, including any insolvency proceeding or appellate proceeding) in
any way relating to or arising out of this Agreement, any document contemplated hereby or referred to herein, or the transactions
contemplated hereby or entered into by the parties hereto, or any action taken or omitted by any such Indemnified Person under
or in connection with any of the foregoing; and the foregoing indemnity shall apply to any investigation, litigation or proceeding
(including any insolvency proceeding or appellate proceeding) related to or arising out of this Agreement, whether or not any Indemnified
Person is a party thereto.

 

10. MISCELLANEOUS
PROVISIONS.

 

A. Notices. All
notices, consents, approvals or other instruments required or permitted to be given by either party pursuant to this Agreement
shall be in writing and given by (i) hand delivery, (ii) facsimile, (iii) express overnight delivery service or (iv) certified
or registered mail, return receipt requested, and shall be deemed to have been delivered upon (a) receipt, if hand delivered, (b)
transmission, if delivered by facsimile (and if a copy of such notice is also mailed by certified or registered mail, return receipt
requested, and deposited with the U.S. Postal Service no later than the first Business Day after the notice was transmitted by
facsimile), (c) the next Business Day following the date of deposit with the delivery service, if delivered by express overnight
delivery service, or (d) the third Business Day following the day of deposit of such notice with the United States Postal Service,
if sent by certified or registered mail, return receipt requested. Notices shall be provided to the parties and addresses (or facsimile
numbers, as applicable) specified below:

 

    	 	11	 

     

    

 

if to the Debtor, at:

IDW Media Holdings, Inc.

11 Largo Drive South

Stamford, Connecticut 06907

Attn: Chief Executive Officer

 

if to the Lender, at

 

Howard S. Jonas

520 Broad Street

Newark, NJ 07102

Attention: Howard Jonas

 

B. Waiver and Amendment.
No provisions of this Agreement shall be deemed waived or amended except by a written instrument unambiguously setting forth the
matter waived or amended and signed by the party against which enforcement of such waiver or amendment is sought. Waiver of any
matter shall not be deemed a waiver of the same or any other matter on any future occasion.

 

C. Captions. Captions
are used throughout this Agreement for convenience of reference only and shall not be considered in any manner in the construction
or interpretation hereof.

 

D. Lender’s
Liability. Notwithstanding anything to the contrary provided in this Agreement, it is specifically understood and agreed, such
agreement being a primary consideration for the execution of this Agreement by Lender, that (i) Debtor waives all claims, demands
and causes of action against Lender’s agents in the event of any breach by Lender of any of the terms, covenants and conditions
of this Agreement or the other Loan Documents to be performed by Lender and (ii) Debtor shall look solely to the assets of Lender
for the satisfaction of each and every remedy of Debtor in the event of any breach by Lender of any of the terms, covenants and
conditions of this Agreement or the other Loan Documents to be performed by Lender, such exculpation of liability to be absolute
and without any exception whatsoever.

 

E. Severability.
The provisions of this Agreement shall be deemed severable. If any part of this Agreement shall be held unenforceable, the remainder
shall remain in full force and effect, and such unenforceable provision shall be reformed by such court so as to give maximum legal
effect to the intention of the parties as expressed therein.

 

F. Construction
Generally. This is an agreement between parties who are experienced in sophisticated and complex matters similar to the transaction
contemplated by this Agreement and is entered into by both parties in reliance upon the economic and legal bargains contained herein
and shall be interpreted and construed in a fair and impartial manner without regard to such factors as the party which prepared
the instrument, the relative bargaining powers of the parties or the domicile of any party. Debtor and Lender were each represented
by legal counsel competent in advising them of their obligations and liabilities hereunder.

 

    	 	12	 

     

    

 

G. Other Documents.
Each of the parties agrees to sign such other and further documents as may be reasonably necessary to carry out the intentions
expressed in this Agreement.

 

H. Entire Agreement.
This Agreement and the other Loan Documents, together with any other certificates, instruments or agreements to be delivered in
connection therewith, constitute the entire agreement between the parties with respect to the subject matter hereof, and there
are no other representations, warranties or agreements, written or oral, between Debtor and Lender with respect to the subject
matter of this Agreement.

 

I. NOTWITHSTANDING
THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT ALL THE TERMS AND
PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO SUCH
STATE’S PRINCIPLES OF CONFLICTS OF LAW. IN THE EVENT THAT A JUDICIAL PROCEEDING IS INSTITUTED BY LENDER RELATED TO THIS AGREEMENT,
THE NOTE OR THE LOAN, THE FORUM FOR RESOLVING DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT ARE THE FEDERAL OR STATE COURTS
SITTING IN NEW YORK COUNTY, NEW YORK AND ALL RELATED APPELLATE COURTS, THE PARTIES HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION
OF SUCH COURTS AND AGREE TO SAID VENUE.

 

J. Arbitration. Lender and Debtor
agree that all disputes, claims and controversies between them, whether individual, joint, or class in nature, arising from this
Agreement, the Note, or any other loan document, including without limitation contract and tort disputes, shall be arbitrated pursuant
to the rules of the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules and
Supplemental Procedures for Financial Services Disputes, upon request of either party. No act to take or dispose of any collateral
securing the Note shall constitute a waiver of this arbitration agreement or be prohibited by this arbitration agreement. This
includes, without limitation, obtaining injunctive relief or a temporary restraining order; invoking a power of sale under any
deed of trust or mortgage; obtaining a writ of attachment or imposition of a receiver; or exercising any rights relating to personal
property, including taking or disposing of such property with or without judicial process pursuant to Article 9 of the Uniform
Commercial Code. Any disputes, claims, or controversies concerning the lawfulness or reasonableness of any act, or exercise of
any right, concerning any collateral securing the Note or any other loan document, including without limitation, any claim to rescind,
reform, or otherwise modify any agreement relating to the collateral securing the Note shall also be arbitrated, provided however
that no arbitrator shall have the right or the power to enjoin or restrain any act of any party. Nothing in this Agreement or the
Note shall preclude any party from seeking equitable relief from a court of competent jurisdiction. The statute of limitations,
estoppel, waiver, laches, and similar doctrines which would otherwise be applicable in an action brought by a party shall be applicable
in any arbitration proceeding, and the commencement of an arbitration proceeding shall be deemed the commencement of an action
for these purposes. To the extent not provided by this agreement, including the Rules incorporated herein, arbitration hereunder
shall be governed by New York arbitration law. Arbitration shall be conducted in New York, in English and, unless otherwise agreed
to by the parties with respect to a particular dispute, shall be heard by a panel of three arbitrators. The arbitrators in any
arbitration shall be experienced in the areas of law raised by the subject matter of the dispute. Lists of prospective arbitrators
shall include retired judges. Notwithstanding the AAA rules, (a) any party may strike from a list of prospective arbitrators
any individual who is regarded by that party as not appropriate for the dispute; and (b), if the arbitrator appointment cannot
be made from the initial list of prospective arbitrators circulated by the AAA, a second and, if necessary, a third list shall
be circulated and exhausted before the AAA is empowered to make the appointment.

 

    	 	13	 

     

    

 

The Federal Arbitration
Act shall apply to the construction, interpretation, and enforcement of this arbitration provision.

 

Notwithstanding
the foregoing, Lender may elect to bring an action related to this Agreement, the Note or the Loan in the courts specified in Section
10.I. hereof.

 

K. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original.

 

L. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of Debtor and Lender and their respective successors and permitted
assigns, including, without limitation, any United States trustee, any debtor in possession or any trustee appointed from a private
panel.

 

M. Survival. All
representations, warranties, agreements, obligations and indemnities of Debtor and Lender set forth in this Agreement shall survive
the execution of this Agreement and each Advance.

 

N. Waiver of Jury
Trial and Punitive, Consequential, Special and Indirect Damages. DEBTOR AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM
OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO. THIS WAIVER BY THE PARTIES HERETO
OF ANY RIGHT EITHER MAY HAVE TO A TRIAL BY JURY HAS BEEN NEGOTIATED AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN. FURTHERMORE, DEBTOR
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT
DAMAGES FROM LENDER WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY DEBTOR
AGAINST LENDER OR HIS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT
CONTEMPLATED HEREIN OR RELATED HERETO. THE WAIVER BY DEBTOR OF ANY RIGHT IT MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND
INDIRECT DAMAGES HAS BEEN NEGOTIATED BY THE PARTIES HERETO AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN.

 

***************

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF,
Debtor and Lender have entered into this Agreement as of the date first above written.

 

	IDW MEDIA HOLDINGS, INC.	 
	 	 	 	 
	By:	/s/ Kerry
McCluggage 	 
	 	Name: 	Kerry
McCluggage	
	 	Title:	CEO, IDW Media Holdinds, Inc.	

 

	/s/ Howard
S. Jonas	 
	Howard
    S. Jonas	 

 

 

15Exhibit 10.12

 

LOAN AND SECURITY
AGREEMENT

 

This Loan and Security Agreement (the “Agreement”)
is made and entered into as of June 19, 2018 by and among HIGH PARK / V-WARS PRODUCTIONS
INC. (“Borrower”) with an office at 693 Queen Street East, Toronto, Ontario, M4M 1G6, and BANK LEUMI USA (the “Bank”)
with an office at 555 West 5th Street, Suite 3300, Los Angeles, CA, 90013, Attention: David Henry, Email: david.henry@leumiusa.com.
This Agreement is entered into with reference to the following facts:

 

A. The
Borrower is producing the first season of the television series presently entitled “V- Wars” (the “Property”).

 

B. The
financing plan and sources of financing for the Property are set out in Exhibit 5, attached hereto.

 

C. Borrower
has requested that the Bank lend and advance funds to Borrower certain amounts on the terms set forth more fully herein for the
purpose of completing and delivering the Property;

 

D. The
Bank is willing to make the Commitment Amount available as a loan to Borrower (the “Loan”) upon the terms and conditions
set forth herein and in consideration of the Borrower’s agreements, representations and warranties contained herein.

 

NOW, THEREFORE, the parties hereto
hereby agree as follows:

 

1. DEFINITIONS.

 

Capitalized terms used in this Agreement
or in the Notes, certificate, report or other document made or delivered pursuant to this Agreement shall have the meanings set
out in Exhibit “1” attached hereto.

 

2. AGREEMENT
TO LEND.

 

2.1. Commitment.
Subject to the terms and conditions contained herein, the Bank hereby agrees to make advances (“Advances” or individually
an “Advance”) of funds to Borrower under the Loan under a reducing, non-revolving loan facility repayable on demand,
in the aggregate amount of: (a) USD$14,962,908 in the lawful currency of the United States including the Loan Fees (as defined
below) (“Facility A”); (b) CDN$11,152,952 in lawful money of Canada including the Loan Fees (as defined below) (“Facility
B”), subject to the Holdback, if applicable, on the terms and subject to the conditions set out herein for the purpose of
paying the expenses of producing the Property in an amount not to exceed at any time exceed the following limitations: (a) the
aggregate of all Advances under Facility A shall not exceed the Facility A Current Availability Amount and (b) the aggregate of
all Advances under Facility B shall not exceed the Facility B Current Availability Amount; provided, however, no Advances will
be made if a Default or Event of Default exists. If the sum of the outstanding Loans exceeds at any time either the Facility A
Current Availability Amount or the Facility B Current Availability Amount, the Bank may refuse to make or otherwise restrict the
making of Advances on such terms as the Bank may determine until such excess has been eliminated. All Advances made hereunder to
Borrower shall be in accordance with the Approved Cash Flow Schedule. Any changes to the Approved Cash Flow Schedule must be approved
by the Bank.

 

    	 	Loan and Security Agreement
	 	V-Wars
	 	Page 1

     

    

 

2.2. Loan
Fees. As consideration for the Bank’s entering into this Agreement and its commitment to make the Loan, Borrower shall pay
to the Bank a loan fees in the following amounts:(i) USD$70,000 in respect of Facility A which shall be payable upon the first
advance under Facility A, and (ii) CDN$56,600 in respect of Facility B which shall be payable upon the first advance under Facility
B; (collectively, the “Loan Fee”). The Bank’s obligation to make any Advances with respect to the Property is expressly
conditioned upon and subject to payment of the Loan Fee.

 

2.3. Initial
Disbursements; Reserves. For the benefit of and on behalf of Borrower, the Bank shall pay the following amounts, concurrently
with execution of this Agreement and from the proceeds of the initial Advance under the Loan with respect to the Property: (i)
to the Bank, the Loan Fee; and (ii) to Dentons Canada LLP, counsel to the Bank, its fees estimated at CDN$25,000 for Attorney Costs.

 

2.4. Event
of Default. The Bank shall have no obligation to make any Advances under the Loan at any time after the occurrence of an Event
of Default, unless such Event of Default has been cured within the applicable time period permitted hereunder (if any).

 

2.5. Request
for Advances. Borrower shall provide written notice to the Bank at least one (1) Business Day prior to the date Borrower requires
any Advance under the Loan. Such notice shall specify the proposed date of borrowing and the amount thereof. Whenever the Borrower
desires an Advance, the Borrower shall deliver to the Bank a Borrowing Certificate, signed by the Borrower. Borrower acknowledges
and agrees that the Bank shall be under absolutely no duty or obligation to make any Advances hereunder until all of the conditions
precedent set forth in paragraph 6, below, have been satisfied.

 

2.6. Notes.

 

2.6.1. Execution
and Delivery. Prior to the Bank’s making the first Advance under the Loan, and as a condition thereof, Borrower shall execute
in the Bank’s favour and deliver to the Bank promissory notes (the “Notes”), in the forms attached hereto as Exhibit
“2a” and “2b”, respectively, and acceptable to the Bank, in the principal amount ofUSD$14,962,908 and CDN$11,152,952.

 

2.6.2. Balance
of Notes. The amount and date of all Advances under the Loan, and all amounts paid or repaid on the Notes, shall be indicated
in Bank’s books so that the principal balance owing from Borrower to Bank on the Notes and the repayment of interest will be reflected
therein; and the parties hereto agree that said balance and each entry shall be presumptive evidence that such balance exists,
and that such payments were made, in the amounts written.

 

2.6.3. Payment
In Full. The Notes shall be marked “cancelled” and returned to Borrower when Borrower has indefeasibly paid the
Indebtedness in full.

 

2.6.4. Maturity
Date. Principal and interest on the Notes shall be immediately due and payable on the earlier of (i) January 31, 2021 with
respect to Facility A and Facility B; (ii) the date amounts outstanding under this Agreement and the Notes become immediately due
and payable pursuant to paragraph 10.2 below (the “Maturity Date”).

 

2.7. Conversion
or Continuation.

 

2.7.1. The
Borrower may, upon irrevocable written notice to the Bank in accordance with Subsection 2.7.1 elect, as of any Business Day, to
convert all or any part of the US Prime Rate Loans, in either case in a minimum amount of $250,000 and in integral multiples of
$100,000 in excess thereof, into LIBOR Loans; or (ii) elect, as of the last day of the applicable Interest Period, to continue
any LIBOR Loans having Interest Periods expiring on such day or any part thereof, in either case in the minimum amount and in integral
multiples as specified above: provided, however, that if at any time the aggregate amount of LIBOR Loans in respect of any
LIBOR Loan is reduced, by payment, prepayment, or conversion of part thereof to be less than $250,000 such LIBOR Loan shall at
the Bank’s election conve1t into US Prime Rate Loans, and on and after such date the right of the Borrower to convert such Loans
into LIBOR Loans shall terminate.

 

    	 	Loan and Security Agreement
	 	V-Wars
	 	Page 2

     

    

 

2.7.2. Whenever
the Borrower elects to convert or continue US Prime Rate Loans or LIBOR Loans under this Section 2.7, the Borrower shall deliver
to the Bank a Notice of Conversion/Continuation, signed by an authorized officer or signatory of the Borrower (i) no later than
11:00 a.m. (Pacific Time) one (1) Business Day in advance of the requested conversion date, in the case of a conversion into US
Prime Rate Loans, and (ii) no later than 11:00 a.m. (Pacific Time) three (3) Business Days in advance of the requested conversion
or continuation date, in the case of a conversion into, or continuation of, LIBOR Loans. The Notice of Conversion/Continuation
shall specify (1) the conversion or continuation date (which shall be a Business Day), (2) the amount and type of the Loans to
be converted or continued, (3) the nature of the requested conversion or continuation, and (4) in the case of a conversion into,
or continuation of, LIBOR Loans, the requested Interest Period. If the Borrower fails to provide a Notice of Conversion/Continuation
for any LIBOR Loans as provided above, such LIBOR Loans shall convert to US Prime Rate Loans on the last day of the Interest Period
therefor.

 

2.7.3. Any
Notice of Conversion/Continuation made pursuant to this Section 2.7 shall be irrevocable and the Borrower shall be bound to continue
or convert the Loan specified therein in accordance therewith.

 

2.8. Special
Provisions Governing LIBOR Loans. Notwithstanding any other prov1s10ns of this Agreement to the contrary, the following provisions
shall govern with respect to LIBOR Loans.

 

2.8.1. If
the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or
other governmental authority asse1is that it is unlawful, for the Bank to perform its obligations hereunder to make LIBOR Loans
or to fund or maintain LIBOR Loans hereunder, (i) the obligation of the Bank to make, or to convert US Prime Rate Loans into or
to continue US Prime Rate Loans as, LIBOR Loans shall be suspended until the Bank notifies the Borrower that the circumstances
causing such suspension no longer exist, and (ii) the Borrower shall on the termination of the Interest Period then applicable
thereto, or on such earlier date required by law, prepay in full all LIBOR Loans then outstanding together with accrued interest
thereon, or convert all such LIBOR Loans into US Prime Rate Loans in accordance with Section 2.7 and pay to the Bank all other
amounts payable by the Borrower hereunder (including, without limitation, any amount payable in connection with a prepayment pursuant
to Subsection 2.8.2). The Bank shall promptly notify the Borrower if the terms of this Subsection 2.8.1 become applicable.

