Document:

Prepared by R.R. Donnelley Financial -- Charge Over Shares

 Exhibit 4.23 
  
 Charge Over Shares 
  
 between 
  
 Mad Catz Interactive, Inc. 
 1328158 Ontario Inc. 
 as Chargors 
  
 and 
  
 Congress Financial Corporation (Central) 
 as the Collateral Agent 
  
 relating to

  
 Shares in Mad Catz Interactive Asia Limited 

 TABLE OF CONTENTS 
  
 
	 
	 1.
 	  	 Definitions and interpretation
 	  	 1
 
	 
	 2.
 	  	 Covenant and Charge
 	  	 2
 
	 
	 3.
 	  	 Deposit of certificates
 	  	 2
 
	 
	 4.
 	  	 Voting rights and dividends
 	  	 3
 
	 
	 5.
 	  	 Chargors’ representations and undertakings
 	  	 4
 
	 
	 6.
 	  	 Further assurance
 	  	 5
 
	 
	 7.
 	  	 Power of attorney
 	  	 5
 
	 
	 8.
 	  	 Power of sale
 	  	 5
 
	 
	 9.
 	  	 Receiver
 	  	 6
 
	 
	 10.
 	  	 Effectiveness of collateral
 	  	 6
 
	 
	 11.
 	  	 Subsequent interests and accounts
 	  	 8
 
	 
	 12.
 	  	 Costs and expenses
 	  	 8
 
	 
	 13.
 	  	 Currency conversion
 	  	 9
 
	 
	 14.
 	  	 Notices
 	  	 9
 
	 
	 15.
 	  	 Successors
 	  	 10
 
	 
	 16.
 	  	 Law
 	  	 10
 
	 
	 17.
 	  	 Jurisdiction
 	  	 10
 

 
 

 i 

 THIS DEED is dated 01 August 2002 and made 
  
 BETWEEN: 
  

	(1)
	 
	Mad Catz Interactive, Inc. registered under the federal laws of Canada as company number 294869-9 and having its registered office at BCE Place, 181 Bay
Street, Suite 2500, Toronto, Ontario, M5J 2T7 (fax number 416-368-7779) and 1328158 Ontario Inc., registered in the Province of Ontario as company number 1328158 and having its registered office at 141 Adelaide Street West, Suite 400,
Toronto, Ontario, M5H 3L5 (fax number 416-368-7779) (each a “Chargor” and together the “Chargors”); and 
 

  

	(2)
	 
	Congress Financial Corporation (Central), (the “Collateral Agent”), registered in Illinois and having its registered office at 150 South
Wacker Drive, Chicago, Illinois 60606 (fax number (312) 332-0424). 
 

  
 IT IS AGREED as follows: 

 

	1.
	 
	Definitions and interpretation 
 

  

	 	1.1
	 
	In this Deed: 
 

  
 “Charged Portfolio” means the Shares and the Related Assets. 
  
 “Collateral Rights” means all rights, powers and remedies of the Collateral Agent provided by this Deed or by law. 
  
 “Enforcement Event” means an Event of Default in respect of which a declaration is made or steps are taken in accordance with clause 9.2 (Remedies) of the Loan Agreement.

  
 “Financing Agreements” bears the same meaning as contained in the Loan Agreement.

  
 “HKSAR” means the Hong Kong Special Administrative Region of the People’s Republic
of China. 
  
 “Loan Agreement” means a First Amended and Restated Loan Agreement between the
Collateral Agent, in its capacity as collateral agent for and on behalf of the Lender (as defined in the Loan Agreement) pursuant to the Loan Agreement, and the Principal dated 5 September 2001 and an Amending Agreement between the same parties
dated 18 June 2002, as the same may from time to time amended, varied, modified or supplemented. 
  
 “Principal” means Mad Catz, Inc., registered in Delaware as company number 3007186 and having its chief executive office at 7480 Mission Valley Road, Suite 101, San Diego, California 92108 as the borrower
under the Loan Agreement. 
  
 “Related Assets” means all dividends, interest and other moneys
payable in respect of the Shares and all other rights, benefits and proceeds in respect of or derived from the Shares (whether by way of redemption, bonus, preference, option, substitution, conversion or otherwise). 
  
 “Secured Obligations” means the obligations and liabilities of the Principal to the Lender to pay all and any sums
which are or at any time may be payable by the Principal to the Lender under the Loan Agreement or any of the other Financing Agreements and all other moneys payable under or pursuant to this Deed. 
 

 1 

  
 “Shares” means all of the shares in the share capital of Mad
Catz Interactive Asia Limited held by, to the order or on behalf of the Chargors at any time. 
  

	 	1.2
	 
	Unless the context otherwise requires, any reference in this Deed to: 
 

  
 Secured Obligations is deemed to include a reference to any part of them or it; 
  
 the“Collateral Agent” or the “Lender” or the “Chargor” or the “Principal” shall be construed so as to
include its successors and assigns and transferees; 
  
 a “Clause” shall be construed as a reference
to a Clause of this Deed; 
  
 a “person” shall be construed as a reference to any individual,
company, body corporate, corporation sole or aggregate, government, state or agency of a state, firm, partnership, joint venture, association, organisation, trust or entity; 
  
 a “subsidiary” of any person shall have the meaning ascribed to that term by section 2 of the Companies Ordinance (Cap 32) as it is in force at the date of
this Deed; 
  
 a “successor” of any party to this Deed shall be construed as including any person to
whom all or any part of the rights or obligations of such party under this Deed shall have been assigned or transferred or who shall have assumed all or any part of such rights or obligations; and 
  
 “this Deed” shall be construed as a reference to this Deed as the same may from time to time be amended, varied, modified
or supplemented. 
  

	 	1.3
	 
	The headings are inserted for convenience only and shall not affect the construction of this Deed. 
 

  

	 	1.4
	 
	In this Deed, any reference to the Collateral Agent is a reference to Congress Financial Corporation (Central) as Lender and as US Collateral Agent under the
Loan Agreement. 
 

  

	 	1.5
	 
	Unless expressly defined in this Deed, capitalised terms defined in the Loan Agreement have the same meaning in this Deed. 
 

 

	2.
	 
	Charge 
 

  
 Each of the Chargors, as beneficial owner, charges its right, title and interest in the Charged Portfolio by way of first fixed charge, in favour of the Collateral Agent for the payment and discharge of all of the Secured
Obligations. 
  

	3.
	 
	Deposit of certificates 
 

  

	 	3.1
	 
	Each of the Chargors shall, on the date of this Deed, deposit with the Collateral Agent: 
 

  

	 	(A)
	 
	all certificates and other documents of title to the Shares, and 
 

  

	 	(B)
	 
	stock transfer forms (executed in blank by or on behalf of the relevant Chargor) in respect of the Shares. 
 

  

	 	3.2
	 
	Each of the Chargors shall, promptly upon the accrual, offer or issue of any Related Assets (in the form of stocks, shares, warrants or other securities) in
which such Chargor has a beneficial interest, procure the delivery to the Collateral Agent of: 
 

 

 2 

  

	 	(A)
	 
	all certificates and other documents of title representing those Related Assets, and 
 

  

	 	(B)
	 
	such stock transfer forms or other instruments of transfer forms (executed in blank by or on behalf of the relevant Chargor) in respect of those Related Assets
as the Collateral Agent may require. 
 

  

	4.
	 
	Voting rights and dividends 
 

  

	 	4.1
	 
	Prior to an Enforcement Event the Collateral Agent agrees that each of the Chargors shall be entitled: 
 

  

	 	(A)
	 
	to receive all dividends, interest and other moneys arising from the Charged Portfolio unless prohibited from doing so under terms of the Loan Agreement; and

 

  

	 	(B)
	 
	to exercise all voting rights in relation to the Charged Portfolio provided that each of the Chargors shall not exercise such voting rights in any
manner, or otherwise permit or agree to any (a) variation of the rights attaching to or conferred by all or any part of the Charged Portfolio, or (b) increase in the issued share capital of any company whose shares are charged pursuant to this Deed,
which in the opinion of the Collateral Agent would prejudice the value of, or the ability of the Collateral Agent to realise, the security created by this Deed. 
 

