Document:

Exhibit 10.1

 

Execution Copy

 

PROMISSORY NOTE

 

	 	Date:    	
        April 12, 2016

        New York, New York

 

FOR VALUE RECEIVED, POW! ENTERTAINMENT, INC., a Delaware corporation
(“Borrower”), with an address at 9440 S. Santa Monica Boulevard, Suite 620, Beverly Hills, California 90210
hereby promises to pay to the order of RICCO CAPITAL (HOLDINGS) LIMITED (“Lender”), at its principal office
at 12/F Entertainment Building, 30 Queen’s Road Central, Hong Kong on the Maturity Date, the aggregate principal amount of
all advances (each an “Advance” and collectively, the “Advances”) made by Lender to Borrower
under Section 1 of this promissory note (this “Note”), or such lesser amount as shall equal the aggregate
unpaid principal amount thereof, together with interest on the unpaid principal balance of each Advance from the effective date
thereof (each such date, an “Advance Date”), at a rate equal to the Prime Rate announced by Citibank, N.A. from
time to time, compounded annually, in U.S. Dollars in immediately available funds.

 

1.                 
ADVANCES. Lender hereby commits to make available, and, unless otherwise requested by Borrower at least 3
business days prior to the Advance Date thereof, Borrower hereby requests that Lender disburse, the Advances, in the principal
amounts and on the corresponding Advance Dates set forth below, and Lender agrees to make available such Advances on such corresponding
Advance Dates in immediately available funds, provided, in each such case, that no Event of Default (as defined below) has occurred
and is continuing as of such Advance Date:

 

	Date of

Requested Advance	 	Amount of Requested Advance
	 	 	 
	April 13, 2016	 	$260,000
	May 13, 2016	 	$220,000
	June 13, 2016	 	$200,000

 

Upon making any Advance to Borrower under
this Note, Lender shall record such Advance and the corresponding Advance Date in the appropriate columns on Schedule I
hereto; provided, the failure to make any such recording shall not affect the Borrower’s obligations hereunder.

 

2.                 
INTEREST. Accrued interest on this Note shall be payable on the Maturity Date.

 

3.                 
PRINCIPAL; MATURITY DATE. The outstanding principal amount of all Advances, plus all accrued and unpaid interest
thereon, shall become due and payable on the date of the earliest of the following events (the “Maturity Date”):
(i) December 13, 2016; and (ii) on the acceleration of the maturity of the amounts due hereunder upon an Event of Default (as herein
defined) in accordance with the provisions of this Note.

 

4.                 
PREPAYMENT. Borrower may prepay this Note in full or in part at any time without penalty. All payments shall
be applied by Lender as follows: first, to the payment of all accrued but unpaid fees, costs, or expenses under this Note; second,
to the payment of interest on the principal amount of all Advances being repaid; and third, to the repayment of the outstanding
principal amount of all Advances under this Note.

 

     

     

    

 

5.                 
EVENTS OF DEFAULT; REMEDIES. Upon (a) the Borrower’s acceptance or the Borrower’s board of director’s
recommendation of a proposal from a party other than the Lender or an affiliate thereof, the effect of which would result in the
occurrence of a Change of Control, (b) the Borrower’s bankruptcy, general assignment for the benefit of creditors or failure
to pay debts as they become due or (c) the occurrence of a Change of Control (each, an “Event of Default”),
all principal, interest and other charges payable hereunder shall be automatically and immediately due and payable. The rights
and remedies provided herein shall be cumulative and not exclusive of any rights or remedies provided by applicable law or otherwise.
As used in this Note, a “Change of Control” shall mean: (x) any “person” or “group”
(within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more
than 50% of the outstanding voting securities of Borrower having the right to vote for the election of members of the board of
directors of the Borrower; (y) any reorganization, merger or consolidation of Borrower, other than a transaction or series
of related transactions in which the holders of the voting securities of Borrower outstanding immediately prior to such transaction
or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority
of the total voting power represented by the outstanding voting securities of Borrower or such other surviving or resulting entity;
or (z) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of Borrower.