 

2.8.2. After
the occurrence of and during the continuance of any Event of Default, unless otherwise permitted by the Bank in its sole discretion,
the Borrower may not borrow any portion of the Loan as LIBOR Loans or elect to have any portion of the Loan continued as, or converted
to, LIBOR Loans after the expiration of any Interest Period then in effect for such LIBOR Loans.

 

2.8.3. If
for any reason (including voluntary or mandatory prepayment or acceleration), the Bank receives all or part of the principal amount
of a LIBOR Loan prior to the last day of the Interest Period for such Loan, the Borrower shall promptly notify the Bank and, on
demand by the Bank, pay the Bank the amount (if any) by which (i) the additional interest at LIBOR which would have been payable
on the principal amount so received had it not been received until the last day of such Interest Period exceeds the interest which
would have been recoverable by the Bank by placing the amount so received on deposit in the certificate of deposit markets or the
offshore currency interbank markets or United States Treasury investment products, as the case may be, for a period starting on
the date on which it was so received and ending on the last day of such Interest Period at the interest rate determined by the
Bank in its reasonable discretion or (ii) the excess, if any, of the greater of the Bank’s cost of funds rate or the LIBOR, over
the reinvestment rate for those funds then available to the Bank, for a period starting on the date on which such payment was so
received and ending on the last day of such Interest Period. The Bank’s determination as to such amount shall, absent manifest
error, constitute rebuttably presumptive proof thereof.

 

    	 	Loan and Security Agreement
	 	V-Wars
	 	Page 3

     

    

 

2.8.4. The
Borrower shall pay to the Bank, upon demand, such amounts as the Bank may determine to be necessary to compensate it for any costs
incurred or a reduction in amounts receivable by the Bank that the Bank determines are attributable to its making or maintaining
any LIBOR Loans, in each case resulting from any Regulatory Change that: changes the basis of taxation of any amounts payable to
the Bank in respect of any LIBOR Loans (other than changes which affect taxes measured by or imposed on the overall net income
of the Bank by the jurisdiction in which the Bank has its principal office); or imposes or modifies any reserve, special deposit
or similar requirements relating to any extensions of credit or other assets of, or any deposits with or other liabilities of the
Bank; or imposes any other condition affecting the LIBOR Loans (or any of such extensions of credit or liabilities) (to the extent
not taken into account in Reserve Requirements pursuant to the second sentence of the definition thereof). The Bank shall notify
the Borrower of any event occurring after the date of this Agreement that will entitle the Bank to compensation pursuant to this
section as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. The Bank shall
furnish the Borrower with a statement setting forth the basis and amount of each request by the Bank for compensation under this
Subsection 2.8.4. Determinations and allocations by the Bank for purposes of this Subsection 2.8.4 of the effect of any Regulatory
Change on its costs of maintaining its obligations to make any portion of the Loan or of making or maintaining any portion of the
Loan or on amounts receivable by it in respect of any portion of the Loan, and of the additional amounts required to compensate
the Bank in respect of any additional costs shall, absent manifest error, constitute rebuttably presumptive proof thereof.

 

2.8.5. If
the Bank determines that the adoption or implementation of any Capital Adequacy Regulation, or compliance by the Bank (or its applicable
lending office) with any Capital Adequacy Regulation has or would have the effect of reducing the rate of return on capital of
the Bank or any person or entity controlling the Bank (a “Parent”) as a consequence of its obligations hereunder
to a level below that which the Bank (or its Parent) could have achieved but for such adoption, change or compliance (taking into
consideration its policies with respect to capital adequacy) by an amount deemed by the Bank to be material, then from time to
time, upon demand by the Bank, the Borrower shall pay to the Bank such additional amount or amounts as will compensate the Bank
for such reduction. The Bank shall furnish the Borrower with a statement setting forth the basis and amount of each request by
the Bank for compensation under this Subsection 2.8.5. A statement of the Bank claiming compensation under this section and setting
forth the additional amount or amounts to be paid to it hereunder shall, absent manifest error, constitute rebuttably presumptive
proof thereof.

 

2.8.6. The
Borrower shall pay to the Bank, upon the request of the Bank, an amount sufficient (determined in the sole good faith opinion of
the Bank) to compensate it for any loss, costs or expense incurred by it as a result of any failure by the Borrower to borrow a
LIBOR Loan on the date for such borrowing specified in the relevant Borrowing Certificate, including, without limitation, any such
loss, cost or expense incurred in obtaining, liquidating, employing or redeploying deposits from third parties, whether or not
the Bank shall have funded or committed to fund such Loan.

 

    	 	Loan and Security Agreement
	 	V-Wars
	 	Page 4

     

    

 

2.8.7. If
at any time the Bank, in its sole and absolute discretion, determines that: (i) the amount of the LIBOR Loans for periods equal
to the corresponding Interest Periods are not available to the Bank in the offshore currency interbank markets, or (ii) the LIBOR
does not accurately reflect the cost to the Bank of lending the LIBOR Loan, then the Bank shall promptly give notice thereof to
the Borrower, and upon the giving of such notice the Bank’s obligation to make the LIBOR Loans shall terminate, unless the Bank
and the Borrower agree in writing to a different interest rate applicable to LIBOR Loans.

 

3. INTEREST
RATES.

 

3.1. Interest Rates.

 

3.1.1. All
outstanding Indebtedness shall bear interest on the unpaid principal amount thereof (including, to the extent permitted by law,
on interest thereon not paid when due) from the date made until paid in full in cash at a rate determined by reference to the Canadian
Prime Rate, the US Prime Rate or the LIBOR and clauses “(i)”, “(ii)” or “(iii)“of this section,
as applicable, but not to exceed the Maximum Legal Rate described in Section 3.2. Any portion of the Loan may be converted into,
or continued as, US Prime Rate Loans or LIBOR Loans in the manner provided in Section 2.8. If at any time any portion of the Loan
is outstanding with respect to which notice has not been delivered to the Bank in accordance with the terms of this Agreement specifying
the basis for determining the interest rate applicable thereto, then those Loans shall be US Prime Rate Loans and shall bear interest
at a rate determined by reference to the US Prime Rate until notice to the contrary has been given to the Bank and such notice
has become effective. Except as otherwise provided herein, the outstanding Indebtedness shall bear interest as follows: (i) for
all Canadian Prime Rate Loans, at a fluctuating per annum rate equal to the Canadian Prime Rate plus the Canadian Prime Rate Margin
provided, however at no time shall the annual rate of interest on Canadian Prime Rate Loans be less than four point two percent
(4.20%); (ii) for all US Prime Rate Loans, at a fluctuating per annum rate equal to the US Prime Rate plus the US Prime Rate Margin;
and (iii) for all LIBOR Loans, at a per annum rate equal to the LIBOR Margin plus the LIBOR determined for the applicable Interest
Period.

 

3.1.2. Each
change in the Canadian Prime Rate or the US Prime Rate shall be reflected in the interest rate applicable to such Prime Rate Loans
as of the effective date of each such change. The Canadian Prime Rate shall be calculated daily (based upon a three hundred and
sixty-five (365) or three hundred and sixty-six (366) day year end and actual days lapsed) on the basis of the then current calendar
year. The US Prime Rate shall be computed on the basis of a year of 360 days and actual days elapsed on the basis of the then current
calendar year for the actual number of days lapsed. Except as otherwise provided herein, all interest shall be payable in arrears
on each Interest Payment Due Date hereafter.

 

3.2. Maximum
Rate. No provision of this Agreement or the Note shall be deemed to establish or require the payment of interest of a rate
in excess of the maximum rate permitted by applicable law (the “Maximum Legal Rate”). If the interest required to be
paid under this Agreement or the Note exceeds the Maximum Legal Rate, the interest required to be paid hereunder or under the Note
shall be automatically reduced to the Maximum Legal Rate. If any interest paid exceeds the then applicable interest rate, the excess
of such interest over the maximum amount of interest permitted to be charged shall automatically be deemed to reduce the accrued
and unpaid fees and expenses due to the Bank under this Agreement, if any; then to reduce the accrued and unpaid interest, if any;
and then to reduce principal of the Loan; the balance of any excess interest remaining after the application of the foregoing,
if any, shall be refunded to the Borrower.

 

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	 	V-Wars
	 	Page 5

     

    

 

3.3. Default
Interest. If any Indebtedness is not paid when due (whether by acceleration or otherwise), then all of the Indebtedness shall,
without any notice, election or any other action by the Bank, bear interest at the Default Rate applicable thereto until so paid,
and if any other Event of Default occurs, then at the election of the Bank, while any such Event of Default is continuing, all
Indebtedness shall bear interest at the Default Rate applicable thereto.

 

3.4. Interest
and Cost Reserve. Notwithstanding anything to the contrary contained herein, the Bank shall not be obligated to advance under
the Loan, and will hold back as a reserve against the Commitment Amount, the sum of CDN$864,474 and USD$1,097,910 (the “Interest
and Cost Reserve”) for the payment of the Loan Fee, Attorney Costs, accrued interest and other Indebtedness hereunder.

 

4. PAYMENT
OF INDEBTEDNESS.

 

4.1. Voluntary
Prepayments. Borrower shall have the right to prepay the principal of the Notes in whole or in part without premium or penalty,
provided that, at the time of any such prepayment, the accrued interest on the Loan is paid in full.

 

4.2. Mandatory
Repayments. The Indebtedness shall be repaid as follows:

 

4.2.1. Borrower
shall immediately repay all Advances outstanding under the Loan to the extent that the sum of the aggregate amounts outstanding
under the Loan at any time exceeds the Commitment Amount.

 

4.2.2. The
Borrower shall prepay the Obligations by the following amounts, as and when received by or are payable to the Borrower: (a) all
Collateral Proceeds; (b) on the date that all expenditures for the production of the Property and Delivery have been paid, in an
amount equal to any balances remaining in the Production Bank Account or in any account for the Property; (c) any insurance proceeds
to the extent relating to the Property; (d) all payments, proceeds, and other consideration received by the Borrower on account
of any Canadian Tax Credit Rights; and (e) as otherwise provided hereunder.

 

4.2.3. Borrower
shall direct in writing all parties obligated to make payments to Borrower with respect to exploitation of the Property to pay
such amounts directly to:

 

		(i)	If by wire and in Canadian Currency:

 

Bank of Montreal

Montreal, Canada

Swift Code: 

 

Account with Bank of Montreal: 

Bank
Leumi USA New York

Account Number: 

Swift Code: 

 

For further Credit to:

High Park / V-Wars Productions Inc.

Bank
Leumi USA as Collection Agent

Account Number: 

 

    	 	Loan and Security Agreement
	 	V-Wars
	 	Page 6

     

    

 

		(ii)	If by wire and in US Currency:

 

Bank Leumi USA

555 West 5th
Street

Suite 3300

Los Angeles, CA

90013

ABA Number 

Swift (International Wires): 

 

	Account Name:	High Park/ V-Wars Productions Inc.
	Account Number:	
	Routing Number:	
	SWIFT Code:	
	Bank Address:	555 W. 5th Street Suite 3300, Los Angeles, CA 90013

 

		iii)	If by check:

 

Bank Leumi USA

555 West 5th
Street

Suite 3300

Los Angeles, CA

90013

Attention: David Henry

 

(the foregoing accounts are, collectively,
the “Collection Account”)

 

4.2.4. If
any Person pays any such sums to Borrower or any other Person, Borrower or such other Person, as applicable, shall receive such
sums as the Bank’s trustee and, promptly upon receipt thereof, shall remit such sums (or cause such sums to be remitted) to the
Bank as set forth above.

 

4.2.5. The
Indebtedness shall be repaid in full on or before the Maturity Date.

 

4.3. Application
of Payments. Until Borrower has repaid the Indebtedness in full in accordance with the terms and conditions hereof, all amounts
paid to the Bank by Borrower (including, without limitation, all amounts paid to the Bank pursuant to paragraph 4.2, above) or
any other Person on Borrower’s behalf, shall be applied by the Bank to reduce the Indebtedness in the following priority: first,
to amounts payable to the Bank in reimbursement of its costs and expenses pursuant to paragraphs Error! Reference source not
found., 9.8 and 9.14 hereof, to the extent the same are not duly and timely paid to the Bank as required by paragraphs Error!
Reference source not found., 9.8 and 9.14 hereof; second, to pay all interest payable hereunder; third, to repayment of the
principal amount of the Notes; and last, to repayment of any other Indebtedness. For greater certainty, the Borrower acknowledges
that Facility A and Facility B shall be fully cross-collateralized. Upon repayment in full of the Indebtedness, the Bank shall
remit all amounts in excess of the Indebtedness received by the Bank with respect to the Property to Borrower or to such other
Person as Borrower may designate in writing.

 

4.4. Making
of Payments: Offset.

 

4.4.1. Making
of Payments. All payments of principal or interest on the Notes, shall be made in immediately available funds by Borrower to the
Bank. All such payments shall be made to the Bank at its office in Los Angeles, California, not later than 1:00 p.m., on the date
due, as provided above; and funds received after that hour shall be deemed to have been received by the Bank on its next following
Business Day.

 

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4.4.2. Offset.
In addition to and not in limitation of all rights of offset that the Bank may have under applicable law, the Bank shall, upon
the occurrence of any Event of Default, have the right to appropriate and apply to the payment of principal and accrued interest
(if any) on the Notes and any amounts due the Bank hereunder any and all balances, credits, deposits, accounts or monies of Borrower
then or thereafter with the Bank.

 

5. SECURITY
INTEREST AND COLLATERAL

 

5.1. The
Bank’s Security Interest. As security for the due and punctual payment and performance of the Indebtedness relating to the
Property, Borrower hereby pledges, hypothecates, assigns, transfers, conveys, delivers and sets over unto Bank as security, and
hereby grants to Bank a continuing first priority purchase money security interest in, all of Borrower’s right, title and interest
of every kind and nature, if any, in and to the following, and all other personal property of Borrower, whether now owned or hereafter
acquired or created, including all products and proceeds thereof, including insurance proceeds (collectively, the “Collateral”)
(to the extent any materials or rights in and to the Property or any other item of Collateral are not yet in existence or not yet
acquired, such materials and rights are hereby assigned and conveyed to the Bank by way of present assignment of future rights):

 

5.1.1. All
rights of Borrower of every kind and nature in and to the Property and all collateral, allied, ancillary, subsidiary and merchandising
rights therein, and all properties and things of value pertaining thereto and all products and proceeds thereof whether now in
existence or hereafter made, acquired or produced (as used in this Paragraph 5, the term the “Property” shall mean
and include the Property, all of the aforesaid rights and the rights and property set forth in subparagraphs O through 5.1.16 below)
including, without limitation:

 

All rights of Borrower of every kind and
nature (including, without limitation, copyrights) in and to the Approved Screenplays.