  

	 	4.2
	 
	At any time after an Enforcement Event has occurred, the Collateral Agent may at its discretion (in the name of each of the Chargors or otherwise and without
any further consent or authority from each of the Chargors): 
 

  

	 	(A)
	 
	require each of the Chargors to do all things that the Collateral Agent may require to transfer the Shares to, and register the Shares in the name of, the
Collateral Agent (or its nominees); 
 

  

	 	(B)
	 
	require each of the Chargors to issue such instructions as the Collateral Agent may require in order to procure the issue or transfer to the Collateral Agent
(or its nominees) of the Related Assets; 
 

  

	 	(C)
	 
	exercise (or refrain from exercising) any voting rights in respect of the Charged Portfolio (and the Collateral Agent may revoke, or cause to be revoked, any
proxies given pursuant to Clause 4.1(B)); 
 

  

	 	(D)
	 
	apply all dividends, interest and other moneys arising from the Charged Portfolio as though they were the proceeds of sale under this Deed; 

  

	 	(E)
	 
	exercise (or refrain from exercising) the powers and rights conferred on or exercisable by the legal or beneficial owner of the Charged Portfolio including the
right, in relation to any company whose shares or other securities are included in the Charged Portfolio, to concur or participate in: 
 

  

	 	(1)
	 
	the reconstruction, amalgamation, sale or other disposal of such company or any of its assets or undertaking (including the exchange, conversion or reissue of
any shares or securities as a consequence thereof), 
 

  

	 	(2)
	 
	the release, modification or variation of any rights or liabilities attaching to such shares or securities, and 
 

 

 3 

  

	 	(3)
	 
	the exercise, renunciation or assignment of any right to subscribe for any shares or securities, 
 

  
 in each case in such manner and on such terms as the Collateral Agent may think fit, and the proceeds of any such action shall form part
of the Charged Portfolio. 
  

	5.
	 
	Chargors’ representations and undertakings 
 

  

	 	5.1
	 
	Except with the Collateral Agent’s prior written consent, each of the Chargors shall not: 
 

  

	 	(A)
	 
	assign or dispose of all or any part of the Charged Portfolio; or 
 

  

	 	(B)
	 
	create, grant or permit to exist: 
 

  

	 	(1)
	 
	any security interest over, or 
 

  

	 	(2)
	 
	any restriction on the ability to transfer or realise, 
 

  
 all or any part of the Charged Portfolio. 
  

	 	5.2
	 
	Each of the Chargors hereby represents and warrants to the Collateral Agent and undertakes during the subsistence of this Deed that: 

  

	 	(A)
	 
	the Chargors are and will be the sole legal and beneficial owners of the Charged Portfolio free from any security interest and all third party rights except as
created by this Deed; 
 

  

	 	(B)
	 
	it has not sold or disposed of, and will not sell or dispose of, the benefit of all or any of its rights, title and interest in the Charged Portfolio;

 

  

	 	(C)
	 
	it has and will have the necessary power to enable it to enter into and perform its obligations under this Deed; 
 

  

	 	(D)
	 
	this Deed constitutes its legal, valid and binding obligation and is an effective security over the Charged Portfolio; 
 

 

	 	(E)
	 
	all necessary authorisations to enable it to enter into this Deed have been obtained and are, and will remain, in full force and effect; 

  

	 	(F)
	 
	its performance, the provisions, covenants and obligations contained in its Agreement will not infringe any law or obligation binding upon it; and 

  

	 	(G)
	 
	it will maintain the location of its chief executive office or principal place of business or jurisdiction of organisation or the office where it keeps its
records relating to the Charged Portfolio from that existing on the date hereof, unless it gives to the Collateral Agent at least twenty (20) days’ prior written notice thereof. 
 

  

	 	5.3
	 
	Each of the Chargors represents to the Collateral Agent that the Shares are fully paid and represent the whole of the issued Share Capital of Mad Catz
Interactive Asia Limited. Each of the Chargors undertakes to pay all calls or other payments due in respect of any part of the Charged Portfolio. If the Chargors fail to make any such payment the Collateral Agent may make that payment on behalf of
the Chargors and any sums so paid by the Collateral Agent shall be reimbursed by each of the Chargors on demand together with interest thereon. Such interest shall be calculated from the due date up to the actual date
 
 

 

 4 

	 	
of payment (after, as well as before, judgement) at the rate of interest applicable at the relevant time under the Loan Agreement. 
 

  

	6.
	 
	Further assurance 
 

  

	 	6.1
	 
	Each of the Chargors shall promptly execute all documents (including transfers) and do all things (including the delivery, transfer, assignment or payment of
all or part of the Charged Portfolio to the Collateral Agent or its nominee(s)) that the Collateral Agent may reasonably specify for the purpose of: 
 

  

	 	(A)
	 
	exercising the Collateral Rights; or 
 

  

	 	(B)
	 
	securing and perfecting its security over or title to all or any part of the Charged Portfolio (including transferring the Charged Portfolio into the name of
the Collateral Agent or its nominee(s)). 
 

  

	 	6.2
	 
	Each of the Chargors shall upon demand from the Collateral Agent, at any time after an Enforcement Event has occurred: 
 

 

	 	(A)
	 
	procure the transfer of the Charged Portfolio into the name of the Collateral Agent or such nominee(s), agents or purchasers as it shall direct; and

 

  

	 	(B)
	 
	execute all documents and do all other things that the Collateral Agent may require to facilitate the realisation of the Charged Portfolio. 

  

	7.
	 
	Power of attorney 
 

  
 Each of the Chargors, by way of security, irrevocably appoints the Collateral Agent to be its attorney and in its name, on its behalf and as its act and deed to execute, deliver and perfect all documents (including any stock
transfer forms and other instruments of transfer) and do all things that the Collateral Agent may consider to be requisite for (a) carrying out any obligation imposed on the Chargors under this Deed or (b) exercising any of the rights conferred on
the Collateral Agent by this Deed or by law, (including, after the security constituted hereby has become enforceable, the exercise of any right of a legal or a beneficial owner of the Charged Portfolio). Each of the Chargors shall ratify and
confirm all things done and all documents executed by the Collateral Agent in the exercise of that power of attorney. 
  

	8.
	 
	Power of sale 
 

  

	 	8.1
	 
	At any time after an Enforcement Event has occurred, the Collateral Agent shall be entitled, without prior notice to any of the Chargors or prior authorisation
from any court, to sell or otherwise dispose of all or any part of the Charged Portfolio (at the times, in the manner and on the terms it thinks fit). The Collateral Agent shall be entitled to apply the proceeds of that sale or other disposal in
paying the costs of that sale or disposal and in or towards the discharge of the Secured Obligations. 
 

  

	 	8.2
	 
	A certificate in writing by an officer or agent of the Collateral Agent that any power of sale or other disposal has arisen and is exercisable shall be
conclusive evidence of that fact, in favour of a purchaser of all or any part of the Charged Portfolio. 
 

 

 5 

  

	9.
	 
	Receiver 
 

  

	 	9.1
	 
	At any time after an Enforcement Event has occurred or if a petition is presented for the making of an administration order in relation to any of the Chargors
or if requested by any of the Chargors, the Collateral Agent may by writing (acting through an authorised officer of the Collateral Agent) without notice to any of the Chargors appoint one or more persons to be receiver of the whole or any part of
the Charged Portfolio (each such person being: 
 

  

	 	(A)
	 
	entitled to act individually as well as jointly; and 
 

  

	 	(B)
	 
	for all purposes deemed to be the agent of each of the Chargors). 
 

  

	 	9.2
	 
	The Collateral Agent may fix the remuneration of any receiver appointed by it. 
 