 

6.                 
INTEREST UPON DEFAULT. Borrower agrees that if any amounts due hereunder are not paid when due, whether at maturity
or accelerated maturity as provided herein (in addition to any other interest, fees, or expenses which may accrue as a result
of such nonpayment), such unpaid amount will bear interest at the Prime Rate announced by Citibank, N.A. from time to time plus
3% per annum until such amount is paid in full.

 

7.                 
PAYMENTS. If any amount becomes due and payable hereunder on a Saturday, Sunday or public or other banking holiday
under the law of the State of New York, with respect to such amount the payment date shall be extended to the next succeeding
business day.

 

8.                 
WAIVERS. Borrower waives demand and presentment for payment, notice of non-payment or dishonor, notice of
protest and protest of this Note and any other notice required to be given by applicable law and agrees that its liability hereunder
shall not be affected by any renewals, amendments or modifications of this Note, or extensions of the time of payment of all or
any part of the amount owing hereunder at any time or times.

 

9.                 
EXPENSES; ATTORNEYS’ FEES. Borrower agrees to pay, to the extent allowed by law, reasonable attorneys’
fees, costs and expenses paid or incurred by Lender in connection with the collection or enforcement of this Note, including but
not limited to reasonable attorneys’ fees, court costs, and costs incurred in connection with any bankruptcy proceedings,
whether or not suit is filed. Borrower agrees to pay in full all amounts due under this Note without setoff, counterclaim, or any
deduction whatsoever.

 

10.                 
MISCELLANEOUS. No provision of this Note shall be waived, modified or limited except by a written agreement signed
by Lender and Borrower. The unenforceability of any provision of this Note shall not affect the enforceability or validity of
any other provision hereof. No delay or omission on the part of Lender in exercising any rights hereunder shall operate as a waiver
of such right or of any other right under this Note. This Note shall be binding upon the Borrower and its heirs, successors and
assigns and shall inure to the benefit of the Lender and its heirs, successors and assigns. Lender is hereby authorized, to the
fullest extent permitted by law, to set off and apply any amounts owed by Lender to or for the credit or the account of Borrower
against any amounts payable by Borrower under this Note. The rights of the Lender under the preceding sentence are in addition
to other rights and remedies (including any other rights of setoff) which the Lender may have under applicable law or otherwise.
This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute
an original, but all taken together shall constitute a single instrument. Facsimile and pdf signatures are of the same force and
effect as originals.

 

    2 

     

    

 

11.                 
GOVERNING LAW; VENUE; TRIAL BY JURY. This Note shall be governed by the laws of the State of New York. The Borrower
consents to the nonexclusive jurisdiction and venue of the state or federal courts located in the City of New York. The Borrower
hereby waives any right to a trial by jury in any action or proceeding arising out of or in connection with this Note, or any
other claim or dispute between the undersigned and the Lender.

 

	 	BORROWER:
	 	 	 
	 	POW! ENTERTAINMENT, INC.
	 	 	 
	 	 	 
	 	By:  	/s/ Gill Champion
	 	 	Name: Gill Champion
	 	 	Title: CEO

 

	ACKNOWLEDGED AND AGREED:
	 	 
	LENDER:
	 	 
	RICCO CAPITAL (HOLDINGS) LIMITED
	 	 
	 	 
	By:  	/s/
Victor Chen	 
	 	Name: Victor Chen	 
	 	Title: CEO	 

 

    3 

     

    

 

Schedule
I

 

	Advance Date	Amount of Advance
	 	 
	 	 
	 	 

 

    4Exhibit 4.8

 

GUARANTY

(Corporate)

 

	New York, New York	April [__], 2016

 