 

5.1.2. All
rights of every kind and nature, if any (including, without limitation, any copyrights), in and to the literary, musical, dramatic
or other material of any kind or nature upon which, in whole or in part, the Property is or may be based, or from which it is or
may be adapted or inspired, or which may be or has been used or included in the Property including, without limitation, all scripts,
scenarios, screenplays, bibles, stories, treatments, novels, outlines, books, titles, concepts, manuscripts or other properties
or materials of any kind or nature in whatever state of completion and all drafts, versions and variations thereof (collectively,
the “Literary Property”);

 

5.1.3. All
rights of Borrower of every kind and nature in and to all physical properties of every kind or nature of or relating to the Property
and all versions thereof, including, without limitation, all physical properties relating to the development, production, completion,
delivery, exhibition, distribution or other exploitation of the Property, and all versions thereof or any part thereof, including,
without limitation, the Literary Property, exposed film, developed film, positives, negatives, prints, answer prints, special effects,
preprint materials (including interpositives, negatives, duplicate negatives, intemegatives, color reversals, intermediates, lavenders,
fine grain master prints and matrices and all other forms of preprint elements which may be necessary or useful to produce prints
or other copies or additional pre print elements, whether now known or hereafter devised), soundtracks, recordings, audio and video
tapes and discs of all types and gauges, cutouts, trims and any and all other physical properties of every kind and nature relating
to the Property in whatever state of completion, and all duplicates, drafts, versions, variations and copies of each thereof (collectively,
the “Physical Properties”);

 

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5.1.4. All
rights of Borrower of every kind or nature in and to any and all music and musical compositions created for, used in or to be used
in connection with the Property including, without limitation, all copyrights therein and all rights to perform, copy, record,
rerecord, produce, publish, reproduce or synchronize any or all of said music and musical compositions as well as all other rights
to exploit such music including record, soundtrack recording, and music publishing rights;

 

5.1.5. All
collateral, allied, ancillary, subsidiary, publishing and merchandising rights of Borrower of every kind and nature, without limitation,
derived from, appurtenant to or related to the Property or the Literary Property, including, without limitation, all production,
exploitation, reissue, remake, sequel, serial or series production rights by use of film, tape or any other recording devices now
known or hereafter devised, whether based upon, derived from or inspired by the Property, the Literary Property or any part thereof;
all rights of Borrower to use, exploit and license others to use or exploit any and all novelization, publishing, commercial tie-ups
and merchandising rights of every kind and nature, including, without limitation, all novelization, publishing, merchandising rights
and commercial tie-ups arising out of or connected with or inspired by the Property or the Literary Property, the title or titles
of the Property, the characters appearing in the Property or said Literary Property and/or the names or characteristics of said
characters, and including further, without limitation, any and all commercial exploitation in connection with or related to the
Property, all remakes or sequels thereof and/or said Literary Property;

 

5.1.6. All
rights of Borrower of every kind or nature, present and future, in and to all agreements relating to the development, production,
completion, delivery and exploitation of the Property, including, without limitation, all agreements for personal services, including
the services of writers, directors, cast, producers, special effects personnel, animators, cameramen and other creative, artistic
and technical staff and agreements for the use of studio space, equipment, facilities, locations, animation services, special effects
services and laboratory contracts;

 

5.1.7. All
insurance and insurance policies heretofore or hereafter placed upon the Property or the insurable properties thereof and/or any
person or persons engaged in the development, production, completion, delivery or exploitation of the Property and the proceeds
thereof;

 

5.1.8. All
copyrights, rights in copyrights, interests in copyrights and renewals and extensions of copyrights, domestic and foreign, heretofore
or hereafter obtained upon the Property or the Literary Property or any part thereof, and the right (but not the obligation) to
make publication thereof for copyright purposes, to register claims under copyright, and the right (but not the obligation) to
renew and extend such copyrights, and the right (but not the obligation) after prior notice, to sue in the name of Borrower and/or
in the name of Bank for past, present and future infringements of copyright;

 

5.1.9. All
rights to produce, acquire, release, sell, distribute, subdistribute, lease, sublease, market, license, sublicense, exhibit, broadcast,
transmit, reproduce, publicize or otherwise exploit the Property, the Literary Property and any and all rights therein (including,
without limitation, the rights referred to in subparagraph 5.1.5 above) in perpetuity, without limitation, in any manner and in
any media whatsoever throughout the universe, including, without limitation, by projection, radio, all forms of television (including,
without limitation, free, pay, toll, cable, sustaining subscription, sponsored and direct satellite broadcast), in theatres, nontheatrically,
on cassettes, cartridges and discs and by any and all other scientific, mechanical or electronic means, methods, processes or devices
now known or hereafter conceived, devised or created;

 

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5.1.10. All
rights of Borrower of any kind or nature, direct or indirect, to acquire, produce, develop, reacquire, finance, release, sell,
distribute, subdistribute, lease, sublease, market, license, sublicense, exhibit, broadcast, transmit, reproduce, publicize, or
otherwise exploit the Property, or any rights in the Property, including, without limitation, pursuant to agreements between Borrower
and any Borrower controlling, controlled by, or under common control with Borrower (each, a “Subsidiary”) which relate
to the ownership, production or financing of the Property;

 

5.1.11. All
contract rights and general intangibles which grant to any Person any right to acquire, produce, develop, reacquire, finance, release,
sell, distribute, subdistribute, lease, sublease, market, license, sublicense, exhibit, broadcast, transmit, reproduce, publicize,
or otherwise exploit the Property or any rights in the Property including, without limitation, all such rights pursuant to agreements
between Borrower and any Subsidiary which relate to the ownership, production or financing of the Property;

 

5.1.12. All
rent, revenues, income, compensation, products, increases, proceeds and profits or other property obtained or to be obtained by
Borrower from the production, release, sale, distribution, subdistribution, lease, sublease, marketing, licensing, sublicensing,
exhibition, broadcast, transmission, reproduction, publication, ownership, exploitation or other uses or disposition of the Property
and the Literary Property (or any rights therein or part thereof), in any and all media, including, without limitation, the properties
thereof and of any collateral, allied, ancillary, merchandising and subsidiary rights therein and thereto, and amounts recovered
as damages by reason of unfair competition, the infringement of copyright, breach of any contract or infringement of any rights,
or derived therefrom in any manner whatever;

 

5.1.13. Any
and all accounts, accounts receivable, general intangibles, contract rights, chattel paper, documents, instruments and goods, including
inventory (as those terms are defined in the PPSA), not elsewhere included in this definition, which may arise in connection
with the creation, production, completion, delivery, financing, ownership, possession or exploitation of the Property;

 

5.1.14. Any
and all documents, receipts or books and records, including, without limitation, documents or receipts of any kind or nature issued
by any pledgeholder, warehouseman or bailee with respect to the Property and any element thereof and the equipment containing such
books and records;

 

5.1.15. All
accounts receivable, all contract rights, all general intangibles (as such terms are defined in the PPSA) in connection
with or relating to the Property including, without limitation, all accounts receivable, all contract rights and general intangibles
constituting rights to receive the payment of money, or other valuable consideration, all receivables and all other rights to receive
the payment of money including, without limitation, under present or future contracts or agreements (whether or not earned by performance),
from the sale, distribution, exhibition, disposition, leasing, subleasing, licensing, sublicensing and other exploitation of the
Property or the Literary Property or any part thereof or any rights therein or related thereto in any medium, whether now known
or hereafter developed, by any means, method, process or device in any market including, without limitation, all of Borrower’s
right, title and interest in, to and under the Distribution Agreements, and any other existing or future agreements for the distribution
or other exploitation of the Property, as the same may presently exist or hereafter from time to time come into existence, be amended,
renewed, modified, supplemented, extended or replaced, including Borrower’s rights to receive payments thereunder, and all other
rights to receive film rentals, license fees, distribution fees, producer’s shares, royalties and other amounts of every description
including, without limitation, from (a) theatrical exhibitors, nontheatrical exhibitors, television networks and stations and airlines,
cable television systems, pay television operators, whether on a subscription, per program charge basis or otherwise, and other
exhibitors, (b) Distributors, subdistributors, lessees, sublessees, licensees and sublicensees (including any Subsidiary) and (c)
any other Person or entity that distributes, exhibits or exploits the Property or the Literary Property or elements or components
of the Property or the Literary Property or rights relating thereto;

 

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5.1.16. All
proceeds, products, additions and accessions (including insurance proceeds) of the Property, as defined and referred to in subparagraphs
5.1.1 through 5.1.15 above;

 

5.1.17. All
funds in or to be credited to the Production Bank Account into which the proceeds of all Loans made hereunder shall be or shall
have been credited;

 

5.1.18. All
machinery, electrical and electronic components, equipment, fixtures, furniture, office machinery, vehicles, trailers, implements
and other tangible personal property of every kind and description now owned or hereafter acquired by Borrower and used or useful
in connection with the Property (including, without limitation, all wardrobe, props, mikes, scenery, sound stages, movable, permanent
or vehicular dressing rooms, sets, lighting equipment, cameras and other photographic, sound recording and editing equipment, projectors,
film developing equipment and machinery) and all goods of like kind or type hereafter acquired by Borrower in substitution or replacement
thereof, and all additions and accessions thereto (collectively, the “Equipment”) and all rents, proceeds and products
of the Equipment including, without limitation, the rights to insurance covering the Equipment;

 

5.1.19. The
following personal property, whether now owned or hereafter acquired: (i) the title or titles of the Property and all of Borrower’s
rights to the exclusive use thereof including rights protected pursuant to trademark, service mark, unfair competition and/or other
laws, rules or principles of law or equity or industry practice, and (ii) all inventions, processes, formulae, licenses, patents,
patent rights, trademarks, trademark rights, service marks, service mark rights, trade names, trade name rights, logos, indicia,
corporate and Borrower names, business source or business identifiers and renewals and extensions thereof, domestic and foreign,
whether now owned or hereafter acquired, and the accompanying good will and other like business property rights relating to the
Property, and the right (but not the obligation) to register claims under trademark or patent and to renew and extend such trademarks
or patents and the right (but not the obligation) to sue in the name of Borrower or in the name of Bank for past, present or future
infringement of trademark or patent;

 

5.1.20. All
Cash and Cash Equivalents of Borrower derived from or relating to the Property and all drafts, checks, certificates of deposit,
notes, bills of exchange and other writings which evidence a right to the payment of money and are not themselves security agreements
or leases and are of a type which is in the ordinary course of business transferred by delivery with any necessary endorsement
or assignment whether now owned or hereafter acquired;

 

5.1.21. All
rights in and to the Canadian Tax Credits, the Canadian Tax Credit Rights, and any other film production tax credits, grants, or
other similar benefits relating to the Property;

 

5.1.22. To
the extent not included in the items described in subsections 5.1.1 through 5.1.21 above, all accounts, contract rights, general
intangibles, documents, instruments, chattel paper, goods, inventory and equipment (as such terms are defined in the PPSA) now
owned or hereafter acquired by Borrower, and the proceeds and products thereof.

 

5.1.23. Notwithstanding
anything to the contrary contained in subsections 5.1.1 through 5.1.22 above, there shall be excluded from the Collateral described
in this Paragraph 5 the interest of Borrower, whether as owner or lessee, in any property constituting real property under the
laws of the jurisdiction in which such property is located.

 

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Furthermore, Bank acknowledges that Borrower may not own all exclusive
rights to the music embodied in the Property and that Borrower’s rights in and to the Approved Screenplays and rights derived from
the Approved Screenplays may be subject to certain rights of third parties, including those rights reserved to the authors thereof.

 

5.2. Assignment
of Rights Only. Upon the assignment to Bank for security purposes of all of Borrower’s rights, title and interest in and to
the Distribution Agreements, and all other agreements subject to Bank’s security interest hereunder, Bank shall take an assignment
only of the benefits of and shall not assume the obligations and liabilities under each such agreement, and Borrower agrees perform
or cause to be performed all of Borrower’s obligations under each such agreement, and Borrower shall not be released from such
obligations by making such assignment.

 

5.3. Perfection
of Security Interest. Concurrently with the execution of this Agreement, Borrower shall execute and deliver, or cause to be
executed and delivered, to the Bank the General Security Agreements, Production Assignment Security Agreements and any and all
other instruments which the Bank may request to perfect the Security Interest granted hereunder and to effectuate the purposes
and intent hereof.

 

5.4. Authorization
to File Financing Statements. Borrower hereby authorizes the Bank to file all financing statements under the PPSA, and equivalent
legislation, in such jurisdictions as the Bank may deem appropriate in order to perfect its Security Interest hereunder.

 

5.5. Repayment
of Indebtedness and Release of Security Interest. Upon repayment in full of the Indebtedness and Borrower’s full and complete
performance of its Obligations hereunder, and upon Borrower’s request, the Bank shall release the Security Interest conveyed to
the Bank hereunder and shall execute such termination statements, releases of mortgages of copyright and other documents as may
be necessary to evidence the same, all without recourse upon or warranty by the Bank and at Borrower’s sole cost and expense. Notwithstanding
the foregoing, Borrower’s representations, warranties, agreements and indemnities hereunder shall survive repayment of the Indebtedness.
The Borrower shall directs the Bank to deposit any excess cash in its possession following repayment in full of the Indebtedness.

 

6. REPRESENTATIONS
AND WARRANTIES.

 

In order to induce the Bank to enter into
this Agreement, the Borrower agrees, represents and warrants to the Bank as follows (which agreements, representations and warranties
shall survive the execution and delivery, and any termination, of this Agreement):

 

6.1. Organization,
Etc. Borrower is a corporation in good standing duly organized under the laws of the province of its incorporation and has
the power and authority to own its properties and to transact the business in which it is engaged in all places at which it engages
in business. All actions previously taken and agreements previously entered into by Borrower in connection with the Property were
duly authorized and constitute Borrower’s actions and obligations. Borrower’s principal place of business and the place where Borrower’s
books and records are maintained is at the address set forth herein. Borrower shall notify the Bank immediately of any change of
its principal place of business or of the place where its books and records are maintained.

 

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6.2. Financial
Statements. All financial statements, information and other data regarding Borrower furnished to the Bank hereunder, if any,
are, in all material respects, accurate and correct as of the date of such statements, the financial statements have been prepared
in accordance with the customary standards typically applicable to similar entities in the entertainment industry and accurately
represent the financial condition of the persons or companies to whom or which such statements relate. No materially adverse changes
have occurred since the dates of such statements. To the best of Borrower’s knowledge, no material liabilities exist, contingent
or otherwise, not shown on such financial statements.

 

6.3. Corporate
Power and Authority. Borrower has the power and authority to execute, deliver and carry out the terms and provisions of this
Agreement and to execute and deliver the Notes, and all documents, instruments and agreements to be executed and delivered by Borrower
hereunder, and has taken all action necessary to authorize the execution and delivery of this Agreement, the borrowing hereunder
and the execution and delivery of the Notes, and the other Loan Documents.

 

6.4. Agreement,
Loan Documents, Notes and Related Agreements Authorized. The execution, delivery and performance of this Agreement, the Related
Agreements and the Notes and the payment of principal of and interest on the Loans evidenced thereby, have been duly authorized
by Borrower by all necessary action of Borrower’s sole director and shareholder, and do not and will not (i) require the consent
or approval of any governmental body or other regulatory authority, (ii) violate any provision of any material law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Borrower, or (iii)
contravene or conflict with any term or provision of Borrower’s by-laws or articles of incorporation; and this Agreement, the Distribution
Agreements and each other Loan Document is, and the Notes when delivered will be and constitute, the valid, legal and binding obligations
of Borrower, enforceable in accordance with their terms (subject, however, to or limited by bankruptcy, insolvency, reorganization,
or moratorium or other similar laws now or hereafter in effect relating to or affecting creditors rights generally).

 

6.5. No
Pending Legal Actions. There are no actions, suits or proceedings, pending or threatened, against or affecting Borrower before
any court or governmental or administrative body or agency which might result in any material adverse change in Borrower’s business,
operations, properties or assets or in either Borrower’s condition, financial or otherwise. To the best of Borrower’s knowledge,
it is not in default under any applicable statute, rule, order or regulation of any governmental authority, bureau or agency having
jurisdiction over it.

 

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6.6. Valid
Security Interest. Upon Bank’s proper perfection of its security interest in and to the Collateral, this Agreement and the
applicable Loan Documents create a valid, first priority security interest and lien in and to the Collateral securing the payment
and performance of the Obligations to be secured hereby, and all action now required which can be taken by Borrower to perfect
Bank’s security interest and lien in and to the Collateral has been or will be taken and completed. Borrower will be the owner
of all Collateral whenever acquired or arising free and clear of all liens, charges, encumbrances or restrictions on transfer of
any kind and nature except for the Permitted Encumbrances. All rents, royalties and other amounts due and payable by Borrower under
contracts, leases, license agreements and other instruments relating to the Collateral, including, without limitation, contracts,
leases or agreements relating to the Literary Property, the services of all persons or entities rendering services in connection
with the Property, and the furnishing of goods, processing, equipment and materials used in connection with the Property have been
paid if due, or will be paid when due, and Borrower is not in default under any such material contract, lease, license agreement
or other instrument; and Borrower will appear in, contest and defend against any action or proceeding purporting to affect title
to or any other interest in any portion of the Collateral, or the rights or powers of Bank, its successors or assigns, or the right
or interest of Bank, legal or beneficial, in any portion of the Collateral; and will pay all reasonable costs and expenses, including
costs of evidence of title and reasonable outside attorneys’ fees, in any such action or proceeding in which Bank may appear. Borrower
will not sell, offer to sell, hypothecate or otherwise dispose of any Collateral (including proceeds thereof) subject hereto, or
any part thereof or interest therein, at any time, except for Permitted Encumbrances or with the prior written consent of Bank.

 

6.7. Compliance.
Borrower will comply with all material laws, rules and regulations relating to, and shall pay prior to delinquency, all license
fees, registration fees, taxes, guild or union pension, health and welfare payments, required guild or union residual, supplemental
market, reuse and other required payments and assessments, and all other charges including, without limitation, non-governmental
levies or assessments, which may be levied upon or assessed against, or which may become security interests, liens or other encumbrances
on, the ownership, operation, possession, maintenance, exploitation, exhibition or use of the Collateral, or which create or may
create a lien upon the Collateral, or any part thereof.

 

6.8. Filings.
Borrower will execute at Bank’s request and, at Borrower’s expense file and re-file such financing statements, continuation statements,
copyright assignments and other documents in such offices as Bank may deem necessary or appropriate and wherever required or permitted
by law in order to perfect or preserve Bank’s first priority purchase money security interest in the Collateral and deliver copies
of such financing statements, continuation statements, copyright assignments and other documents to Bank, Borrower hereby authorizes
Bank to file financing statements and amendments thereto and copyright assignments relative to all or any part of the Collateral
where necessary or desirable in Bank’s judgment to perfect or to continue the first priority purchase money security interest granted
herein without the signature of Borrower where permitted by law, and agrees to do such further acts and things and to execute and
deliver to Bank such additional conveyances, assignments, agreements and instruments as Bank may require or deem advisable to carry
into effect the purposes of this Agreement or to better assure and confirm unto Bank its rights, powers and remedies hereunder.

 

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6.9. Inspection
of Collateral. Borrower will at all times keep accurate records with respect to the Collateral which are as complete and comprehensive
as those customarily maintained by others engaged in the production of first-class theatrical motion pictures, and agrees to make
available to Bank or its representatives on Bank’s reasonable request all books, records, contracts, production notes and all other
information and data of every kind relating to the Property, the Collateral and the production, distribution or exploitation thereof,
and Bank shall have the right to examine such books, records, contracts and other information and to make abstracts therefrom or
copies thereof. Borrower further agrees that Bank shall have access, at all reasonable times and upon notice, to any and all of
Borrower’s computer hardware or software, whether maintained by Borrower or by third parties on Borrower’s behalf, which pertains
to, or reflects, such records. At such time or times as Bank may reasonably request, Borrower will at its cost and expense, prepare
a list or lists in such form as shall be satisfactory to Bank, certified by duly authorized officer of Borrower describing in such
detail as Bank shall reasonably require, the Collateral, and specifying the location of such Collateral and Borrower’s records
pertaining thereto and permit Bank upon reasonable notice to inspect such Collateral or any part thereof at such place as the Collateral
may be held or located or at such other reasonable place.