  

	 	9.3
	 
	Each receiver is deemed to be the agent of the Chargors for all purposes. Each of the Chargors shall be responsible for his contracts, engagements, acts,
omissions, defaults and losses and for liabilities incurred by him and the Collateral Agent shall not incur any liability (either to the Chargors or to any other person) by reason of the Collateral Agent making his appointment as a receiver or for
any other reason. 
 

  

	10.
	 
	Effectiveness of collateral 
 

  

	 	10.1
	 
	The obligations of the Company under this Deed will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or
prejudice any of its obligations under this Deed (without limitation and whether or not known to it or the Collateral Agent) including: 
 

  

	 	(A)
	 
	any time, waiver or consent granted to, or composition with, or other indulgence being granted to, the Principal or any other person; 

  

	 	(B)
	 
	the release of the Principal or any other person under the terms of any composition or arrangement with any creditor; 
 

 

	 	(C)
	 
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over
assets of, the Principal or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 
 

 

	 	(D)
	 
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the Principal or any other person;

 

  

	 	(E)
	 
	any amendment (however fundamental), waiver, release or replacement of any document setting out the terms of the Secured Obligations or any other document or
security; 
 

  

	 	(F)
	 
	any unenforceability, illegality or invalidity of any obligation of any person under any document setting out the terms of the Secured Obligations or any other
document or security; or 
 

  

	 	(G)
	 
	any insolvency or similar proceedings affecting or any re-organisation or other change in the Principal or any other person. 
 

 6 

  

	 	10.2
	 
	The collateral constituted by this Deed and the Collateral Rights shall be cumulative, in addition to and independent of every other security which the
Collateral Agent may at any time hold for the Secured Obligations or any rights, powers and remedies provided by law. No prior security held by the Collateral Agent over the whole or any part of the Charged Portfolio shall merge into the collateral
hereby constituted. 
 

  

	 	10.3
	 
	No failure on the part of the Collateral Agent to exercise, or delay on its part in exercising, any Collateral Right shall operate as a waiver thereof, nor
shall any single or partial exercise of a Collateral Right preclude any further or other exercise of that or any other Collateral Right. 
 

  

	 	10.4
	 
	The security created by or pursuant to this Deed and the Collateral Rights shall not be prejudiced by any unenforceability or invalidity of any other agreement
or document or by any time or indulgence granted to any of the Chargors or any other person or by any other thing which might otherwise prejudice that security or any Collateral Right. 
 

  

	 	10.5
	 
	If, at any time, any provision of this Deed is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, the legality,
validity or enforceability of (a) the remaining provisions of this Deed and (b) such provisions under the law of any other jurisdiction shall not in any way be affected or impaired thereby. 
 

  

	 	10.6
	 
	None of the Collateral Agent, its nominee(s) or any receiver appointed pursuant to this Deed shall be liable by reason of (a) taking any action permitted by
this Deed or (b) any neglect or default in connection with the Charged Portfolio or (c) the taking possession or realisation of all or any part of the Charged Portfolio, except in the case of gross negligence or wilful default upon its part and
shall not be liable to account as a mortgagee in possession. 
 

  

	 	10.7
	 
	Any settlement or discharge hereunder shall be conditional upon no security or payment to the Collateral Agent by, or on behalf of, the Principal or any of the
Chargors being avoided or reduced by virtue of any bankruptcy, insolvency, liquidation or similar laws of general application and shall in those circumstances be void. 
 

  

	 	10.8
	 
	This Deed shall remain in full force and effect as a continuing arrangement unless and until the Collateral Agent notifies to each of the Chargors that the
Secured Obligations are fully discharged. Upon the Secured Obligations being discharged in full and the Collateral Agent not being under any further actual or contingent obligation to make advances or provide other financial accommodation to each of
the Chargors or any other person under any of the Financing Agreements, the Collateral Agent shall, at the request and cost of each of the Chargors, release and cancel the security constituted by this Deed, in each case subject to Clause 10.7 and
without recourse to, or any representation or warranty by, the Collateral Agent or any of its nominees. 
 

  

	 	10.9
	 
	The security constituted by this Deed shall be continuing security and will extend to the ultimate balance of the Secured Obligations regardless of any
intermediate payment or satisfaction of the whole or any part of the Secured Obligations. 
 

  

	 	10.10
	 
	The Collateral Agent shall not be obliged before exercising any of its rights, powers or remedies conferred upon it in respect of each of the Chargors by this
Deed or by law: 
 

  

	 	(A)
	 
	to make any demand of the Principal; 
 

  

	 	(B)
	 
	to take any action or obtain judgment in any court against the Principal; 
 

 

 7 

  

	 	(C)
	 
	to make or file any claim or proof in a winding-up or dissolution of the Principal; or 
 

  

	 	(D)
	 
	to enforce or seek to enforce any other security taken in respect of any of the obligations of the Principal to the Collateral Agent. 

  

	 	10.11
	 
	Each of the Chargors agrees that, until the discharge in full of the Secured Obligations, any rights which the relevant Chargor may at any time have by reason
of performance by of its obligations under this Deed: 
 

  

	 	(A)
	 
	to be indemnified by the Principal; and/or 
 

  

	 	(B)
	 
	to claim any contribution from any other person of the Principal’s or each of the Chargors’ obligations to the Collateral Agent; and/or 

  

	 	(C)
	 
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Collateral Agent or of any other security taken
pursuant to, or in connection with, this Deed by the Collateral Agent, 
 

  
 shall be exercised by
the relevant Chargor in such manner and upon such terms as the Collateral Agent may require and each of the Chargors further agrees to hold any moneys at any time received by it as a result of the exercise of any such rights for and on behalf of,
and to the order of, the Collateral Agent for application in or towards payment of any sums at any time owed to the Collateral Agent by the Principal or any of the Chargors. 
  

	 	10.12
	 
	For the purpose of preserving the Collateral Agent’s right to prove in the liquidation, bankruptcy or other insolvency of the Principal and any of the
Chargors for the full amount of the Secured Obligations, the Collateral Agent may place any money received under this Deed to the credit of a securities realised or a suspense account for so long as it thinks fit, without any obligation in the
meantime to apply such money in or towards discharge of any of the Secured Obligations. 
 

  

	11.
	 
	Subsequent interests and accounts 
 

  

	 	11.1
	 
	If the Collateral Agent at any time receives notice of any subsequent mortgage, assignment, charge or other interest affecting all or any part of the Charged
Portfolio, all payments thereafter made by each of the Chargors to the Collateral Agent shall be treated as having been credited to a new account of such Chargor and not as having been applied in reduction of the Secured Obligations as at the time
when the Collateral Agent received notice. 
 

  

	 	11.2
	 
	All moneys received, recovered or realised by the Collateral Agent under this Deed (including the proceeds of any conversion of currency) may in its discretion
be credited to and held in any suspense or impersonal account pending their application from time to time in or towards the discharge of any of the Secured Obligations. 
 

  

	12.
	 
	Costs and expenses 
 

  
 All the Collateral Agent’s costs and expenses (including legal fees, stamp duties and any value added tax) incurred in connection with: 
  

	 	(A)
	 
	the execution of this Deed or otherwise in relation to it, 
 

  

	 	(B)
	 
	the perfection or enforcement of the collateral hereby constituted or 
 

 

 8 

  

	 	(C)
	 
	the exercise of any Collateral Right 
 

  
 shall be reimbursed to the Collateral Agent by each of the Chargors on demand on a full indemnity basis together with interest at the rate per annum determined from time to time under Clause 3.1 of the
Loan Agreement from the date the same were incurred to the date of payment. 
  

	13.
	 
	Currency conversion 
 

  
 For the purpose of or pending the discharge of any of the Secured Obligations the Collateral Agent may convert any money received, recovered or realised or subject to application by it under this Deed from one currency to
another, as the Collateral Agent may think fit: and any such conversion shall be effected at the Collateral Agent’s spot rate of exchange for the time being for obtaining such other currency with the first currency. 
  

	14.
	 
	Notices 
 

  

	 	14.1
	 
	Any notice, communication or demand to be given under this Deed or in connection with the matters contemplated by it shall, except where otherwise specifically
provided, be in writing. 
 