FOR VALUE RECEIVED,
and in consideration of loans made or to be made or credit otherwise extended or to be extended by WEBSTER BUSINESS CREDIT CORPORATION
(“Lender”) to or for the account of MANHATTAN BRIDGE CAPITAL, INC. (“MBC”) and each other
person which now or hereafter becomes a Borrower under the Credit Agreement (as defined below) (MBC and such other persons, each
a “Borrower” and collectively, “Borrowers”) from time to time and at any time and for other
good and valuable consideration and to induce Lender, in its discretion, to make such loans or extensions of credit and to make
or grant such renewals, extensions, releases of collateral or relinquishments of legal rights as Lender may deem advisable, the
undersigned (and each of them if more than one, the liability under this Guaranty being joint and several) (jointly and severally
referred to as “Guarantor” or “the undersigned”) unconditionally guaranties to Lender, its
successors, endorsees and assigns the prompt payment when due (whether by acceleration or otherwise) of all present and future
obligations and liabilities of any and all kinds of Borrowers to Lender and of all instruments of any nature evidencing or relating
to any such obligations and liabilities upon which any Borrower or one or more parties and any Borrower is or may become liable
to Lender, whether incurred by any Borrower as maker, endorser, drawer, acceptor, guarantor, accommodation party or otherwise,
and whether due or to become due, secured or unsecured, absolute or contingent, joint or several, and however or whenever acquired
by Lender, whether arising under, out of, or in connection with that certain Credit and Security Agreement dated as of February
27, 2015 among Lender, Borrowers and the other Loan Parties (as defined therein) (as amended, modified, restated or supplemented
from time to time, the “Credit Agreement”; capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Credit Agreement) or any documents, instruments or agreements relating to or executed in connection
with the Credit Agreement or any documents, instruments or agreements referred to therein (together with the Credit Agreement,
as each may be amended, modified, restated or supplemented from time to time, the “Loan Documents”), or otherwise
(all of which are herein collectively referred to as the “Obligations”), and irrespective of the genuineness,
validity, regularity or enforceability of such Obligations, or of any instrument evidencing any of the Obligations or of any collateral
therefor or of the existence or extent of such collateral, and irrespective of the allowability, allowance or disallowance of any
or all of the Obligations in any case commenced by or against any Borrower under Title 11, United States Code, including, without
limitation, obligations or indebtedness of any Borrower for post-petition interest, fees, costs and charges that would have accrued
or been added to the Obligations but for the commencement of such case. In furtherance of the foregoing, the undersigned hereby
agrees as follows:

 

     

     

    

 

1.          No
Impairment. Lender may at any time and from time to time, either before or after the maturity thereof, without notice to or
further consent of the undersigned, extend the time of payment of, exchange or surrender any collateral for, renew or extend any
of the Obligations or increase or decrease the interest rate thereon, and may also make any agreement with any Borrower or with
any other party to or person liable on any of the Obligations, or interested therein, for the extension, renewal, payment, compromise,
discharge or release thereof, in whole or in part, or for any modification of the terms thereof or of any agreement between Lender
and any Borrower or any such other party or person, or make any election of rights Lender may deem desirable under the United States
Bankruptcy Code, as amended, or any other federal or state bankruptcy, reorganization, moratorium or insolvency law relating to
or affecting the enforcement of creditors’ rights generally (any of the foregoing, an “Insolvency Law”)
without in any way impairing or affecting this Guaranty. This instrument shall be effective regardless of the subsequent incorporation,
merger or consolidation of any Borrower, or any change in the composition, nature, personnel or location of any Borrower and shall
extend to any successor entity to such Borrower, including a debtor in possession or the like under any Insolvency Law.

 

2.          Guaranty
Absolute. The undersigned guarantees that the Obligations will be paid strictly in accordance with the terms of the Credit
Agreement and/or any other document, instrument or agreement creating or evidencing the Obligations, regardless of any law, regulation
or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Borrowers with respect thereto.
Guarantor hereby knowingly accepts the full range of risk encompassed within a contract of “continuing guaranty” which
risk includes the possibility that Borrowers will contract additional indebtedness for which Guarantor may be liable hereunder
after Borrowers’ financial condition or ability to pay their lawful debts when they fall due has deteriorated, whether or
not Borrowers have properly authorized incurring such additional indebtedness. The undersigned acknowledges that (i) no oral representations,
including any representations to extend credit or provide other financial accommodations to Borrowers, have been made by Lender
to induce the undersigned to enter into this Guaranty and (ii) any extension of credit to the Borrowers shall be governed solely
by the provisions of the Credit Agreement. The liability of the undersigned under this Guaranty shall be absolute and unconditional,
in accordance with its terms, and shall remain in full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including, without limitation: (a)
any waiver, indulgence, renewal, extension, amendment or modification of or addition, consent or supplement to or deletion from
or any other action or inaction under or in respect of the Loan Documents or any other instruments or agreements relating to the
Obligations or any assignment or transfer of any thereof, (b) any lack of validity or enforceability of any Loan Document or other
documents, instruments or agreements relating to the Obligations or any assignment or transfer of any thereof, (c) any furnishing
of any additional security to Lender or its assignees or any acceptance thereof or any release of any security by Lender or its
assignees, (d) any limitation on any party’s liability or obligation under the Loan Documents or any other documents, instruments
or agreements relating to the Obligations or any assignment or transfer of any thereof or any invalidity or unenforceability, in
whole or in part, of any such document, instrument or agreement or any term thereof, (e) any bankruptcy, insolvency, reorganization,
composition, adjustment, dissolution, liquidation or other like proceeding relating to any Borrower, or any action taken with respect
to this Guaranty by any trustee or receiver, or by any court, in any such proceeding, whether or not the undersigned shall have
notice or knowledge of any of the foregoing, (f) any exchange, release or nonperfection of any collateral, or any release, or amendment
or waiver of or consent to departure from any guaranty or security, for all or any of the Obligations or (g) any other circumstance
which might otherwise constitute a defense available to, or a discharge of, the undersigned. Any amounts due from the undersigned
to Lender shall bear interest until such amounts are paid in full at the highest rate then applicable to the Obligations. Obligations
include post-petition interest whether or not allowed or allowable.