 

6.10. No
Conflict. The execution, delivery and performance of this Agreement, the Distribution Agreements or the other Loan Documents
and will not result in a breach of or constitute a default under any material agreement, indenture, loan, credit agreement, lease,
undertaking or other instrument to which Borrower is a party or by which it or any of its properties may be bound or affected,
and such execution, delivery and performance will not result in or require the creation or imposition of (or the obligation to
create or impose) any lien, charge, mortgage, pledge or encumbrance on, or security interest or other charge of any nature upon
or with respect to the Collateral or other property of Borrower except for the Permitted Encumbrances.

 

6.11. Related
Agreements. Borrower has obtained and has delivered or will deliver to Bank at closing true and complete fully executed copies
of the Related Agreements and all other security documents required hereunder. Each such document, and all other agreements, certificates,
exhibits, attachments, instruments and other documents entered into in connection herewith or therewith and which have been delivered
or will be delivered to Bank are and will be valid, binding and subsisting agreements. Each has been or will be executed by all
parties and all are and will be in full force and effect.

 

6.12. Canadian
Tax Credits.

 

6.12.1. The
Borrower shall take all actions appropriate or required by any applicable governmental authority to qualify for the Canadian Tax
Credit Rights in an aggregate amount of not less than amount reflected in the Canadian Tax Credit Estimate. In addition, the Borrower
agrees to take all steps to assist the Person designated by the Bank as the Bank’s expert consultant in connection with the Canadian
Tax Credits with that Person’s monitoring of the Canadian Tax Credit Rights, which shall be Behind the Scenes Services Inc.

 

6.12.2. The
Borrower shall not file any applications, agreements, instruments or documents pertaining to the Canadian Tax Credit Rights (including
without limitation, the CAVCO and OMDC final applications, together with all enclosures, annexes, exhibits and schedules thereto)
(collectively, the “Tax Credit Applications”) with any governmental authority, including CRA, CAVCO and OMDC or any
governmental agency succeeding to the functions thereof unless and until Borrower shall have first submitted true, complete and
correct copies thereof to the Bank for the Bank’s review and approval, and the Bank shall have given its prior written approval
thereof, such approval not to be umeasonably withheld or delayed.

 

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6.12.3. Borrower
shall ensure that the Tax Credit Applications submitted to the Bank for the Bank’s prior review and approval (i) include and shall
include all of the information, facts, agreements and all other matters of any kind whatsoever which are required to be disclosed
and/or provided to any governmental authority with respect to the Borrower and/or the Property qualifying for the Canadian Tax
Credit Rights, and (ii) are the complete and final agreement and understanding with respect to the subject matter thereof and there
are no other side agreements, written or oral, which amend or affect in any way such Tax Credit Applications.

 

6.12.4. The
Borrower shall not effect any transaction or take any other action which would interfere with the Bank’s rights pursuant to the
Canadian Tax Credit Assignments or which would cause the Canadian Tax Credit Rights to be less than amount reflected in the Canadian
Tax Credit Estimate; and

 

6.12.5. The
Borrower shall ensure that every person or entity which receives payment for services from the Borrower and then agrees to reinvest
all or a portion of such compensation in shares in the capital of the Borrower will declare the full amount of the compensation
as income in its tax returns. In the context where the entity receiving the compensation is a corporation, such entity will pay
the full amount of the compensation to the individual providing services in respect of the Property, who will then declare such
amounts as income on their tax returns.

 

6.13. Claims.
To the best of Borrower’s knowledge, there is no action, suit or proceeding at law or in equity or by or before any governmental
instrumentality or other agency or any investigation of the affairs of Borrower (or any Affiliate thereof) or any of its shareholders,
directors, officers, properties or rights which, if adversely determined, would materially affect (a) the ability of Borrower,
to perform its obligations concerning the production and exploitation of the Property as contemplated hereby (including, but not
limited to, the ability of Borrower to perform its obligations under the Distribution Agreements or to conduct its business substantially
as being conducted on the date hereof), (b) the financial condition of Borrower (c) the security interests granted to Bank hereunder
and under any of the other Loan Documents, or (d) the Collateral; nor is Borrower in default with respect to any material judgment,
writ, injunction, decree, rule or regulation of any court or governmental instrumentality or other agency which might materially
impair the rights of Borrower to carry on its business substantially as now being conducted or which might materially adversely
affect the financial condition of Borrower.

 

6.14. Operations
of Borrower. Borrower has not been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought,
storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance), materially
and adversely affecting such Collateral or the business or operations of Borrower.

 

6.15. Disclosure.
None of the statements, representations or warranties made by Borrower in this Agreement or any of the other Loan Documents, as
of the respective dates of such statements, representations and warranties, contains any untrue statement of a material fact or
omits any material fact necessary to make the statements made not misleading.

 

6.16. Breach
of Related Agreements. Borrower is not in material uncured default under the Related Agreements or any other Loan Document.

 

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6.17. Rights
in the Property and Collateral. Borrower owns all rights in the Property and in the Collateral necessary to enable Borrower
to fully perform all of its Obligations, representations, warranties and agreements under this Agreement, the Loan Documents, and
the Distribution Agreements. Borrower has acquired, now owns or controls, and will own or control during production of the Property
and continuing through satisfaction of all Obligations, all right, title and interest, including copyrights in and to the Property
including all right, title and interest necessary to make, distribute, exhibit and otherwise exploit the Property worldwide, including,
without limitation, all necessary rights in the literary, musical or other property or ideas used therein and the right to exhibit
the Property in theatres, on television, by means of video cassettes and videodiscs or in any other media or manner contemplated
in the Distribution Agreements, subject to the Chain-of-Title Documents, payment of necessary performing rights fees in respect
of the music in the Property, the Permitted Encumbrances, and such rights as are granted pursuant to the Distribution Agreements.
Any and all material or matter used in or in connection with the Property, including dialogue, characters, titles, episodes and
events, shall be original with or owned by Borrower, or in the public domain, and will not, to the best knowledge of Borrower,
infringe any copytights, statutory or common law, or, to the best of Borrower’s knowledge, constitute a libel, slander or invasion
of privacy of any party, or otherwise infringe on or violate the rights or any other party whomsoever.

 

6.18. Approved
Budget: Screenplay, etc. True and complete copies of the Approved Budget, Approved Cash Flow Schedule, Approved Screenplays
and Approved Production Schedule for the Property and, upon request of Bank, any agreements with any Person whose services are
a requirement of the Distribution Agreements, certified by an authorized agent of Borrower, have been or will be furnished to Bank.
Borrower and any other third party having approval rights with respect thereto have approved the same Approved Budget, Approved
Cash Flow Schedule, Approved Screenplays and Approved Production Schedule and Borrower and any other third party having approval
rights with respect thereto have approved or will approve all of the same elements with respect to which they have approval rights
under the Distribution Agreements, as applicable. The Approved Budget includes provisions for all expenses necessary for the production
of the Property and delivery of the Property in accordance with the terms of the Distribution Agreements including, but not limited
to, any and all costs of or related to music and the synchronized of the film recording, including all worldwide licenses and rights.
The services agreements for services are in full force and effect and (to the knowledge of Borrower) no party to any such agreement
is in material default thereunder or has any accrued right of termination thereunder.

 

6.19. Insurance.
Borrower has obtained and, no later than when due, has paid or will pay the premiums for, and shall hereafter maintain in force,
such insurance coverage relating to the Property as is required by paragraph 9.17 hereof.

 

6.20. Principal
Place of Business, etc. The chief executive office and principal place of administration and of the business of the Borrower
is located in Toronto, Ontario, and the records relating to the respective accounts and contract rights of the Borrower are located
at such address. the Borrower has no place of business outside of Toronto, Ontario, except for the production office used while
filming in Northern Ontario.

 

All covenants, agreements, representations
and warranties made under this Agreement, the Notes or in any of the other Loan Documents shall survive the execution and delivery
of this Agreement, the making of the Loans hereunder, and the execution and delivery of the Notes and shall continue in full force
and effect until the full and final payment and performance of all the Obligations of Borrower to Bank under this Agreement, the
Notes and all of the other Loan Documents.

 

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7. CONDITIONS
PRECEDENT.

 

Notwithstanding anything to the contrary
contained herein, the Bank shall not be obligated to make any Advances under the Loan unless all of the following conditions have
been satisfied at the time of each Advance:

 

7.1. Chain-of-Title
Documents. The Bank has been provided with documentation satisfactory to the Bank and its counsel that: (i) Borrower has the
rights in and to the Collateral it purports to have in connection herewith, and (ii) there is a clear chain-of-title with respect
to Borrower’s rights in and to the Collateral. In addition, Borrower shall provide the Bank with such other documentation relating
to the Property’s chain-of-title as the Bank may reasonably require.

 

7.2. Required
Documents. Borrower has delivered to the Bank the following documents, instruments and agreements in form and substance satisfactory
to the Bank and its counsel:

 

7.2.1. Loan
Agreement. This Agreement, duly executed by Borrower;

 

7.2.2. Notes.
The Notes, duly executed by Borrower;

 

7.2.3. Borrowing
Certificate. A Borrowing certificate in the form attached hereto as Exhibit “3”;

 

7.2.4. General
Security Agreement. The General Security Agreement, duly executed by Borrower;

 

7.2.5. Production
Assignment Security Agreement. The Production Assignment Security Agreement duly executed by Borrower;

 

7.2.6. Guarantees.
The Guarantees in favour of the Bank duly executed by each of the Guarantors.

 

7.2.7. Registration
of Bank’s Liens. All appropriate documents evidencing that the Bank’s Security Interest in the Collateral have been duly submitted
to and accepted for recordation in all appropriate governmental offices, including pursuant to the PPSA, the United States Registrar
of Copyrights and CIPO, accompanied by the required filing fees, or if not yet submitted, are ready to be submitted, and if accompanied
by the required fees, will be so accepted;

 

7.2.8. Title
Report & Copyright Filings. A title search report on the Property approved by the Bank and its counsel, which reveals no
interest of any Person which is contrary to the rights granted to the Bank hereunder or under any other Loan Document, and copies
of the copyright registrations, or the copyright applications accompanied by the required application fee, which have been filed
with each of the United States Copyright Office and CIPO, in respect of the Screenplay;

 

7.2.9. IDWE
Investment. Evidence satisfactory to the Bank that the IDWE Investment in the aggregate amount of USD$500,000 have been contributed
to the Borrower;

 

7.2.10. Subordinations.
Fully executed copies of the Subordination Agreements;

 

7.2.11. Operation
of Account Agreements. An executed Operation of Account Agreements among Bank, Borrower, and the bank maintaining the Production
Bank Account, stating that Bank has a first priority security interest in, to and under all funds deposited in the Production Bank
Account.

 

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7.2.12. Signed
Loan Documents. The Bank shall have received this Agreement and the Loan Documents, including all of the items listed in Schedule
1 hereto, together with all exhibits, attachments and supplementary documents which are not elsewhere identified in this paragraph
7, all in form and substance approved by the Bank, and executed by all parties thereto when the nature of such items so requires;

 

7.2.13. No
Breach. The Borrower shall have performed and complied with all covenants, agreements, and conditions contained herein and
the other Loan Documents which are required to be performed or complied with by the Borrower before or on the Closing Date and
all representations and warranties made hereunder and in the other Loan Documents shall be true and correct as of the Closing Date
as if made on such date;

 

7.2.14. No
Default. No Default or Event of Default shall exist on the Closing Date, or would exist after giving effect to the Loans
to be made on such date;

 

7.2.15. No
Actions. There shall exist no action, suit, investigation, litigation or proceeding affecting the Borrower pending or threatened
before any court, governmental agency, or arbitrator that might reasonably be expected to have a material adverse effect upon the
business; operations, property, prospects or condition (financial or otherwise) of the Borrower or upon the creditworthiness of
the Borrower or that purport to affect the legality, validity, or enforceability of this Agreement or any other Loan Document or
the consummation of the transactions contemplated hereby and, upon request, the Bank shall have received a certificate of the Borrower
’ s chief executive officer to such effect;

 

7.2.16. Tax
Credit Estimate. As of the Closing Date, the Canadian Tax Credit Estimate is not less than CDN$9,058,835;

 

7.2.17. Distribution
Agreements. Receipt of the fully executed Distribution Agreements including for greater
certainty, each of the Netflix DTP,[the IDWE A&D] and the NOHFC Direction;

 

7.2.18. PPSA
Reports. Reports acceptable to the Bank confirming that there are no filings of record which indicate that another Person
has rights or a Security Interest in the Co!lateral (other than as expressly provided for herein) which would be inconsistent with
the Security Interest granted to the Bank hereunder;

 

7.2.19. Insurance
Binder. An insurance binder with respect to the insurance coverages required to be obtained and maintained pursuant to paragraph
9.17 hereof, and including certificates reflecting the Bank being named as loss payees or additional insured thereunder as required
pursuant to paragraph 9.17 hereof.

 

7.2.20. Opinion
of Counsel. Favourable opinions from Borrower’s independent legal counsel;

 

7.2.21. Articles
of Organization. Borrower’s articles of incorporation, together with a certificate of the date of filing thereof and a letter
of good standing from the appropriate authorities in the province of Borrower’s incorporation;

 

7.2.22. Borrower
Resolutions. Certified copies of resolutions authorizing the execution, delivery and performance of this Agreement, as well
as all of the transactions contemplated thereby, and such other documents relating thereto as the Bank may reasonably request,

 

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7.2.23. Costs
and Expenses. Payment of all of the Bank’s costs and expenses, including, without limitation, all of the Bank’s legal fees,
with such fees to be reviewed by Borrower;

 

7.2.24. Guild
Intercreditor Agreement. An intercreditor or subordination agreement, in form and substance acceptable to the Bank, duly executed
by all applicable guilds to whom a security interest in the Collateral, if any, has been granted, pursuant to which such guild(s)
subordinates its security interest in the Collateral to the Bank’s Security Interest; and

 

7.2.25. Additional
Documents. Any such additional documents, instruments or agreements that the Bank may reasonably require to effectuate the
purposes of this Agreement.

 

The acceptance by the Borrower of any Loans
made on the Closing Date shall be deemed to be a representation and warranty made by the Borrower to the effect that all of the
conditions to the making of such Loans set forth in Paragraph 7.2 have been satisfied, with the same effect as delivery to the
Bank of a certificate signed by the president and chief financial officer of the Borrower, dated the Closing Date, to such effect.

 

7.3. Hedge
Agreement. Concurrent with closing, the Borrower agrees to into one or more Hedge Agreements as may be reasonably required
by the Bank.

 

7.4. Event
of Default. At the time of each disbursement or Advance under the Loan, no Event of Default, and no condition, event or act
which, with notice or lapse of time, or both, would constitute an Event of Default hereunder, shall exist.

 

7.5. Representations
and Warranties. All of Borrower’s representations and warranties herein, or otherwise made in writing in connection herewith,
shall be true and correct with the same effect as though the representations and warranties had been made on the date of each Advance
under the Loan.

 

7.6. Corporate;
Legal Proceedings. All corporate and legal proceedings, and all documents, instruments and agreements executed or to be executed
in connection with the transactions contemplated by this Agreement, shall be reasonably satisfactory in form and substance to the
Bank and its counsel.

 

7.7. Borrower’s
Financial Condition. The Bank’s obligation to make any Advances under the Loan shall be subject to there not having occurred
any material adverse change in Borrower’s financial condition at the time the Bank is to make any Advances under the Loan.

 

7.8. New
Litigation and Changes in Pending Litigation. Borrower shall have disclosed to the Bank in writing all pending or (to the best
of Borrower’s knowledge) threatened litigation, arbitration proceedings or governmental proceedings against Borrower where the
amount in controversy is equal to or greater than Ten Thousand Dollars ($10,000.00) or where injunctive relief is sought against
Borrower. In addition, Borrower shall have disclosed all material developments which have occurred in any such litigation, arbitration
proceedings or governmental proceedings which, in the Bank’s opinion, are likely to materially adversely affect Borrower’s financial
position or business, or impair Borrower’s ability to perform its obligations under this Agreement or the Notes.

 

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7.9. Advances
Subsequent to Closing Date. The following statements shall be true, and the acceptance by the Borrower of any extension of
credit shall be deemed to be a statement to the effect set forth in subparagraphs 7.9.1 and 7.9.2, with the same effect as the
delivery to the Bank of a certificate signed by the president and chief financial officer of each of the Borrower, dated the date
of such extension of credit, stating that:

 

7.9.1. The
representations and warranties contained in this Agreement and the other Loan Documents are correct in all material respects on
and as of the date of such extension of credit as though made on and as of such date;

 

7.9.2. No
event has occurred and is continuing, or would result from such extension of credit, which constitutes a Default or an Event of
Default; and

 

7.9.3. Since
the Closing Date, there shall have occurred no material adverse change in the property, business, operations, or condition (financial
or otherwise) or prospects of the Borrower (and upon request the Bank shall have received a certificate of the Borrower’s chief
executive officer to such effect)

 

8. PRODUCTION,
COMPLETION, DELIVERY AND DISTRIBUTION

 

8.1. Budget:
Cash Flow; Screenplay: Production Schedule. The Borrower hereby represents and warrants that:

 

8.1.1. True
and complete copies of the Budget, the Approved Cash Flow Schedule, the Approved Screenplays, and the Approved Production Schedule
and, upon request of the Bank, any agreements with any Person whose services are a requirement of any such agreements, have been
or will be furnished to the Bank.