  

	 	14.2
	 
	Save for the service of process (which may be served in any manner that accords with applicable law), any such notice, communication or demand shall be
delivered or sent to the intended recipient at its address or facsimile number, and marked for the attention of its department or officer, as provided in Clause 15.3 and will only be effective: 
 

  

	 	(A)
	 
	if by way of fax, when received in legible form; or 
 

  

	 	(B)
	 
	if by way of letter, when it has been left at the relevant address or three business days (if local post) or ten business days (if overseas post) after being
deposited in the post postage prepaid in an envelope addressed to the intended recipient at that address; 
 

  
 and if addressed to such department or officer. 
  

	 	14.3
	 
	The addresses and other details referred to in Clause 15.2 are, subject to Clause 15.4: 
 

  

Name: Mad Catz Interactive, Inc. 
 Address: 141 Adelaide Street West,
Suite 400, Toronto, Ontario, M5H 3L5 
 Facsimile number: 416-368-7779 
 For the attention of: Morris Perlis, President and Chief Executive Officer 
  
 Name: 1328158 Ontario
Inc. 
 Address: 141 Adelaide Street West, Suite 400, Toronto, Ontario, M5H 3L5 
 Facsimile number: 416-368-4449 
 For the attention of: Morris Perlis, President 
 

 9 

  
 Name: Congress Financial Corporation (Central) 
 Address: 150 South Wacker Drive, Chicago, Illinois 60606 
 Facsimile number:
(312) 332-0424 
 For the attention of: Harry Rosenfeld, Senior Vice-President 
  

	 	14.4
	 
	Each of the Chargors or the Collateral Agent may notify the others of any change to its address or any of its other details specified in Clause 14.3, provided
that such notification shall only be effective on the date specified in such notice or five working days after the notice is given, whichever is later. 
 

  

	15.
	 
	Successors 
 

  
 This Deed shall remain in effect despite any amalgamation or merger (however effected) relating to the Collateral Agent, and references to the Collateral Agent shall be deemed to include any assignee or successor in title of the
Collateral Agent and any person who, under the laws of its jurisdiction of incorporation or domicile, has assumed the rights and obligations of the Collateral Agent hereunder or to which under such laws the same have been transferred. 

 

	16.
	 
	Law 
 

  
 This Deed shall be governed by and will be construed in accordance with, the laws of the HKSAR. 
  

	17.
	 
	Jurisdiction 
 

  

	 	17.1
	 
	Subject to Clause 17.2, the parties irrevocably agree that the courts of the HKSAR shall have exclusive jurisdiction in relation to any legal action or
proceedings arising out of or in connection with this Deed (“Proceedings”) and waive any objection to Proceedings in such courts on the grounds of venue or on the grounds that Proceedings have been brought in an inappropriate forum.

 

  

	 	17.2
	 
	The parties agree that Clause 17.1 operates for the benefit of the Collateral Agent and accordingly the Collateral Agent shall be entitled to take Proceedings
in any other court or courts having jurisdiction. 
 

  

	 	17.3
	 
	Each of the Chargors appoints Mad Catz Interactive Asia Limited, c/o B& McK Nominee Limited of 1401 Hutchison House, 10 Harcourt Road, Hong Kong as its
process agent to receive on its behalf service of process of any Proceedings in the HKSAR. 
 

  

	 	17.4
	 
	Service of process upon any process agent appointed by or in accordance with this Clause 17 shall be good service upon each of the Chargors whether or not it is
forwarded to and received by such Chargor. Each of the Chargors irrevocably agrees that if, for any reason, any such process agent ceases to be able to act as process agent on its behalf, or no longer has an address in the HKSAR, it will within 30
days thereof appoint a substitute process agent with an address in the HKSAR acceptable to the Collateral Agent and deliver to the Collateral Agent a copy of the substitute process agent’s acceptance of that
 
 

 

 10 

 
appointment. In the event that any of the Chargors fails to appoint a substitute process agent, it shall be effective service for the Collateral Agent to serve the process upon the last address
in the HKSAR known to the Collateral Agent of the last process agent for such Chargor notified to the Collateral Agent notwithstanding that such process agent is no longer found at such address or has ceased to act. As used in this Clause 17.4, the
expression “process agent” includes, where the context so admits, a substitute process agent. 
  

	 	17.5
	 
	In addition to the methods of service set out in the foregoing provisions of this Clause 17, process may be served upon each of the Chargors in any other manner
permitted by law. 
 

  

	 	17.6
	 
	To the extent that each of the Chargors may be entitled in any jurisdiction to claim for itself or its assets immunity from any suit, execution, attachment
(whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction such immunity (whether or not claimed) may be attributed to it or its assets, it irrevocably agrees
not to claim and irrevocably waives such immunity to the fullest extent permitted by the laws of such jurisdiction. 
 

 

 11 

 This Deed was duly signed and sealed as a deed and delivered on the date which first appears on page 1. 
  
 The common seal
of                                        
   ) 
 Mad Catz Interactive, Inc.
                                 )
                                        
                                        
                C.S. 
 was affixed in the presence of:-
                        ) 
  
 Director’s signature     /s/ MORRIS PERLIS          
 Full name
        Morris Perlis                            

  
 Secretary’s signature /s/ GEOFFREY MYERS      
  

Full name         Geoffrey
Myers                         
  
 The common seal
of                                        
    ) 
 1328158 Ontario Inc.
                                       
 )                                       
                                        
                      C.S. 
 was affixed in the presence
of:-                           ) 
  
 Director’s signature     /s/ MORRIS PERLIS          
  
 Full name         Morris
Perlis                                 
  
 Secretary’s signature /s/ GEOFFREY MYERS          
  

Full name         Geoffrey
Myers                             
  
 Signed for and on behalf of
                                 ) 
 Congress Financial Corporation                       ) 
 (Central) (as collateral agent for                         ) 
 and on behalf of the Lender)
                               ) 
 by: /s/ HARRY ROSENFELD                            ) 
 

 12Prepared by R.R. Donnelley Financial -- Share Pledge Agreement by Mad Catz

 Exhibit 4.24 
  
 SHARE PLEDGE AGREEMENT 
  
 THIS SHARE PLEDGE AGREEMENT (together with all amendments,
modifications, supplements, restatements or replacements thereof from time to time, this “Pledge Agreement”), dated as of August 1, 2002, made by Mad Catz Interactive, Inc., a corporation existing under the laws of Canada (the
“Pledgor”), in favour of CONGRESS FINANCIAL CORPORATION (CANADA) an Ontario corporation, as Collateral Agent (together with its successors and assigns, the “Collateral Agent”) on behalf of the Lender (as defined below) under the
Loan Agreement (as defined below). 
  
 WITNESSETH: 
  
 WHEREAS Lender has entered into certain financing arrangements pursuant to the Loan Agreement (as defined below) with Borrower pursuant to which Lender has made, and may
make, loans and provide other financial accommodations to Borrower; 
  
 AND WHEREAS Pledgor has guaranteed the
obligations of Borrower to Lender under the Loan Agreement, pursuant to a Guarantee (as defined below) executed by Pledgor and delivered to Collateral Agent, as security for the obligations of Borrower to Lender under the Loan Agreement;

  
 AND WHEREAS pursuant to the terms of the Loan Agreement, Borrower has agreed not to, and not to permit any
Obligor to, form or acquire any subsidiaries or to sell any of its assets to any other Person, without the prior written consent of Lender; 
  
 AND WHEREAS Pledgor is an Obligor, and Pledgor intends to create a new subsidiary under the laws of Hong Kong and to transfer the assets of Mad Catz (Asia) Limited to such new subsidiary (the
“Transaction”), subject to the consent of Lender; 
  
 AND WHEREAS Lender has agreed to consent to the
Transaction provided that Pledgor executes and delivers an acknowledgement and confirmation of the Guarantee, in form satisfactory to Lender, and this Pledge Agreement to secure the Obligations of Pledgor to Lender under the Guarantee; 

 
 NOW THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree, as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS 
  
 SECTION 1.1  Certain Terms.    The following terms (whether or not underscored) when used in this Pledge Agreement, including its
preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof): 
  
 “BIA” means the Bankruptcy and Insolvency Act (Canada). 
  