 

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3.          Waivers.
(a) This Guaranty is a guaranty of payment and not of collection. Lender shall be under no obligation to institute suit, exercise
rights or remedies or take any other action against any Borrower or any other person liable with respect to any of the Obligations
or resort to any collateral security held by it to secure any of the Obligations as a condition precedent to the undersigned being
obligated to perform as agreed herein and Guarantor hereby waives any and all rights which it may have by statute or otherwise
which would require Lender to do any of the foregoing. Guarantor further consents and agrees that Lender shall be under no obligation
to marshal any assets in favor of Guarantor, or against or in payment of any or all of the Obligations. The undersigned hereby
waives all suretyship defenses and any rights to interpose any defense, counterclaim or offset of any nature and description which
the undersigned may have or which may exist between and among Lender, any Borrower and/or the undersigned with respect to the undersigned’s
obligations under this Guaranty, or which any Borrower may assert on the underlying debt, including but not limited to failure
of consideration, breach of warranty, fraud, payment (other than cash payment in full of the Obligations), statute of frauds, bankruptcy,
infancy, statute of limitations, accord and satisfaction, and usury.

 

(b)          The
undersigned further waives (i) notice of the acceptance of this Guaranty, of the making of any such loans or extensions of credit,
and of all notices and demands of any kind to which the undersigned may be entitled, including, without limitation, notice of adverse
change in any Borrower’s financial condition or of any other fact which might materially increase the risk of the undersigned
and (ii) presentment to or demand of payment from anyone whomsoever liable upon any of the Obligations, protest, notices of presentment,
non-payment or protest and notice of any sale of collateral security or any default of any sort.

 

(c)          Notwithstanding
any payment or payments made by the undersigned hereunder, or any setoff or application of funds of the undersigned by Lender,
the undersigned shall not be entitled to be subrogated to any of the rights of Lender against any Borrower or against any collateral
or guarantee or right of offset held by Lender for the payment of the Obligations, nor shall the undersigned seek or be entitled
to seek any contribution or reimbursement from any Borrower in respect of payments made by the undersigned hereunder, until all
amounts owing to Lender by Borrowers on account of the Obligations are paid in full and the Credit Agreement has been terminated.
If, notwithstanding the foregoing, any amount shall be paid to the undersigned on account of such subrogation rights at any time
when all of the Obligations shall not have been paid in full and the Credit Agreement shall not have been terminated, such amount
shall be held by the undersigned in trust for Lender, segregated from other funds of the undersigned, and shall forthwith upon,
and in any event within two (2) business days of, receipt by the undersigned, be turned over to Lender in the exact form received
by the undersigned (duly endorsed by the undersigned to Lender, if required), to be applied against the Obligations, whether matured
or unmatured, in such order as Lender may determine, subject to the provisions of the Credit Agreement. Any and all present and
future debts and obligations of any Borrower to any of the undersigned are hereby waived and postponed in favor of, and subordinated
to the full payment and performance of, all present and future debts and obligations of Borrowers to Lender.