 

8.1.2. The
Borrower and any other Person having approval rights with respect thereto have approved the Budget, Approved Cash Flow Schedule,
Approved Screenplays;

 

8.1.3. The
Budget includes provisions for all expenses necessary for the production of the Delivery Items in accordance with the terms of
this Agreement, the Distribution Agreements, including, but not limited to, any and all costs of music, including all worldwide
licenses and rights; and

 

8.1.4. The
service agreements for the Property are in full force and effect and (to the knowledge of the Borrower) no party to any such agreement
is in material default thereunder or has any accrued right of termination thereunder.

 

8.2. Production.

 

8.2.1. The
Borrower shall produce the Property and the Delivery Items in accordance with the Budget, the Approved Screenplays, the Approved
Production Schedule, the Final Cast List and the Approved Cash Flow Schedule, and in a manner consistent with the provisions of
this Agreement, the Distribution Assignments, the eligibility requirements of the Canadian Tax Credit Rights. The Borrower shall
not make or permit to be made any material changes, modifications, or revisions the Budget, the Approved Screenplays, the Approved
Production Schedule, or the Approved Cash Flow Schedule without the express written authorization of the Bank.

 

8.2.2. The
Borrower shall not make any change in the Budget that would increase, in the aggregate, the amount thereof or any other changes
therein without the prior written approval of the Bank and any other Person having approval rights with respect to such changes.

 

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8.2.3. The
Borrower shall cause the Property and the Delivery Items, as appropriate, to strictly conform to all of the technical and non-technical
specifications set out in the Distribution Agreements.

 

8.2.4. The
Borrower shall commence principal photography for the Property by no later than July 6, 2018.

 

8.3. “Stop
Date”: Contingent Compensation: Fees.

 

8.3.1. The
Borrower represents, warrants, and covenants, that no actor shall be granted a “stop date” (as that term is understood
in the motion picture industry) in connection with such actor’s engagement for the Property.

 

8.3.2. The
Borrower shall not enter into any agreement to pay any Person from the Collateral Proceeds, any residuals, profit participations,
deferred compensation, contingent compensation, whether computed on the basis of the Collateral Proceeds, net receipts from exploitation
of the Property, or otherwise (whether in a fixed amount or computed on a percentage basis), unless all such payments are subordinated
and subject to the rights of the Bank under the Loan Documents and the Borrower shall not pay any such payments from the Collateral
Proceeds until all Obligations have been satisfied in full. The Bank shall not have any obligation to pay any such payments to
any Person.

 

8.4. Performance
and Amendment of Agreements, Etc.

 

8.4.1. The
Borrower shall effect Delivery to the Distributors. The Borrower shall fully perform all of its obligations under the Distribution
Agreements, and shall enforce all of its rights and remedies thereunder as it deems appropriate in its business judgment; provided,
however, that the Borrower shall not take any action or fail to take any action with respect to the Distribution Agreements, or
the Completion Agreement which would result in a waiver or other loss of any material right or remedy of the Borrower thereunder.
Under no circumstances shall the Bank be obligated to effect Delivery to the Distributors.

 

8.4.2. The
Borrower shall not without the Bank’s prior written approval, modify, amend, supplement, compromise, satisfy, release, terminate,
or discharge the Distribution Agreements, the Completion Agreement, or any collateral securing the same, any Person liable directly
or indirectly with respect thereto, or any agreement relating to the Completion Agreement, or the Distribution Agreements or the
collateral therefor. Without limiting the generality of the foregoing, the Borrower shall not, without the Bank’s prior written
consent, amend or modify in any way the amount or payment due date(s) or the conditions of payment pursuant to the Distribution
Agreements.

 

8.5. Enforcement
of Agreements.

 

8.5.1. The
Borrower shall notify the Bank in writing, promptly after the Borrower becomes aware thereof, of any event or fact which could
give rise to a breach of the Completion Agreement, or the Distribution Agreements, and shall diligently pursue such right and report
to the Bank on all further developments with respect thereto.

 

8.5.2. Until
all Obligations have been indefeasibly paid and performed in full, each of the Borrower shall, at its expense, make collection
and take all appropriate legal action necessary to enforce collection, of all payments, receipts and revenues, as and when due,
which may be owing under the Distribution Agreements, or from any other Person pursuant to any other agreement entered into by
the Borrower with respect to the Collateral, and shall remit all sums so collected to the Collection Account. If the Borrower fail
after the Bank’s demand to pursue diligently any right under the Distribution Agreements or any other agreement entered into by
the Borrower with respect to the Collateral, or if an Event of Default then exists, the Bank may directly enforce such right in
its own or the Borrower’s names, and may enter into such settlements or other agreements with respect thereto as the Bank shall
determine.

 

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8.5.3. In
any suit, proceeding, arbitration proceed, or action brought by the Bank under the Distribution Agreements, for any sum owing thereunder
or to enforce any provision thereof, the Borrower shall indemnify and hold the Bank harmless from and against all expense, loss
or damage suffered by reason of any defense, setoff, counterclaims, recoupment, or reduction of liability whatsoever of the Distributors,
or other obligor thereunder arising out of a breach by the Borrower of any obligation thereunder or arising out of any other agreement,
indebtedness or liability at any time owing from the Borrower to or in favour of such obligor or its successors.

 

9. AFFIRMATIVE
COVENANTS.

 

Borrower hereby covenants and agrees as
follows:

 

9.1. Books
and Records. Until the Indebtedness is repaid in full, Borrower shall maintain true, full and complete books and records of
Borrower’s financial transactions with respect to the Property in accordance with generally accepted accounting principles in the
television and motion picture industry, and shall permit the Bank (or its designee) to examine such books and records at such times
during reasonable business hours as the Bank (or its designee) may request and take excerpts therefrom and make copies thereof,
provided, however, that the Bank shall give the Borrower not less than ten (10) Business Days prior notice of such required examination.
Until such time as the Indebtedness is repaid in full, all such books and records (or duplicates thereof) shall be maintained at
Borrower’s principal place of business and shall not be maintained in any other place without the Bank’s prior written consent.
The Bank acknowledges that books and records (or duplicates thereof) may be maintained at the location production office during
filming of the Property.

 

9.2. Statements,
Etc. Until the Indebtedness is repaid in full, Borrower shall furnish, or cause to be furnished, to the Bank all information
in connection with the Property as the Bank may request, including, without limitation, the following:

 

9.2.1. copies
of all statements and other financial information with respect to the Property received by Borrower or any Affiliated Person;

 

9.2.2. cost
reports for the Property on a weekly basis during principal photography, and on a monthly basis thereafter;

 

9.2.3. sales
reports for the Property on a monthly basis, provided, however, that no sales reports shall be furnished to the Bank if there are
no sales to report;

 

9.2.4. copies
of all material agreements (executed or otherwise) entered into by Borrower, or on Borrower’s behalf, in connection with the Property,
and copies of all correspondence relating thereto; and

 

9.2.5. summaries
of all revenues and income paid and payable to Borrower in connection with the Property.

 

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9.3. Reconciliation
of Statements. Upon the Bank’s reasonable request, Borrower shall promptly furnish to the Bank a reconciliation of information
concerning any discrepancy with respect to any item in any summary or statement of revenues paid and payable by Borrower or any
other Person, and Borrower further agrees that, if the Bank, in its good faith business judgment, believes that an Event of Default
may have occurred, the Bank shall have the right to appoint an accountant to prepare such information as the Bank may require,
the reasonable fees and expenses of such accountant to be borne and paid by Borrower.

 

9.4. Notice
of Legal Proceedings. Borrower shall promptly give the Bank written notice of all litigation, proceedings, controversies (which
in any way may adversely affect the Bank’s rights and Security Interest hereunder or under any of the documents referred to herein)
or claims materially affecting, the Property, eligibility of the Canadian Tax Credits, or any of Borrower’s rights with respect
thereto, and, where applicable, Borrower shall appear in and defend any and all such actions and proceedings and shall obtain and
furnish to the Bank from time to time, upon demand, all instruments, agreements, financial statements, documents, releases and
subordinations of claims or liens as the Bank may require, consistent with this Agreement, to maintain the priority of the Bank’s
Security Interest under this Agreement.

 

9.5. Corporate
Existence. Borrower shall, at all times hereunder, maintain its corporate existence.

 

9.6. Security
Interest. Maintain the security interests created pursuant to this Agreement and the other Loan Documents with respect to the
Collateral at all times in place and perfected, with first priority in favour of Bank. Borrower shall not directly or indirectly
create, incur or suffer to exist, and shall promptly discharge or cause to be discharged, any other mortgage, pledge, lien, charge,
security interest or other encumbrance on or with respect to the Collateral other than the Permitted Encumbrances.

 

9.7. Foreign
Exchange. Borrower assumes all risks associated with exchange rate fluctuations between the Canadian currency, the US currency,
Euros and any other currency. Without limiting the generality of the foregoing, Borrower assumes the risk that (i) to the extent
that any of the costs of production of the Property are to be paid in Canadian dollars, the Loan proceeds may be inadequate to
pay all of the costs of production of the Property due to changes in the exchange rates between the Canadian dollar and the US
dollar, or currency which are to be used to pay the costs of production of the Property, (ii) to the extent that any Person makes
payment to Lender in a currency other than US dollars, the total of all payments made to Lender in connection with the Property
may not be sufficient to repay the Indebtedness in full, and (iii) the value of the Canadian dollar or the US dollar, as applicable
(depending on which currency is to be used to pay costs of production of the Property or to repay the Indebtedness) may decline
relative to the other currency. In connection with the foregoing, Borrower hereby authorizes Lender to purchase forward foreign
exchange contracts in Borrower’s name, at such times and in such amounts as Lender shall determine in its sole discretion, in order
to mitigate the impact of any potential currency fluctuations. Borrower agree to indemnify Lender against all losses, costs and
expenses associated with its purchase of forward foreign exchange contracts pursuant to this paragraph, including, without limitation,
any and all so-called “breakage” costs in the event Lender is unable or determines that it is not in Lender’s best
interests to deliver the currency required to be delivered pursuant to, and in the amount specified, in any such forward foreign
exchange contract. All losses, costs and expenses for which Borrower is required to indemnify Lender pursuant to this paragraph
shall constitute part of the Indebtedness for all purposes hereunder.

 

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9.8. Costs
and Expenses. Whether or not the Bank actually makes the Loan contemplated hereunder, Borrower shall pay all of the
Bank’s reasonable actual third party out-of-pocket costs and expenses (including, without limitation, the Bank’s reasonable
outside attorneys’ fees) incurred in connection with this Agreement and the Property, including, without limitation, all
reasonable costs and expenses incurred in connection with the negotiation and preparation of this Agreement and the other
agreements and documents referred to herein or the Bank’s enforcement of its rights hereunder or in connection with the
realization upon any Collateral. Such costs and expenses (including, without limitation, court costs and reasonable outside
attorneys’ fees) shall constitute Advances hereunder (which may exceed the Commitment Amount) and shall be secured and
recoupable and shall bear interest in the same manner as provided for in paragraph 2, above; provided, however, that Borrower
shall pay any reasonable outside attorneys’ fees, court costs and out-of-pocket expenses incurred by the Bank in connection
with this Agreement or the Property immediately upon demand by the Bank. At the Bank’s election, the Bank shall have the
right (and is hereby authorized by Borrower) to make additional Advances under the Loan for the repayment to the Bank of all
such amounts.

 

9.9. Taxes
and Other Liabilities. Borrower shall pay and discharge, before the same become delinquent and before penalties accrue thereon,
all taxes, assessments and governmental charges upon or against it or upon its income or profits or upon any of its properties,
and all its other liabilities at any time existing.

 

9.10. Canadian
Tax Credits. On a timely basis, take all appropriate actions required by any applicable governmental authority to qualify for
the Canadian Tax Credits in an aggregate amount of not less than the amount reflected in the Tax Credit Estimate.

 

9.11. Tax
Returns: Prepare and file the Borrower’s federal and provincial income tax returns on a timely basis in respect of any taxation
year for which the Canadian Tax Credits may be claimed and provide the Bank with copies of all such tax returns and all related
filings, as well as copies of all Notices of Assessment, Notices of Reassessment and all similar documents issued by the government
in relation to the Borrower’s tax returns and the Canadian Tax Credits. Without limiting the generality of the foregoing, Borrower
shall provide copies of all of its tax returns to Bank on a timely basis and in any event not later than 60 days after filing of
such documents.

 

 9.12. Compliance. Borrower shall comply with all laws, rules and regulations relating to, and shall pay prior to delinquency all license fees, registration fees, taxes, guild or union pension, health and welfare payments, supplemental market, reuse and other required payments and assessments, and all other charges, including without limitation non-governmental levies or assessments, which may be levied upon or assessed against, or which may become security interests, liens or other encumbrances on, the ownership, operation, possession, maintenance, exploitation, exhibition or use of, the Collateral, or which create or may create a lien upon the Collateral, or any part thereof. Borrower shall pay prior to delinquency all required guild or union residual payments arising with respect to the Property.

 

 9.13. Informational Covenants. Furnish or cause to be furnished to Bank such information relating to the production of the Property, business, properties, condition, operations and affairs of the Borrower, financial or otherwise, as Bank may reasonably request from Borrower from time to time.

 

9.14. Indemnity. Borrower
shall, at all times, defend, indemnify and hold the Bank and its shareholders, officers, directors, employees,
representatives and agents harmless from and against any and all liabilities, claims, demands, causes of action, losses,
damages, expenses (including, without limitation, reasonable outside attorneys’ fees), costs, settlements, judgments or
recoveries arising out of or resulting from (i) any breach of any of Borrower’s representations, warranties, agreements or
covenants made herein, (ii) any suit or proceeding of any kind or nature whatsoever against the Bank arising from or
connected with the transactions contemplated by this Agreement or any of the documents, instruments or agreements to be
executed pursuant hereto or any of the rights and properties assigned to the Bank hereunder (except those arising due to the
Bank’s gross negligence or wilful misconduct), or (iii) any suit or proceeding that the Bank may in good faith deem necessary
or advisable to institute, in the name of the Bank, Borrower or any of them, against any other Person for any reason
whatsoever to protect the Bank’s rights hereunder, all of which shall be charged to and paid by Borrower and shall be secured
by the Bank’s Security Interest in the Collateral.

 

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9.15. Further
Assurances. If the Bank requests, Borrower shall execute and
deliver, or cause to be executed and delivered, to the Bank the documents referred to in paragraph 6 hereof and such further instruments,
documents and agreements as the Bank may reasonably require, and shall do, or cause to be done, such further acts as the Bank may
reasonably require to carry out or effectuate the purposes of this Agreement and enable the Bank to exercise its rights and remedies
hereunder . If Borrower fails to execute or deliver to the Bank
any such further instruments, documents or agreements within five (5) Business Days after the Bank’s request therefor, then the
Bank is hereby appointed as Borrower’s irrevocable attorney-in-fact, with full power of substitution and with the right, but not
the obligation, to do any and all acts and things necessary to execute, acknowledge and deliver any and all such further instruments,
documents or agreements, in Borrower’s name and on Borrower’s behalf, which appointment shall be deemed to be a power coupled with
an interest and shall be irrevocable. If the Bank executes any instruments, documents on Borrower’s behalf pursuant to this Section
9.15, the Bank will provide Borrower with a copy of each such executed instrument, document or agreement within a reasonable period
of time after the Bank’s execution thereof.

 

9.16. Notice
of Events of Default. Borrower shall give the Bank prompt written notice of all Events of Default under any of the terms or
provisions of this Agreement and of any changes in management, litigation, or of any other matter which has resulted in or may
result in a materially adverse change in Borrower’s financial condition or operations.

 

9.17. Insurance.
At all times until the Obligations are paid in full, at its sole cost and expense, maintain insurance against loss or damage to
the Collateral with responsible and reputable insurance companies or associations satisfactory to Bank in such amounts and covering
such risks as are customarily covered in the film and television industry.

 

Without
limiting the generality of the foregoing, the Borrower shall: (i) maintain customary “entertainment package”
insurance coverage; (ii) maintain errors and omissions insurance, covering, among other things, the legal liability and
defense of the Borrower against lawsuits alleging the unauthorized use of title, format, ideas, characters, plots,
plagiarism, copyright infringement and unfair competition, and protect against alleged libel, slander, defamation of
character and invasion of privacy. The errors and omissions policy shall be in a minimum amount of $3,000,000 per occurrence
and $5,000,000 in the aggregate, with a deductible of not more than $10,000, and a period of coverage of not less than three
(3) years from the date of the first Advance (plus such longer periods as such coverage is required to be in effect pursuant
to any distribution agreement); and (iii) comprehensive general liability insurance covering the Borrower against, among
other things, all claims for bodily injury, personal injury or property damage which may arise in connection with the
Property, including, without limitation, coverage for all owned, non-owned and hired vehicles (both on and off camera) with a
minimum liability limits of $1,000,000.