 “Borrower” shall mean Mad Catz, Inc., a Delaware corporation, and its successors and assigns. 

  
 “Business Day” shall mean a day (other than a
Saturday, Sunday or statutory holiday in Ontario, Illinois or New York) on which Collateral Agent’s Toronto office and banks in Chicago and New York City are open for business in the normal course. 
  
 “CCAA” means the Companies’ Creditors Arrangement Act (Canada). 
  
 “Collateral” is defined in Section 2.1. 
  
 “Discharge Event” means the indefeasible payment in full of all Obligations. 
  
 “Distributions” means all stock dividends, liquidating dividends, shares of stock resulting from (or in connection with the exercise of)
stock splits, reclassifications, warrants, options, non-cash dividends, amalgamations, mergers, consolidations, and all other distributions (whether similar or dissimilar to the foregoing) on or with respect to any Pledged Shares or other shares of
capital stock constituting Collateral, but shall not include Dividends. 
  
 “Dividends” means cash dividends and cash distributions with respect to any Pledged Shares made in the ordinary course of business and not a liquidating dividend. 
  

“Event of Default” shall mean the occurrence or existence of any Event of Default under the Loan Agreement. 
  
 “Financing Agreements” shall mean, collectively, the Loan Agreement, this Pledge Agreement, the Guarantee
and all notes, guarantees, security agreements and other agreements, documents and instruments now or at any time hereafter executed and/or delivered by Borrower, Pledgor or any other Person in connection with the Loan Agreement, as the same now
exist or may hereafter be amended, modified, supplements, extended, renewed, restated or replaced. 
  
 “Guarantee” shall mean the guarantee dated September 25, 2000, pursuant to which Pledgor guaranteed in favour of Lender all of the debts, liabilities and obligations of Borrower. 
  
 “Lender” shall mean Congress Financial Corporation (Central), an Illinois corporation, and its successors
and assigns. 
  
 “Loan Agreement” shall mean the First Amended and Restated Loan
Agreement dated September 5, 2001, between Lender, as lender and as US Collateral Agent (as defined therein), and Borrower, together with all amendments, supplements, restatements and replacements thereof from time to time. 
  
 “Obligations” shall mean any and all obligations, liabilities and indebtedness of every kind, nature and
description owing by Pledgor to Collateral Agent, Lender and/or any of their respective affiliates, including principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise,
whether arising under the Loan Agreement, this Pledge Agreement, any guarantee (including the Guarantee) or otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of this
Agreement or after the commencement of any proceeding with respect to Pledgor under the BIA, the CCAA or any similar statute in any jurisdiction (including, the payment of interest and other amounts which would accrue and become due but for the
commencement of such proceeding, whether or not such amounts are allowed or allowable in whole or in part in such proceeding), whether direct or indirect, absolute or contingent, joint or
 
 

 2 

 
several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured, and however acquired by Collateral Agent and/or Lender. 
  
 “Person” or “person” shall mean any individual, sole proprietorship, partnership,
limited partnership, corporation, limited liability company, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government or any agency or instrumentality or political subdivision
thereof. 
  
 “Pledge Agreement” is defined in the preamble. 
  
 “Pledged Share Issuer” means each Person identified in Attachment 1 hereto as the issuer of the Pledged
Shares identified opposite the name of such Person, and each other Person whose capital stock is pledged or is required to be pledged from time to time by the Pledgor to the Collateral Agent as Collateral hereunder. 
  
 “Pledged Shares” means all of the shares in the capital stock of each Pledged Share Issuer which are now
owned or are hereafter acquired by the Pledgor including, without limitation, the shares described in Attachment 1 hereto and shall include for greater certainty, all other capital stock of any other Person acquired by the Pledgor from time to time.

  
 “Pledgor” is defined in the preamble. 
  
 “PPSA” means the Personal Property Security Act as in effect in the Province of Ontario. 

 
 “Subsidiary” means, with respect to any Person, any corporation of which not less than 50% of
the outstanding shares of any class caring voting rights exercisable for the time being are beneficially owned for the time being, directly or indirectly, by or for such Person, and includes any corporation in a similar relationship with a
Subsidiary. 
  
 SECTION 1.2  Loan Agreement Definitions:    Unless otherwise
defined herein or the context otherwise requires, terms used in this Pledge Agreement, including its preamble and recitals, have the meanings provided in the Loan Agreement. 
  
 SECTION 1.3  PPSA Definitions.    Unless otherwise defined herein or the context otherwise requires, terms for which meanings are
provided in the PPSA are used in this Pledge Agreement, including its preamble and recitals, with such meanings. 
  
 ARTICLE 2 
  
 PLEDGE 
  
 SECTION 2.1  Grant of Security Interest.    The Pledgor hereby pledges, hypothecates, assigns, charges, mortgages, delivers, and
transfers to the Collateral Agent for its benefit and the benefit of the Lender and hereby grants to the Collateral Agent for its benefit and the benefit of the Lender a continuing security interest in, all of the following property (collectively,
the “Collateral”): 
  

	 	(a)
	 
	all issued and outstanding shares of capital stock of each Pledged Share Issuer identified in Attachment 1 hereto; 
 

  

	 	(b)
	 
	all other Pledged Shares issued from time to time; 
 

 

 3 

  

	 	(c)
	 
	all Dividends, Distributions, interest, and other payments and rights with respect to any Pledged Shares; and 
 

  

	 	(d)
	 
	all proceeds of any of the foregoing. 
 

  
 SECTION 2.2  Security for Obligations.    This Pledge Agreement and the Collateral granted herewith secures the payment and performance in full of all Obligations.

  
 SECTION 2.3  Delivery of Collateral.    All certificates representing or
evidencing any Collateral, including all Pledged Shares, shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto, shall be in suitable form for transfer by delivery, and shall be accompanied by all necessary
instruments of transfer or assignment, duly executed in blank. All Pledged Shares may, at the option of the Collateral Agent, be registered in the name of the Collateral Agent or its nominee. 
  

SECTION 2.4  Dividends on Pledged Shares.    In the event that any Dividend is to be paid on any Pledged Share at a time when such
Dividend is permitted by the Loan Agreement and no Event of Default exists, such Dividend or payment may be paid directly to the Pledgor free and clear of the liens created by this Pledge Agreement. If any such Event of Default has occurred and is
continuing, then any such Dividend or payment shall be paid directly to the Collateral Agent. 
  
 SECTION
2.5  Continuing Security Interest.    This Pledge Agreement shall create a continuing security interest in the Collateral and shall 
  

	 	(a)
	 
	remain in full force and effect until the occurrence of a Discharge Event, 
 

  

	 	(b)
	 
	be binding upon the Pledgor and its successors and assigns, and 
 

  

	 	(c)
	 
	enure, together with the rights and remedies of the Collateral Agent and the Lender hereunder, to the benefit of the Collateral Agent and the Lender, and their
respective successors and assigns. 
 

  
 Without limiting the foregoing clause (c), the Collateral
Agent and the Lender may assign or otherwise transfer (in whole or in part) their rights hereunder to any other Person or entity subject to the terms and conditions of assignabilty as may be contained in the Loan Agreement, and such other Person or
entity shall thereupon become vested with all the rights and benefits in respect thereof granted to each party. Upon the occurrence of a Discharge Event, the security interest granted herein shall terminate and all rights to the Collateral shall
revert to the Pledgor. Upon any such termination, the Collateral Agent will, at the Pledgor’s sole expense, deliver to the Pledgor, without any representations, warranties or recourse of any kind whatsoever, all certificates and instruments
representing or evidencing all Pledged Shares, together with all other Collateral held by the Collateral Agent hereunder, and execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination.