 

    	 	3	 

     

    

 

4.           Reserved.

 

5.           Representations
and Warranties. The undersigned hereby represents and warrants (all of which representations and warranties shall survive until
all Obligations are indefeasibly satisfied in full and the Credit Agreement has been irrevocably terminated), that:

 

(a)          Corporate
Status. The undersigned is a corporation duly organized, validly existing and in good standing under the laws of the State
of New York and has full power, authority and legal right to own its property and assets and to transact the business in which
it is engaged.

 

(b)          Authority
and Execution. The undersigned has full power, authority and legal right to execute and deliver, and to perform its obligations
under, this Guaranty and has taken all necessary corporate and legal action to authorize the execution, delivery and performance
of this Guaranty.

 

(c)          Legal,
Valid and Binding Character. This Guaranty constitutes the legal, valid and binding obligation of the undersigned enforceable
in accordance with its terms, except as enforceability may be limited by applicable Insolvency Law.

 

(d)          Violations.
The execution, delivery and performance of this Guaranty will not violate any requirement of law applicable to the undersigned
or any material contract, agreement or instrument to which the undersigned is a party or by which the undersigned or any property
of the undersigned is bound or result in the creation or imposition of any mortgage, lien or other encumbrance other than to Lender
on any of the property or assets of the undersigned pursuant to the provisions of any of the foregoing.

 

(e)          Consents
or Approvals. No consent of any other person or entity (including, without limitation, any creditor of the undersigned) and
no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration
with, any governmental authority is required in connection with the execution, delivery, performance, validity or enforceability
of this Guaranty.

 

(f)          Litigation.
No litigation, arbitration, investigation or administrative proceeding of or before any court, arbitrator or governmental authority,
bureau or agency is currently pending or, to the best knowledge of the undersigned, threatened (i) with respect to this Guaranty
or any of the transactions contemplated by this Guaranty or (ii) against or affecting the undersigned, or any of property or assets
of the undersigned, which, if adversely determined, would have a material adverse effect on the business, operations, assets or
condition, financial or otherwise, of the undersigned.

 

    	 	4	 

     

    

 

(g)          Material
Adverse Change. Since December 31, 2015, there has been no material adverse change in the assets or condition, financial or
otherwise, of the undersigned.

 

(h)          Financial
Benefit. The undersigned has derived or expects to derive a financial or other advantage from each and every loan, advance
or extension of credit made under the Credit Agreement or other Obligation incurred by Borrowers to Lender.

 

The foregoing representations and warranties
shall be deemed to have been made by the undersigned on the date of each borrowing by any Borrower under the Credit Agreement on
and as of such date of such borrowing as though made hereunder on and as of such date.

 

6.           Acceleration.
(a) If any breach of any covenant or condition or other event of default shall occur and be continuing under any agreement made
by any Borrower or the undersigned to Lender, or either any Borrower or the undersigned should at any time become insolvent, or
make a general assignment, or if a proceeding in or under any Insolvency Law shall be filed or commenced by, or in respect of,
the undersigned, or if a notice of any lien, levy, or assessment is filed of record with respect to any assets of the undersigned
by the United States of America or any department, agency, or instrumentality thereof, or if any taxes or debts owing at any time
or times hereafter to any one of them becomes a lien or encumbrance upon any assets of the undersigned in Lender’s possession,
or otherwise, any and all Obligations shall for purposes hereof, at Lender’s option, be deemed due and payable without notice
notwithstanding that any such Obligation is not then due and payable by Borrowers.

 

(b)          The
undersigned will promptly notify Lender of any default by the undersigned in the performance or observance of any term or condition
of any agreement to which the undersigned is a party if the effect of such default is to cause, or permit the holder of any obligation
under such agreement to cause, such obligation to become due prior to its stated maturity and, if such an event occurs, Lender
shall have the right to accelerate the undersigned’s obligations hereunder.

 

7.           Payments
from Guarantor. Lender, in its sole and absolute discretion, with or without notice to the undersigned, may apply on account
of the Obligations any payment from the undersigned or any other guarantor, or amounts realized from any security for the Obligations,
or may deposit any and all such amounts realized in a non-interest bearing cash collateral deposit account to be maintained as
security for the Obligations.