 

All
such insurance policies covering the Collateral shall name Borrower as named insured and shall name Bank as additional
insured loss/payee without Bank being liable for premiums or other costs or expenses. Each such policy shall bear a standard
first mortgagee endorsement in favour of Bank and shall provide for all losses to be paid to Borrower, and for losses to be
adjusted with the insurer by Borrower; provided, however, that, if the insurer shall have received written notice from Bank
that an Event of Default has occurred and is continuing unremedied, any such payment for loss or destruction of or
damage to the Collateral shall be paid directly to Bank and any such adjustments shall be made solely by Bank. All such
insurance payments received by Bank while an Event of Default shall have occurred and be continuing unremedied shall be held
or applied by Bank as provided in the last paragraph of this paragraph 9.17.

 

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Borrower
shall furnish to Bank concurrently herewith insurance certificates, in form and substance satisfactory to Bank and its counsel,
evidencing compliance by Borrower, with the terms of this paragraph 9.17.

 

If, at
the time, there are any Obligations outstanding and unpaid, then at least thirty (30) days prior to the expiration of each
such policy, Borrower shall furnish Bank with evidence satisfactory to Bank of the payment of premium and the reissuance of a
policy continuing insurance in force as required by this Agreement. All such policies or certificates shall contain a
provision that such policies will not be cancelled or materially amended (including any reduction in the scope or limits of
coverage), without at least thirty (30) days’ prior written notice by such insurer to Bank. In the
event Borrower fails to provide, maintain, keep in force or deliver and furnish to Bank the policies of insurance required by
this paragraph 9.17 Bank may, but shall not be obligated to, procure such insurance or single interest insurance for such
risks covering the Bank’s interest, and Borrower will pay all premiums thereon promptly upon demand by Bank, together with
interest thereon at the rate then applicable to the Loans made to Borrower hereunder from the date of expenditure by Bank
until reimbursement by Borrower.

 

All policies
of insurance required to be furnished by Borrower pursuant to this paragraph 9.17 shall have attached thereto a Bank’s loss payable
endorsement or its equivalent, or a loss payable clause acceptable to Bank, Borrower shall observe and comply with the requirements
of all policies of insurance required to be maintained in accordance with this Agreement and shall so perform and satisfy the requirements
of the companies writing such policies so that at all times companies of good standing satisfactory to Bank shall be willing to
write and to continue such insurance.

 

Upon
request by Bank, Borrower shall furnish Bank a certificate of an officer of Borrower containing a detailed list of the
insurance policies of Borrower required by or referred to in this paragraph 9.17 then outstanding and in force. All insurance
money received by Bank shall be held by Bank to secure the performance by Borrower of its Obligations under this Agreement
and the other Loan Documents.

 

 10. NEGATIVE COVENANTS.

 

10.1. Written
Consent. Borrower hereby covenants and agrees that, as long as this Agreement is in effect and until Borrower’s obligations
to the Bank hereunder are fully discharged, Borrower will not, without first having procured the Bank’s written consent:

 

10.1.1. terminate,
amend, alter or modify, or consent to or permit the termination, amendment, alteration or modification of the Distribution Agreements
or any other agreement referred to herein or secured by the Bank’s Security Interest hereunder in any manner, or enter into any
other agreement, that would adversely affect or lessen any of the rights granted to the Bank under this Agreement, or under any
instruments, documents or agreements executed by Borrower in connection herewith;

 

10.1.2. wind
up, liquidate or dissolve its affairs, or sell, lease, license, transfer, or otherwise dispose of or grant an interest in a11 or
a substantial part of the Collateral or its other properties (other than the Permitted Encumbrances) and assets or change its corporate
or trade name.

 

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10.1.3. amend,
alter, supplement, renew, replace, terminate or modify (or consent to such amendment, alteration, supplementation, renewal, replacement,
termination or modification of) the Distribution Agreements, or the Completion Agreement, or enter into or do any of the foregoing
with respect to any other agreement, that would materially adversely affect or lessen any of the rights granted to the Bank under
this Agreement, the other Loan Documents or under any instruments, documents or agreements executed by Borrower.

 

10.1.4. Deposit
or place any Physical Properties of the Property in the possession of any laboratory, special effects studio, sound studio, other
processing or storage entity or any bailee without first obtaining and delivering to Bank a fully executed laboratory pledgeholder
agreement substantially in the form of the Laboratory Pledgeholder Agreement.

 

 10.1.5. Consolidate with or merge into any other Person or entity.

 

10.1.6. Move
its chief executive office from Toronto, Ontario, or conduct any production activities with respect to the Property or maintain
any physical properties of the Property in any location outside of Toronto, Ontario.

 

10.2. Use
of Funds. Borrower shall not use any funds disbursed by the Bank under the Loan for any purpose or thing other than for payment
of the direct Property production costs and expenses as set forth in the Budget, payment of the interest up to the amount of the
Interest and Cost Reserve, payment of the Loan Fee and those additional costs set out in this Agreement.

 

 11. EVENTS OF DEFAULT.

 

11.1. Specified
Events of Default. Each of the following hereby constitutes and is referred to herein as an “Event of Default”:

 

11.1.1. Failure
to Pay. Borrower’s failure to make (or cause to be made) any payments due to the Bank hereunder when the same are due;

 

11.1.2. Breach
or Default or Agreement or Related Agreements. Borrower’s default in the due and timely observance or performance of
the material terms, provisions, covenants, conditions, agreements or obligations contained in this Agreement, the Notes, the Distribution
Agreements, or in any other agreement relating to the Loan or the Property which would adversely affect the validity, perfection
or priority of the Bank’s Security Interest in the Collateral, or the value of the Collateral or the Notes;

 

11.1.3. Breach
of Covenant, Representation or Warranty. Borrower’s failure to perform or observe, in a due and timely manner, any of the other
material terms, provisions, covenants, conditions, agreements or obligations contained herein or in any other agreement, contract,
indenture, document or instrument executed, or to be executed, by Borrower in connection with this Agreement or pursuant hereto
(i.e., other than those subject to the immediately preceding subparagraph 11.1.2);

 

11.1.4. False
Statements. The material falsity of any financial statement given to the Bank by Borrower, or of any representation or warranty
made by Borrower in writing in connection with this Agreement or in connection with the instruments, documents and assignments
to be executed by Borrower pursuant hereto;

 

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11.1.5. Third
Party Default. The default by any third party in such party’s observance or performance of any material term, covenant,
condition, warranty or representation made or agreed to in any agreement referred to herein that, in the Bank’s good faith
business judgment, would adversely affect or lessen any of the rights granted to the Bank under this Agreement, or under any
instruments, documents or agreements executed by Borrower in connection herewith;

 

11.1.6. Suspension
of Business. The suspension by any of Borrower of its respective business operations which suspension would in any way materially
and adversely affect the Bank’s rights and Security Interest hereunder or under any documents referred to herein;

 

11.1.7. Execution.
The issuance or levy of any warrant of attachment, execution or other writ on the proceeds payable pursuant to any agreement referred
to herein or secured by the Bank’s Security Interest, if any such attachment, execution or other writ remains undischarged and
unstayed for a period in excess of forty-five (45) days or Borrower fails to post (or cause to be posted) an indemnity bond for
the maximum liability pursuant to any such attachment, execution or other writ;

 

11.1.8. Bankruptcy
or Insolvency. if Borrower: (i) becomes insolvent or is unable
to pay its debts as they mature (including, without limitation, Borrower’s failure to pay the Indebtedness), (ii) makes an assignment
for the benefit of creditors or to an agent authorized to liquidate any substantial amount of its properties or assets, (iii) files
a voluntary petition in bankruptcy or seeking reorganization or to effect a plan or other arrangement with creditors, (iv) files
an answer admitting the jurisdiction of any court and the material allegations of an involuntary petition filed pursuant to any
provincial law of Ontario or federal law of Canada relating to bankruptcy or reorganization, (v) joins in any such petition for
an adjudication or for a reorganization or other arrangement, (vi) becomes or is adjudicated a bankrupt, (vii) applies for or consents
to the appointment of a receiver or trustee for itself or for any of its properties, assets or business, (viii) allows an order
to be entered against it pursuant to any provincial law of Ontario or federal law of Canada relating to bankruptcy or reorganization,
(ix) allows a receiver or a trustee to be appointed otherwise than on its own application or consent for all or a substantial part
of its properties, assets or business, and any such receiver or trustee is not discharged within forty-five (45) days after the
date of such appointment;

 

11.1.9. Material
Adverse Change. A material adverse change occurs in Borrower’s financial condition, properties or prospects or ability to repay
the Loan;

 

 11.1.10. Abandonment of Property. The abandonment of the production of the Property;

 

11.1.11. Lawsuits.
any lawsuit or lawsuits are filed on behalf of one or more trade creditors against Borrower in an aggregate amount of $10,000.00
or more in excess of any insurance coverage;

 

11.1.12. Final
Judgments. If a final judgment or judgments for the payment
of money in excess of $10,000.00 is entered or affirmed by a court against Borrower or any Affiliated Person (but only to the extent
that such a judgment against an Affiliated Person adversely affects the Bank’s rights and Security Interest hereunder or under
any documents referred to herein) from which no further appeal may be taken, and Borrower or the Affiliated Person does not discharge
the same or provide for its or their discharge in accordance with its or their terms or procure a stay of execution thereof within
forty-five (45) days from the date of entry thereof;

 

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11.1.13. Related
Agreements. If any of the following occurring which would
have a materially adverse impact on Bank’s rights or remedies: this Agreement, the Related Agreements or any other instrument
delivered hereunder or thereunder shall at any time after its execution and delivery and for any reason cease to be in full
force and effect, or shall be declared to be null and void; or the validity or enforceability thereof shall be contested by
any party thereto other than Bank, or any party other than Bank shall deny that it has any further obligation thereunder,
hereunder or under any other Loan Documents or under any other instrument delivered hereunder or thereunder;

 

11.1.14. Federal
Tax Credits. In respect of the Federal Tax Credit: (i) any branch of the Canadian federal government, including the CRA or
CAVCO, announces that the Federal Tax Credit (x) is no longer available, (y) is only available at a percentage of labour expenditures
less than the current percentage or (z) refuses to issue Borrower any certificate necessary for Borrower to claim the Federal Tax
Credit, such as a Part B Certificate; or (ii) Borrower incurs or is otherwise subject to any tax liability that will have the effect
of making the actual proceeds of the Federal Tax Credit less than the estimated proceeds of the Federal Tax Credit set out in the
Tax Credit Estimate, unless waived by Bank;

 

11.1.15. Ontario
Tax Credits. In respect of the Ontario Tax Credits: (i) any branch of the Ontario government, including CRA or OMDC,
announces that the Ontario Tax Credits (x) are no longer available, (y) is only available at a percentage of labour
expenditures less than the current percentage or (z) refuses to issue to Borrower any certificate necessary for Borrower to
claim the Ontario Tax Credits; or (ii) Borrower incurs or is otherwise subject to any tax liability that will have the effect
of making the actual proceeds of Ontario Tax Credits less than the estimated proceeds of the Ontario Tax Credits set out in
the Tax Credit Estimate, unless waived by Bank;

 

11.1.16. Lien
Priority. Bank fails to have an enforceable first lien (except for any prior liens to which Bank has consented in writing,
including the Permitted Encumbrances) on or security interest in any property given as security for this loan, including a Prior
Preferred Claim.

 

1 1.2. Remedies.
Upon the occurrence of any of the Events of Default set forth in paragraph 11.1, above, all Indebtedness shall immediately become
due and payable. At the Bank’s option, upon the occurrence of any other Event of Default, and at any time thereafter if such Event
of Default is continuing, the Bank shall have the following additional remedies:

 

11.2.1. unless
such Event of Default is cured within the time period (if any) provided for hereunder, the Bank may terminate the Bank’s obligation
to make and further Advances hereunder and the Bank may, without presentment, demand, protest or notice of any kind, all of which
are hereby expressly waived by Borrower, call the Indebtedness due and payable, if not otherwise then due and payable (anything
herein or in the Notes or other agreement, contract, indenture, document or instrument to the contrary notwithstanding) and the
Maturity Date shall be accelerated accordingly;

 

11.2.2. Bank
may require Borrower to assemble the Collateral and make it available to Bank at a place or places to be designated by Bank;

 

11.2.3.
Bank may, in its sole discretion, in its name or in the name of Borrower demand, sue for, collect or receive any money or
property at any time payable or receivable on account of or in exchange for, or make any compromise or settlement reasonably
deemed desirable with respect to any of the Collateral, but shall be under no obligation so to do. Bank shall consult with
Borrower with regard to such matters, provided that in all cases Bank’s decision shall be final. Bank may extend the time of
payment, arrange for payment in instalments, or otherwise modify the term of, or release, any of the Collateral, without
thereby incurring responsibility to, or discharging or otherwise affecting the liability of, Borrower, Bank will not be
required to take any steps to preserve any rights of or against any party which in any way relate to the Collateral. If
Borrower fails to make payment or take any action required under the Agreement, any other Loan Document, the Distribution
Agreements, the Bank may make such payments and take all such actions as Bank reasonably deems necessary to protect Bank’s
security interests in the Collateral and/or the value thereof, and Bank is hereby authorized (without limiting the general
nature of the authority hereinabove conferred) to pay, purchase, contest or compromise any encumbrances, charges or liens
which in the good faith judgment of Bank appear to be equal to, prior to or superior to the security interests of Bank in the
Collateral;

 

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11.2.4. Bank
may, without notice or demand or legal process, enter upon any premises, or wherever any portion of the Collateral may be, and
take possession of the Collateral together with all additions and accessories thereto, demand and receive such possession from
any person who has possession thereof, remove, keep and store the Collateral or any portion thereof, or put a custodian in charge
thereof, and take such other measures as it reasonably may deem necessary or proper for the care or protection thereof;

 

11.2.5. Bank
may, with or without taking possession thereof, sell or cause to be sold, at such price or prices as Bank, in its sole and absolute
discretion, shall determine, and for cash or on credit or for future delivery, without assumption of any credit risk, all or any
portion of the Collateral, at any public or private sale, without demand of performance or notice of intention to sell or of time
or place of sale; provided, however, that unless the Collateral in Bank’s possession is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, Bank shall give Borrower reasonable notice of the time and place
of any public sale thereof or of the time after which any private sale or other intended disposition thereof is to be made. The
requirement of reasonable notice shall be met if notice of the sale or other intended disposition is delivered or mailed, by registered
mail, postage prepaid, to Borrower as set forth in this Agreement or such other address as Borrower may by notice have furnished
Bank in writing for such purpose, at least ten (10) Business Days prior to the time of such sale or other intended disposition.
Such purchaser at any such sale (including, if applicable, Bank) shall hold the property sold absolutely free from any claim or
right of whatever kind including any equity of redemption and Borrower hereby waives, to the extent permitted by law, all rights
of redemption, stay and/or appraisal which it now has or may have at any time in the future under any rule of law or statute now
existing or hereafter enacted. Any public or private sale of the Collateral or any part thereof shall be held at such time or times
within ordinary business hours and at such place or places as Bank may fix in the notice of such sale. At any such sale, the Collateral,
or any portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as Bank may (in its sole discretion)
determine and, if permitted by law, Bank may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness)
for and purchase the Collateral or any portion thereof for the account of the Bank. Bank shall not be obligated to make any sale
of the whole or any part of the Collateral if it shall determine not to do so, regardless of the fact that notice of sale of the
Collateral may have been given. Bank may by announcement at the time and place fixed for sale, without prior notice or publication,
adjourn any public or private sale of the Collateral or cause the same to be adjourned from time to time, and such sale may, without
further notice, be made at the time and place to which the same was so adjourned. In case sale of all or any part of the Collateral
is made on credit or for future delivery, the Collateral so sold may be retained by Bank until the sale price is paid by the purchaser
or purchasers thereof, but Bank shall not incur any liability in case any such purchaser or purchasers shall fail to take up and
pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice;

 

11.2.6. Any
laboratory which has possession of any of the Collateral is hereby constituted and appointed by Borrower as pledgeholder for the
Bank and Bank may authorize each such pledgeholder to sell all or any portion of the Collateral upon the order and direction of
Bank, and Borrower hereby waives any and all claims for damages, or otherwise, for any action taken by such pledgeholder. Pursuant
to this subsection, Bank, Borrower and Laboratory concurrently herewith are entering into the Laboratory Pledgeholder Agreement
of even date herewith;

 

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11.2.7. Bank
shall be entitled to the appointment of a receiver to take possession of all or any portion of the Collateral and to exercise such
powers as the court shall confer upon the receiver, and Borrower, to the fullest extent permitted by law, hereby waives notice
and the right to receive notice of any application by Bank for such appointment; provided, however, that Bank shall endeavor to
send Borrower s courtesy notice of such application although the failure to send such notice shall not affect Bank’s rights under
this section or elsewhere hereunder and provided further that, notwithstanding any such application or appointment, Bank shall
be entitled to apply, without notice to Borrower, any cash or cash items constituting Collateral in the possession of Bank to payment
of Borrower’s, Obligations under this Agreement, the Notes and the other Loan Documents;

 

11.2.8. Bank
may, but shall not be obligated to, take over the production of the Property. If Bank takes over production of the Property, Bank
may do any or all of the following: substitute personnel, cut, edit, score and make such changes in the Property as it may desire,
subject to any third party contracts and rights thereunder, and/or abandon production of the Property; in any such event, Bank
shall be free of any obligation to make any payment of any fee payable to Borrower or any Affiliate in connection with the production
of the Property. Borrower hereby agrees to waive any right to claim that it sustained any loss or damage by reason or as a result
of any action taken by Bank pursuant to this subsection other than Bank’s actions constituting gross negligence or intentional
misconduct;

 

11.2.9. Upon
any sale of any item of Collateral by Bank hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial
process or otherwise), the receipt of Bank or the officer making the sale shall be a sufficient discharge to the purchaser or purchasers
of such item or items of 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 Bank or such officer or be answerable in any way for the misapplication or non-application
thereof;

 

11.2.10. Bank
is hereby authorized at any time and from time to time, without notice to Borrower (any such notice being expressly waived by Borrower),
to setoff and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, including
amounts in the Production Bank Account, any certificate of deposit, and any other Indebtedness at any time owing by Bank or the
holder of the Notes to or for the credit or the account of Borrower against any and all of the then-due (including, but not limited
to those due by reason of acceleration) Obligations of Borrower now or hereafter existing under this Agreement, the Notes or any
other Loan Document, irrespective of whether or not Bank or such holder of the Note shall have made any demand under this Agreement,
the Notes or any other Loan Document. Bank agrees promptly to notify Borrower after any such setoff and application. The rights
of Bank under this subsection are in addition to other rights and remedies (including, without limitation, other rights of setoff)
which Bank may have; and/or

 

11.2.11.
The Bank may pursue the remedies afforded to it hereunder (including, without limitation, pursuant to paragraph 11.4, below) or
under any of the documents executed in connection herewith, or any other remedy afforded to it by law or equity, and the Bank
may, at its option, do and perform all other acts and things necessary for the proper preservation and protection of the Bank’s
rights hereunder, with respect to the Property (and the receipts therefrom) or pursuant to any agreement secured by the Bank’s
Security Interest hereunder, all at Borrower’s cost and expense, which costs shall be recoupable by the Bank and secured as provided
in paragraph 8.8 hereof; and

 

11.2.12. the
Bank may, at its option, engage others to exercise or discharge any of its rights or obligations hereunder. The amounts payable
to such others by the Bank shall be recoupable by the Bank and secured as provided in paragraph 8.8 hereof.