  
 ARTICLE 3 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 3.1  Warranties,
etc.    The Pledgor represents and warrants to the Collateral Agent and the Lender, as at the date of each pledge and delivery hereunder (including each pledge and
 
 

 4 

 
delivery of Pledged Shares after the date hereof) by the Pledgor to the Collateral Agent of any Collateral, as set forth in this Article. 
  

SECTION 3.2  Ownership, No Liens, etc.    The Pledgor is the legal and beneficial owner of, and has good title to (and has full
right and authority to pledge and assign) such Collateral, free and clear of all liens, security interests, options, or other charges or encumbrances, except any lien or security interest granted pursuant hereto or otherwise granted in favour of the
Collateral Agent or permitted by the Loan Agreement. 
  
 SECTION 3.3  As to Pledged
Shares.    All Pledged Shares are duly authorized and validly issued, fully paid, and non-assessable, and constitute such percentage of all of the issued and outstanding shares of each such class of capital stock of each
Pledged Share Issuer as set forth on Attachment 1 attached hereto. There is no agreement, option or right pursuant to which the Pledgor may be required to sell or otherwise dispose of any of the Pledged Shares. The Pledged Shares identified on
Attachment 1 attached hereto represent all of the capital stock of every Person owned by Pledgor. 
  
 SECTION
3.4  Authorization, Approval, etc.    No authorization, approval, or other action by, and no notice to or filing with, any governmental authority, regulatory body or any other Person is required either

  

	 	(a)
	 
	for the pledge by the Pledgor of any Collateral pursuant to this Pledge Agreement or for the execution, delivery, and performance of this Pledge Agreement by
the Pledgor (other than the authorization of the board of directors of each Pledged Share Issuer, which has been obtained), or 
 

  

	 	(b)
	 
	for the exercise by the Collateral Agent of the voting or other rights provided for in this Pledge Agreement, or the remedies in respect of the Collateral
pursuant to this Pledge Agreement except as may be required in connection with a disposition of the Collateral pledged hereunder by laws affecting the offering and sale of securities generally. 
 

  
 SECTION 3.5  Compliance with Laws.    The Pledgor is in material compliance with the requirements of
all applicable laws, rules, regulations and orders of every governmental authority, the non-compliance with which could reasonably be expected to materially adversely affect the business, properties, assets, operations or condition (financial or
otherwise) of the Pledgor and its Subsidiaries taken as a whole or the value of the Collateral or the worth of the Collateral as collateral security. 
  
 SECTION 3.6  Chief Executive Office.    The places of business and chief executive office of the Pledgor and the offices where the Pledgor keeps its records
concerning the Collateral are as set out in Attachment 2 hereof, and upon at least 20 days’ prior written notice to the Collateral Agent, at such other addresses so notified in writing to the Collateral Agent. 
  
 ARTICLE 4 
  
 COVENANTS 
  
 SECTION 4.1  Protect Collateral; Further Assurances,
etc.    The Pledgor will not sell, assign, transfer, pledge, or encumber in any other manner the Collateral. The Pledgor will warrant and defend the right and security interest herein granted unto the Collateral Agent and the
Lender in 
 

 5 

 
and to the Collateral (and all right, title, and interest represented by the Collateral) against the claims and demands of all Persons whomsoever. The Pledgor agrees that it will, from time to
time and upon acquisition of the capital stock of any Person, forthwith deliver to the Collateral Agent such capital stock and such capital stock shall, upon its acquisition, constitute Pledged Shares and shall form part of the Collateral. The
Pledgor agrees that at any time, and from time to time, at the expense of the Pledgor, the Pledgor will promptly execute and deliver all further instruments and take all further action reasonably requested by the Collateral Agent that may be
necessary in the opinion of the Collateral Agent in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect
to any Collateral. 
  
 SECTION 4.2  Stock Powers, etc.    The Pledgor agrees
that all Pledged Shares (and all other shares of capital stock constituting Collateral) delivered by the Pledgor pursuant to this Pledge Agreement will be accompanied by duly executed blank stock powers, or other equivalent instruments of transfer
acceptable to the Collateral Agent. The Pledgor will, from time to time upon the request of the Collateral Agent, promptly deliver to the Collateral Agent such stock powers, instruments, and similar documents, satisfactory in form and substance to
the Collateral Agent, with respect to the Collateral as the Collateral Agent may reasonably request and will, from time to time upon the request of the Collateral Agent after the occurrence of any Event of Default which is continuing, promptly
transfer any Pledged Shares or other shares of common stock constituting Collateral into the name of any nominee designated by the Collateral Agent. 
  
 SECTION 4.3  Continuous Pledge.    Subject to Section 2.4 and Section 2.5, the Pledgor will, at all times, keep pledged to the Collateral Agent pursuant hereto, and
shall deliver forthwith to the Collateral Agent, all Pledged Shares and all other shares of capital stock constituting Collateral, all Dividends and Distributions with respect thereto, and all other Collateral and other securities, proceeds, and
rights from time to time received by or distributable to the Pledgor in respect of any Collateral and will not permit any Pledged Share Issuer to issue any capital stock which shall not have been immediately duly pledged hereunder on a perfected
basis. 
  
 SECTION 4.4  Voting Rights; Dividends, etc.    The Pledgor agrees:

  

	 	(a.)
	 
	while any Event of Default is continuing, promptly upon receipt thereof by the Pledgor and without any request therefor by the Collateral Agent, to deliver
(properly endorsed where required hereby or requested by the Collateral Agent) to the Collateral Agent all Dividends, Distributions, and all proceeds of the Collateral, all of which shall be held by the Collateral Agent as additional Collateral for
use in accordance with Section 6.3; and 
 

  

	 	(b)
	 
	while any Event of Default is continuing and the Collateral Agent has notified the Pledgor of the Collateral Agent’s intention to exercise its voting power
under this Section 4.4(b) 
 

  

	 	(i)
	 
	the Collateral Agent may exercise (to the exclusion of the Pledgor) the voting power and all other incidental rights of ownership with respect to any Pledged
Shares or other shares of capital stock constituting Collateral and the Pledgor hereby grants the Collateral Agent an irrevocable proxy, exercisable under such circumstances, to vote the Pledged Shares and such other Collateral; and 

 

 6 

  

	 	(ii)
	 
	promptly to deliver to the Collateral Agent such additional proxies and other documents reasonably requested by the Collateral Agent that may be necessary, in
the reasonable opinion of the Collateral Agent, to allow the Collateral Agent to exercise such voting power. 
 

  
 All Dividends, Distributions and proceeds which may at any time and from time to time be held by the Pledgor but which the Pledgor is then obligated to deliver to the Collateral Agent, shall, until delivery to the Collateral Agent,
be held by the Pledgor separate and apart from its other property in trust for the Collateral Agent. The Collateral Agent and the Lender agree that unless an Event of Default shall have occurred and the Collateral Agent shall have given the notice
referred to in Section 4.4(b), the Pledgor shall have the exclusive voting power with respect to any shares of capital stock (including any of the Pledged Shares) constituting Collateral; provided, however, that no vote shall be cast, or consent,
waiver, or ratification given, or action taken by the Pledgor that would impair any Collateral or be inconsistent with or violate any provision of this Pledge Agreement or the Loan Agreement. 
  

ARTICLE 5 
  
 THE COLLATERAL AGENT

  
 SECTION 5.1  Collateral Agent and the Lender Appointed
Attorneys-in-Fact.    The Pledgor hereby irrevocably appoints each of the Collateral Agent and the Lender the Pledgor’s attorney-in-fact with effect following the occurrence and during the continuance of an Event of
Default, with full authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from time to time in their respective discretion, to take any action and to execute any instrument which any of the Collateral Agent or
the Lender may reasonably deem necessary or advisable to accomplish the purposes of this Pledge Agreement, including without limitation: 
  

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

  

	 	(b)
	 
	to receive, endorse, and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) above; and 

  

	 	(c)
	 
	to file any claims or take any action or institute any proceedings which the Collateral Agent or the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Collateral Agent and the Lender with respect to any of the Collateral. 
 