 

8.           Costs.
The undersigned shall pay on demand, all costs, fees and expenses (including expenses for legal services of every kind) relating
or incidental to the enforcement or protection of the rights of Lender hereunder or under any of the Obligations.

 

    	 	5	 

     

    

 

9.          No
Termination. This is a continuing irrevocable guaranty and shall remain in full force and effect and be binding upon the undersigned,
and the undersigned’s successors and assigns, until all of the Obligations have been paid in full and the Credit Agreement
has been irrevocably terminated. If any of the present or future Obligations are guarantied by persons, partnerships or corporations
in addition to the undersigned, the death, release or discharge in whole or in part or the bankruptcy, merger, consolidation, incorporation,
liquidation or dissolution of one or more of them shall not discharge or affect the liabilities of the undersigned under this Guaranty.

 

10.         Recapture.
Anything in this Guaranty to the contrary notwithstanding, if Lender receives any payment or payments on account of the liabilities
guaranteed hereby, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to a trustee, receiver, or any other party under any Insolvency Law, common law or equitable
doctrine, then to the extent of any sum not finally retained by Lender, the undersigned’s obligations to Lender shall be
reinstated and this Guaranty shall remain in full force and effect (or be reinstated) until payment shall have been made to Lender,
which payment shall be due on demand.

 

11.         Books
and Records. The books and records of Lender showing the account between Lender and Borrowers shall be admissible in evidence
in any action or proceeding, shall be binding upon the undersigned for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof.

 

12.         No
Waiver. No failure on the part of Lender to exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise by Lender of any right, remedy or power hereunder preclude
any other or future exercise of any other legal right, remedy or power. Each and every right, remedy and power hereby granted to
Lender or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Lender
at any time and from time to time.

 

13.         Waiver
of Jury Trial. THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED ON OR WITH RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL
HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.

 

    	 	6	 

     

    

 

14.         Governing
Law; Jurisdiction; Amendments. THIS INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND
INTERPRETED AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE UNDERSIGNED
EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, AND OF THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING
BY THE UNDERSIGNED AGAINST LENDER INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR
CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK OR THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE UNDERSIGNED FURTHER CONSENTS THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS
OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS OR A
JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW
YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED
A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. THE
UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED
ON LACK OF JURISDICTION OR VENUE OR BASED UPON FORUM NON CONVENIENS.

 

15.         Severability.
To the extent permitted by applicable law, any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

16.         Amendments,
Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by the undersigned therefrom
shall in any event be effective unless the same shall be in writing executed by the undersigned and Lender.

 

17.         Notice.
All notices, requests and demands to or upon the undersigned, shall be in writing and shall be deemed to have been duly given or
made (a) when delivered, if by hand, (b) three (3) days after being sent, postage prepaid, if by registered or certified mail,
(c) when confirmed electronically, if by facsimile, or (d) when delivered, if by a recognized overnight delivery service in each
event, to the numbers and/or address set forth beneath the signature of the undersigned.

 

18.         Successors.
Lender may, from time to time, without notice to the undersigned, sell, assign, transfer or otherwise dispose of all or any part
of the Obligations and/or rights under this Guaranty. Without limiting the generality of the foregoing, Lender may assign, or grant
participations to, one or more banks, financial institutions or other entities all or any part of any of the Obligations. In each
such event, Lender, its Affiliates and each and every immediate and successive purchaser, assignee, transferee or holder of all
or any part of the Obligations shall have the right to enforce this Guaranty, by legal action or otherwise, for its own benefit
as fully as if such purchaser, assignee, transferee or holder were herein by name specifically given such right. Lender shall have
an unimpaired right to enforce this Guaranty for its benefit with respect to that portion of the Obligations which Lender has not
disposed of, sold, assigned, or otherwise transferred.

 

    	 	7	 

     

    

 

19.         Release.
Nothing except cash payment in full of the Obligations shall release the undersigned from liability under this Guaranty.