 

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11.3. Cure
Period. With respect to the Events of Default set forth in paragraphs 11.1.1, 11.1.2, 11.1.3, 11.1.5, 11.1.6, 11.1.9, 11.1.12,
11.1.13, and 11.1.16 above, to the extent that any such Event of Default is capable of being cured, Borrower shall have a period
of three (3) business days after receipt of written notice of such Event of Default within which to cure any such Event of Default.
At the Bank’s sole and exclusive option, upon the occurrence of any other Event of Default, and at any time thereafter, the Bank
may permit Borrower to cure such Event of Default, but the Bank shall have no obligation to do so. If
Borrower is permitted to cure any such Event of Default, as provided herein, and Borrower effectuates such cure within the
time period permitted by the Bank, then the Interest Rate shall not be increased to the Overdue Rate as a result of such Event
of Default.

 

11.4. Attorney-in-Fact. Should
an Event of Default occur hereunder, Borrower hereby irrevocably designates, constitutes and appoints the Bank as its true
and lawful attorney-in-fact with full power of substitution and with full and irrevocable power (which power shall be deemed
coupled with an interest), in Borrower’s place and stead and in either Borrower’s or the Bank’s name, at any time: (i) to
lease, license, sell or otherwise dispose of any rights Borrower may have in or to the Canadian Tax Credits; (ii) to require,
demand, collect, receive, settle, adjust, compromise and to give acquittances and receipts for the payment of any and all
monies payable pursuant to any agreements as the Bank has a Security Interest; (iii) to file any claims or proofs of claim,
to commence, maintain or discontinue any actions, suits or other proceedings deemed by the Bank advisable for the purpose of
collecting or enforcing payment of any such monies; (iv) to endorse any checks, drafts or other orders or instruments for the
payment of monies payable to Borrower which shall be issued in respect of such monies; (v) to execute any and all such
instruments, agreements or documents as may be necessary or desirable in the premises; and (vi) to apply any receipts so
derived as provided herein. However, the Bank shall not be obligated to make any demand or present or file any claim or take
any action authorized hereby. If the Bank
requests, Borrower shall deliver to the Bank all materials, books, records, documents and things of any nature required by
the Bank in the exercise of its rights hereunder. Thereafter, unless the Bank requests Borrower to do otherwise, Borrower
shall continue to perform, and such other Persons shall continue to be obligated to perform, their respective obligations in
accordance any agreements entered into by them prior thereto and all other agreements thereafter entered into by the Bank
pursuant hereto.

 

 12. MISCELLANEOUS.

 

12.1. Notices.
All notices, requests, demands or other communications to the parties hereto shall be in writing and shall be deemed to have been
received by the party to which sent within one (1) Business Day after being sent by telecopy or overnight courier, on the same
day the email was sent if the email was sent during business hours in the recipient’s country, otherwise on the next Business Day,
provided always that the notice shall be deemed not given if a failure notice is generated by the sender’s computer (if delivered
by email), or three (3) Business Days after being sent by mail, and shall be addressed to the Bank or Borrower, as the case may
be, at their respective addresses shown on the first page of this Agreement. A courtesy copy of each notice sent by Borrower to
the Bank shall be sent to Dentons Canada LLP, 77 King Street West, Suite 400, TD Centre, Toronto, Ontario, M5K 0A1, Attention:
Ken Dhaliwal.

 

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12.2. No
Waiver; Amendments in Writing. Except as expressly provided herein to the contrary, no failure of, nor any delay on the
part of, the Bank or Borrower in exercising any right, power or privilege hereunder, or under any agreement, contract,
indenture, document or instrument mentioned herein, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder, or under any agreement, contract, indenture, document or instrument
mentioned herein, preclude any other or further exercise thereof, or the exercise of any other right, power or privilege; nor
shall any waiver of any right, power, privilege or default hereunder, or under any agreement, contract, indenture, document
or instrument mentioned herein, constitute a waiver of any other right, power, privilege or default or constitute a waiver of
any other default of the same or of any other term or provision. All rights and remedies provided herein are cumulative and
not exclusive of any rights or remedies otherwise provided by law or at equity. No amendment to, or modification or waiver
of, or consent with respect to, any provision of this Agreement or the Notes shall be effective unless in writing and signed
and delivered by the Bank, and then any such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it is given.

 

12.3. Consent
to Jurisdiction and Service of Process. All judicial proceedings brought against Borrower arising out of or relating to this
Agreement, the Notes or any other Loan Document or obligation may be brought in any provincial or federal court of competent jurisdiction
in the Province of Ontario, and by execution and delivery of this Agreement, Borrower accepts for itself and in connection with
its properties, generally and unconditionally, the nonexclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Agreement, the Notes or the other obligations referred to above.
Borrower and the Bank hereby agree to waive their respective rights to a jury trial with respect to any claim or cause of action
based upon or arising out of this Agreement, or any of the Loan Documents, or any dealings between them relating to the subject
matter of this loan transaction and the Bank/borrower relationship that is being established. The scope of this waiver is intended
to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction,
including, without limitation, contract claims, tort claims, breach of duty claims, and all other common law and statutory claims.
Borrower and the Bank each acknowledge that this waiver is a material inducement to enter into a business relationship, that each
has already relied on this waiver in entering into this Agreement, and that each will continue to rely on this waiver in their
related future dealings. Borrower and the Bank further warrant and represent that each has reviewed this waiver with its legal
counsel, and that each knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. This waiver
is irrevocable, meaning that it may not be modified either orally or in writing, and this waiver shall apply to any subsequent
amendments, renewals, supplements or modifications to this Agreement, the Loan Documents, or to any other documents or agreements
relating to the Commitment.

 

12.4. Successors
and Assigns. The Bank may assign any or all of its rights and obligations hereunder without Borrower’s consent or notice to
Borrower (although the Bank will endeavour to provide notice of any such assignment to Borrower but shall not be obligated to do
so); provided, however, that, unless otherwise instructed by the Bank in writing, Borrower shall continue to make all payments
due hereunder directly to the Bank. Borrower may not assign any of its rights or obligations hereunder without the Bank’s prior
written consent and any purported assignment shall be void and of no force or effect. This Agreement shall be binding upon and
inure to the benefit of Borrower and its permitted successors and assigns and the Bank and its successors and assigns.

 

12.5. Severability.
In the event any one or more of the provisions hereof is found to be invalid, illegal or unenforceable in any respect, such provision
shall be curtailed and limited only to the extent necessary to bring it within legal requirements, and the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.

 

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12.6. Governing
Law. This Agreement and the rights and obligations of the parties hereunder and under the documents executed concurrently herewith
shall be construed in accordance with and be governed by the laws of the province of Ontario and the federal laws of Canada applicable
therein

 

12.7. Entire
Agreement: Counterparts. This Agreement, the Notes and the documents, instruments and agreements delivered (or to be delivered)
pursuant hereto shall constitute the entire agreement between the parties hereto with respect to the Loan and shall supersede all
other agreements written or oral with respect thereto. This Agreement may be executed in one (1)
or more counterparts, each of which shall be deemed an original and which together shall constitute one and the same instrument.
A signed and delivered facsimile copy of this Agreement, or a signed copy transmitted electronically in either a tagged image format
file (TIFF) or a portable document format (PDF), shall be binding on the party signing the facsimile or electronically transmitted
copy, and such copy shall have the same effect as the original. Any party who delivers such a signature page agrees to later deliver
an original counterpart to any party which requests it.

 

 12.8. Section Headings.. The various headings used in this Agreement are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement or any provision hereof.

 

12.9. Further
Assurances. At any time or from time to time upon the request of Bank, Borrower will duly execute and deliver, or cause to
be executed and delivered, at the cost and expense of Borrower, such further documents and do such other acts and things as Bank
may reasonably request in order to effect fully the purposes of this Agreement, the Notes and the other Loan Documents and to provide
for the payment and performance of the Obligations of Borrower in accordance with the terms of this Agreement, the Notes and the
other Loan Documents.

 

 12.10. Further Documents. Each of the parties hereto shall execute such further documents, not inconsistent herewith, as may be necessary to effectuate the terms and provisions hereof.

 

 12.11. No Third Party Beneficiaries. This Agreement is not made for the benefit of any third party or parties.

 

12.12. Screen
Credit. The Bank shall receive credit on all positive prints of the Property in the end titles in the form: “Production
Financing Provided By Bank Leumi USA, (special thanks to David Henry)”. The size and position of such credit shall be determined
by Borrower in the exercise of its reasonable discretion. No casual or inadvertent failure of Borrower or any failure of any third
party to accord such credit shall be deemed a breach hereof.

 

[Signatures follow on next
page]

 

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

 

	HIGH PARK / V-WARS PRODUCTIONS INC.	 	BANK LEUMI USA
	 	 	 
	By: 	/s/ Eric
Birnberg	 	By:	/s/ G de Chalendar
	 	Name: 	 Eric Birnberg	 	 	Name:	G de Chalendar
	 	Title:	President and Secretary	 	 	Title:	SVP
	 	 	 
	 	 	By:	/s/ David K. Henry
	 	 	 	Name: 	 David K. Henry
	 	 	 	Title:	First Vice President

 

Signature Page
to Loan and Security Agreement

 

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EXHIBITS AND SCHEDULES
TO

LOAN AND SECURITY
AGREEMENT

 

	EXHIBIT 1	Defined Terms
	EXHIBIT 2a	US Dollar Promissory Note
	EXHIBIT 2b	Canadian Dollar Promissory Note
	EXHIBIT 3	Borrowing Certificate
	EXHIBIT 4	Notice of Conversion/Continuation
	EXHIBIT 5	Financing Plan
	  	 
	SCHEDULE 1	List of Closing Documents

 

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EXHIBIT “1”

Defined Terms

 

		1.1.	“Advances” has the meaning specified in paragraph
2.1 hereof.

 

		1.2.	“Affiliated Person” means any Person which directly or indirectly controls, is controlled
by or is under common control with Borrower. For the purposes of this definition, “control” (including with corresponding
meanings, the terms “controlled by” and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person,
whether through the ownership of voting securities, by contract or otherwise.

 

		1.3.	“Agreement” means this Loan and Security Agreement, as amended, supplemented, modified
or restated from time to time after the Closing Date.

 

		1.4.	“Approved Budget” means the final budget for the Property, dated June 12, 2018 identified
as such in writing by the Borrower and all third Persons having approval rights with respect thereto.

 

		1.5.	“Attorney Costs” means the fees for legal services incurred by Dentons Canada LLP,
the external legal counsel engaged by the Bank in connection with this transaction and the US counsel engaged by Dentons Canada
LLP for that purpose, plus all actual, out of pocket costs and expenses incurred by such counsel.

 

		1.6.	“Approved Cash Flow Schedule” means the final cash flow schedule for the Property June
12, 2018, identified as such in writing by the Bank and all third Persons having approval rights with respect thereto.

 

		1.7.	“Approved Production Schedule” means the final production and post-production schedule(s)
for the Property dated June 4, 2018, identified as such in writing by the Bank, the Borrower and all third Persons having approval
rights with respect thereto.

 

		1.8.	“Approved Screenplays” means, collectively, the screenplays, for the first season of
the television series presently entitled “V-Wars”, Canadian Copyright Office registration number to be provided
upon receipt identified as such in writing by the Borrower and all third Persons having approval rights with respect thereto, subject
to (a) such minor changes or variations as may be necessitated by the exigencies of production, and other minor changes that do
not in any event materially alter the story line thereof, or the nature of the characters described therein, or the Budget or Approved
Production Schedule, and (b) such changes, modifications, and revisions to the Approved Screenplays that are authorized in writing
by the Borrower.

 

		1.9.	“Bank” means Bank Leumi USA.

 

		1.10.	“Borrower” means High Park/ V-Wars Productions Inc., a corporation incorporated under
the laws of the Province of Ontario.

 

		1.11.	“Borrowing Certificate” means the certificate
substantially in the form attached hereto as Exhibit “3”.

 

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		1.12.	“Business Day” means: (a) any day (other than a Saturday, Sunday or a Jewish High Holy
Day) on which commercial banks are open for general business in the City of Los Angeles and Toronto, Canada; and (b) with respect
to all notices, determinations, fundings and payments in connection with LIBOR or LIBOR Loans, any day that is a Business Day pursuant
to clause “(a)” above and that is also a day on which trading is carried on by and between banks in the London interbank
market.

 

		1.13.	“Canadian Prime Rate” “Canadian Prime Rate” shall mean the Canadian prime
rate of interest published in “Money Rates” column or section of The Wall Street Journal (Western Edition) (“WSJ”),
as such rate exists from time to time. In the event two prime rates are published, the higher rate shall be used. In the event
the WSJ ceases to publish the Canadian Prime Rate, the Bank, in its reasonable judgment, may substitute any similar index for the
Canadian Prime Rate. Any change in the Canadian Prime Rate shall take effect on the date of publication in the WSJ. Each determination
of the Canadian Prime Rate by the Bank shall be conclusive and final in the absence of manifest error.

 

		1.14.	“Canadian Prime Rate Margin” means one percent (1% ).

 

		1.15.	“Canadian Tax Credits” means, collectively, the Federal Tax Credits and the Ontario Tax
Credits.

 

		1.16.	“Canadian Tax Credit Assignment” means the tax credit assignment agreements in respect
of the Canadian Tax Credits, dated concurrently herewith, from the Borrower to the Bank, in a form approved by the Bank.

 

		1.17.	“Canadian Tax Credit Estimate” means, as of any date of determination, a good faith
written estimate, as determined from time to time by a Person approved by the Bank, of the CDN$ amount of the Canadian Tax Credits
which amount shall be no less than CDN$9,058,835, based upon the currency exchange rate agreed between the Borrower and the Bank
at closing, accompanied by a list of the assumptions used in preparing the estimate, manually signed by the individual(s) who prepared
the estimate.

 

		1.18.	“Canadian Tax Credit Rights” means the Borrower’s right to any film production tax
credits or other similar benefits relating to the Property pursuant to: (i) Federal Tax Credits; and (ii) the Ontario Tax Credits.

 

		1.19.	“CDN$” means the legal currency of Canada.

 

		1.20.	“CAVCO” means the Canadian Audio Visual Certification Office.

 

		1.21.	“Chain of Title Documents” means, collectively, the documents identified in paragraph
7.1.

 

		1.22.	“Closing Date” means the date upon which all conditions precedent set out herein have
been satisfied and the Bank makes its first advance hereunder.

 

		1.23.	“Collateral” has the meaning specified in paragraph 5.1 hereof.

 

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		1.24.	“Collateral Proceeds” means whatever is acquired
or paid to or derived by or payable directly and indirectly to the Borrower and to its Affiliates on account of the sale, lease,
licensing, exchange, distribution, exploitation, or other disposition of the Property and any other item of Collateral, including,
without limitation, money, royalties, fees, commissions, charges, payments, proceeds of any letter of credit, advances, income,
profit and other forms of payment, proceeds of any insurance for any of the Collateral, and any sums payable to the Borrower under
the Distribution Agreements.

 

		1.25.	“Commitment Amount” means the aggregate of the Facility A Commitment Amount and the
Facility B Commitment Amount.

 

		1.26.	“Copyright Mortgage and Assignment” shall mean a Copyright Mortgage and Assignment
from Borrower or any other Person in favour of Bank, in form and substance satisfactory to Bank and its counsel.

 

		1.27.	“CRA” means Canada Revenue Agency.

 

		1.28.	“Default Rate” means a per annum interest rate at all times equal to the sum of the
otherwise applicable interest rate plus three percent (3%).

 

		1.29.	“Delivery” means making available to the Distributors of the required Delivery Items
on or before the applicable delivery date, all in accordance with the subject Distribution Agreement.

 

		1.30.	“Delivery Items” means, collectively, the delivery items required to be delivered to
the Distributors pursuant to the Distribution Agreements.