  
 The Pledgor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section is (until termination of the security interest granted hereunder upon the payment and
satisfaction in full of all Obligations) irrevocable and coupled with an interest. 
  
 SECTION
5.2  Collateral Agent or any Lender May Perform.    If the Pledgor fails to perform any agreement contained herein, Collateral Agent or either Lender may itself perform, or cause performance of, such agreement,
and the expenses of Collateral Agent and the Lender incurred in connection therewith shall be payable by the Pledgor pursuant to Section 6.4. 
  
 SECTION 5.3  Collateral Agent Has No Duty.    The powers conferred on the Collateral Agent and the Lender hereunder are solely to protect their interest in the
Collateral and shall not impose any
 
 

 7 

 
duty on them to exercise any such powers. Except for reasonable care of any Collateral in their possession and the accounting for moneys actually received by it hereunder, the Collateral Agent
and the Lender shall have no duty as to any Collateral or responsibility for 
  

	 	(a)
	 
	ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any pledged Collateral, whether or
not the Collateral Agent or the Lender has or is deemed to have knowledge of such matters, or 
 

  

	 	(b)
	 
	taking any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. 
 

 
 ARTICLE 6 
  
 REMEDIES 
  
 SECTION  6.1 Certain Remedies.    If any
Event of Default shall have occurred and is continuing: 
  

	 	(a)
	 
	The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party on default under the PPSA (whether or not the PPSA applies to the affected Collateral) and also may, without notice except as specified below, sell the Collateral or any part thereof in one or more parcels
at public or private sale, at any of the Collateral Agent’s or the Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent or the Lender may deem commercially reasonable.
The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days’ prior notice to the Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute
reasonable notification subject to any prohibitions pursuant to applicable law (including the PPSA). The Collateral Agent and the Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The
Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice subject to any prohibitions pursuant to applicable law (including the PPSA), be
made at the time and place to which it was so adjourned. 
 

  

	 	(b)
	 
	The Collateral Agent may 
 

  

	 	(i)
	 
	transfer all or any part of the Collateral into the name of the Collateral Agent or the Lender or their nominee, with or without disclosing that such Collateral
is subject to the lien and security interest hereunder, 
 

  

	 	(ii)
	 
	notify the parties obligated on any of the Collateral to make payment to the Collateral Agent of any amount due or to become due thereunder, 

  

	 	(iii)
	 
	enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof, or compromise or extend or renew
for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, 
 

 

 8 

  

	 	(iv)
	 
	endorse any checks, drafts, or other writings in the Pledgor’s name to allow collection of the Collateral, 
 

  

	 	(v)
	 
	take control of any proceeds of the Collateral, and 
 

  

	 	(vi)
	 
	execute (in the name, place and stead of the Pledgor) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to
all or any of the Collateral. 
 

  
 SECTION 6.2  Compliance with
Restrictions.    The Pledgor agrees that in any sale of any of the Collateral pursuant to Section 6.1, the Collateral Agent is hereby authorized to comply with any limitation or restriction in connection with such sale as it
may be advised by counsel is necessary in order to avoid any violation of applicable law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of
such Collateral), or in order to obtain any required approval of the sale or of the purchaser by any governmental regulatory authority or official, and the Pledgor further agrees that such compliance shall not result in such sale being considered or
deemed not to have been made in a commercially reasonable manner, nor shall the Collateral Agent or the Lender be liable nor accountable to the Pledgor for any discount allowed by the reason of the fact that such Collateral is sold in compliance
with any such limitation or restriction. 
  
 SECTION 6.3  Application of
Proceeds.    All cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Collateral Agent, be held
by the Collateral Agent as additional collateral security for, or then or at any time thereafter be applied in whole or in part by the Collateral Agent against, all or any part of the Obligations in such order as the Collateral Agent shall elect.
Any surplus of such cash or cash proceeds held by the Collateral Agent and remaining after payment and satisfaction in full of all the Obligations shall be paid over to the Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

  
 SECTION 6.4  Indemnity and Expenses.    The Pledgor hereby indemnifies and
holds harmless Collateral Agent and the Lender from and against any and all claims, losses, and liabilities arising out of or resulting from this Pledge Agreement (including enforcement of this Pledge Agreement), except claims, losses, or
liabilities resulting from the Collateral Agent’s or the Lender’s gross negligence or wilful misconduct. Upon demand, the Pledgor will pay to the Collateral Agent the amount of any and all reasonable expenses, including, without
limitation, the reasonable fees and disbursements of its counsel and Lender’s counsel and which may be incurred in connection with: 
  

	 	(a)
	 
	the administration of this Pledge Agreement; 
 

  

	 	(b)
	 
	the custody, preservation, use, or operation of, or the sale of, collection from, or other realization upon, any of the Collateral; 

  

	 	(c)
	 
	the exercise or enforcement of any of the rights of the Collateral Agent and/or the Lender hereunder; 
 

  

	 	(d)
	 
	the failure by the Pledgor to perform or observe any of the provisions hereof; or 
 

 

 9 

  

	 	(e)
	 
	the advancing of any funds pursuant to Section 7.1 hereof. 
 

  
 ARTICLE 7 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 7.1  Protection of Collateral.    The Collateral Agent and/or the Lender may from time to
time, at their option, perform any act which the Pledgor agrees hereunder to perform and which the Pledgor shall fail to perform after being requested in writing so to perform (it being understood that no such request need be given after the
occurrence of an Event of Default) and the Collateral Agent and/or the Lender may from time to time take any other action which it or they reasonably deem necessary for the maintenance, preservation or protection of any of the Collateral or of its
security interest therein. 
  
 SECTION 7.2  Notices.    All notices, requests
and demands hereunder shall be in writing and 
  

	 	(a)
	 
	made to Collateral Agent at 141 Adelaide Street West, Suite 1500, Toronto, Ontario, M5H 3L9 and to Pledgor at its chief executive office set forth below, or to
such other address as either party may designate by written notice to the other in accordance with this provision; and 
 

  

	 	(b)
	 
	deemed to have been given or made: if delivered in person, immediately upon delivery; if by facsimile transmission, immediately upon sending and upon
confirmation of receipt; if by nationally recognized overnight courier service with instructions to deliver the next Business Day, one (1) Business Day after sending; and if by registered mail, return receipt requested, five (5) days after mailing.

 

  
 SECTION 7.3  Governing Law, Entire Agreement, etc. Governing Law; Choice of
Forum; Service of Process; Jury Trial Waiver. 
  

	 	(a)
	 
	The validity, interpretation and enforcement of this Pledge Agreement and any dispute arising out of the relationship between the parties hereto, whether in
contract, tort, equity or otherwise, shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. 
 

  

	 	(b)
	 
	Pledgor irrevocably consents and submits to the non-exclusive jurisdiction of the Superior Court of Justice (of Ontario) and waives any objection based on venue
or forum non conveniens with respect to any action instituted therein arising under this Pledge Agreement or any of the other Financing Agreements or in any way connected or related or incidental to the dealings of Pledgor and Collateral Agent in
respect of this Pledge Agreement or the transactions related hereto, whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agrees that any dispute with respect to any such matters shall be heard only in
the courts described above (except that Collateral Agent shall have the right to bring any action or proceeding against Pledgor or its property in the courts of any other jurisdiction which Collateral Agent deems necessary or appropriate in order to
realize on the Collateral or to otherwise enforce its rights against Pledgor or its property). 
 

  

	 	(c)
	 
	To the extent permitted by law, Pledgor hereby waives personal service of any and all process upon it and consents that all such service of process may be made
 
 

 

 10 

	 	
by registered mail (return receipt requested) directed to its address set forth on the signature pages hereof and service so made shall be deemed to be completed five (5) days after the same
shall have been so deposited in the Canadian mails, or, at Collateral Agent’s option, by service upon Pledgor in any other manner provided under the rules of any such courts. Within thirty (30) days after such service, Pledgor shall appear in
answer to such process, failing which Pledgor shall be deemed in default and judgment may be entered by Collateral Agent against Pledgor for the amount of the claim and other relief requested. 
 