 

20.         Intercreditor
Agreement. Notwithstanding anything contained in this Guaranty
to the contrary, including, but not limited to Sections 4 and 6 hereof, Lender’s rights under this Guaranty shall at all
time be subject to the terms and conditions set forth in that certain Intercreditor Agreement, dated the date hereof, between Lender
and Worldwide Stock Transfer, LLC (“Worldwide”), it its capacity as the Indenture Trustee with respect to the
senior secured notes to be issued by Guarantor pursuant to the Indenture, dated as the date hereof, among Guarantor, Borrower and
Worldwide.

 

21.         Negative
Pledge. Until the full and final satisfaction of the Obligations and termination of the Credit Agreement, Guarantor shall not
consent to the creation, incurrence, assumption, sufferance or existence of any mortgage, security interest, lien or encumbrance
on any of its assets other than to the indenture trustee under the Permitted Bond Transaction Documentation.

 

22.         Covenant
Regarding Permitted Bond Transaction Documentation.
Until the full and final satisfaction of the Obligations and termination of the Credit Agreement, Guarantor shall not amend, supplement,
modify or restate the terms of the Permitted Bond Transaction Documentation in a manner that either (a) increases the interest
rate above seven percent (7%), excluding the imposition of the default rate of interest; (b) extends the stated maturity; or (c)
increases the outstanding aggregate principal amount of the senior secured notes issued pursuant to the Permitted Bond Transaction
Documentation.

 

23.         Transferred
Mortgage Files. With regard to any Mortgage Files purchased by or transferred to Guarantor pursuant to Section 4.3(b) and Section
7.11(v) of the Credit Agreement, Guarantor acknowledges and agrees that Lender does not make any oral or written representations,
warranties, promises or guarantees whatsoever, whether express or implied, concerning or with regard to, and Lender expressly disclaims
any liability or obligation with respect to, concerning or relating to any aspect of the Mortgage Loans or any collateral thereof,
including, without limitation, any of the following: (i) the value, condition or profitability of the Mortgaged Property; (ii)
title or ownership to or of the Mortgaged Property, or any portion or part thereof; (iii) governmental laws and any other restrictions
applicable to the Mortgaged Property; (iv) claims by third parties against Borrower or any Mortgage Customer; (v) the creditworthiness,
financial condition or ability of any Mortgage Customer or any guarantor to fulfill its obligations to pay its respective debts
as they mature; (vi) the collectability of the Mortgage Loans; (vii) the legality, validity, sufficiency or enforceability of any
of the Mortgage Loan Documents, and (viii) the validity, enforceability, attachment, priority or perfection of any security interest
granted pursuant to the Mortgage Loan Documents. Guarantor shall not be entitled to any other materials from Lender, including,
but not limited to, materials that are attorney-client privileged, or prepared in connection with anticipated or actual litigation,
or otherwise subject to confidentiality agreements, internal memoranda, analysis, ratings or reports prepared by Lender in connection
with the Mortgage Loans or the transactions completed by the Credit Agreement. Guarantor acknowledges that it will have made such
examinations, reviews and investigations as it deems necessary or appropriate in making its decision to purchase the Mortgage Loans.
Guarantor has been and will continue to be solely responsible for making its own independent investigation of the Mortgage Loan
Documents. Guarantor further acknowledges and agrees that Lender has not given to Guarantor any investment advice, credit information
or opinion on whether the purchase of the Mortgage Customers obligations under the Mortgage Loans is prudent. Guarantor hereby
accepts the Mortgage Loans on an “as is, where is, with all faults” basis, without recourse to Lender and without any
representations or warranties.

 

[Signature Page to Follow]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
this Guaranty has been executed by the undersigned as of the date set forth above.

 

	 	
        MBC FUNDING II CORP.

         
	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

	 	Address: 	60 Cutter Mill Road, Suite 205
	 	 	Great Neck, New York
11201
	 	Telephone:	 	 
	 	Facsimile:	 	 

 

Signature Page to Guaranty (Corporate)

 

     

     

    

 

	STATE OF NEW YORK	)
	 	): ss.:

	COUNTY OF NEW YORK	)

 

On the ____ day of
___________, 2016, before me personally came _______________________ to me known, who being by me duly sworn, did depose and say
s/he is the ______________ of [_________________], the corporation described in and which executed the foregoing instrument; and
that s/he signed her/his name thereto by order of the board of directors of said corporation.

 

	 	 	 
	 	Notary Public	 

 

Notary Page to Guaranty (Corporate)

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