 

		1.31.	“Distribution Agreements” means, collectively: (i) the Netflix License Agreement; and
(ii) IDWE Distribution Agreement; and (iii) the High Park Distribution Agreement

 

		1.32.	“Distributors” means, collectively: (i) Netflix; (ii) IDWE and; (iii) High Park.

 

		1.33.	“Event of Default” has the meaning specified in paragraph 11.1 hereof.

 

		1.34.	“Facility A Borrowing Base Amount” means an amount equal to the sum of (i) the Facility
A Receivables Value as of the date the Facility B Borrowing Base Amount is calculated.

 

		1.35.	“Facility A Commitment Amount” means the amount of USD$14,962,908.

 

		1.36.	“Facility A Current Availability Amount” means the Facility A Maximum Availability
Amount less the Facility A Outstanding Principal Balance, as of the date the Facility A Current Availability Amount is calculated.

 

		1.37.	“Facility A Maximum Availability Amount” means with respect to Facility A, the lesser
of USD$ l 4,962,908 or the Facility A Borrowing Base Amount as of the date the Facility A Maximum Availability Amount is calculated.

 

		1.38.	“Facility A Outstanding Principal Balance” means an amount equal to the total of all
Advances under Facility A less an amount equal to all payments made with respect to Facility A; provided, however, that in no event
can the Facility A Outstanding Principal Balance be less than zero (0).

 

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		1.39.	“Facility A Receivables Value” means the value,
as determined by the Bank, of all net amounts which are contractually obligated to be paid to Borrower pursuant to the Netflix
License Agreement and IDWE Agreement, which payment obligations are either unconditional or subject only to normal delivery requirements,
and which are determined by the Bank to be payable and collected, as of the date the Facility A Receivables Value of an agreement
is determined.

 

		1.40.	“Facility B Borrowing Base Amount” means an amount equal to the sum of the Facility
B Receivables Value plus (ii) 90% of the Canadian Tax Credit Estimate less the amount of any Tax Credits which have been paid,
in each case as of the date the Facility B Borrowing Base Amount is calculated.

 

		1.41.	“Facility B Commitment Amount” means the amount of CDN$1 l,152,952.

 

		1.42.	“Facility B Current Availability Amount” means the Facility B Maximum Availability
Amount less the Facility B Outstanding Principal Balance, as of the date the Facility B Current Availability Amount is calculated.

 

		1.43.	“Facility B Maximum Availability Amount” means with respect to Facility B, the lesser
of CDN$1 l,152,952 or the Facility B Borrowing Base Amount as of the date the Facility B Maximum Availability Amount is calculated.

 

		1.44.	“Facility B Outstanding Principal Balance” means an amount equal to the total of all
Advances under Facility B less an amount equal to all payments made with respect to Facility B; provided, however, that in no event
can the Facility B Outstanding Principal Balance be less than zero (0).

 

		1.45.	“Facility B Receivables Value” means the value, as determined by the Bank, of all net
amounts which are contractually obligated to be paid to Borrower pursuant to the NOHFC Contribution Agreement, which payment obligations
are either unconditional or subject only to normal delivery requirements, and which are determined by the Bank to be payable and
collected, as of the date the Facility B Receivables Value of an agreement is determined.

 

		1.46.	“Federal Tax Credit” means either (a) the refundable income tax credit known as the
“Canadian Film or Video Production Tax Credit”, established pursuant to the Income Tax Act (Canada), R.S.C. 1985 (5th
supp.) c.l, and the regulations promulgated thereunder, in respect of the Property or (b) in the event that the Property and/or
the Borrower are not eligible for such tax credit, any other tax credit established pursuant to such act in respect of the Property.

 

		1.47.	“Final Cast List” means the final cast for the Property indicated as such in writing
by the Bank, Distributors, and any third Person having approval rights with respect thereto.

 

		1.48.	“General Security Agreement” means the general security agreement executed by the Borrower
in favour of the Bank;

 

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		1.49.	“Guarantees” means, collectively, the guarantees executed by each of the Guarantors
in favour of the Bank;

 

		1.50.	“Guarantors” means, collectively, High Park, IDWE and IDWM;

 

		1.51.	“Hedge Agreement” shall mean (a) any agreement, arrangement, device or instrument designed
or intended to protect or manage exposure to fluctuations in interest rates, dollar-denominated or cross currency interest rate
exchange agreements, currency exchange rate agreements, interest rate cap or collar protection agreements or interest rate options,
puts and warrants and so-called “rate swap” and “hedging” agreements; and (b) any and all cancellations,
buy-backs, reversals, terminations or assignments of any of the foregoing.

 

		1.52.	“Hedge Obligations” means for any Person, any and all obligations of such Person, whether
direct or indirect, absolute or contingent, and whether monetary or otherwise, at any time created, arising or existing, evidenced
or acquired (including all renewals, extensions, modifications and amendments thereof and all substitutions therefore), in respect
of any Hedge Agreement, including without limitation, any amounts owing in connection with the early termination thereof and interest
and fees that accrue after the commencement by or against such Person of any insolvency proceeding, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding or subject to an automatic stay under Section 362(a) of the
United States Bankruptcy Code.

 

		1.53.	“Holdback” means a holdback in the amount of CDN$3,000,000 in respect of Facility B
which shall be held back until such time as the Bank has received the NOHFC Contribution Agreement and the NOHFC Direction;

 

		1.54.	“High Park” means High Park Entertainment Inc.;

 

		1.55.	“High Park Distribution Agreement” means the distribution agreement dated as of February
6, 20 I 8, as amended as of May 7, 2018, between Borrower and High Park for the territory of Canada;

 

		1.56.	“IDWE” means IDW Entertainment LLC;

 

		1.57.	“IDWM” means IDW Media Holdings, Inc., a Delaware corporation;

 

		1.58.	“IDWE Distribution Agreement” means the distribution agreement dated as of October
30, 2017 between High Park and IDWE for the territory of the world excluding Canada, as amended as of November 25, 2017, as further
amended as of May 7, 2018 between High Park and IDW.

 

		1.59.	“IDWE A&D” means a payment direction dated June                   , 2018 from High Park to
IDWE;

 

		1.60.	“IDWE Investment” means the aggregate amount of USD$500,000 which amount advanced to
the Borrower in connection with the financing of the Property.

 

		1.61.	“Indebtedness” means all of Borrower’s monetary
obligations to the Bank hereunder, under the Note and under the other documents, instruments and agreements to be executed by
Borrower pursuant hereto, including, without limitation, all Advances extended to Borrower hereunder, interest thereon, and all
fees, costs and expenses Borrower is obligated to pay the Bank hereunder or thereunder.

 

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		1.62.	“Interest Period” means, as to any LIBOR Loan, the period commencing on the funding
date of an Advance or on the date such Advance is conve1ied into or continued as a LIBOR Loan, and ending on a date which is one
(1), three (3) or six (6) months thereafter, provided, that: (i) in
the case of immediately successive Interest Periods, each successive Interest Period shall commence on the day on which the next
preceding Interest Period expires; (ii) if any Interest Period would otherwise expire on a day which is not a Business Day, the
Interest Period shall be extended to expire on the next succeeding Business Day; provided, however, if the next succeeding Business
Day occurs in the following calendar month, then such Interest Period shall expire on the immediately preceding Business Day; (iii)
any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end
of such Interest Period; (iv) the Borrower may not select an Interest Period for any LIBOR Loan, which Interest Period expires
later than the Maturity Date; and (v) there shall be no more than six (6) Interest Periods in effect at any one time.

 

		1.63.	“Interest Rate” is the rate of hereof interest applicable to Advances as set out in Article
3 hereof.

 

		1.64.	“Interest and Cost Reserve” means the sum set out in subparagraph 3.4, as reduced from
time to time in accordance with the terms hereof.

 

		1.65.	“Jewish High Holy Day” means Jewish New Year
(Rosh Hashanah) and the Day of Atonement (Yorn Kippur).

 

		1.66.	“Laboratory” shall collectively mean: Post Production North Inc.; and (ii) Urban Post
Production (Toronto), and any other laboratories approved by Bank which have entered into a Laboratory Pledgeholder Agreement.

 

		1.67.	“Laboratory Pledgeholder Agreement(s)” shall mean that certain Laboratory Pledgeholder
Agreement, of even date herewith, among Laboratory, Borrower, Bank and any other such agreements entered into in respect of the
Property in form and substance satisfactory to Bank and its counsel.

 

		1.68.	“LIBOR” means for any Interest Period for LIBOR
Loans, the rate of interest per annum (rounded to the nearest whole multiple of 11100th of 1.0%) equal to the quotient of the
following (a) the LIBOR Base Rate divided by (b) one minus the Reserve Requirement.

 

		1.69.	“LIBOR Base Rate” means the one (1), three (3) or six (6) month London Interbank Offered
Rate (LIBOR) for Dollars as published in the “Money Rates” column of WSJ. If
WSJ publishes more than one Libor Base Rate, then the term “Libor Base Rate” shall mean the higher or highest
of such indices. If WSJ publishes a retraction or correction of
the Libor Base Rate, then the term “Libor Base Rate” shall mean the Libor Base Rate reported in such retraction or
correction. In no event shall the Libor Base Rate be less than zero.

 

		1.70.	“Libor Based Interest Rate” means that the interest payable hereunder on the applicable
Advances is calculated based on the Libor Base Rate.

 

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		1.71.	“LIBOR Loans” means, collectively, the portion of the Loan on which interest is calculated
based on LIBOR.

 

		1.72.	“LIBOR Margin” means two and one-half percent (2.50%).

 

		1.73.	“Loan” has the meaning specified in recital
D.

 

		1.74.	“Loan Documents” means this Agreement, the Notes and each and every document, instrument
and agreement required to be delivered hereunder or thereunder or contemplated hereby or thereby, including without limitation,
this Agreement, the Notes, the Laboratory Pledgeholder Agreement( s), the Copyright Mortgage and Assignment, the Chain-of-Title
Documents, the Distribution Agreements, the Guarantees, the Canadian Tax Credit Assignments, the Canadian Tax Credit Estimate,
all Hedge Agreements and any amendments, supplements, modifications, extensions, renewals and replacements to any such documents
together with all exhibits, attachments, certificates and other documents related thereto or entered into in connection therewith.

 

		1.75.	“Loan Fee” has the meaning specified in paragraph 2.2 hereof.

 

		1.76.	” Maturity Date” has the meaning set forth in paragraph 2.6.4 hereof.

 

		1.77.	“Netflix” means, collectively Netflix, Inc.
and Netflix Global, LLC.

 

		1.78.	“Netflix License Agreement” means the agreement between High Park, IDWE and Netflix
dated as of March 1, 2018 as amended May 7, 2018.

 

		1.79.	“Netflix DTP” means the direction to pay among, Netflix, the Borrower, the Bank dated
as of ●, 2018.

 

		1.80.	“NOHFC” means the Northern Ontario Heritage Fund Corporation;

 

		1.81.	“NOHFC Contribution Agreement” means the contribution
agreement between NOHFC and Borrower dated June             ,
2018.

 

		1.82.	“NOHFC Direction” means the authorization,
direction and postponement payment agreement between the Borrower, NOHFC and the Bank dated June               ,
2018.

 

		1.83.	’‘Notes” means the promissory notes to be made and
delivered by Borrower to the Bank pursuant to paragraph 2.6.1 hereof.

 

		1.84.	“Notice of Conversion/Continuation” Conversion/Continuation in the form attached hereto
as Exhibit 4.

 

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		1.85.	“Obligations” means all present and future
loans, advances, liabilities, obligations, covenants, duties, and indebtedness owing by the Borrower to the Bank, whether or not
arising under this Agreement or any of the other Loan Documents, including without limitation, all Hedge Obligations whether or
not evidenced by any note, or other instrument or document, whether arising from an extension of credit, opening of a letter of
credit, acceptance, loan, guaranty, indemnification or otherwise, whether direct or indirect (including, without limitation, those
acquired by assignment from others, and any participation by the Bank in the Borrower’s debts owing to others), absolute or contingent,
due or to become due, primary or secondary, as principal or guarantor, and including, without limitation, all principal, interest,
charges, expenses, fees, attorneys’ fees, filing fees and any other sums chargeable to the Borrower hereunder or under any other
Loan Document.

 

		1.86.	“Ontario Tax Credits” means, collectively, (a) the refundable income tax credit known
as the “Ontario Film and Television Tax Credit”, established pursuant to the Income Tax Act (Ontario), and the
regulations promulgated thereunder in respect of the Property; (b) the refundable tax credit known as the “Ontario Computer
Animation and Special Effects Tax Credit” established pursuant to the Income Tax Act (Ontario) or (b) in the event
that the Property and/or the Borrower are not eligible for such tax credit, any other tax credit established pursuant to such Act
in respect of the Property.

 

		1.87.	“OMDC” means Ontario Media Development Corporation.

 

		1.88.	“Operation of Account Agreements” shall mean, collectively, the Operation of Account
Agreements, or equivalents, to be executed as of even date herewith by Borrower, Bank and the bank maintaining the Production Bank
Account and the tax credit bank account in form and substance satisfactory to Bank and its counsel.

 

		1.89.	“Overdue Rate” has the meaning specified in
paragraph Error! Reference source not found. hereof.

 

		1.90.	“Permitted Encumbrances” shall mean: (i) the rights of Bank under this Agreement and
the other Loan Documents, (ii) the rights granted to Distributors under the Distribution Agreements, as applicable, which rights
shall be subordinate and subject to the rights of Bank under this Agreement and the other Loan Documents, (iii) any applicable
guild liens (including, without limitation, any ACTRA, or SAG liens), all of which liens, pursuant to applicable inter-creditor
agreements, shall be subordinate and subject to the rights of Bank under this Agreement and the other Loan Documents, (iv) liens,
charges or encumbrances of the Laboratory provided for under the Laboratory Pledgeholder Agreement which (A) occur in the ordinary
course of making the Property, (B) are for an aggregate amount of not more than $25,000.00 with respect to the Property, and (C)
are security for amounts that, at the time the lien is granted; are not yet due and payable or are being contested in good faith,
and (v) mechanics, workmen’s, materialmen’s and repairmen’s liens (A) for claims arising in the ordinary course of making the Property,
(B) in the aggregate not in excess $50,000.00, and (C) the obligations for which are not in default or are being contested in good
faith;. The foregoing definition shall not constitute an acknowledgment by Bank that any of the rights of the third parties referred
to therein are equal or senior to the rights of Bank under this Agreement and the other Loan Documents and the parties hereto do
not intend by the inclusion of references to various third party agreements in this definition or otherwise to create any third
party beneficiary rights herein or under any of the agreements which incorporate this definition by reference.

 

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		1.91.	“Person” means any entity, corporation, company,
association, partnership, joint venture, joint stock company, unincorporated organization, trust, individual (including personal
representatives, executors and heirs of a deceased individual), nation, state, government (including governmental agencies, departments,
bureaus, boards, divisions and instrumentalities thereof), trustee, receiver or liquidator.

 

		1.92.	“Production Assignment Security Agreements” means, collectively the film production
security agreements to be entered into by the Borrower in favour of the Bank.

 

		1.93.	“Production Bank Account” shall mean, collectively: (i) Account Number ●
                                                                                (united States funds account) in the name of Borrower maintained at Royal Bank of Canada; (ii) Account Number ●
                                                                                (Canadian funds account) in the name of Borrower maintained at Royal Bank of Canada; and (iii) any other account maintained
                                                                                by Borrower into which production funds for the Property are to be advanced and which has been approved by Bank. The proceeds
                                                                                of all Loans made hereunder, except as otherwise provided hereunder, shall first be credited, in accordance with the
                                                                                applicable Borrowing Certificate, into the Production Bank Account and shall be held separate from Borrower’s other funds.
                                                                                The only funds permitted in the Production Bank Account are said Loan proceeds.

 

		1.94.	“Property” shall have the meaning ascribed in in recital A, above.

 

		1.95.	“Prior Preferred Claim” means amounts that a Person must remit to a governmental authority
in connection with wages, employee deductions, sales tax, excise tax, income tax, worker’s compensation, government royalties,
pension fund obligations, overdue rents or taxes, purchase money security interests and other statutory preferred claims, including
“employee source deductions” that a Person may be required to make, including such deductions required by (i) federal
and/or provincial income tax, (ii) the Canada Pension Plan, (iii) the Quebec Pension Plan and (iv) Employment Insurance (Canada).

 

		1.96.	“PPSA” means the Personal Property Security Act (Ontario).

 

		1.97.	“Related Agreements” means, collectively any other Loan Document, the Chain of Title
Documents, the Distribution Agreements, or any other instrument delivered hereunder

 

		1.98.	“Security Interest” means a security interests in the Collateral and has the meaning
given to such terms by the PPSA.

 

		1.99.	“Subordination Agreements” means the subordination agreements, the terms of which have
been approved by the Bank, subordinating any Security Interest which any union, guild or other Person may have in the Collateral,
to the Security Interest granted hereunder to the Bank, other than the Permitted Encumbrances.

 

		1.100.	“Tax Credit Estimate” means the written opinion letter prepared by accountants acceptable
to Bank and addressed to Bank, which opinion relates to the estimated value of the Federal Tax Credit and the Ontario Tax Credits,
accompanied by a list of the assumptions used in preparing the estimate, manually signed by the individual or individuals who prepared
the estimate and which shall be in the aggregate amount of not less CDN$9,058,835.

 

		1.101.	“US Prime Rate Loans” means, collectively, the portion of the Loan on which interest
is calculated by reference to the US Prime Rate.

 

 

 

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