  

	 	(d)
	 
	PLEDGOR AND COLLATERAL AGENT HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS PLEDGE AGREEMENT OR
ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF PLEDGOR AND COLLATERAL AGENT IN RESPECT OF THIS PLEDGE AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED
HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. PLEDGOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT PLEDGOR OR COLLATERAL AGENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS PLEDGE AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF PLEDGOR AND COLLATERAL AGENT TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

  

	 	(e)
	 
	Collateral Agent and the Lender shall not have any liability to Pledgor (whether in tort, contract, equity or otherwise) for losses suffered by Pledgor in
connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Pledge Agreement, or any act, omission or event occurring in connection herewith, unless it is determined by a final and non-appealable
judgment or court order binding on Collateral Agent or the Lender that the losses were the result of acts or omissions of Collateral Agent or such Lender constituting gross negligence or willful misconduct. In any such litigation, the Collateral
Agent or the Lender shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Pledge Agreement and the other Financing Agreements.

 

  

	 	(f)
	 
	Pledgor hereby expressly waives all rights of notice and hearing of any kind prior to the exercise of rights by Collateral Agent or the Lender from and after
the occurrence of an Event of Default to repossess the Collateral with judicial process or to replevy, attach or levy upon the Collateral or other security for the Obligations. Pledgor waives the posting of any bond otherwise required of Collateral
Agent or the Lender in connection with any judicial process or proceeding to obtain possession of, replevy, attach or levy upon the Collateral or other security for the Obligations, to enforce any judgment or other court order entered in favour of
Collateral Agent or the Lender or to enforce by specific
 
 

 

 11 

	 	
performance, temporary restraining order, preliminary or permanent injunction, the Loan Agreement or any other Financing Agreement. 
 

  
 SECTION 7.4  Waiver of Notices.    Pledgor hereby expressly waives demand, presentment, protest and
notice of protest and notice of dishonour with respect to any and all instruments and commercial paper, included in or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of any kind or nature whatsoever
with respect to the Obligations, the Collateral and this Pledge Agreement, except such as are expressly provided for herein. No notice to or demand on Pledgor which Collateral Agent may elect to give shall entitle Pledgor to any other or further
notice or demand in the same, similar or other circumstances. 
  
 SECTION 7.5  Amendments and
Waivers.    Neither this Pledge Agreement nor any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by a written agreement signed by an authorized officer of Collateral
Agent, and as to amendments and modifications, as also signed by an authorized officer of Pledgor. Collateral Agent shall not, by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its rights, powers and/or
remedies unless such waiver shall be in writing and signed by an authorized officer of Collateral Agent. Any such waiver shall be enforceable only to the extent specifically set forth therein. A waiver by Collateral Agent of any right, power and/or
remedy on any one occasion shall not be construed as a bar to or waiver of any such right, power and/or remedy which Collateral Agent would otherwise have on any future occasion, whether similar in kind or otherwise. 
  
 SECTION 7.6  Waiver of Counterclaims.    Pledgor waives all rights to interpose any claims,
deductions, setoffs or counterclaims of any nature (other than compulsory counterclaims) in any action or proceeding with respect to this Pledge Agreement, the Obligations, the Collateral or any matter arising therefrom or relating hereto or
thereto. 
  
 SECTION 7.7  Indemnification.    Pledgor shall indemnify and hold
Collateral Agent, the Lender and their respective directors, agents, employees and counsel, harmless from and against any and all losses, claims, damages, liabilities, costs or expenses imposed on, incurred by or asserted against any of them in
connection with any litigation, investigation, claim or proceeding commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement, performance or administration of this Pledge Agreement, any other Financing
Agreements, or any undertaking or proceeding related to any of the transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses
of counsel. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public policy, Pledgor shall pay the maximum portion which it is permitted to pay under
applicable law to Collateral Agent or any Lender in satisfaction of indemnified matters under this Section. To the extent that the rights of indemnity pursuant hereto are in favour of any Person that is not a party hereto, such rights shall be held
in trust for and on behalf of such Person by the Collateral Agent. The foregoing indemnity shall survive the payment of the Obligations, the termination of this Pledge Agreement and the termination or non-renewal of the Loan Agreement. All of the
foregoing costs and expenses shall be part of the Obligations and secured by the Collateral. 
  
 SECTION
7.8  Judgment Currency.    To the extent permitted by applicable law, the obligations of Pledgor in respect of any amount due under this Pledge Agreement and other Financing Agreements to which Pledgor is a party
shall, notwithstanding any payment in any other
 
 

 12 

 
currency (the “Other Currency”) (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the currency in which it is due (the “Agreed
Currency”) that the Lender may, in accordance with normal banking procedures, purchase with the sum paid in the Other Currency (after any premium and costs of exchange) on the Business Day immediately after the day on which the Lender receives
the payment. If the amount in the Agreed Currency that may be so purchased for any reason falls short of the amount originally due, Pledgor shall pay all additional amounts, in the Agreed Currency, as may be necessary to compensate for the
shortfall. Any obligation of Pledgor not discharged by that payment shall, to the extent permitted by applicable law, be due as a separate and independent obligation and, until discharged as provided in this Section, shall continue in full force and
effect. 
  
 SECTION 7.9  Partial Invalidity.    If any provision of this Pledge
Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Pledge Agreement as a whole, but this Pledge Agreement shall be construed as though it did not contain the particular provision held to
be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. 
  
 SECTION 7.10  Successors.    This Pledge Agreement, the other Financing Agreements and any other document referred to herein or therein
shall be binding upon Pledgor and its successors and assigns and inure to the benefit of and be enforceable by Collateral Agent and its successors and assigns, except that Pledgor may not assign its rights under this Pledge Agreement, the other
Financing Agreements and any other document referred to herein or therein to which it is a party without the prior written consent of Collateral Agent. 
  
 SECTION 7.11  Entire Agreement.    This Pledge Agreement, the other Financing Agreements, any supplements hereto or thereto, and any instruments or documents
delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings,
negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. 
  
 SECTION 7.12  Attachment.    The security interest created hereby is intended to attach when this Pledge Agreement is executed by
Pledgor and delivered to Collateral Agent. 
  
 SECTION 7.13  Headings.    The
division of this agreement into Sections and the insertion of headings are for convenience only and shall not affect the construction or interpretation of this Pledge Agreement. 
  
 SECTION 7.14  Acknowledgement.    Pledgor acknowledges receipt of a copy of this Pledge Agreement. 
  
 SECTION 7.15  Facsimile.    This Pledge Agreement may be executed and delivered by facsimile
transmission and Lender and Collateral Agent may rely on all such facsimile signatures as though such facsimile signatures were original signatures. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

 

 13 

  
 
	 MAD CATZ INTERACTIVE, INC.
 
	 
	 Per:
 	 	 /s/    MORRIS PERLIS
        
 

	  	 	 Name: Morris Perlis
 Title: Chief Financial
  
 Address:
                141 Adelaide Street West
                                  Toronto, Ontario
                                  M5H 3L4
  
 Facsimile No.: (416) 368-7779
 Attention: President
 

 
 

 14 

  
 ATTACHMENT 1 to 
 Pledge Agreement 
  
 Item A.    Pledged Shares 
  
 
	 Pledged Share Issuer
 
	    	 Common Shares
 

	  	    	 No. of Shares
 Outstanding
 
	    	 No. of Shares
 Pledged
 
	    	 % of Outstanding
 Shares
Pledged
 

	 MAD CATZ INTERACTIVE ASIA LTD.
 	    	 ·
 	    	 ·
 	    	 1
 

 

 ATTACHMENT 2 to 
 Pledge Agreement

  
 Chief Executive Office, etc. 
  
 141 Adelaide Street West 
 Toronto, Ontario

 M5H 3L4 
 

 16

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